Archive for January 14th, 2010

How much does a pro-pollution amendment cost? From the looks of recent reports about the relationship between Sen. Lisa Murkowski (R-Alaska) and a big energy lobbyist, at least about $35,000. That’s how much Duke Energy, Southern Co. and their executives gave to Sen. Murkowski’s campaign and leadership PAC so far in the cycle, according to the Center for Responsive Politics.

It’s no surprise then that Jeffery Holmstead, a registered lobbyist for clients Duke Energy and Southern Co., had extraordinary access to Murkowski – access to help craft an amendment to allow his clients to continue polluting. The amendment proposed by Sen. Murkowski would gut key provisions of the Clean Air Act. The Washington Post reports that Holmstead (also a former top official at the Environmental Protection Agency under George W. Bush) and another lobbyist, Roger Matella, were very hands-on in drafting the amendment:

In an interview, Holmstead said of the Murkowski amendment, ‘I certainly worked with her staff’ on the exact phrasing of the measure in September.

The Obama Administration has moved forward to regulate pollutants that cause climate change using the Clean Air Act. This critical step to rebuild our economy with clean energy, and to protect our health and our climate from global warming and pollution is under attack by the big polluters. And they have friends in high places.

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[youtube=http://www.youtube.com/watch?v=WoBBSnvddu4]

Do these guys ever learn? Apparenlty, Goldman Sachs Chairman Lloyd Blankfein, who previously claimed that he was on Wall Street doing “God’s work,” doesn’t know when to be quiet. This time he told a Congressional panel that the 2008 financial meltdown couldn’t have been predicted and was unavoidable, similar to the string of hurricanes that struck the East Coast in 2004. The WaPo’s Dana Milbank recounts the scene in which Chairman Phil Angelides chastises Blankfein for his arrogant analogy:

“Look, how would you look at the risk of a hurricane?” the man from Goldman retorted.

“Acts of God we’ll exempt,” Angelides said. “These were acts of men and women.”

It seems the Wall Street barons continue to shirk responsibility for the financial crisis. Banks that were too big to fail before the crisis are bigger than ever. Executive bonuses and compensation plans continue to reward risky behavior. And Wall Street continues to bet on exotic financial instruments that do nothing but encourage irresponsible speculation.

Want to know what needs to be done to rein in the banksters? Join Public Citizen President Robert Weissman for a live online chat Friday, noon EST. Click here to sign up.

Sen. Dodd (D-Conn.)

Recently, a financial industry lobbyist said because Sen. Christopher Dodd (D-Conn.) is retiring, he is now free to “dance with the special interests that brought him to the dance in the first place. Us, his loyal donors in the banking community” (from Politico).

In fact, Dodd is now free to do the right thing and hold the banksters accountable. Because he’s not running for re-election, he’s no longer beholden to big banks for campaign contributions. It’s not too late for Sen. Dodd to make protecting Main Street — not dancing with Wall Street — his legacy.

We’ve set up two petitions you can use to tell Dodd to stand up for us, the people who are struggling through the Great Recession. One is here on our Web site.

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The bank fee announced today by the Obama administration is a very welcome first step in recouping the costs of the financial crash from its perpetrators. Wall Street’s till is overflowing – with cash that has come directly and indirectly from taxpayers. Ongoing taxpayer support extends far beyond the Troubled Asset Relief Program (TARP) and totals in the trillions.

Today’s action should only be a first step. It should be accompanied in the coming year by a speculation tax on financial transactions and a windfall tax on Wall Street bonuses and profits.

Additionally, Wall Street’s rapid return to profitability has been fueled by a return to the same risky practices that created the financial crash. Without meaningful restraints imposed on Wall Street – going beyond what the U.S. House of Representatives has so far adopted, including breaking up the too-big-to-fail financial institutions, among other measures – there is every likelihood of another financial meltdown.

Robert Weissman is president of Public Citizen.

Flickr photo by SEIU International.

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