MORNING MESSAGE: Get Money Out Of Politics
Take Back the American Dream speaker Rep. Keith Ellison: "The Wisconsin election shows that we will not have a government of, by and for the people as long as we have politicians who are bought and paid for by special interests. Powerful corporations and wealthy donors spent millions on the Wisconsin race because they benefit most from the system: tax loopholes for corporations, tax handouts for the rich, while America's heroes -- cops, firefighters, and teachers -- pay the tab … my own Get Corporate Money out of Politics Amendment clearly states that corporations are not people. They do not vote, they do not serve in office and they should not be able to buy our elections." Click here to join Rep. Ellison at the June 18-20 Take Back the American Dream.
Dimon Gets Red Carpet Treatment
"Kid gloves" treatment for Dimon in Senate hearing. Politico: "…he was treated, for the most part, like a friend among friends. He offered the requisite mea culpa, fielded mostly softball questions from a panel of senators who’ve taken thousands of dollars in contributions from his firm, and left a few hours later pretty much unscathed … The outside observer might have thought Dimon to be a wise Sherpa brought in to help the senators navigate the complicated world of finance, rather than the CEO of a bank that had just lost $2 billion in a risky hedge."
In particular, Republicans *heart* Dimon. NYT: "He received a particularly warm welcome from Republican senators, who praised JPMorgan and allowed the chief executive to offer criticisms of forthcoming financial rules. Senator David Vitter, Republican of Louisiana, asked Mr. Dimon about the Volcker Rule … Mr. Dimon, who is not a big fan of the extensive regulation, responded, 'I thought it was unnecessary when it was added on top of other stuff.'"
A few Senators actually challenged Dimon. Reuters' Ben Walsh: "[Sen. Bob] Menendez reminded Dimon that his company’s vaunted fortress balance sheet has a moat built by taxpayers. Dimon bristled when [Sen. Jeff] Merkley suggested JPMorgan had benefited from TARP, Federal Reserve borrowing and AIG’s bailout. Dimon said that view was 'factually wrong'. (It’s not.) Neil Barofsky, the former TARP inspector-general, condensed the proceedings: 'Shorter Dimon testimony: We could have a great financial system if you people would just shut up and let me design it.'"
But Dimon concedes Volcker Rule could have stopped bad trade. Bloomberg "The ban 'may very well have stopped parts of what this portfolio morphed into,' Dimon said yesterday in testimony to the Senate Banking Committee. Dimon’s comments provided new ammunition to lawmakers and regulators emboldened by JPMorgan’s mistakes who argue that a stricter ban on banks using their own money to make trades is needed to prevent a repeat of the 2008 financial crisis."
Dimon's loss makes case for regulation, says Treas Sec Geithner: "…Geithner said J.P. Morgan’s multibillion-dollar loss served as a reminder that risk management is 'inherently uncertain.' As a result, the best defense against an unavoidable problem is ensuring that firms operate with more capital and less leverage…"
ProPublica charts "the Cozy Connections between JP Morgan and the Senate Banking Committee." "One current staffer on the Senate banking committee, Dwight Fettig, is a former lobbyist for JP Morgan … Meanwhile, JP Morgan is stacked thick with former committee staff … A former senator on the committee, Mel Martinez, R-Fl., is also now the JP Morgan exec in charge of Florida, Central America, and the Caribbean … Six of the 22 members of the banking committee have not received any money from JP Morgan PACs or employees in recent election cycles."
Obama, Romney Duel Over Economy
Romney previews his agenda to corporate execs. McClatchy: "Romney listed some changes he’d try to implement quickly … The National Labor Relations Board, Romney said, would be 'restructured,' with those friendly to labor replaced. The size of government would be cut. 'I’m going to go after government,' he said. More domestic oil exploration would be encouraged. Taxes would be lower. Romney wants to cut marginal income tax rates by 20 percent. He has not specifically addressed how he’d make up the revenue."
Obama to "return fire" at Cleveland speech today. W. Post: "The intense exchange represents more than just campaign rhetoric; it lays out in stark terms the divergent approaches the two men propose to take toward mending the economy … Romney’s theory is that keeping tax rates low would spur investment in new businesses, thereby increasing economic growth and perhaps tax revenue itself … On Thursday in Cleveland, Obama is expected to promote policies that he believes will sustain economic growth over the long term, such as government investment in energy and education …"
McClatchy finds purged voters in Florida with no evidence they are non-citizens: "In two counties - Collier and Lee - at least nine people have been removed from the voter rolls under Scott's program, and elections officials have no solid proof that those people are noncitizens. More could be purged soon … No one is keeping a comprehensive statewide list reporting who has been purged and why … Under the noncitizen program, registered voters could be removed from the rolls if they fail to respond to a certified letter concerning their citizenship status."
Food Stamps On Chopping Block
Senate rejects deep food stamp cuts. Politico: "…13 Republicans joined Democrats in blocking a tea party-led effort to cut nutrition funding almost in half and shift control back to the states … The food stamp vote was significant because the amendment, offered by Sen. Rand Paul (R-Ky.), mirrors a proposal by House Republicans that would also convert the program to a state block grant and cut funding …"
But $4.5B food stamp cut still remains in proposed farm bill, unless amendment passes. HuffPost: "[Dem Sen. Kristen] Gillibrand seeks to offer an amendment to restore $4.5 billion in aid for the hungry that the Senate's farm bill proposes to slash … [GOP Sen. Jeff] Sessions mocked the idea, arguing that it would lead only to more spending. 'Under this reasoning, we ought to increase the food stamp program 10 times,' Sessions said with incredulity. 'Why not? We're going to get more money back. Somehow it's going to create more stimulus, and it's going to bring in more money for the treasury and make the economy grow. Why don't we just pay for your clothes, pay for your shoes, pay for your housing?' … Gillibrand said she was stunned that a colleague would suggest the moral course is to cut food aid at a time when the Congressional Budget Office estimates need will continue to grow through 2014 …"
