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Justice

Federal Election Commission Fines 2008 Campaign — Five Years After It Ended

Former Sen. Chris Dodd (D-CT)

Former Sen. Chris Dodd (D-CT)

Former U.S. Sen. Chris Dodd (D-CT) ended his presidential campaign in January 2008, after a weak showing in the Iowa caucuses. More than five years later, the largely-paralyzed Federal Election Commission (FEC) has fined his long-defunct campaign $42,000 for failure to properly report campaign contributions.

Because Dodd’s campaign was one of eight 2008 presidential committees to take public matching funds, it agreed to an automatic audit of campaign fundraising. That routine investigation — completed in April 2012 — found that Dodd’s campaign failed to report $764,966 in gross receipts. The matter was then referred for possible enforcement action. Nearly a year later, the Dodd 2008 campaign and the FEC signed a conciliation agreement in January. The commission accepted the agreement and make it public on Friday — more than two years after Dodd retired from public life.

Meredith McGehee, policy director at the non-partisan Campaign Legal Center, told ThinkProgress that the delayed and weak action by the FEC “shows what a joke they’ve become… They’re picking on a campaign that was incredibly unsuccessful. The candidate is no longer in office. It’s kind of like going after the mosquitoes when the room is full of lions and tigers and bears. Mosquitoes are bad, you want to get rid of them, but what does it matter if you’re being eaten by the lion, the tiger, or the bear?”

The five-year lag time, she noted, is a result of under-funding by Congress. “They just don’t have enough resources to do this is what most people would consider an effective way.” That lack of effective enforcement sends a signal to other political committees that they have little to fear if they fail to accurately report their own finances. “A lot of the effective enforcement is done when people see that there is enforcement, they self-enforce. When they don’t see enforcement, they don’t self-enforce, say ‘let’s roll the dice.’ When you win your election, the fine is just the cost of doing business.”

Audits from the 2000 campaign were mostly completed within two years. But a number of new FEC policies, instituted since, have further slowed the process. With the sequestration likely to force spending cuts at the FEC, it remains to be seen whether the three 2012 campaigns that accepted matching funds will have their audits completed by 2017.

Chris Dodd for President’s end of 2012 report showed the committee with about $18,000 in the bank. There is little forcing it to actually pay the fine and raising money for failed campaigns after the fact can be incredibly difficult — former Sen. John Glenn (D-OH) spent 23 years paying of the campaign debt from his 1984 campaign.

In addition to paying a $42,000 fine, the conciliation agreement stipulates that Dodd 2008 will “cease and desist” from violating disclosure laws going forward.

Alyssa

Motion Picture Association of America CEO Christopher Dodd On Why Movies Matter

On Friday, Motion Picture Association of America president and CEO Christopher Dodd took the stage at the National Press Club to talk about his first several years on the job. It was an interesting talk less because of policy issues that Dodd focused on, or that he discussed during the question-and-answer period, but because of the way he talked about movies, and what they’ve come to mean to him as art during his almost two years at the association. In arguing for movies’ unifying role in a politically divided country, and movies and television as key tools of cultural diplomacy, Dodd’s talk raised some fascinating questions for me about how we approach and analyze movies, and what levels of responsibility we want to assign an art form that claims that potential impact.

Dodd admitted that before coming to the MPAA, “As a father of two very young children, 7, now almost 8, and 11, my movie selections were limited.” But as he’s reconnected with the product that his member companies produce, Dodd made an argument that both serves to burnish the reputation of those companies, and potentially exposes them to higher standards than your average producer of widgets.

“They tell stories, stories that help us make sense of our world and ourselves…Consider the focus on racism in To Kill A Mockingbird or Guess Who’s Coming to Dinner,” Dodd said. “The best movies ground us in common values and ideals. America’s a big place, as we all know, with red states and blue states…But gathered together in a darkened theater, regardless of our differences, we become, in spite of our differences, one place.”

