Tuesday, September 20, 2011
Out of excuses, Issa contradicts himself in avoiding NewsCorp
Darrell Issa doesn't seem to know if he's coming or going these days, and now he's confused about whether or not his refusal to investigate the billion dollar
NewsCorp scandal is influenced by knowing
Rupert Murdoch personally.
Back in February 2010, Issa was interviewed by Lee Fang of ThinkProgress, and told Fang, in part, "Well, I know Rupert Murdoch." But as TP notes, this morning Issa had exactly the opposite story, defending himself against criticism for playing favorites with Murdoch by assuring us that "I don’t believe I said that. I don’t know Rupert Murdoch." ThinkProgress has the video, so he's going to need a better explanation.
Issa started by calling the repeated calls for investigation as "whiny" and later as "
picking on media." Now, Issa Enterprises have been quite open about playing personal favorites and
carrying grudges with members of the media, but it's even more fascinating to begin with since the allegations are only tangentially related to the media practices of the giant NewsCorp. Instead, the allegations have dramatically expanded to include ripping off shareholders to steer $250 million in profits to the Murdoch family and a nearly a billion dollars in anti-competitive actions that damages the broader market.
Issa himself has been accused of
freezing out the small investors of his namesake company to increase his personal profits when he orchestrated a buyout, so maybe he doesn't think the possibility of Rupert Murdoch steering a quarter of a billion dollars to his daughter is just standard operating procedure for the super-rich. And while Issa's behavior in selling off his company could prompt an SEC investigation, we get right on cue tomorrow a subcommittee hearing on
possible conflicts of interests at the SEC. But not nepotism worth hundreds of millions of dollars.
His final excuse, that he won't investigate since the Justice Department has launched a probe is also absurd stacked against Issa's track record. He's continued to press on the Fast & Furious issue during an ongoing federal criminal case, even
disclosing sealed documents from the investigation, violating a court order. And in his ongoing attempts to undermine the NLRB/Boeing case, he's repeatedly sought to make documents public that
a judge had ruled should not be disclosed to Boeing. Heck, he's continuing to chase after Solyndra even though the House Energy Committee is already investigating. So we know Issa has no qualms about mounting his own investigations if they're redundant or even outright dangerous to other official probes -- he does it all the time.
If he doesn't investigate NewsCorp, it's only because Darrell Issa just doesn't want to.
Just like all the rest.
Monday, September 19, 2011
Issa vs. Economic Growth
While Issa continues to rail against green energy, it's perhaps a good time for a trip down memory lane. For starters, let's keep in mind that he's spent months trying to divert resources as the Nuclear Regulatory Commission to one of Issa's pet political squabbles while major safety concerns continue to
pile up -- particularly including in his own district. Conveniently for Issa though, the majority owner of the San Onofre facility in his district -- the one with the "deficient safety culture" -- is also one of the most generous source of Issa's campaign funds throughout his career.
But it isn't just the nuclear industry that's been generous with the campaign funds while getting legislative help from Darrell Issa. Back in May, Darrell Issa brought his
Big Oil Road Show to Bakersfield, stacking a hearing with representatives of oil companies that have been bankrolling him and his fellow committee members for years. It's the same bunch that dumped millions into the effort to pass California's "Dirty Energy Proposition" last year by suspending environmental protections.
But Issa's priorities remain clear. Solyndra represents about 1% of the Department of Energy loan gaurantee program, the entire scope of which is $40 billion. Meanwhile, we've known since the beginning of the year that
tens of billions have disappeared to contractors in Afghanistan and Iraq. More recent studies have found that 10 to 20 percent of of spending in Afghanistan has been lost to waste, another 5 to 9 percent to fraud. That's as much as
$60 billion -- one and a half times the size of the entire DOE loan program. Darrell Issa completely ignored the issue until a subcommittee hearing late last week, but he's been getting generous checks recently from some of the
most problematic contractors.
The Green Jobs sector has consistently shown strong growth through the recent economic turmoil, at nearly
twice the rate of the economy overall. By all accounts, it should be exactly the sort of success that anyone serious about more job creation would want to foster. But for Darrell Issa -- whose jobs platform costs the country
millions of jobs, and the regulations he's been battling for his entire tenure? Well, they spur innovation, turn a profit, and
help strengthen the economy. The agenda is increasingly clear.
Friday, September 16, 2011
Regulations turn a profit, spur innovation
~ So far, House Republicans haven't been too high on the Obama Jobs Plan, insisting that regulations are the path to a better budget and stronger economy. Certainly Darrell Issa has made de-regulation the centerpiece of his year, and one of his least favorite new regulations -- improving greenhouse gas standards --
will be delayed. Leaving aside for the moment that Issa's agenda
costs millions of jobs without proposing to directly create a single one, it's still running into the tough reality that these regulations actually help the economy. A new report explains how regulations have traditionally been
crucial to spurring innovation and keeping our economy moving. And Obama's billion dollar rules could bring in more than ten times their cost,
topping $200 billion.
