Wednesday, July 31, 2013

Is Ginni Thomas' Expanding Activism a Problem for Supreme Court Justice Clarence Thomas? | Mother Jones

Is Ginni Thomas' Expanding Activism a Problem for Supreme Court Justice Clarence Thomas? | Mother Jones:

Is Ginni Thomas' Expanding Activism a Problem for Supreme Court Justice Clarence Thomas?

Her fierce political advocacy with Groundswell revives conflict of interest questions surrounding her husband.

| Fri Jul. 26, 2013 10:03 AM PDT
Rex Curry/ZumaPress and Chris Zumma/ZumaPress
Virginia "Ginni" Thomas is no ordinary Supreme Court spouse. Unlike Maureen Scalia, mother of nine, or the late Martin Ginsburg, mild-mannered tax law professor who was good in the kitchen, Thomas came from the world of bare-knuckled partisan politics. Over the years, she has enmeshed herself ever more deeply in the world of political advocacy—all the while creating a heap of conflict of interest concerns surrounding her husband, Supreme Court Justice Clarence Thomas. Her role in Groundswell, the coalition of conservatives waging a "30 front war" against progressives and the GOP establishment that was revealed by Mother Joneson Thursday, revives questions about the propriety of Thomas' activism on issues that have or could become the subject of Supreme Court cases.
Conflict of interest issues were first aired during Clarence Thomas' confirmation hearings in 1991, when critics argued that Ginni Thomas' political work might compromise her husband's objectivity. At that time, her political resume included stints as a Capitol Hill aide to a Republican congressman; a staffer at the US Chamber of Commerce, where she fought the Family and Medical Leave Act; and as a political appointee at the Labor Department during the first Bush administration. Thomas didn't leave politics after her husband was confirmed. "I did not give up my First Amendment rights when my husband became a justice of the Supreme Court," she has said in the past. She would later return to the Hill as a staffer to House majority leader Rep. Dick Armey (R-Texas) and work for the Heritage Foundation, the conservative think tank. But in those jobs, Thomas kept a relatively low profile.
That changed around the same time that the tea party exploded in American politics, and Thomas became an outspoken member of the movement. In late 2009, Thomas founded the political advocacy group Liberty Central, which would later become a fierce player in the opposition to health care form. Detractors pointed out that Liberty Central was a potential vehicle for people with interests before the Supreme Court to make anonymous donations that might influence her husband.
The group was formed with a $500,000 anonymous donation that came as the Supreme Court was considering Citizens United, a case that ultimately resulted in loosening the restrictions on corporate giving to political campaigns. The anonymous donor was later revealed to be Harlan Crow, the Texas real estate developer. Crow was also a friend of Clarence Thomas', and he was later linked to a scandal involving the justice's failure to publicly disclose gifts from the developer and trips aboard his private jet. (It didn't help that Justice Thomas had also failed to include his wife's $150,000 annual salary from Liberty Central on his financial disclosure forms, which he later had to amend.) In January 2011, the good-government group Common Cause asked the Justice Department to investigate whether Justice Thomas should have recused himself from Citizens United based on his wife's role at Liberty Central. (Common Cause also asked the IRS to revoke Liberty Central's nonprofit status. Nothing came of either request.)
Thomas ultimately stepped down from Liberty Central, and the group merged with the Patrick Henry Center for Individual Liberty, a nonprofit started by former FBI agent Gary Aldrich (who's best known for writing a book claiming that Bill and Hillary Clinton hung sex toys on the White House Christmas tree while Clinton was president). But she continued to be deeply involved with the opposition to Obamacare. She formed Liberty Consulting, which focused on health care issues, and, while never registering as a lobbyist, she began visiting members of Congress as an "ambassador" from the tea party movement. Due to her outspoken anti-Obamacare advocacy, and the fact that she was earning a living in connection with it, liberal activistscalled on Justice Thomas to recuse himself from ruling on matters related to Obamacare. He declined to do so and later joined the minority in voting to overturn the health care law, as he was widely expected to do.
The recent revelations about Thomas' role in Groundswell will no doubt resurrect the debate over whether her advocacy causes conflicts for her husband. Gun safety, immigration, voting rights and voter ID, environmental concerns—all of these issues have been covered by Groundswell, and all of them are subjects that regularly come before the Supreme Court. (Ginni Thomas did not respond to a request for comment.)
Arn Pearson, vice president for policy and litigation at Common Cause, says that Thomas' work with Groundswell raises "important questions about appearances of conflict, especially if the things she works on end up coming before the Supreme Court, and especially if [the members of Groundswell] end up getting involved in elections." The work she's doing now, he says, doesn't pose quite the same conflicts as her anti-Obamacare advocacy, in which she was directly attacking a specific law whose future rested with the Supreme Court her husband sits on.
The broader problem, Pearson says, is that the Supreme Court has no real mechanism for dealing with possible conflicts of interest, because the high court has refused to subject itself to the same code of conduct that applies to the rest of the federal court system. That code spells out the rules judges must follow to avoid conflicts—rules that include not making speaking appearances at politically tinged fundraisers, as Justices Antonin Scalia and Samuel Alito have done in the past. Another rule requires federal judges to recuse themselves from cases in which a spouse has a financial interest, a provision that would seem to be relevant to the Thomases.
Democratic members of Congress, including Connecticut Sens. Richard Blumenthal and Chris Murphy and Rep. Louise Slaughter (D-N.Y.), are trying to remedy the situation with two bills that would bind the Supreme Court to the same ethics rules as lower court judges. The bills could be introduced as early as next week, but they don't have a single Republican co-sponsor, making their future fairly dim. 
One thing that may insulate Justice Thomas from potential conflicts over his wife's work, in the near-term at least, is congressional gridlock. "I don't know how we're going to get any more conflicts out of Congress because they don't pass anything," Pearson says. 
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Tuesday, July 30, 2013

