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Obama to introduce executive pay limits for bailed out companies.

The Obama administration plans to mandate new executive pay limits for financial companies that are receiving any help from the $700 billion bailout fund. “If the taxpayers are helping you, then you’ve got certain responsibilities to not be living high on the hog,” President Obama said in an interview. Sen. Claire McCaskill (D-MO) has proposed that no employee of a bailed-out company can receive more than $400,000 in total compensation until it pays the money back.

Update

Obama will announce today that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive significant federal assistance in the future.


Update

,Sen. Bernie Sanders (I-VT) was the first to propose the idea of capping salaries last October. Watch his appearance last night on The Rachel Maddow Show.


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Politics

Baucus: Our plate is too ‘full’ for health care reform this year. (Updated)

Sen. Max Baucus (D-MT) — citing “obstacles” such as the economy, energy legislation, Iraq and Afghanistan, and the deficit — said at a conference today that health care reform is unlikely to happen this year. As Finance Committee Chairman, Baucus plays a key role in pushing through health care legislation:

“Why might reform not happen this year? As is often the case, the new administration and the new Congress face competing priorities,” said Sen. Max Baucus. … “These priorities compete for time on the agenda and attention in the press and in public.” “The president’s dance card is indeed full,” he added.

House Energy and Commerce Chairman Henry Waxman (D-CA) fired back, saying, “We need to get this job accomplished this year and get the bill to the president.”

Update

It appears the Washington Times writeup mischaracterized Baucus’ views. Baucus was merely citing potential obstacles to reform, but his own view is: “Getting health care reform legislation enacted this year is my top priority.”

Climate Progress

Hansen: “Tell Barack Obama About Coal River Mountain”

Our top climate scientist has posted his thoughts on Coal River Mountain and Obama coal policy in general here. He notes:

Coal River Mountain is the site of an absurdity….

The issue at Coal River Mountain is whether the top of the mountain will be blown up, so that coal can be dredged out of it, or whether the mountain will be allowed to stand. It has been shown that more energy can be obtained from a proposed wind farm, if Coal River Mountain continues to stand. More jobs would be created. More tax revenue would flow, locally and to the state, and the revenue flow would continue indefinitely. Clean water and the environment would be preserved. But if planned mountaintop removal proceeds, the mountain loses its potential to be a useful wind source (see here).

The whole note is worth reading, though the analysis of U.S. emissions trends omits a key analysis I posted earlier (see “U.S. carbon dioxide emissions growth during Bush years 300% higher than official estimates“).

Yglesias

Planning to Fail

by Ryan Avent

One of the benefits of winning a sweeping electoral victory, one might have assumed, would be that when climate change denialist and all around kook James Inhofe starts ranting that what we really need is a lot of new highway spending, we could tell him to go jump in a lake. One might have assumed:

Barbara Boxer and infamous global warming denier James Inhofe will present an amendment to the Senate stimulus plan that could funnel as much as $50 billion in additional funding to highways, Streetsblog has learned. Friends of the Earth tells us that Boxer’s staff confirmed she will introduce the amendment, which could bring the total for highways close to $80 billion, exactly the figure Inhofe demanded last week in a letter to the Committee on Environment and Public Works.

Of course, there are billions of dollars worth of highway repairs that could usefully be done, but Imhofe doesn’t seem as interested in that as in making the stimulus bill worse. Just today, Inhofe helped block an amendment to add highway funding (along with additional money for transit and water projects), because it added to the overall size of the bill. What he’s after is the replacement of other stimulus provisions with $50 billion in highway spending, which is likely to make the stimulus bill worse. Though there are more highway capital projects than transit capital projects that are “shovel-ready,” the number that can quickly be brought online is still quite limited — that, recall, is why the administration surprised observers by including so little infrastructure spending in the first place.

A new report from Todd Litman out of the Victoria Transport Policy Institute makes the point:

Overall, transportation infrastructure investments are not particularly effective short-term economic stimulation expenditures. If the only objective is economic stimulation it would be better to invest in more labor-intensive industries such as medical services, education and public transportation operation. Transportation facility investments are only justified if they reflect strategic objectives and future demands.

I’m not sure what Inhofe’s strategic objectives are, but they’re unlikely to match up with those of the Democratic leadership or the country as a whole. Given that he’ll probably vote against the bill in any case, I can’t see why Barbara Boxer would feel the need to humor Inhofe on this issue, and reduce the effectiveness of the stimulus in the process.

Yglesias

State Secrets

By Brian Beutler

Eric Holder wants to end abuse of the state secret privilege:

I will review significant pending cases in which DOJ has invoked the state secrets privilege, and will work with leaders in other agencies and professionals at the Department of Justice to ensure that the United States invokes the state secrets privilege only in legally appropriate situations.

That’s great news insofar as you trust Eric Holder. But though he’ll surely be an improvement over Bush Attorneys General, there’s no reason to assume his judgment on this score won’t, over time, become politicized. What would really win me over is if Holder promised to support legislation that would ultimately result in some sort of consistent review process for all invocations of the state secrets privilege. Most of you probably know this already, but the history of the state secret privilege is a fairly ugly one.

Back in the early 1950s, three Air Force contractors were killed in a bomber crash, and their widows sued the United States for compensation. When they tried to force the government to produce the incident report for the crash, though, the government refused, claiming the report contained state secrets and that releasing it would imperil the nation. Lower courts weren’t particularly moved and sided with the widows, but the Supreme Court disagreed, affirming the government’s right to withhold evidence in this manner and winning substantial deference for the privilege from the courts for decades.

