Monday, June 22, 2009

 

Inspector-General Link Page

  1. A June 22 WP wrapup, including Amtrak IG Fred Weiderhold's resignation and the Library of Congress IG admonishment, as well as TARP, ITC, and Americorps.
  2. Chicago Tribune June 18 story on all three IG's, including the International Trade Commission IG who was told her contract would not be renewed shortly after a Senator complained about how she was forbidden access to agency documents ( "It is difficult to understand why the ITC would not have taken action to ensure that the ITC inspector general had the information necessary to do the job," Grassley wrote on Tuesday. Less than three hours after the letter was e-mailed to the agency, the acting IG, Judith Gwynne, was told that her contract, which expires in early July, would not be renewed.)
  3. Rasmusen posts.
    1. The TARP IG obstruction
    2. The board of directors and the Americorps IG firing
    3. Links to the 4 key documents on the Americorps IG firing

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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. http://rasmusen1.blogspot.com/2009/06/obama-fires-americorps-inspector.html
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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Tuesday, June 16, 2009

 

Obama Fires AmeriCorps Inspector-General Walpin

Commentor Steve at VC wrote: "Here are pdfs of Obama's letter to Pelosi and Greg Craig's letter to Sen. Grassley.

For additional information, here are the Acting US Attorney's letter of complaint about the IG and the IG's written response." Thank you, Steve! These 4 documents (you need all of them) go to the heart of the matter.

(1) Has Obama satisfied the statutory requirement? The point of such a statute is to force the President to come out and give a reason for the firing so that reason can be publicly discussed. I think it would be unconstitutional to require him to give a good reason-- he should be able to say, "I fired him because he's ugly," if he wants to. But the statute still has bite, because now people can criticize the decision. In this case, we can say, "Obama should not fire an IG just because he doesn't have the fullest confidence in him. He admits that he isn't firing the IG because the IG did anything wrong-- it's just a matter of Obama's own feelings. That's a stupid reason, and we think the real reason is something else that Obama can't defend."

(2) The only reason not to think this isn't a gross scandal worthy of impeachment is the strong approval of two other people: Steve Goldsmith, former Indianapolis mayor, and the acting US Attorney Larry Brown (if we do confirm that the President firing an IG because the IG tried to make sure a political ally was punished appropriately for fraudulent use of federal funds isn't that worthy of impeachment?).

I don't know about Goldsmith, even though I'm from Indiana. Any ideas, people? Commentor Kent Scheidegger said that he knew Larry Brown, and that he is a good guy. Larry Brown is a career prosecutor, apparently, not a real Bush appointee, so we don't know his politics. Mr. Scheidegger, do you know if he's a liberal? Does anybody know if he has local or national ambitions that would be relevant? (becoming the actual US Attorney, for example, instead of just Acting)

(3) Steve's the Acting US Attorney's letter of complaint about the IG and the IG's written response " are great reading on the substance of the firing, because they are pro- and con- documents by the people involved. In particular, read Larry Brown's letter. After reading it, I think more than ever that this is a major scandal, if that's the best attack that can be mounted on the IG.

Brown's complaint boils down to saying that the IG has an opinion on whether criminal and civil violations occurred, the IG thinks the US Attorney's office is being slack, and the IG has made public comment on the case instead of letting the US Attorney keep it under wraps. Whether the IG is right or wrong, I thought a big part of his job was to publicize wrongdoing (though not to prosecute). He has no direct power, after all, just the power to investigate, refer, and publicize. He couldn't even suspend the culprit from getting money from his agency-- all he could do was recommend it to the Americorps political leadership, who made the decision first to suspend and then to unsuspend.

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