“Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office”. In related news (and as seen at Ed Rants), Dubya has apparently, on the sly, “bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations.”
Category: Wall Street
Five for Fighting.
TIME Magazine unveils Josh Bolten’s new five-point plan for righting the Dubya presidency: 1) Act tough on immigration with “guns and badges”; 2) Humor Wall Street with extensions on capital gains and dividend tax cuts; 3) “brag more”; 4) Talk tough at Iran; and 5) play nice with the press. So, wait, we’re going to war with Iran just so Bolten can squeeze six more months out of lame duck Dubya? Brilliant.
The Raptors Bite Back.
“‘We rely on those transactions,’ Mr. Lay said during the September meeting, according to Mr. Glisan. ‘They are imperative for us to hit our numbers and we will continue to do them.‘” Prosecutors begin to wrap up their case in the Enron trial with the testimony of former Enron treasurer Ben Glisan, Jr., who is currently serving a five-year prison term for his part in the fraud. (He created Enron’s “Raptors,” “four fragile financial structures…used to house assets and investments and to hide losses.”) According to the NYT, he “provided some of the strongest testimony against Mr. Lay heard by the jury so far.”
Alito Conflicted.
A true Dubya conservative? Aside from the usual Federalist Society wingnuttery, Judge Samuel Alito also appears to have some considerable conflict-of-interest problems on his record. “Alito had at least $390,000 in Vanguard mutual funds when he ruled in a 2002 case that favored the company. After a party to the suit complained, he stepped aside and another panel of judges reheard the case. Alito also ruled in a 1996 case involving Smith Barney, which was his brokerage firm.” This probably won’t derail his nomination by itself, but, still, Judiciary Committee members Kennedy and Feingold, among others, want answers.
Bernanke to the Banke.
So, as of yesterday, Ben Bernanke is replacing Alan Greenspan at the Fed. (“If Miers’s defenders have dismissed her critics as elitists, they showed no reticence yesterday in extolling Bernanke’s elite credentials.”) His conservatism notwithstanding, it sounds as if the choice was a solid one.
Blind…but not stupid.
“‘I think really for our viewers it should be understood that I put this into a blind trust,’ Frist replied [in January 2003.] ‘So as far as I know, I own no HCA stock.’…Two weeks before that interview, M. Kirk Scobey Jr., a Frist trustee, informed the senator in writing that one of his trusts had received HCA stock valued at between $15,000 and $50,000.” Fifteen trustee letters obtained by the Post, describing sales and purchases of HCA stock, indicate Frist’s been lying about his “blind” trust for years. Poor Catkiller…I bet Iowa suddenly seems a million miles away…
Frist makes a killing.
The Frist SEC probe moves along, with a subpoena forcing the Senate Majority Leader to turn over documents related to his HCA holdings. In addition, it now appears Catkiller made tens of thousands of dollars from HCA stock outside of his “blind” trust, through a partnership controlled by his brother. So much for avoiding a conflict of interest.
Cox the Corporate Cog.
So, apparently Rep. Chris Cox (R-CA), Dubya’s new pick to head the SEC, is — wait for it — yes, yet another right-wing freakshow, this time of the corporate stooge variety. “Mr. Cox – a devoted student of Ayn Rand, the high priestess of unfettered capitalism – has a long record in the House of promoting the agenda of business interests that are a cornerstone of the Republican Party’s political and financial support. A major recipient of contributions from business groups, the accounting profession and Silicon Valley, he has fought against accounting rules that would give less favorable treatment to corporate mergers and executive stock options. He opposes taxes on dividends and capital gains. And he helped to steer through the House a bill making investor lawsuits more difficult.”
Judge Shredd.
“‘To lose a case like this is huge,’ said William B. Mateja, a former official of the Justice Department’s corporate fraud task force. ‘Arthur Andersen was the poster-child case of all the corporate fraud cases.'” The Supreme Court overturns the 2002 conviction of Arthur Andersen LLP, thus facilitating future corporate shredding binges. “More broadly, some lawyers said the court’s decision shows its sympathy for corporate America’s view that companies should be freer to engage in routine document destruction — often under the ironic title of ‘document retention policy.’“
Send back the blood-stained money.
“‘I’m sorry, sir,’ he said to me. ‘I’m sorry for what she’s done.” As pointed out in lecture this afternoon, today’s NY Times includes an editorial on the corporate divulging of ties to Antebellum slavery, spurred by this recent letter of apology at JP Morgan-Chase: “We all know slavery existed in our country, but it is quite different to see how our history and the institution of slavery were intertwined. Slavery was tragically ingrained in American society, but that is no excuse. We apologize to the American public, and particularly to African-Americans, for the role that Citizens Bank and Canal Bank played during that period.” Interesting…research projects into corporate complicity such as this one will hopefully add further impetus for the creation of a National Slavery Museum in the relatively near future — As a whole, we Americans should do a better job in recognizing and remembering our national Original Sin, and I think such a museum would be a great step in that direction. (In fact, the museum really should be on the Mall, not in Fredericksburg, VA.)