McClatchy

Apparently the Catholic Church, just like the other Beltway lobbyists, now writes our legislation.

The drama had built for months, pitting a group of Democrats against the Catholic Church. Priests and bishops were calling members to lobby for stricter language to limit abortion coverage, members and aides said last week.

But the final decision played out over a few furious hours Friday night as the fate of the broader bill still hung in the balance and stirred up long-dormant tensions within the Democratic Party over reproductive rights.

The beneficiary of this impasse was Stupak, an outspoken abortion-rights opponent whom the leadership had tried to circumvent, in order to pick up the votes he claimed to represent. After months of stalemate, the speaker was forced to accept language Stupak first drafted over the summer that would bar any insurance company that participates in the exchange — including the government option — from offering insurance plans that would cover abortions.

“Normally, at the end of the day, you’re arguing over fine-tuning,” said an aide whose boss was involved in the negotiations. “But this is a sizable change to current policy. So everyone was kind of stunned.”

For more than a decade, the Hyde amendment has prohibited the federal government from paying for abortions through any existing government program. The law needs to be reauthorized each year as part of the appropriations process, but the two sides had come to something of a détente.

The health care fight, however, disrupted that balance, and a big bloc of anti-abortion Democrats were threatening to derail the entire bill unless party leaders agreed to stronger restrictions the church could accept. Since mid-September, House Majority Leader Steny Hoyer had been working closely with Rep. Brad Ellsworth (D-Ind.) to craft language that would thread what proved to be an impossible needle.

Ellsworth, in consultation with the U.S. Conference of Catholic Bishops, was trying to amend legislation passed out of the Energy and Commerce Committee to make sure insurance companies that receive federal funds under the programs created by the bill don’t use any of that money to pay for abortions.

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McClatchy: Moody's Too-Favorable Ratings Fueled Wall St. Bubble

The next time some bobblehead starts talking about how this crisis "is about people living beyond their means", remind them of this latest proof that the financial services industry was thoroughly and aggressively corrupt, and that was a much bigger problem:

WASHINGTON -- As the housing market collapsed in late 2007, Moody's Investors Service, whose investment ratings were widely trusted, responded by purging analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression.

A McClatchy investigation has found that Moody's punished executives who questioned why the company was risking its reputation by putting its profits ahead of providing trustworthy ratings for investment offerings.

Instead, Moody's promoted executives who headed its "structured finance" division, which assisted Wall Street in packaging loans into securities for sale to investors. It also stacked its compliance department with the people who awarded the highest ratings to pools of mortgages that soon were downgraded to junk. Such products have another name now: "toxic assets."

As Congress tackles the broadest proposed overhaul of financial regulation since the 1930s, however, lawmakers still aren't fully aware of what went wrong at the bond rating agencies, and so they may fail to address misaligned incentives such as granting stock options to mid-level employees, which can be an incentive to issue positive ratings rather than honest ones.

The Securities and Exchange Commission issued a blistering report on how profit motives had undermined the integrity of ratings at Moody's and its main competitors, Fitch Ratings and Standard & Poor's, in July 2008, but the full extent of Moody's internal strife never has been publicly revealed.

Moody's, which rates McClatchy's debt and assigns it quite low value, disputes every allegation against it. "Moody's has rigorous standards in place to protect the integrity of ratings from commercial considerations," said Michael Adler, Moody's vice president for corporate communications, in an e-mail response to McClatchy.

Insiders, however, say that wasn't true before the financial meltdown.

"The story at Moody's doesn't start in 2007; it starts in 2000," said Mark Froeba, a Harvard-educated lawyer and senior vice president who joined Moody's structured finance group in 1997.
"This was a systematic and aggressive strategy to replace a culture that was very conservative, an accuracy-and-quality oriented (culture), a getting-the-rating-right kind of culture, with a culture that was supposed to be 'business-friendly,' but was consistently less likely to assign a rating that was tougher than our competitors," Froeba said.

After Froeba and others raised concerns that the methodology Moody's was using to rate investment offerings allowed the firm's profit interests to trump honest ratings, he and nine other outspoken critics in his group were "downsized" in December 2007.


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Sean Hannity hosted not one but two whole segments last night devoted promoting the new book by Jerome Corsi -- godfather of the Swift-Boating of John Kerry -- titled America For Sale, which is basically an extended black-helicopter-style conspiracy tome straight out of the Patriot movement of the 1990s, updated for the new century.

This is a classic case of conservatives mainstreaming extremist ideas. I haven't read all of Corsi's book yet, but it differs very little in ideas and content and overall thesis from the kinds of books you could buy at militia-meeting tables in the '90s.

I haven't yet found whether Corsi decided to include his recent reportage for WorldNetDaily detailing the nefarious Obama conspiracy to round up conservatives and imprison them in concentration camps. Hannity managed to not bring up that point last night.

