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Economy

GOP Senator Worries JP Morgan’s Losses Will Lead To Efforts To Strengthen Financial Regulations

Sen. Bob Corker (R-TN)

When JP Morgan Chase CEO Jamie Dimon dropped a bomb on the financial world two weeks ago by announcing that the bank had lost at least $2 billion on a series of trades that went bad on a London-based investment desk, Tennessee Sen. Bob Corker (R) was among the first lawmakers to call for investigations and hearings into the trade. Today, Corker got his first chance to get some answers, as the top regulators from the Commodities Futures Trading Commission and Securities and Exchange Commission appeared before the Senate Banking Committee.

But it wasn’t JP Morgan’s losses that Corker seemed concerned with. Instead, with advocates for stronger financial rules (including President Obama himself) pushing for a re-examination of pending regulations instituted by the 2010 Dodd-Frank Wall Street Reform Act, Corker was worried that the JP Morgan losses would bolster the case for a stronger Volcker Rule — the yet-to-be-finalized regulation that would ban federally-insured banks from engaging in certain types of risky trading:

CORKER: I fear that you’re under pressure, that a lot of calls are being made, that the administration is concerned that the American people are going to wake up and look at the last three years as a bad dream. … This big Dodd-Frank bill really doesn’t address real-time issues. And what you’re going to do is cause this Volcker Rule to become something that it was never intended to be.

Watch it:

Regulators are indeed facing pressure to strengthen the Volcker Rule, and as I wrote yesterday, that pressure is legitimate. Though it is unclear whether JP Morgan’s trade would have been subject to the rule, it is clear that the Volcker Rule as proposed was stronger than it is in its latest draft form. But JP Morgan and its cohorts on Wall Street played a major role in watering it down. That lobbying created a loophole that may have kept JP Morgan’s trade legal even under the rule.

Risky trades designed to make bank’s massive profits — known as proprietary trades — were at the center of the financial crisis that ultimately ended with taxpayers bailing out America’s biggest banks. Regulations like the Volcker Rule (and others included in Dodd-Frank) are aimed preventing taxpayers from having to foot the bill again in the future. The JP Morgan loss has given regulators and policymakers a golden opportunity to re-examine those rules and make sure they are sufficiently strong.

That may seem an inconvenience to lawmakers, like Corker, who opposed the regulations in the first place. To Americans who have to backstop this risky trading even when it goes drastically wrong, though, the chance to strengthen the rules should be a welcome one.

Alyssa

The AMC You’re Not Watching

When AMC announced earlier this week that Breaking Bad will premiere its fifth season on July 15, it was met with so much rejoicing that many missed the second half of the press release: AMC will also be premiering the first of eight episodes in a new reality series called Small Town Security, about “a family-owned private security company in Georgia.”

Even for AMC, which has made several high-profile missteps over the past few years, this seems like a strange detour. Over the past year, the network has dabbled in both talk shows and reality shows with Talking Dead, Comic Book Men, and The Pitch. But those series were clearly piggybacking on the success of AMC’s two most prominent (and most profitable) successes: The Walking Dead and Mad Men.

It’s admittedly harder to make a reality series about manufacturing meth, though I’d definitely tune in for a Breaking Bad talk show (Talking Bad? Breaking Chat? Just spitballing here). But Small Town Security is AMC’s first step toward standalone reality programming.

The conventional narrative – and in my opinion, the correct one – is that AMC grew too fast, too soon. After quietly rolling along as the premiere channel for commercial-filled American movie “classics” for decades, the network experimented with original content and hit two unprecedented home runs: Mad Men and Breaking Bad. But quality costs money, and each of AMC’s attempts to curb the costs of its original programming resulted in an embarrassing loss of face, from protracted salary and creative arguments with Mad Men creator Matthew Weiner to rumblings about Breaking Bad moving to FX, amid rumors that AMC was demanding a shortened (read: cheaper) final season.

