Obama Says He Will Address Inversions
Obama pledges to act on inversions. Politico: "'“We don’t want companies that up until now were playing by the rules looking over their shoulder at some competitor gaming the system. … We want to move quickly — as quickly as possible.' ... Obama has asked Congress to address the practice [but] he made clear Wednesday that he also plans to take whatever unilateral steps he can to rein in the phenomenon ... Obama declined to say whether he is considering banning companies that make such offshore moves from receiving federal contracts."
Dems seek inversion language in next month's bill to keep the government open. The Hill: "Several House-passed appropriations bills include language to rein in the "inversion" practice, in which companies move their headquarters abroad to capitalize on lower tax rates. But with GOP leaders planning to move a continuing resolution (CR) package in lieu of those individual spending bills, Pelosi said Democrats will try to shift the inversion provisions onto the CR."
Broader corporate tax reform stalled. NYT: "...the truth, explains Senator Carl Levin ... is that 'businesses all want to get rid of the other guy’s tax deductions — and reduce rates.' ... The view that nothing should be fixed until everything can be fixed has repeatedly derailed efforts to eliminate even the most deplored loopholes."
Bank of America Agrees To Settle
Bank of America in "Biggest Settlement in History," reports NYT: "The tentative deal — which people briefed on the matter said would cost Bank of America more than $16 billion to settle investigations into its sale of toxic mortgage securities — started to take shape last week [when] a bank lawyer called to offer $9 billion in cash and more than $7 billion in so-called soft-dollar relief to consumers ... far in excess of what JPMorgan Chase and Citigroup paid to settle similar cases in recent months ... The settlement, however, could still fall apart. The two sides continue to negotiate a statement of facts outlining the bank’s misconduct, the people briefed on the matter said. They are also discussing how to divide the so-called soft-dollar relief for consumers."
"Bank of America's Penalty Misses the Point" says Bloomberg edit board: "None of the settlements holds individuals to account. Shareholders and insurers are covering the bills -- and the penalties include mortgage buybacks, refinancings and the like that may never reach actual victims. The banks haven't been made to plead guilty to crimes. Because the settlements were worked out in secret with no judicial oversight, the lessons for future bankers are murky, making the deterrent effect doubtful. Such settlements also hold little legal sway over other judges."
Expectations Build On Executive Order
W. Post's Charles Lane compares expected immigration executive order to Emancipation Proclamation: "The ideological concept behind Obama’s grand slicing of the Gordian knot of immigration, if he attempts it, would be akin to that which drove Lincoln’s action: the president as liberator ... Obama’s prospective order might have an advantage over Lincoln’s: Even if its constitutional basis is weak, it’s hard to see what anyone could do about it."
Obama says he'll stay within "confines" of executive power. Roll Call: "On immigration, given Congress’s dysfunction, 'what I can do is, you know, scour our authorities to try to make progress. And we’re going to make sure that every time we take one of these steps that we are working within the confines of my executive power. But I promise you, the American people don’t want me just standing around twiddling my thumbs and waiting for Congress to get something done.' Obama was also asked if he had the authority to grant work permits to people in the United States illegally. He answered instead about having the authority to prioritize resources at the border."
Texas has spent $500 million on border security. NYT: "A team of [game wardens] patrol the Rio Grande ... Members of the Texas Rangers have also traded in their familiar white cowboy hats for camouflage ... Texas uses helicopters with infrared technology ... their operations have scores of detractors, including some officials in border communities, who say the threat posed by illegal immigrants and the extent of South Texas crime have been exaggerated, the programs have had decidedly mixed results and that patrolling the border is the federal government’s job ... [The $500M] is far in excess of what other [border] states ... have spent."