~ Issa sure turned around fast on getting a Solyndra hearing together, needing only a couple of days while huge issues affecting millions of Americans directly, every day, are still being
ignored. But business continues. The narrative has been curious so far on Solyndra, with the tax credits originating with the
Bush administration and being pushed by a number of powerful conservative investors. But if Issa wants to go down the road of arguing that one bad company discredits its entire industry and investors that were apparently lied to, he may find himself in some sticky personal spots -- just as a politician for starters. And in the same week that an official ethics complaint was filed against him for using his public office to personally profit, it's an interesting time for him to weave a theory about cronyism.
~ Another awkward reality check as Issa continues his quest to eliminate the judicial branch's jurisdiction over labor law: NLRB's behavior in the Boeing case is
consistent with long-established labor law including, rather conveniently, Ronald Reagan's interpretation and use of that precedent.
~ Once upon a time, Franklin Roosevelt defended foreign aid during crisis moments by saying "When your neighbor's house is on fire, you don't haggle over the price of the garden hose." Not quite as popular a notion in the Republican House of Representatives it seems, where Eric Cantor has pressed for huge cuts to first responders in exchange for
emergency disaster aid. It comes after Cantor's opposition in December to a bill
supporting 9/11 first responders. Darrell Issa sat out that vote, but he's been way ahead of the curve here. Back in 2008, he called for the federal government to
cut off support for 9/11 first responders because, in his words, "It simply was an aircraft, residue of two aircraft, and residue from the materials used to build this building."
Thursday, September 15, 2011
Ethics complaint filed, time to hold Issa accountable
This week, an official ethics complaint was filed against Darrell Issa with the Office of Congressional Ethics. The advocacy group American Family Voices logged multiple examples of Issa using his office to help his personal investments, and called for an official review to resolve once and for all the questions around Issa's conduct.
We need to back them up and demand accountability. Issa isn't exempt from the rules. Support the call for an official ethics review of Darrell Issa.
Issa's defense has been the same weak tea that we've come to expect every time he's held to his own standards. He complains that ideological opponents can't possibly raise a legitimate point for investigation -- apparently forgetting that his argument would disqualify every single thing he's done as chairman of the Oversight Committee.
We know that he's done hundreds of millions of dollars of personal business with Wall Street firms while trying to protect them in Congress. Support the call for an ethics review now to finally clear the air.
For his entire life, Darrell Issa has been trying to live by a special set of rules. From felony car theft to weapons charges, auto insurance fraud to a "suspicious fire" at his warehouse, his conduct has been questionable for decades.
Now that he's in Congress, a laundry list of allegations suggest he may be putting his personal wealth ahead of his constituents' well-being. Not only has he been running interference for Wall Street, recent reports have found that while the housing market floundered, Issa has used his vast empire to snap up more than $80 million in real estate.
If Issa has nothing to hide, he has nothing to fear. It's time for transparency and accountability. If his agenda is influenced by his ability to profit personally, we need to know. Demand a full ethics review now.
If we can't trust Issa's personal or political ethics, we can't trust him for responsible oversight. We need to know that his whole tenure isn't just another partisan witch hunt. This is our chance.
Rick Jacobs
Chair and Founder, Courage Campaign
Wednesday, September 14, 2011
Issa dismisses billion dollar NewsCorp scandal as “whiny”
Even if Darrell Issa has decided to dismiss the NewsCorp scandal as some sort of partisan sideshow, it's continuing to grow and deepen. This week, an existing lawsuit against NewsCorp
spread well beyond allegations of hacking the phones of 9/11 victims, including new charges anti-competitive behavior amounting to nearly $1 billion in damages.
In the original complaint, News Corp. was accused of nepotism in its $615 million acquisition of Shine Group that allegedly resulted in a $250 million windfall for Elizabeth Murdoch, Rupert’s daughter.
“The revelations surrounding News Corp.’s corporate governance lapses get worse with each new disclosure,” said Grant & Eisenhofer partner Jay Eisenhofer. “In fact, our new complaint shows that the illicit phone hacking and subsequent cover-ups at News of the World were part of a much broader, historic pattern of corruption at News Corp. under the acquiescence of a board that was fully aware of the wrongdoing, if not directly complicit in the actions.”
Oversight Committeemember Bruce Braley, with a group of other lawmakers, have repeatedly called on Issa to investigate the allegations against NewsCorp, but Issa has termed the request "whiny." Hundreds of millions of dollars flying around, shareholders getting shortchanged, and almost $1 billion in damages might just sound like 'whining' to Issa, but it should also sound uncomfortably familiar.
For one, there are indications that Issa worked to
freeze out small investors in his namesake company before orchestrating a buy-out at an inflated price, thus concentrating the profits. And Issa's own questionable ethics when it comes to orchestrating special personal profit from a position of power have been well documented and are now the subject of an
official ethics complaint.