I’m a TV critic, not a businessman, and I’m well aware that my priorities are different than the priorities of AMC executives. But I can’t see how it’s a good idea to invest in reality programming that has no ties to AMC’s flagship series. Small Town Security is being developed by producers Ken Druckerman and Banks Tarver, whose biggest success is VH1’s so-bad-it’s-awful Mob Wives. The sky certainly isn’t falling – AMC has already greenlit pilots for two new scripted dramas – but I don’t know any Breaking Bad fans who will stick around to watch a reality show that would seem much more at home on Discovery or A&E.

High-quality television obviously costs money, and if the price of Mad Men and Breaking Bad means filling other time slots with cheap-to-produce supplemental content, I can live with it. But it wasn’t so long ago that the network was investing in genres that no other network would touch, which led to successes like The Walking Dead and failures like the miniseries remake of The Prisoner. I don’t see any of that pilgrim spirit in AMC’s latest moves. That may be good business. But let’s not forget that AMC’s willingness to invest real money in something risky and brave is how we got Mad Men and Breaking Bad in the first place.

Justice

GOP Rep. Rob Bishop Claims Federal School Lunch Program Is Unconstitutional

Under the federal Healthy, Hunger-Free Kids Act, public schools can elect to receive federal funding for their meals programs, but they can be required to give back some of those funds if they fail to comply with certain rules. That’s what happened to two schools in Utah last week after they broke their agreement with the federal government by selling non-nutritious sodas during the school day.

Rep. Rob Bishop (R-UT), however, thinks that requiring schools to actually do what they agreed to do in order to receive federal funds is unconstitutional. He took to the floor shortly after these two schools were told to pay back some of the money they received to rail against the idea that public schools should keep their promises:

It was wrong for congress to invade the role of states. It was wrong to punish kids for these silly reasons. It is wrong to violate federalism. If a community, school, and their PTA. wanted to create the standards themselves, fine. It is wrong for this body to think that every issue has to be decided here in this room and it is wrong for us to forget that the 10th amendment has a purpose. . . . It is there for a reason and should be respected.

Watch it:

Requiring schools to keep their promises does not violate the Constitution — at least when those promises are made in order to receive federal funding. Moreover, if Bishop were correct that holding public schools or other state government bodies to their word is unconstitutional, than far more than health school lunches would be at stake. Bishop’s theory would also apply to other, similar, federal programs, including Medicaid. Like the school lunch program, Medicaid is a federal-state partnership in which the federal government gives the states money, with certain conditions, to implement a program that serves low income Americans. If Bishop’s constitutional argument successfully brought down the school lunch program, Medicare and other similar programs could be next.

Bishop will also have a tough time finding anything in the Constitution that supports his theory. The Constitution grants Congress the power to “lay and collect taxes” and “provide for the . . . general welfare of the United States.” This includes the federal government’s constitutional power to provide for the general welfare by funding state education or healthcare programs and imposing conditions on the way that money is used — and nothing in the language of the Tenth Amendment takes this power away. States are of course free to refuse federal money, but if they accept it they must abide by conditions that Congress attaches. Otherwise Congress would have no power to prevent states from taking billions of dollars in federal grants and spending the money on the salaries of state government officials.

–Alex Brown

Climate Progress

Sensenbrenner: ‘CO2 Is A Natural Gas. Does This Mean That All Of Us Need To Put Catalytic Converters On Our Noses?’

Speaking at the Heartland Institute’s climate denial conference in Chicago this afternoon, Congressman Jim Sensenbrenner (R-WI) said that labeling heat-trapping carbon dioxide a pollutant is “propaganda.”

Sensenbrenner is a long-time climate disinformer who says that the science of man-made global warming is an “international conspiracy.” He also happens to be Vice Chair of the House Committee on Space, Science and Technology.

Blatantly ignoring the “science” part of his committee responsibilities, the Congressman today attempted to argue against the basic physics of CO2 in the atmosphere:

“CO2 is a natural gas. Does this mean that all of us need to put catalytic converters on all our noses? The fact that people think CO2 is a pollutant … basically goes into propaganda.”