America's Real Subversives: FBI and NSA

America's Real Subversives: FBI and NSA:
Martin Luther King at Washington DC's Lincoln Memorial in 1968. (photo: Francis Miller/Getty Images)
Martin Luther King at Washington DC's Lincoln Memorial in 1968. (photo: Francis Miller/Getty Images)


America's Real Subversives: FBI and NSA

By Amy Goodman, Guardian UK
28 July 13

As the 50th anniversary of the March on Washington nears, let's not forget the history of agency overreach and abuse of power

s the 50th anniversary of the 1963 March on Washington approaches, commemorating that historic gathering where Martin Luther King Jr gave his famous "I have a dream" speech, it is important to recall the extent to which King was targeted by the government's domestic spying apparatus. The FBI operation against King is one of the most shameful episodes in the long history of our government's persecution of dissenters.
Fifty years later, Edward Snowden, who is seeking temporary asylum to remain in Russia, took enormous personal risk to expose the global reach of surveillance programs overseen by President Barack Obama. His revelations continue to provoke worldwide condemnation of the US.
In a heavily redacted, classified FBI memo dated 4 January 1956 – just a little more than a month after Rosa Parks was arrested for refusing to give up her seat on a bus to a white passenger – the Mobile, Alabama, FBI office stated that an agent "had been assigned by [redacted] to find out all he could about Reverend Martin L King, colored minister in Montgomery and leader in the bus boycott … to uncover all the derogatory information he could about King."
The FBI at that time was run by its founding director, J Edgar Hoover, who was deploying the vast resources he controlled against any and all perceived critics of the United States. The far-reaching clandestine surveillance, infiltration and disruption operation Hoover ran was dubbed "COINTELPRO", for counterintelligence program.
The FBI's COINTELPRO activities, along with illegal operations by agencies like the CIA, were thoroughly investigated in 1975 by the Church Committee, chaired by the Democratic US senator from Idaho, Frank Church. The Church committee reported that the FBI "conducted a sophisticated vigilante operation aimed squarely at preventing the exercise of first amendment rights of speech and association." Among COINTELPRO's perverse activities was an FBI effort to threaten Martin Luther King Jr with exposure of an alleged extramarital affair, including the suggestion, made by the FBI to King, that he avoid embarrassment by killing himself.
Following the Church committee, Congress imposed serious limitations on the FBI and other agencies, restricting domestic spying. Among the changes was the passage into law of the Foreign Intelligence Surveillance Act (Fisa). Fisa compelled the FBI and others in the government to go to a secret court, the Foreign Intelligence Surveillance Court, in order to engage in domestic wiretapping.
Then came 11 September 2001, and the swift passage of the Patriot Act, granting broad, new powers of surveillance to intelligence agencies, including the FBI. Section 215 of that act is widely criticized, first for allowing the FBI to obtain records of what books people are signing out of the library. But now, more than 10 years later, and thanks to the revelations that have come from the Snowden leaks, we see that the government has used this law to perform dragnet surveillance on all electronic communications, including telephone "metadata", which can be analyzed to reveal intimate details of our lives, legalizing a truly Orwellian system of total surveillance.
In what is considered to be a litmus test of the potential to roll back the Obama administration's domestic spy programs, a bipartisan coalition of libertarian Republicans and progressive Democrats put forth an amendment to the latest defense authorization bill. Justin Amash, a Republican, and John Conyers, a Democrat, both of Michigan, co-sponsored the amendment, which would deny funding to the NSA to collect phone and data records of people who are not subjects of an investigation.
The White House took seriously the potential that its power to spy might get trimmed by Congress. On the eve of the debate on the Amash/Conyers amendment, House members were lobbied by NSA Director General Keith B Alexander, Director of National Intelligence James Clapper, as well as by hawkish members of the congressional intelligence committees.
The amendment was narrowly defeated. A full bill that would similarly shut down the NSA program is currently in committee.
Thanks to Edward Snowden, and the journalists who are writing stories based on his whistleblowing, we now know that the Obama administration is collecting oceans of our data. Martin Luther King Jr was a dissident, an organizer, a critic of US wars abroad and of poverty and racism at home. He was spied on, and his work was disrupted by the federal government.
The golden anniversary of the March on Washington is 28 August. Deeply concerned about the crackdown on dissent happening under Obama, scholar Cornel West, professor at Union Theological Seminary in New York, wondered if "Brother Martin [King] would not be invited to the very march in his name."