The ability of movies to achieve that unity or provoke that kind of thought doesn’t mean that all movies have to meet that aspirational standard. But it does suggest that movies that do aim to tackle big ideas deserve to be taken seriously, which means being examined critically. Often, debates over accuracy get dismissed as nit-picking, which if the only question at stake is whether a movie is a literal translation of historical events or not, is potentially fair. But the questions of why and when movies choose to diverge from the historical record is can be rich ones, particularly when those questions happen in the realm of character interpretation, as in the presentation of President Lincoln’s attitudes toward black Americans in Steven Spielberg’s Lincoln. As a critic who writes about the politics of entertainment, it’s been exciting to see academics, policy reporters, and political commentators enter the debates around Lincoln, Argo, Django Unchained, and Zero Dark Thirty because their desire to play on this turf is a reaffirmation of the idea that gives life to my career, even if I’m not always thrilled about how these arguments have functioned. The battles over how to interpret Zero Dark Thirty , for example, seem to me to have narrowed down to debates about whether the film is an accurate transcription of a murky historical record, rather than exploring the more revealing questions of how the script and directing choices shape the movie’s message about the immorality of torture, and why Mark Boal and Kathryn Bigelow felt compelled to portray the movie as an unbiased piece of reportage in the first place. That latter choice in particular says as much about the state of our debate about the use of torture as the movie itself.

If we’re going to take film seriously on the grounds that it has a unique power to influence audiences, we need to examine how well it does at getting audiences to do interpretive work—and leaving them space in which to do it—to open themselves up to new ideas, and to inhabit new perspectives. The blunt statements of opinion writing or cable news appearances, or the clear conclusion-drawing of long-form journalism aren’t necessarily the things that serve those goals well in film, where an indirect approach may lead otherwise-resistant audiences to a point they might not have accepted when presented bluntly, and manifestos can make characters seem like strawmen, rather than flesh-and-blood humans.
Read more

Alyssa

Chris Dodd Is Right: The MPAA Ratings System Should Be More Transparent

I think MPAA Chairman Chris Dodd is right to say, in the wake of the controversy over the initial R rating given to the documentary Bully (it was lowered to PG-13 after cuts), that the association’s ratings system, which carries great power, should be more transparent to the public. There’s a perception, fair or not, that the ratings weight certain content—like sexual content between gay couples—more heavily in moving towards an R rating, and that the system fails to acknowledge how context mitigates content. That last perception was at issue in Bully: the R rating depended on incidences of profanity deemed inappropriate for teenagers, despite the fact that those profanities were uttered by teenagers and directed at teenagers. More data about how the ratings panels make their decisions would help outside observers determine whether these perceptions of inconsistency and failure to contextualize were true, or to debunk them.

Discussing whether transparency might be a good idea is not the same thing as committing to it, of course. Releasing the exact counts of words that trigger ratings might be one place to start. And while making it clear who’s in the ratings panels might open up the possibility of bribery, it would also let outsiders look for patterns in raters’ behavior the same way political analysts score the leanings of judges. Any other thoughts on what data it would help to have in the open? It’d be nice to have this be the kind of thing that doesn’t just float into conversation and disappear.

Alyssa

MPAA President Chris Dodd And NATO President John Fithian Talk The Future Of Movies At Sundance

What could have been a tense session at Sundance yesterday in the wake of the failures of SOPA and PIPA to advance, turned into a generally genial conversation between MPAA President Chris Dodd, National Association of Theater Owners president John Fithian, and filmmaker Christine Vachon, with occasional tough interjections from moderator and New York Times reporter David Carr.

“My take is that your industry vastly underestimated the intimacy and closeness of the relationships between tech companies and the consumer,” Carr told Dodd. “The people we want re-engineering the Internet are not your people or your old people.”

Dodd acknowledged that the protests against SOPA had been “a watershed event,” and said that the conversation would continue about legislation to address the problem of overseas sites that distribute pirated content. But he generally pivoted towards talking about the need for technology and content providers to recognize their common interests rather than dwelling on their differences. He pointed out that the same consumers who want content available on a wide array of devices are also the consumers who go to movies in theaters most frequently. “The person who loves technology loves content,” Dodd said. “They’re not the enemy of this industry at all. They’re the future in many ways.” He and Fithian also both emphasized the need to give consumers more choices in theaters.

“The screens in the film world got dominated by big pictures,” Fithian acknowledged. “We don’t need Harry Potter playing on 6 screens in our megaplexes. Maybe 4. And maybe we can pick up some independent movies.” He pointed to Open Road, the distribution company owned by AMC and Regal Cinemas as proof of the theaters’ intentions to begin acquiring independent movies and acting as distributors themselves. And Fithian said that the move towards digital projection will dramatically lower the cost of getting a movie in theaters from $1,000 per print to $100 for digital copies. In a reversal from prior approaches, Fithian suggested that NATO might reconsider offering Video On Demand sales in theaters so consumers could immediately get multi-device-capable copies of movies they’d just enjoyed.