The so-called “radiative forcing” of carbon dioxide from burning fossil fuels has contributed enough heat in the atmosphere over the last century to equal roughly half a billion Hiroshima nuclear bombs each year. As one researcher explained: “When there’s more energy radiating down on the planet than there is radiating back out to space, something’s going to have to heat up.”

Rep. Sensenbrenner took his unscientific personal conclusions one step further, saying he believed CO2 would help “crop yields go up” and make it “easier to feed 7 billion people.”

“I’m not one of the people going around saying CO2 is bad for you,” he concluded.

In fact, scientists around the world are calling man-made global warming one of the biggest threats to agricultural production. In Texas, a brutal warming-driven drought cost farmers $7.5 billion last year; In Thailand, “weather whiplash” in 2010 devastated rice crops, causing $40 billion in lost economic productivity; and in Mexico, severe drought reduced agricultural output by 40% already this year.

These incidents came as world food prices hit record highs in 2011 due to a combination of extreme weather events and rising oil prices. In the lead-up to these global price spikes, 2010 was the warmest year on record globally — with 19 nations setting all-time heat records.

Sensenbrenner delivered his speech to a crowd of roughly 200 people at the Heartland Institute’s 7th annual international climate conference — a yearly gathering for the nation’s most active climate change disinformers. The Heartland Institute has come under fire in recent weeks for a disastrous billboard campaign linking people who understand human-caused global warming to mass murderers. Since the billboard was put up, 12 companies have pulled their support for Heartland in the lead-up to the conference.

Sensenbrenner ended his speech with an appropriate anecodote. He referenced New York Times Columnist Paul Krugman, who wrote in a 2009 column that climate deniers were practicing “treason against the planet.”

“Mr. Krugman, I plead guilty as charged,” boasted Sensenbrenner — a politician who helps oversee one of the most important scientific committees in Congress.

The crowd burst into gleeful laughter.

Sensenbrenner also assured the crowd that Mitt Romney would not take action on global warming. When asked by an attendee who said he was “scared to death” that Romney would change his stance on man-made global warming and support renewable energy, Sensenbrenner replied, ” I don’t think that’s true. I talked to Romney before the Wisconsin primary.”

NEWS FLASH

Wall Street Has Given $102 Million To Federal Candidates So Far This Cycle | The securities and investment industry — better known as Wall Street — has given $102 million to candidates for federal office during the current election cycle, the National Journal reports. The majority has gone to Republicans, though Democrats have pocketed $40 million from the industry. Through the end of April, President Obama has banked roughly $3 million from the financial industry. His Republican opponent, Mitt Romney, has more than doubled that total, hauling in $8.5 million.

Security

GOP ‘Appalled’ Over Obama Granting Castro’s Daughter Visa, Ignores Trips Under Bush

Mariela Castro Espín, daughter of Cuban president Raúl Casto

When the State Department granted the head of Cuba’s National Center for Sex Education, Mariela Castro Espín, a visa to chair a panel on LGBT issues at the Latin American Studies Association in San Francisco later this week, the Republican response was as obvious as the Cuban LGBT activist’s relations to the Caribbean island’s Communist dictators. Her father is Cuban President Raúl Castro, her uncle is revolutionary leader and longtime dictator Fidel Castro, and the Republicans were “appalled.”

“The State Department needs to wake up from its delusional love fest with the dictators in Havana,” said right-wing House Foreign Affairs chair Rep. Ileana Ros-Lehtinen (R-FL). Republican Members of Congress released web videos and organized conference calls denouncing the visa as “outrageous.”

Even presumptive GOP presidential candidate Mitt Romney got in on the action, releasing a statement accusing the Obama administration of “a slap in the face to all those brave individuals in Cuba who are enduring relentless persecution.”

Ros-Lehtinen and Reps. Mario Diaz-Balart (R-FL), David Rivera (R-FL) and Albio Sires (R-NJ) wrote a strongly-worded letter to the State Department saying:

The administration’s appalling decision to allow regime agents into the U.S. directly contradicts Congressional intent and longstanding U.S. foreign policy.