This is hardly the only subject begging for investigation that Issa is desperately avoiding. There are a half dozen issues that would likely be personally awkward for him that are
still hanging out there, including several with an explicit promise from Issa that have lingered for months.
But instead of responding to hundreds of millions in questionable dealings and allegations of outrageous invasions of 9/11 victims, Darrell Issa is running interference for NewsCorp and his allies at FoxNews that would be caught up in any investigation. We know Issa is picking and choosing investigations based on percieved political advantage, his own statements reflect his focus on partisan point-scoring on every issue.
But if Issa wants to argue that corporate corruption and nepotism worth hundreds of millions is a partisan issue, he can. If he wants to argue that a company doing a billion dollars worth of damage to our economy is a partisan issue, he can. Heck, if he wants to keep treating the honor of 9/11 victims as a partisan issue, technically he can. Just like he can keep treating nuclear safety as a partisan issue, the stability of Wall street as a partisan issue, the foreclosure crisis as a partisan issue. But Oversight shouldn't be a partisan issue.
Tuesday, September 13, 2011
Issa Enterprises cuts off nose to spite ethics charges
Darrell Issa was targeted this morning with an
official ethics complaint, submitted by American Family Voices to the Office of Congressional Ethics. The complaint zeroes in on the laundry list of concerns that have been raised over Issa's personal benefit from his political actions. The
letter specifically focuses on four incidences where Issa's personal investments comingled with his work as a legislator:
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Goldman Sachs - While challenging an SEC investigation into Goldman Sachs, Issa was sinking hundreds of thousands into Goldman Sachs bonds. Deepening his ties, he brought a Goldman Sachs VP onto staff (only after a name change) to protect Wall Street from new regulations.
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Merrill Lynch - Issa has done more than a billion dollars in business with Merrill Lynch, including more than $200 million just after its takeover of Bank of America. Issa also received more than $75 million in personal credit from Merrill Lynch. Coincidentally, Issa's very first subpoena as chair of the Oversight Committee was to investigate possible sweetheart credit deals extended to lawmakers by Countrywide.
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DEI - On one occasion, an ethics ruling forced Issa to recuse himself from congressional business that conflicted with his private pursuit of profit through DEI. There have been a multiple occasions just this year in which Issa has failed to keep DEI distinct from his business as a member of Congress. Since Issa refuses to put his cast empire in a blind trust in keeping with standard congressional practice, it means that Issa is directly involved in attempting to turn a profit in the economic climate he helps shape in Congress.
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Earmarks - In particular, Issa has requested earmarks that directly improve infrastructure around his personal real estate investments. As we noted this morning, Issa has invested something close to $80 million in real estate over the last five years, focused on low prices that have resulted from the economic downturn. In the meantime, Issa has steadfastly avoided investigating foreclosure practices -- instead profiting from the economic struggles of his constituents.
Of course, Issa has fallen back on the same, tired, empty excuse he uses
every time: 'People who disagree with me don't count because they're people who disagree with me.' It ought to be insulting that Issa thinks we're so stupid. As Mike Lux
points out, the crux of Issa's response is that an ideological opponent cannot raise ethics concerns; that they are implicitly biased and thus cannot have merit. Unfortunately for Issa, that logic would automatically undermine any investigation that Issa has conducted of the Obama Administration, so surely that can't be what Issa means. Further, it belies Issa's own motivations. If Issa believes that ethical charges must be an electoral, partisan conspiracy, what does that say about his own investigations? Heck, we already know
by their own admission that Republicans in Congress would rather win next year's election than create jobs.
What he really means, as always, is that there are special rules for Congressman Darrell Issa that don't apply to anyone else. The White House must disclose it's meetings, but Issa has no responsibility to
disclose the lobbyists he's meeting with or answer for the
stunning conflicts of interest that pervade his staff. In a matter of days, Issa will convene a full committee hearing on financial issues with a large firm that supports Democrats, but how dare anyone question the personal profit that he's been making for years off of his work in Congress. Maybe it's the same perception of special rules that
led Issa to involvement in car theft, illegal weapons, insurance fraud, a suspicious warehouse fire and leaving an injured motorist at the scene of an accident.
If Issa doesn't think his own conduct should be up for review, that's up to him -- but accountability applies to every public official. If he wants to argue that people with ideological differences are illegitimate investigators of each other, that's also up to him -- but it leaves him without an investigative leg to stand on. And we've got to assume that he could actually defend himself against the merits of the charges, he would have by now. He hasn't, and he's gotten really upset whenever he's been challenged. Hopefully the Office of Congressional Ethics (which House Republicans
almost eliminated after re-taking the majority) will fight past his indignation.
2 comments
posted by Lucas O’Connor at 1:39 pm