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Republican Health Care Panic - NYTimes.com

Republican Health Care Panic - NYTimes.com:
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Republican Health Care Panic

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Leading Republicans appear to be nerving themselves up for another round of attempted fiscal blackmail. With the end of the fiscal year looming, they aren’t offering the kinds of compromises that might produce a deal and avoid a government shutdown; instead, they’re drafting extremist legislation — bills that would, for example, cut clean-water grants by 83 percent — that has no chance of becoming law. Furthermore, they’re threatening, once again, to block any rise in the debt ceiling, a move that would damage the U.S. economy and possibly provoke a world financial crisis.
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Yet even as Republican politicians seem ready to go on the offensive, there’s a palpable sense of anxiety, even despair, among conservative pundits and analysts. Better-informed people on the right seem, finally, to be facing up to a horrible truth: Health care reform, President Obama’s signature policy achievement, is probably going to work.
And the good news about Obamacare is, I’d argue, what’s driving the Republican Party’s intensified extremism. Successful health reform wouldn’t just be a victory for a president conservatives loathe, it would be an object demonstration of the falseness of right-wing ideology. So Republicans are being driven into a last, desperate effort to head this thing off at the pass.
Some background: Although you’d never know it from all the fulminations, with prominent Republicans routinelycomparing Obamacare to slavery, the Affordable Care Act is based on three simple ideas. First, all Americans should have access to affordable insurance, even if they have pre-existing medical problems. Second, people should be induced or required to buy insurance even if they’re currently healthy, so that the risk pool remains reasonably favorable. Third, to prevent the insurance “mandate” from being too onerous, there should be subsidies to hold premiums down as a share of income.
Is such a system workable? For a while, Republicans convinced themselves that it was doomed to failure, and that they could profit politically from the inevitable “train wreck.” But a system along exactly these lines has been operating in Massachusetts since 2006, where it was introduced by a Republican governor. What was his name? Mitt Somethingorother? And no trains have been wrecked so far.
The question is whether the Massachusetts success story can be replicated in other states, especially big states like California and New York with large numbers of uninsured residents. The answer to this question depends, in the first place, on whether insurance companies are willing to offer coverage at reasonable rates. And the answer, so far, is a clear “yes.” In California, insurers came in with bids running significantly below expectations; in New York, it appears that premiums will be cut roughly in half.
So is this a case of something for nothing, in which nobody loses? No. In states like California, which have allowed discrimination based on health status, a small number of young, healthy, affluent residents will see their premiums go up. In New York, people who don’t think they need insurance and are too rich to receive subsidies — probably an even smaller group — will feel put upon by being obliged to buy policies. Mainly, though, those insurance subsidies will cost money, and that money will, to an important extent, be raised through higher taxes on the 1 percent: tax increases that have, by the way, already taken effect.
Over all, then, health reform will help millions of Americans who were previously either too sick or too poor to get the coverage they needed, and also offer a great deal of reassurance to millions more who currently have insurance but fear losing it; it will provide these benefits at the expense of a much smaller number of other Americans, mostly the very well off. It is, if you like, a plan to comfort the afflicted while (slightly) afflicting the comfortable.
And the prospect that such a plan might succeed is anathema to a party whose whole philosophy is built around doing just the opposite, of taking from the “takers” and giving to the “job creators,” known to the rest of us as the “rich.” Hence the brinkmanship.
So will Republicans actually take us to the brink? If they do, it will be crucial to understand why they would do such a thing, when their own leaders have admitted that confrontations over the budget inflict substantial harm on the economy. It won’t be because they fear the budget deficit, which is coming down fast. Nor will it be because they sincerely believe that spending cuts produce prosperity.
No, Republicans may be willing to risk economic and financial crisis solely in order to deny essential health care and financial security to millions of their fellow Americans. Let’s hear it for their noble cause!
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Monday, July 29, 2013

