Thursday, June 18, 2009


Walpin, Stephen Goldsmith, Americorps, and CapitalSource

I was wondering why Republican and former mayor of Indianapolis Stephen Goldsmith strongly supports the apparently indefensible firing of inspector-general Walpin of Americorps for inspecting too vigorously. It turns out Goldsmith is a director of a medium-sized bank, CapitalSource, that was unwise enough to open a big California operation in the summer of 2008. Over the year its stock price crashed from $15 per share to 90 cents per share in early 2009 before coming back up to $4 per share in June 2009. Just on the basis of that, I would guess that the bank is hanging by a thread, and it's a thread made of TARP money [No--see comment below. CS has not received TARP money. But it is still vulnerable to regulators.] that President Obama could cut any time he wants. So we cannot regard Mr. Goldsmith as being an entirely independent actor.

  1. PDF slides from the company itself on Capital Source's financial health. I don't know how to interpret these, but they do give information on loan loss provisions and the percentage of loans that are currently in default.
  2. Monday, May 14, 2007 Former Indianapolis mayor joins CapitalSource "Stephen Goldsmith, who served two terms as mayor of Indianapolis, has been named director of CapitalSource Inc.'s newly created infrastructure finance and investment group."
  3. CapitalSource Bank Opens 22 California Branches Mon Jul 28, 2008
  4. My earlier blogpost detailing the firing, with 4 very good links to primary documents.
Nov. 18. I'm adding info on all the board members. The government list is here. This could tarnish all their reputations. Eric J. Tanenblatt is the one to wonder about. Will he speak up? He would be very important whichever side he takes.
  1. Alan D. Solomont, Chair. Democrat.
  2. Stephen Goldsmith, Vice Chair. Republican former mayor of Indianapolis.
  3. Mark_Gearan, .Clinton's Deputy Chief of Staff and Peace Corps Director.
  4. Hyepin Im. Obama appointed.
  5. Julie Cummings (appointed in 2007). Donated to Repu and Dem incumbents both, up to 2002. Then no more donations. Her husband, a Florida real estate developer, donated to Bush in 2004 and to Romney in 2007, but not to McCain. He has his own private company. (Julie Cummings contributions)
  6. James (Jim) Palmer. Bush appointed. $250 to Tom Feeney (R, Flor. in 2005). Orange County Republican, owns an electric car, Christian, runs a soup kitchen.
  7. Stan Z. Soloway Bush appointed. Hillary Clinton donor. President and CEO of the Professional Services Council, the principal national trade association of the government professional and technical services industry.
  8. Eric J. Tanenblatt the partisan and strong Georgia Republican Senior Managing Director (not a lawyer) at a big law firm in Atlanta. Donated to McCain, Romney. Appears to be in no way an Obama stooge.
  9. Laysha Ward, Obama donor. Ward, 40, began her career at Target Corporation in 1991 as stores sales leader for Dayton's department store and was named vice president of Community Relations and Target Foundation in 2003.

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