If it’s “longstanding U.S. foreign policy” to deny Mariela Castro a visa to enter the U.S., someone forgot to tell President George W. Bush. The Bush administration granted Castro not one but three visas to enter the U.S. in 2001 and 2002. State Department spokesman william Ostick told the Miami Herald:

Mariela Castro visited once in 2001 and twice in 2002. I can’t discuss her visas specifically, but you can assume she needed one to travel.

An Obama surrogate, Freddy Balsera, told the Herald:

In fact, the top State Department Official in charge of Latin America at the time was a Cuban American. Where was their criticism then? Nowhere, because ultimately this is all about politics for them.

A ThinkProgress search of the Lexis Nexis news database for Mariela Castro’s name during 2001 and 2002 returned no results relevant to her trips to the U.S.

Former attendees at the Latin American Studies Association (LASA) said that Cuba has long been a presence at LASA conferences. This year, the State Department accepted 60 visas, denied 11, and is still processing 6. A State spokesman said visas couldn’t be rejected simply because “we don’t like you.”

LASA’s president told the Associated Press that Castro’s appearance at the conference was “an academic issue, not a political issue,” and that she’d answered a call for papers like any other conference speaker.

Health

New Wisconsin Law Forces Another Abortion Clinic To Stop Providing Medication Abortion Services

A Wisconsin clinic, Affiliated Medical Services, has stopped distributing abortion-inducing medication because a new state law makes it extremely difficult for abortion providers to offer non-invasive medication abortions. According to RH Reality Check, it is now impossible for women to receive a medical abortion from a provider in the state.

Planned Parenthood of Wisconsin suspended medication abortions in April because of the ambiguous anti-abortion measure that Gov. Scott Walker (R) signed into law, which requires women to make at least three separate visits to their doctor for the procedure.

NARAL Pro-Choice Wisconsin Executive Director Lisa Subeck said in a statement that women will “suffer” because Walker and state Republicans have limited women’s health care options in the state:

Wisconsin women will suffer because of Governor Walker’s actions. It is unacceptable that women are losing health care options because Walker has put his extreme social agenda ahead of what is best for women’s health. [...] Women lose out when out of control politicians like Scott Walker practice medicine without a license and interfere in the relationship between doctors and their patients.”

Dr. Fredrik Broekhuizen, a Wisconsin medical director, told RH Reality Check in April that “[i]f we follow the FDA rules and follow protocol, we would violate this law. And we have no ability to defend ourselves,” he said of the restrictions on medication abortions.

The fight over women’s access to abortion has been particularly fierce in Wisconsin. A Planned Parenthood clinic was firebombed in early April before Walker quietly signed anti-abortion legislation into law later in the month.

Climate Progress

Manmade Pollutants May Be Driving Earth’s Tropical Belt Expansion And Subtropical Dust-Bowlification

JR: Climate science has long predicted an expansion of the tropical belt (colored band in figure below), which we’re now observing. At the same time, also as predicted, the subtropical dry zones are shifting poleward and getting drier (see for instance, this study and this one). And that means more “Dust-Bowlification,” which is a grave threat to food security. This observed expansion is happening faster than the climate models projected. A new study in Nature (subs. req’d) offers one possible explanation for this. What follows is a news release on the study.

by Iqbal Pittalwala, via UCR Today

Black carbon aerosols and tropospheric ozone, both manmade pollutants emitted predominantly in the Northern Hemisphere’s low- to mid-latitudes, are most likely pushing the boundary of the tropics further poleward in that hemisphere, new research by a team of scientists shows.

While stratospheric ozone depletion has already been shown to be the primary driver of the expansion of the tropics in the Southern Hemisphere, the researchers are the first to report that black carbon and tropospheric ozone are the most likely primary drivers of the tropical expansion observed in the Northern Hemisphere.

Led by climatologist Robert J. Allen, an assistant professor of Earth sciences at the University of California, Riverside, the research team notes that an unabated tropical belt expansion would impact large-scale atmospheric circulation, especially in the subtropics and mid-latitudes.