The only problem is, the government lied. Contrary to its claims, the bomber wasn’t on a secret mission, and there were no top secret technologies aboard. Nothing in the incident report, which was declassified several years ago, legitimized the government’s decision to withhold it. What the report did contain, however, was evidence that the plane had been rather poorly maintained–a fact that might have been embarrassing for the Air Force, and vindicating for the dead mens’ wives, but that hardly amounted to a legitimate claim of state secret.

Precedent is precedent, though. The Supreme Court had little information to work with, but it came nonetheless, and probably incorrectly, to a far reaching decision that has influenced case law pretty widely ever since. In that way, state secrets has become one of the executive branch’s most powerful privileges

The best way to scale back that power, it seems, would be for Congress to pass a law requiring judges to review classified evidence behind closed doors whenever a state secrets claim is made in their court. Or, thinking out loud, to create a separate court (maybe modeled on the FISC?) which would independently review state secrets claims as they come, and determine their validity one by one. I don’t hold out much hope that this will happen, but if Eric Holder could get behind it, that would be change I can believe in.

Politics

GOP Rep Pushing Bill To Rename Midland, TX Courthouse After Bush

bushbustweb2.jpgDuring the past few months, President Bush and his closest allies have been working diligently to shape his legacy. Their efforts have included rewriting history in the last days of his presidency, creating the Bush-Cheney Alumni Association website to “set the record straight,” and working on the “partisan” Bush library and “think tank” at Southern Methodist University.

Now, the Dallas Morning News reports Bush may be getting some help from his friends in Congress:

Texas lawmakers are pushing to name a Midland courthouse for former President George W. Bush. [...] Rep. Michael Conaway, R-Midland – Bush’s longtime friend and former accountant – is pushing the idea. All 20 Texas Republicans in the U.S. House have signed on, as well as 10 of the 12 Texas Democrats.

However, the name change would be particularly ironic considering the Bush administration’s penchant for abusing the justice system. Some of the lowlights:

– Bush directly and explicitly ordered torture, including the waterboarding of at least three detainees.

– The Bush administration repeatedly denied the rights of prisoners at Guantanamo Bay until the Supreme Court ruled that habeas corpus protections apply to detainees.

– An 18-month DOJ Inspector General and Office of Professional Responsibility investigation released in September found that the Bush administration fired nine U.S. Attorneys in 2006 for political reasons.

– Bush secretly authorized the NSA’s warrantless wiretapping program which has infringed on the liberties of ordinary Americans.

While Conaway introduced the measure last week, he pushed a similar idea in Congress last spring but “the bill died in committee.” But unlike previous local measures honoring his name, even if the bill passes, Bush “would have to share the honor with his dad and a longtime Democratic congressman.”

(HT: Pam’s House Blend)

- Matt Finkelstein

Health

Baucus: Health Reform Might Not Happen This Year

baucushealthface.jpgOver the past few days, before the Daschle story broke, several news outlets began arguing that health reform isn’t happening this year. Key stakeholders sounded less than optimistic and some prominent Democratic lawmakers questioned the imminence of reform.

Today, the Washington Times’ Sean Lengell reports (before the Daschle story broke, it seems) that even Sen. Max Baucus (D-MT), the chairman of the Senate Finance Committee and a big supporter of comprehensive reform, thinks that health care may have to wait:

“Why might reform not happen this year? As is often the case, the new administration and the new Congress face competing priorities,” said Sen. Max Baucus, Montana Democrat and Senate Finance Committee chairman, at a health policy conference in Washington hosted by AcademyHealth and Health Affairs magazine. “These priorities compete for time on the agenda and attention in the press and in public.” “The president’s dance card is indeed full,” he added.

This is the alternative theory of why Daschle dropped out. As one of my colleagues suggested, Daschle may have read the tea leaves on health reform and concluded that the economic crisis has rendered health reform unaffordable. So, he drops out and provides Obama with a rationale for failing to enact health reform during his first term.

What do you think?

Update

Speaking to the cameras after Daschle’s announcement, Senate Majority Leader Harry Reid (D-NV) said, “we intend to move forward on this issue [of health care reform].”


Update

,It appears the Washington Times writeup mischaracterized Baucus’ views. Baucus was merely citing potential obstacles to reform, but his own view is: “Getting health care reform legislation enacted this year is my top priority.”

Culture

Picture Picture, on the Blog

By Brian Beutler

Seems as if Matt wants more pictures. Well, like Matt, I too have been to Barcelona. It’s been almost a year, now, but presumably things haven’t changed that much. For instance, as now, people liked this guy:

They had both phallic, modern construction:

And Gaudi:

And this, which made me laugh:

The end.

Politics

Bailed-out Wells Fargo plans lavish corporate getaway to Vegas.

wynn.jpg Wells Fargo, “once among the nation’s top writers of subprime mortgages,” has received approximately $25 billion in taxpayer money from the federal bailout. While other bailed-out firms — such as AIG — have canceled expensive junkets, the AP reports that Wells Fargo is sticking with them:

Wells Fargo…has booked 12 nights at the Wynn Las Vegas and its sister hotel, the Encore Las Vegas beginning Friday, said Wynn spokeswoman Michelle Loosbrock. The hotels will host the annual conference for company’s top mortgage officers.

The conference is a Wells Fargo tradition. Previous years have included all-expense-paid helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 employees and guests. [...]

“Recognition events are still part of our culture,” spokeswoman Melissa Murray said. “It’s really important that our team members are still valued and recognized.”

Update

This evening, Wells announced that it was canceling the event after coming under intense criticism from lawmakers and investigators.

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