But yes, that's what Corsi wrote:

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Text:

The proposed bill, which has received little mainstream media attention, appears designed to create the type of detention center that those concerned about use of the military in domestic affairs fear could be used as concentration camps for political dissidents, such as occurred in Nazi Germany.

Funny, I still have a Militia of Montana book that outlines this very same nefarious plot being concocted by Bill Clinton.

As Steven Thomma explained for McClatchy:

In truth, Rep. Alcee Hastings, D-Fla., has proposed a bill that would order the Homeland Security Department to prepare national emergency centers — to provide temporary housing and medical facilities in national emergencies such as hurricanes. The bill also would allow the centers to be used to train first responders, and for "other appropriate needs, as determined by the Secretary of Homeland Security."

Of course, Corsi and Hannity aren't the only ostensibly mainstream conservatives peddling this paranoiac fearmongering: So is Michelle Bachmann, among others:

"There is a very strong chance that we will see that young people will be put into mandatory service," Bachmann told a Minnesota radio station.

"And the real concern is that there are provisions for what I would call re-education camps for young people, where young people have to go and get trained in a philosophy that the government puts forward and then they have to go to work in some of these politically correct forums."

It's also cropping up quite a bit at Tea Party gatherings. That's where you find outfits like the "Oath Keepers," whose organization is built around resisting citizen roundups.

Why, exactly, does Sean Hannity so avidly promote Jerome Corsi and his conspiracy theories anyway? Look at his record:

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Obama to Strip Fed of Power to Regulate Mortgages, Credit Cards

It's just another day here in the Obama Whiplash Derby, in which I'm either saying, "God, I can't believe I voted for this guy!" or "Wow, great idea!" - sometimes within the same five minutes. (Boy, does my neck hurt.)

Of course, we have to see what's in the final legislation, but this is one of those good ideas:

WASHINGTON — Among the sweeping changes in government regulation that President Barack Obama will propose Wednesday is the creation of an independent and powerful Consumer Financial Product Safety Commission to regulate financial products such as mortgages and credit cards.

With an eye toward protecting consumers and ordinary investors, the Federal Reserve and other bank regulators would lose their oversight over mortgages, credit cards and other financial products that are sold to consumers. It's a radical shift in approach and a tacit acknowledgment of federal failure.

"Lets face it, the (Federal Reserve Board) has had the power to engage in aggressive consumer regulation at least since 1994," Harvard law professor Elizabeth Warren, who chairs the Congressional Oversight Panel, which oversees how Wall Street bailout money is being spent, told McClatchy in an interview. "They clearly had the power to stop the mortgage crisis before it started. And what did they do with that power? Nothing."

Warren's view was echoed by Rep. Barney Frank, D-Mass., the chairman of the influential House Financial Services Committee, which will write the legislation to implement and perhaps build on Obama's proposals.

"We definitely should take consumer protection away from the Fed," Frank said.


We Stand With Sonia Sotomayor

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[Poster by Favianna Rodriguez for Presente.]

The Right is throwing every little bit of ugliness they can at Sonia Sotomayor in hopes of derailing her nomination to the Supreme Court.

They've called her a racist. They've compared the National Council of La Raza to the Ku Klux Klan. They've called her a "lightweight" and "anti-white." They've suggested she lacks the right temperament, since she's just another stereotypical hot-blooded Latina. They've even suggested she's unfit to be a judge because she menstruates.

OK, we get it, fellas. The kid gloves are off.

Presente has organized a grassroots campaign to let ordinary citizens send the following message to members of the Senate Judiciary Committee:

We are outraged by the smear campaign against Supreme Court nominee Judge Sonia Sotomayor. Instead of discussing her record, right-wing activists have sought to question Sotomayor’s intelligence and temperament, and suggested that her racial identity will prevent her from ruling fairly. This thinly veiled racism and sexism is not only insulting to Sotomayor, it's an affront to anyone who believes that a nominee should be judged on her record, not her heritage or skin tone.

The reality is that Sotomayor is an accomplished judge who would start with more federal judicial experience than any Supreme Court justice in 100 years. In her more than 3,000 panel decisions and almost 400 opinions, she has consistently protected the rights of working Americans and become one of the nation’s most respected legal minds. Sotomayor is not only a superbly qualified nominee; she is a powerful example of the American dream and knows how the law affects the daily lives of Americans.

I stand with Judge Sotomayor, and urge the Senate Judiciary Committee to give her nomination a speedy hearing and a positive confirmation.

Go here to sign it.


Iraqi Prime Minister Warned Obama About Photos: 'Baghdad Will Burn'

This sounds a lot more plausible than the previous explanations about why Obama won't release abuse photos. But I find it hard to believe there are any Iraqis left who don't know the stories about what was happening to detainees:

WASHINGTON — President Barack Obama reversed his decision to release detainee abuse photos from Iraq and Afghanistan after Iraqi Prime Minister Nouri al Maliki warned that Iraq would erupt into violence and that Iraqis would demand that U.S. troops withdraw from Iraq a year earlier than planned, two U.S. military officers, a senior defense official and a State Department official have told McClatchy.