And Vachon, who is at Sundance promoting her LCD Soundsystem documentary Shut Up and Play the Hits, which I’ll see on Wednesday emphasized that just as the MPAA and NATO are changing their approaches, so are filmmakers. “I think theatrical exhibition as the only means of measuring the success of a movie is changing, and fairly rapidly,” she said. “We are experimenting as much as we can with length, with format. We’ve always experimented with content…Our budgets have come down drastically, but the methodology of making a movie…that hasn’t come down…the creative margin is what has to be reconciled and reworked…we are constantly looking at different kinds of different distribution, ways we can directly market our work to the consumer.”

Politics

Wall Street Spending As Much To Undermine Dodd-Frank Regulations As It Spent Trying To Block Dodd-Frank

Last year, as the Dodd-Frank financial reform law was being crafted and debated in Congress, banks and other financial firms threw millions of dollars into lobbying and campaign contributions. These dollars bought the banks some significant victories, including watering down key provisions aimed at reducing risky trading.

And President Obama signing Dodd-Frank into law did not stop the banks from spending. In fact, they’ve kept their lobbying expenditures fairly constant, in an effort to influence the regulators charged with implementing the law. According to an analysis by the Wall Street Journal, the banks’ spending on lobbying in the first quarter of 2011 was actually higher than it was in the first quarter of 2010, when Dodd-Frank was actively being debated:

Wall Street and the financial industry spent more to lobby Washington in the first quarter of this year than a year ago when Congress was writing sweeping financial-overhaul legislation, according to a Wall Street Journal review of lobbying reports released Thursday. [...]

The disclosures show that 26 of the financial firms and trade associations that spent the most in 2010 collectively spent $27 million in the three months ending March 31, a 2.7% increase from the $26.3 million spent in the comparable period in 2010.

When the height of the Dodd-Frank debate was going on last summer, the banks spent $27.3 million over three months, barely more than they spent in the first three months of this year.

One of the main knocks against Dodd-Frank is that it left too much discretion to the federal regulators, who work in a way that is much easier for special interests to influence. Rulemaking by federal agencies, which is slow and involves extensive open comment periods, is the perfect arena for lobbying shops to work their magic. The banks clearly realize this, and have been attending a host of meetings with the regulators, as well as submitting extensive comments on proposed rules.

The financial services industry is seeking to influence several issues when it comes to regulatory reform, including derivatives reform, consumer protection issues, and trying to do away with a rule capping the amount they can charge for debit card transactions. It’s clear that the banks think they can still blunt the effect of Dodd-Frank on their bottom lines.

Cross-posted on The Wonk Room.

Politics

Will Obama Appoint Someone To The CFTC Who Will Check Speculation On Gas Prices?

Gas prices have gone up 34 cents per gallon in just the past 13 days, as barrels of oil trade at highs not seen in over two years. This poses a serious threat to the economic recovery — experts say prolonged high gas prices could reduce economic growth and counteract recent stimulative measures undertaken by the government.

The proximate cause for this spike is unrest in the Middle East. On January 28, in the midst of unrest in Egypt, oil prices closed $4 to $5 higher than normal, but stabilized when Egyptian President Hosni Mubarak resigned in February. The current turmoil in Libya seems to have created even more chaos in the oil markets. But one question remains unanswered — to what extent are commodity traders influencing these high gas prices? As Chris Hayes notes in The Nation, the last time gas prices spiked, in the summer of 2008, many experts concluded that Wall Street speculators, not supply and demand, created the high prices.

Last night, The Ed Show did a segment in conjunction with The Nation clearly explaining the relationship between commodity trading and gas prices, with a focus on how commodity trading could be regulated to prevent unnatural rises in fuel prices. Watch it:

As the segment notes, during the last spike in gas prices in 2008, then-candidates Obama and McCain both assailed commodity speculators and called for increased regulation. The Dodd-Frank financial regulatory reform law gave the Commodity Futures Trading Commission the power to curb “excessive speculation” by limiting the bets speculators can make, and called on the commission to do so.

Unfortunately, opposition from the commission’s Republicans — and one Democrat, Michael Dunn — has so far prevented the CFTC from acting to regulate dangerous speculation on gasoline and other commodities. But Dunn’s term is ending this summer. The White House told the Ed Show it is “vetting” replacements — but would not say if they’re looking for a nominee that favors rules to curb excessive speculation.

