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Economy

Scott Brown Weakened Restrictions On Goldman Sachs Abuses Aired By Whistleblower

Sen. Scott Brown (R-MA)

Sen. Scott Brown (R-MA) -- "He did it!"

In his public resignation letter in today’s New York Times, former Goldman Sachs executive Greg Smith said that one of the fastest ways to get ahead with the firm is to persuade clients “to invest in the stocks or other products that [the firm is] trying to get rid of because they are not seen as having a lot of potential profit.” He lambastes a firm culture where colleagues openly boast of “ripping their clients off.”

The sad thing is, this sort of shady behavior might well have been on the way to being curtailed if not for the actions of Sen. Scott Brown (R-MA). After Brown was elected to the senate in 2010, he threatened to join a Republican filibuster of the Dodd-Frank Wall Street Reform and Consumer Protection Act, using that threat to significantly water down the bill. Among the industry-favored concessions he extracted was weakening of the “Volcker rule,” which was meant to curb risky speculative investments that do not benefit customers.

Thanks to Brown’s maneuver, the final bill upped the amount of risky trading big banks like Goldman could engage in, increasing the amount of gambling they’re able to do by billions of dollars. Since then, financial industry lobbyists have been hammering away at the the rule in an attempt to render it completely meaningless.

The financial sector, of course, has repaid Brown with a flurry of campaign contributions. Between contributions from the firm’s leadership PAC and contributions from company employees, Brown has already received more than $40,000 in campaign cash from Goldman Sachs this cycle.

Climate Progress

The Victims Of Carbon Pollution: Asthmatic Children

Anti-science Republican candidate Rick Santorum said at a campaign event, “The dangers of carbon dioxide? Tell that to a plant.” But back in reality, carbon pollution poses very real dangers to the climate and public health, including inducing more asthma cases than ever. Last week, the Sierra Club and Natural Resources Defense Council also rolled out a seven-figure ad showing who suffers from the work of polluters and their lobbystsasthmatic children:

“The icon of climate change, is more than the image of a polar bear on a melting ice floe trying to survive,” National Resources Defense Council senior scientist Kim Knowlton said. “It’s really the face of a child with asthma, using an inhaler to breathe.”

The EPA is about to release a nationwide carbon pollution rule limiting emissions from power plants, standards that ultimately protect children. The American Lung Association will have billboards in two states, on display in Columbus, OH and Pittsburgh, PA. View it:

NEWS FLASH

Transportation Secretary Ray LaHood Denied Vote In Illinois | Transportation Secretary Ray LaHood was blocked from casting a vote in Illinois last week. According to Politico, LaHood was trying to vote early in Peoria County for his son, Darin, who was running as a delegate for Newt Gingrich, but was given an electronic ballot for the incorrect district. When LaHood protested the ballot, an election official told him it had been spoiled and he could not receive a replacement. LaHood, who was a Republican member of Congress before joining President Obama’s cabinet, indicated he supports Obama in the general election, but that he wanted to support his son in the primary.

-Zachary Bernstein

NEWS FLASH

More Than Two-Thirds Of Americans Think Romney’s Carried Interest Tax Loophole Is ‘Unreasonable’ | A new Bloomberg News poll released today shows that 68 percent of Americans believe the “carried interest” tax loophole — which lets wealthy money managers, including GOP presidential hopeful Mitt Romney, dramatically lower their tax rates — is “unreasonable.” Just 17 percent of respondents said the policy was reasonable. In the last two years, this loophole has reduced Romney taxes by $2.6 million. Closing the carried interest loophole could raise $10 billion in revenue over 10 years.

Health

Wisconsin Assembly Bans Private Health Insurance Plans From Offering Abortion Coverage

The Republican-controlled Wisconsin state Assembly passed a bill banning private insurance plans from covering abortions except in cases “of rape, incest or when the health of the mother is at risk.” The GOP-backed legislation already had passed the state Senate, and it cleared the House early Wednesday morning by a 61-34 vote.

Democrats argued the law would create more burdens for women seeking abortions and another unnecessary measure continuing a “war on women.” But GOP state Rep. Joel Kleefisch disagreed. “What about the rights of the women who have not yet been born?” he asked. And the bill’s Republican sponsor framed it as a moral issue:

Rep. Joan Ballweg, a Republican sponsor of the bill…urged everyone to understand the strong feelings of those who supported the measure.