In the days leading up to a May 28 deadline to release the photos in response to an American Civil Liberties Union lawsuit, U.S. officials, led by Christopher Hill, the U.S. ambassador to Iraq, told Maliki that the administration was preparing to release photos of suspected detainee abuse taken from 2003 to 2006.

When U.S. officials told Maliki, "he went pale in the face," said a U.S. military official, who along with others requested anonymity because of the matter's sensitivity.

The official said Maliki warned that releasing the photos would lead to more violence that could delay the scheduled U.S. withdrawal from cities by June 30 and that Iraqis wouldn't make a distinction between old and new photos. The public outrage and increase in violence could lead Iraqis to demand a referendum on the security agreement and refuse to permit U.S. forces to stay until the end of 2011.

Maliki said, "Baghdad will burn" if the photos are released, said a second U.S. military official.


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Earlier this month, George Washington University professor and New Republic legal analyst Jeffrey Rosen turned to anonymous sources in a blistering - and controversial - attack on Judge Sonia Sotomayor's judicial temperament. Now just days after the raging right predictably made Rosen's smears a centerpiece in the battle against Sotomayor, the mainstream media are following their lead.

As it turns out, 24 hours after McClatchy claimed, "Sotomayor's take-no-guff demeanor could alter court dynamics," Thursday's New York Times headline announced, "Sotomayor's sharp tongue raises issue of temperament."

That conservative mouthpieces like Michael Gerson, Karl Rove and the Washington Times would amplify Rosen's second-hand smear that Sotomayor is "not that smart and kind of a bully on the bench" is unsurprising. (For his part, Rove this week called Sotomayor "a schoolmarm" and a "lightweight.")

But two days after even Rosen acknowledged, "Of course, Judge Sotomayor should be confirmed to the Supreme Court," the New York Times built on his earlier critique. In a piece featuring a preponderance of positive assessments from her judicial colleagues and attorneys appearing before her court, the Times instead emphasized the negative:

But to detractors, Judge Sotomayor's sharp-tongued and occasionally combative manner -- some lawyers have described her as "difficult" and "nasty" -- raises questions about her judicial temperament and willingness to listen. Her demeanor on the bench is an issue that conservatives opposed to her nomination see as a potential vulnerability -- and one that Mr. Obama carefully considered before selecting her...

Other lawyers, though, are not so enamored. In the Almanac of the Federal Judiciary, which conducts anonymous interviews with lawyers to assess judges, she has gone from generally rave reviews to more tepid endorsements. Among the comments from lawyers was that she is a "terror on the bench" who "behaves in an out-of-control manner" and attacks lawyers "for making an argument she doesn't like."

"I felt she could be very judgmental in the sense that she doesn't let you finish your argument before she jumps in and starts asking questions," said Sheema Chaudhry, who appeared before Judge Sotomayor in an asylum case last year. "She's brilliant and she's qualified, but I just feel that she can be very, how do you say, temperamental."

Which apparently is the exact discussion TNR's Jeffrey Rosen would like to see. After all, in his 2007 PBS series and accompanying book, The Supreme Court: The Personalities and Rivalries That Defined America, Rosen declared judicial temperament as embodied by the great John Marshall the key to determining success or failure on the Court. Of course, early on Rosen praised incoming Chief Justice John Roberts as "resurrecting Marshall's vision." Ultimately, a disappointed Rosen expressed buyer's remorse over Roberts' utter disregard for precedent and unanimity, lamenting, "Will Roberts ever get better?"

Sadly, only Rosen's first opinions and initial judgments seem to make it into the mainstream media.

(Glenn Greenwald has more on Rosen, the New York Times and anonymous sources. This piece also appears at Perrspectives.)


McCain Furious  In a disturbing expose Sunday, the McClatchy papers joined the growing list of press, pundits and politicians raising a red flag about John McCain's out-of-control temper. Following on the heels of the devastating revelations from the Washington Post in April, McClatchy documents many of the tantrums, outbursts and eruptions that continue to call McCain's presidential temperament into question. And as Mitt Romney's campaign revealed in January, those McCain tirades are directed at friend and foe alike.

Starting with an f-bomb hurled at GOP colleague John Cornyn, McClatchy details McCain's long history of explosions, a record which led Mississippi Republican Thad Cochran to conclude "the thought of (McCain) being president sends a cold chill down my spine":

There's a lengthy list of similar outbursts through the years: McCain pushing a woman in a wheelchair, trying to get an Arizona Republican aide fired from three different jobs, berating a young GOP activist on the night of his own 1986 Senate election and many more.

And that's just the tip of the iceberg when it comes to John McCain's white hot temper.

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