Will the White House choose a candidate that wants to follow the law of Dodd-Frank, and insulate gas prices from predatory Wall Street speculators? It would certainly be a much more effective way of controlling gas prices than listening to conservative cries of “Drill, Baby, Drill.”

Yglesias

Chris Dodd Cashing In With The Movies

There was pretty overwhelming sentiment that Chris Dodd would find his post-Senatorial career as some kind of lobbyist for the insurance or finance industries, so I’m pretty surprised to learn that he’ll be heading up the Motion Picture Association of America instead. Apparently “the job will require Mr. Dodd to push a Hollywood agenda in Washington that includes a more aggressive governmental stance against piracy and prodding China to lift limits on the distribution of Western movies.”

China should, in fact, lift limits on the distribution of Western movies and the US government ought to press them to do it.

As for “piracy,” I think the recent murder of Americans by actual Somali pirates should drive home how absurd it is to analogize unauthorized copying of a non-rival good to violent kidnapping and robbery. Nobody dies when you download a copy of Little Fockers. So it’s always worth asking what pressing social problem stepped up anti-infringement measures are intended to solve. Is America a country with an unusually low violent crime rate, such that it makes sense to divert more law enforcement resources away from such matters? Do Americans have too much disposable income, so we’re looking to raise the cost of entertainment? It’s actually quite true that real wages for movie stars have been declining in recent years, so maybe this is the issue Dodd wants to address.

Economy

While GOP Sought Exemption For Their Industry, PA Debt Collector Tricked Consumers With Phony Courtroom

During the congressional battle over Wall Street reform, Sen. Chris Dodd (D-CT) advanced a bill to create the Consumer Financial Protection Agency and grant it the power to write and enforce rules governing payday lenders, debt collectors, and other financial companies that are not part of banks. This was not popular with key Republicans. In March, Sen. Bob Corker (R-TN), who played a crucial role on behalf of Republicans in negotiating the bill, “pressed Mr. Dodd to scale back substantially the power that the consumer protection agency would have over such companies.” The Republican counter-proposal set forth in May by Senate Minority Leader Mitch McConnell (R-KY) also attempted to exempt these industries, prompting President Obama to rip the plan as “worse than the status quo” with “dangerous carve outs for payday lenders, debt collectors, and other financial services operations.”

These Republican efforts to insulate debt collectors from further regulation were ultimately unsuccessful, leading the industry’s trade group, the Association of Credit and Collection Professionals (ACA), to blast the new law as “overreaching.” “Lawmakers and regulators need to understand, we are not the enemy… .[T]hird-party debt collectors are the last ray of hope for consumers who might otherwise have to file bankruptcy,” said ACA’s CEO.

Yesterday, however, a shocking lawsuit brought by the state of Pennsylvania against a debt collector in Erie, PA illustrates why federal oversight is necessary for the industry, which deals with vulnerable people often on the brink of financial collapse. Unicredit America Inc. is accused of using phony Sheriff’s deputies and a corporate office decorated as a courtroom to confuse debtors into thinking they were in legal trouble in order to coerce them into making immediate payments. According to the Pennsylvania Attorney General’s office:

Consumers also allegedly received dubious ‘hearing notices’ and letters – often hand-delivered by individuals who appear to be Sheriff Deputies – which implied they would be taken into custody by the Sheriff if they failed to appear at the phony court for ‘hearings’ or ‘depositions’….Fictitious court proceedings were used to intimidate consumers into providing access to bank accounts, making immediate payments or surrendering vehicle titles and other assets – sometimes dispatching Unicredit employees to consumers’ homes in order to retrieve documents or have consumers sign payment agreements.

[Attorney General Tom] Corbett said Unicredit allegedly used civil subpoenas to summon consumers to an office in Erie, which included an area referred to by Unicredit employees as “the courtroom.”

The fake courtroom allegedly contained furniture and decorations similar to those used in actual court offices, including a raised “bench” area where a judge would be seated; two tables and chairs in front of the “bench” for attorneys and defendants; a simulated witness stand; seating for spectators; and legal books on bookshelves. During some proceedings, an individual dressed in black was seated where observers would expect to see a judge.

Watch a local news report:

According to the website of the ACA — the debt collection trade group that claimed they were “not the enemy” — Unicredit has been a member since 2009.

Politics

Dodd: It’s Not Worth A Fight To Get Elizabeth Warren Confirmed As CFPB Director

When it first looked like Harvard Law professor Elizabeth Warren might stand a serious chance of getting appointed at the first director of the newly-created Consumer Financial Protection Bureau — a regulatory agency which she was the first to suggest — Senate Banking Committee Chairman Chris Dodd (D-CT) poo-pooed the notion, saying there’s a “serious question” about whether Warren is “confirmable.”