It’s not a war, it’s what we believe whole heartedly,” she said to a silent Assembly chamber after describing her personal loss. “I would hope you respect that. We have different opinions.”

Democrats argued that government should not be the one telling women which abortions can be covered and which can’t.

Keep government out of the bedroom and the doctor’s office,” said Rep. Terese Berceau, D-Madison.

The bill now heads to Republican Gov. Scott Walker’s desk, and it is likely Walker will sign it into law. In his new budget proposal, Walker also supported repealing Wisconsin’s Contraceptive Equity Law, which requires insurance companies to cover prescription birth control, and Title V funding, which cover access to health care like cancer screenings and access to contraception for uninsured men and women.

Under the Affordable Care Act, states are allowed to prohibit abortion coverage in plans sold in the state exchanges. Currently, 12 states have enacted similar legislation restricting insurance coverage of abortions since the Affordable Care Act (ACA) passed in 2010, eight of which restrict abortion coverage in all private plans in the state.

Fatima Najiy

Climate Progress

False Balance Lives At The New York Times

One of the country’s best climate reporters proves once again that false balance is alive and well at even the best papers.

The article in question is “Rising Sea Levels Seen as Threat to Coastal U.S.” by Justin Gillis. It’s on the new Climate Central report whose news release we reposted earlier today. As Gillis explains:

About 3.7 million Americans live within a few feet of high tide and risk being hit by more frequent coastal flooding in coming decades because of the sea level rise caused by global warming, according to new research.

If the pace of the rise accelerates as much as expected, researchers found, coastal flooding at levels that were once exceedingly rare could become an every-few-years occurrence by the middle of this century.

This isn’t terribly controversial among climatologists I talk to, though this report appears to be the first to add storm surges to warming-driven sea rise, spell out the danger in every U.S. coastal region and ”estimate the proportion of the national population at risk from the rising sea.”

Gillis quotes the author, of course:

“Sea level rise is like an invisible tsunami, building force while we do almost nothing,” said Benjamin H. Strauss, an author, with other scientists, of two new papers outlining the research. “We have a closing window of time to prevent the worst by preparing for higher seas.”

But Strauss is the only scientist quoted in the article. To ‘balance’ Strauss, the Times quotes one of the top anti-scientist disinformers in the country, Myron Ebell, of the could-not-be-more debunked Competitive Enterprise Institute (see, for instance, “Santer, Jones, and Schneider respond to CEI’s phony attack on the temperature record“).

I’m assuming it’s the New York Times editors who are the ones who are still demanding this nonsensical balance — see Science Times stunner: “… a majority of the section’s editorial staff doubts that human-induced global warming represents a serious threat to humanity”).

Even so, that’s no excuse for this misleading paragraph:

Read more

NEWS FLASH

3 In 10 Republicans Want Limbaugh Fired | Thirty percent of Republicans think that Rush Limbaugh should be off the air following his sexist attack on Sandra Fluke, according to a new Bloomberg poll. Just yesterday, ThinkProgress reported that only 29 percent of likely voters believe Limbaugh’s apology was sincere. According to today’s poll, “men are split over whether the radio host should be let go from his job — 49 percent say so, while 47 percent disagree. Fifty-six percent of women support the move compared with 39 percent who don’t.” Since Limbaugh’s tirade just two weeks ago, 140 companies pulled their ads from Limbaugh’s show.

Justice

Reid Forces McConnell To Compromise On Judges

As ThinkProgress previously reported, Senate Majority Leader Harry Reid (D-NV) filed seventeen petitions to break Senate Republican filibusters on as many judges earlier this week. Initially, McConnell reacted to these petitions with an increasingly implausible list of reasons why the Senate could not vote on these nominees right away, before finally admitting that he was opposing the nominees because Reid made Senate Republicans “look bad” by pointing out their obstructionism.

As it turns out, this was not an effective messaging strategy for Mr. McConnell, who has now agreed to allow most of the seventeen judges to move forward:

Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) announced the agreement on the floor but said they wouldn’t provide any details until they briefed their respective caucuses later in the afternoon. However, aides said the deal will allow Democrats to move 12 district court judges and 2 circuit court judges by May 7.