US regulator says JP Morgan manipulated market; settlement seen | Business Standard

US regulator says JP Morgan manipulated market; settlement seen | Business Standard:

US regulator says JP Morgan manipulated market; settlement seen

Officials say traders used improper bidding tactics in California and the Midwest to boost profits
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The  power regulator outlined its case of market manipulation against JPMorgan Chase & Co on Monday as industry sources said a final settlement on the issue should come on Tuesday.
Traders used improper bidding tactics in California and the Midwest to boost profits, officials said in a statement that brought to light some details of an extensive investigation.
Reports of that probe have circulated for months and a deal with the regulator could put an end to a distraction for JPMorgan Chief Executive Jamie Dimon.
The US Federal Energy Regulatory Commission (FERC) staff has found "eight manipulative bidding strategies" used by a JPM affiliate in 2010 and 2011, the regulator said.
JPMorgan declined to comment.
Two industry sources said a settlement over the trades could come as early as mid-morning on Tuesday. The bank is expected to pay around $400 million to end the investigation and the settlement could include other payments, according to reports and an industry source.
Monday's regulatory move did not contain any mention of specific traders or commodities chief Blythe Masters, who had been mentioned in media reports as having been singled out by investigators.
The FERC action is a reminder of the tougher regulatory environment commodity traders are facing, particularly banks, which have been under intensifying public and political pressure over their ownership of things such as metals warehouses and power plants.
JPMorgan announced abruptly on Friday that it was quitting the physical commodity markets, seeking a buyer or partner to take over an operation that includes ownership of three power plants, as well as a handful of large tolling agreements.
The alleged violations in Monday's letter offered little new insight into the bank's trading, as most of the details had already been laid out in previous FERC filings.
If there is a settlement, JPMorgan would close the book on a probe that dates back more than two years when California's power grid operator noticed the bank was using an "abusive" trading strategy that effectively forced the grid to pay for plants to sit idle, ultimately adding to costs.
The FERC has been particularly active this month. The regulator approved a $470 million penalty against British bank Barclays Plc and four of its traders for manipulating California power markets. Barclays said it would fight the fine in court.
For JPMorgan, a deal would also allow CEO Jamie Dimon to make good on his promise to resolve multiple government investigations and regulatory run-ins over the past year. The bank, which is the biggest in the United States by assets, is under pressure in Washington for its size and for its $6.2 billion "London Whale" loss on derivatives trades last year.
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