The New Republic’s Noam Scheiber wrote that “after surveying a dozen insiders over the last few days — congressional aides, industry officials, progressive activists, and a few administration officials — I’ve concluded that the odds are good that Warren would be confirmed if nominated by the White House.” And Dodd now seems to have shifted his rhetoric, saying that even if Warren is confirmable, it’s not worth a potential fight to get her the job:

What you don’t need to have is an eight-month battle for who the director or the head or chairperson of this new consumer financial protection bureau will be.

Watch it:

Dodd pretty clearly would prefer that current Federal Deposit Insurance Corp. Chair Shelia Bair receive the nod, but Bair has said that she’s not interested in the job. “I did some checking on Sheila Bair and I was going to have very little difficulty getting Sheila Bair confirmed,” said Dodd. “I’d probably confirm her in a couple of days. That’s how strongly people felt, Democrats and Republicans.”

Bair certainly has the credentials to do the job, as she was one of the first federal officials warning about the proliferation of subprime loans during the buildup of the housing bubble. But she’s doing very important work at the FDIC, and as The Wonk Room explains, there’s simply no reason for passing over Warren.

Leaving aside Warren’s qualifications, it makes little sense that Dodd feels a political fight here isn’t worth it. Warren is an unabashed, articulate consumer advocate, and her nomination would set up a clear choice: consumers or the banks. After having overwhelmingly voted against the Dodd-Frank Wall Street reform bill, Republicans standing against her nomination would once again be siding with the financial services industry. It’s worth the fight to show that dynamic at work.

Cross-posted on The Wonk Room.

Economy

Dodd: It’s Not Worth A Fight To Get Elizabeth Warren Confirmed As CFPB Director

When it first looked like Harvard Law professor Elizabeth Warren might stand a serious chance of getting appointed at the first director of the newly-created Consumer Financial Protection Bureau — a regulatory agency which she was the first to suggest — Senate Banking Committee Chairman Chris Dodd (D-CT) poo-pooed the notion, saying there’s a “serious question” about whether Warren is “confirmable.”

The New Republic’s Noam Scheiber wrote that “after surveying a dozen insiders over the last few days — congressional aides, industry officials, progressive activists, and a few administration officials — I’ve concluded that the odds are good that Warren would be confirmed if nominated by the White House.” And Dodd now seems to have shifted his rhetoric, saying that even if Warren is confirmable, it’s not worth a potential fight to get her the job:

What you don’t need to have is an eight-month battle for who the director or the head or chairperson of this new consumer financial protection bureau will be.

Watch it:

Dodd pretty clearly would prefer that current Federal Deposit Insurance Corp. Chair Shelia Bair receive the nod, but Bair has said that she’s not interested in the job. “I did some checking on Sheila Bair and I was going to have very little difficulty getting Sheila Bair confirmed,” said Dodd. “I’d probably confirm her in a couple of days. That’s how strongly people felt, Democrats and Republicans.”

Bair certainly has the credentials to do the job, as she was one of the first federal officials warning about the proliferation of subprime loans during the buildup of the housing bubble. But she’s doing very important work at the FDIC, and there’s simply no reason for passing over Warren.

As Paul Krugman wrote, “Warren really is a pioneering expert on household debt and financial distress, who has also shown an ability to work effectively in an official position.” The Boston Globe called her the “clear choice” for the CFPB job:

Warren, a Harvard Law School professor, has conducted extensive research on bankruptcy, predatory lending, and other consumer-finance issues. Throughout her tenure as head of a panel appointed by Congress to provide oversight of the federal bailout funds, Warren has sought to connect the machinations of the financial system with the struggles of average families. She raised early alarms about subprime mortgages, and her work casts light on how a deliberate obscurity in the terms of credit cards and mortgages contributed to an unsustainable growth of consumer debt.

Leaving aside Warren’s qualifications, it makes no sense to me that Dodd feels a political fight here isn’t worth it. Warren is an unabashed, articulate consumer advocate, and her nomination would set up a clear choice: consumers or the banks. After having overwhelmingly voted against the Dodd-Frank Wall Street reform bill, Republicans standing against her nomination would once again be siding with the financial services industry. I can’t see why we “don’t need” to show that dynamic at work.

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