Now, let’s be clear, this is not a perfect deal. There is absolutely no reason whatsoever why every judge who has cleared the Senate Judiciary Committee could not be confirmed today — and there is certainly no reason why judges who received little if any opposition in committee need to wait as long as May 7. It’s also inexcusable that one of President Obama’s most outstanding nominees, Ninth Circuit nominee Paul Watford, is not on the list of judges being confirmed (a list of the judges is below the jump).

Nevertheless, today’s deal is a massive improvement over the status quo. According to data provided by the Federal Judicial Center, the 112th Congress has confirmed judges at a rate of about 4.75 judges per month. Today’s deal, by contrast, means that fourteen new judges will be confirmed in just two months. This is a significant uptick — even if it is barely enough to make a dent in the 83 currently existing judicial vacancies — and Reid deserves credit for making this happen.

Indeed, there is an important lesson here for Reid and for progressive lawmakers in general. McConnell remains the most obstructionist Senate Leader in recent history, and he has been a constant barrier to ensuring our nation functions effectively from the moment President Obama took office. Nevertheless, we know now that he can be forced to back down. Harry Reid decided to fight this week, and he was rewarded for it. He should remember that fact the next time McConnell stands in the way.
Read more

Climate Progress

Colbert Agrees With Mitt, Rick, And Newt: Plants, Windmills And Algae Are Dumb

Last night, Stephen Colbert mocked the Republican presidential candidates for their derision of climate science and clean energy. Colbert took on Rick Santorum’s pithy argument against the threat of carbon dioxide pollution (“Tell that to a plant“), Mitt Romney’s attack on renewable energy and electric vehicles (“You can’t drive a car with a windmill on it“) and Newt Gingrich’s mockery of biofuels research (“Algae!“):

Watch it:

Colbert imagined what the past would have been like if the GOP’s present-day anti-science obsession held sway then.

“Hold on there sport, you want to cure my syphilis with the mold on a hunk of bread? I’d rather remain blind and insane,” Colbert said. “And I’m pretty sure these gentlemen [the GOP candidates] feel the same way.”

Economy

In Aftermath Of Whisteblower Editorial, British Members Of Parliament Slam Goldman Sachs

Former Goldman Sachs employee Greg Smith’s scathing New York Times editorial, in which he announced his resignation from the firm and decried its “toxic and destructive” atmosphere, has sparked a host of reactions in the United States, where Goldman was at the center of the financial collapse that engulfed the economy in 2008.

But Goldman also has an extensive business portfolio in Europe (Smith was based in London), and this morning, two members of the British Parliament slammed the bank for the practices outlined in Smith’s piece, the London Evening Standard reports:

Former Liberal Democrat Treasury spokesman Lord Oakeshott said: “We all know in the City that Goldman help themselves before they help their clients — here is the proof. Greg Smith says you get promoted there if you are not an ‘axe murderer’, and the people of Greece and the rest of the eurozone (sic) are paying the price.”

Labour MP John Mann, a member of the Treasury select committee, said: “At last somebody has come out and exposed what has been really going on. There is a real challenge to the Government to sort this out and make sure the banking industry is properly focused on its customers.”

As Oakeshott noted, the Eurozone, and Greece in particular, are paying a hefty price for their dealings with Goldman Sachs, which organized a debt swap deal with the Greek government in 2001. Goldman made hefty profits — on the day the deal was finalized, Greece already owed the bank $793 million — while Greece eventually plunged into a debt crisis that has spread across Europe. The deal was so complex that Greek officials weren’t aware of how bad a bet they had made until years later.

Members of Parliament weren’t the only ones set ablaze by the editorial. Speculation has spread that Smith’s expose could cause Goldman’s clients to flee the bank. It’s stock price dropped three percent this morning, and Rolling Stone’s Matt Taibbi, who has written extensively about Goldman Sachs, wrote that the editorial might be exactly what is needed to cause “real change” on Wall Street. And despite the bank’s best efforts to quell the criticism, others have mused that the fallout from the editorial could even lead to the ouster of CEO Lloyd Blankfein.

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