If the tropics are moving poleward, then the subtropics will become even drier,” Allen said.  “If a poleward displacement of the mid-latitude storm tracks also occurs, this will shift mid-latitude precipitation poleward, impacting regional agriculture, economy, and society.”

Study results appear in the May 17 issue of Nature.

Observations show that the tropics have widened by 0.7 degrees latitude per decade, with warming from greenhouse gases also contributing to the expansion in both hemispheres. To study this expansion, the researchers first compared observational data with simulated data from climate models for 1979-1999.  The simulated data were generated by a collection of 20 climate models called the Coupled Model Intercomparison Project version 3 or “CMIP3.”

The researchers found that CMIP3 underestimates the observed 0.35 degrees latitude per decade expansion of the Northern Hemisphere tropics by about a third.  But when they included either black carbon or tropospheric ozone or both in CMIP3, the simulations mimicked observations better, suggesting that the pollutants were playing a role in the Northern Hemisphere tropical expansion.

Read more

Alyssa

Abigail Breslin and the New Generation of Female Action Heroes

Abigail Breslin may have come up as a precocious little girl in Little Miss Sunshine, and have honed that act in movies like No Reservations and Definitely, Maybe where she’s up against more experienced adult stars. But it’s exciting to hear that she’s moving into a new phase of her career by taking an action role, specifically in a movie called Final Girl where, according to Deadline, she gets to fight off a pack of feral teenage boys who want to use her in a weird initiation ritual.

It’s incredible and inspiring to me that there is a generation of teenage female actresses who are making their bones this way, whether it’s Chloe Grace Moretz playing vampire and superhero or Saorsie Ronan playing the result of an experiment in Hanna and a human hijacked by an alien in The Host. Growing up, I loved movies like The Babysitters’ Club, the Winona Ryder-anchored adaptation of Little Women, and Ten Things I Hate About You, but I know how hard I would have been cheering for girls who were allowed to be ferocious and strong instead of simply smart and creative. It’s not enough to have smart movies for and starring teenage girls if they’re all smart in the same way. Not everyone is a bookish budding feminist like Jo or Kat Stratford, and that’s absolutely fine.

And what’s particularly interesting to me about Breslin’s path is that she’s embodied all kinds of alternagirls. In Little Miss Sunshine, she’s defiantly weird, close to her grandfather, totally uninterested in the standards she’s supposed to meet. As Valentine Wiggin in Ender’s Game, she’ll get to be cerebral and loving. And as the Final Girl, further proof that Joss Whedon created our pop culture world and we all just live in it, she’ll get to fight. The idea that someone like Breslin could just keep going and not have to make a teenaged romantic comedy to continue working feels liberating, even though it’s entirely new. I’m all for letting a thousand Jodie Fosters bloom, and with Moretz, Ronan, and Breslin going strong, we might just get them.

LGBT

North Carolina Anti-Gay Pastor In 1978: Gays Used To Be ‘Hung, Bless God, From A White Oak Tree’

Worley

The anti-gay North Carolina pastor Charles Worley of Providence Road Baptist Church has been facing backlash over his recent sermon in which he said the US should pen in “all the lesbians and queers” with an electrified fence and wait for them to “die out.”

But it turns out Worley has been saying offensive things about gay people for decades.

Jeremy Hooper dug up this bit of hate from Worley in 1978, in which Worley says that “40 years ago” gay people would have been hung “from a white oak tree”:

WORLEY: I’m God’s preacher. I just believe the book. Living in a day when, you know what, it saddens my heart to think that homosexuals can go around, bless God, and get the applause of a lot of people. Lesbians and all the rest of it? Bless God, forty years ago they’d have hung ‘em, bless God, from a white oak tree, wouldn’t they? Amen.

Listen to it:

Update

Today David Pakman interviewed a lesbian who has a family member who belongs to Worley’s congregation and who has personally attended Pastor Worley’s church. She told him that she was “not surprised” by Worley’s comments, adding that there were “quite a few ‘Amens’ from the congregation”:

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