Conflict Of Interest

This is exactly what C&L has been uncovering for years now, so it's great to see that The Nation has put together a comprehensive story on the numerous undisclosed conflicts in the corporate media:

President Obama spent most of December 4 touring Allentown, Pennsylvania, meeting with local workers and discussing the economic crisis. A few hours later, the state's former governor, Tom Ridge, was on MSNBC's Hardball With Chris Matthews, offering up his own recovery plan. There were "modest things" the White House might try, like cutting taxes or opening up credit for small businesses, but the real answer was for the president to "take his green agenda and blow it out of the box." The first step, Ridge explained, was to "create nuclear power plants." Combined with some waste coal and natural gas extraction, you would have an "innovation setter" that would "create jobs, create exports."

As Ridge counseled the administration to "put that package together," he sure seemed like an objective commentator. But what viewers weren't told was that since 2005, Ridge has pocketed $530,659 in executive compensation for serving on the board of Exelon, the nation's largest nuclear power company. As of March 2009, he also held an estimated $248,299 in Exelon stock, according to SEC filings.

Moments earlier, retired general and "NBC Military Analyst" Barry McCaffrey told viewers that the war in Afghanistan would require an additional "three- to ten-year effort" and "a lot of money." Unmentioned was the fact that DynCorp paid McCaffrey $182,309 in 2009 alone. The government had just granted DynCorp a five-year deal worth an estimated $5.9 billion to aid American forces in Afghanistan. The first year is locked in at $644 million, but the additional four options are subject to renewal, contingent on military needs and political realities.

In a single hour, two men with blatant, undisclosed conflicts of interest had appeared on MSNBC. The question is, was this an isolated oversight or business as usual? Evidence points to the latter. In 2003 The Nation exposed McCaffrey's financial ties to military contractors he had promoted on-air on several cable networks; in 2008 David Barstow wrote a Pulitzer Prize-winning series for the New York Times about the Pentagon's use of former military officers--many lobbying or consulting for military contractors--to get their talking points on television in exchange for access to decision-makers; and in 2009 bloggers uncovered how ex-Newsweek writer Richard Wolffe had guest-hosted Countdown With Keith Olbermann while working at a large PR firm specializing in "strategies for managing corporate reputation."

These incidents represent only a fraction of the covert corporate influence peddling on cable news, a four-month investigation by The Nation has found. Since 2007 at least seventy-five registered lobbyists, public relations representatives and corporate officials--people paid by companies and trade groups to manage their public image and promote their financial and political interests--have appeared on MSNBC, Fox News, CNN, CNBC and Fox Business Network with no disclosure of the corporate interests that had paid them. Many have been regulars on more than one of the cable networks, turning in dozens--and in some cases hundreds--of appearances.



If there's anything that makes me want to scream, it's the vast, tangled web of financial interests that make up the D.C. policy, advocacy and media establishment. It's gotten to the point where, whenever I attend a conference or political event, my first question of people is: "So! Who's paying you?"

Great catch via Marcy:

MIT health economist Jonathan Gruber has been the go-to source that all the health care bill apologists point to to defend otherwise dubious arguments. But he has consistently failed to disclose that he has had a sole-source contract with the Department of Health and Human Services since June 19, 2009 to consult on the “President’s health reform proposal.”

He is one source for the claim that the excise tax will result in raises for workers (though his underlying study is in-apt to the excise tax question). He is the basis for the argument that the Senate bill reduces families’ risk–even if it remains totally unaffordable. Even Politico stenographer Mike Allen points to Gruber’s research.

But none of the references to Gruber I’ve seen have revealed that Gruber has a $297,600 contract with HHS to produce,

a technical memorandum on the estimated changes in health insurance coverage and associated costs and impacts to the government under alternative specifications of health system reform. The requirement includes developing estimates of various health reform proposals on health insurance coverage and cost. The alternative specifications to be considered will be derived from the President’s health reform proposal. [my emphasis]

Here's Gruber's response.


Michael Chertoff's Conflict of Interest

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As Steve Benen points out, it seems Michael Chertoff along with The Washington Post are having some conflict of interest problems--PAGE 7 VS PAGE 15:

The Washington Post reports today, on page A7, that Michael Chertoff, the former DHS secretary, has been playing a little fast and loose with the public trust.

Since the attempted bombing of a U.S. airliner on Christmas Day, former Homeland Security secretary Michael Chertoff has given dozens of media interviews touting the need for the federal government to buy more full-body scanners for airports.

What he has made little mention of is that the Chertoff Group, his security consulting agency, includes a client that manufactures the machines. The relationship drew attention after Chertoff disclosed it on a CNN program Wednesday, in response to a question.

An airport passengers' rights group on Thursday criticized Chertoff, who left office less than a year ago, for using his former government credentials to advocate for a product that benefits his clients.

"Mr. Chertoff should not be allowed to abuse the trust the public has placed in him as a former public servant to privately gain from the sale of full-body scanners under the pretense that the scanners would have detected this particular type of explosive," said Kate Hanni, founder of FlyersRights.org, which opposes the use of the scanners.

As Steve notes, that same paper allowed Chertoff a 736-word op-ed calling for expanding the whole-body imaging technology. No, it's not just you Steve. There is a huge disconnect between pages A15 and A7. It seems the Washington Post has as bad a case of dissociative identity disorder as the rest of our corporate media.

At least Campbell Brown bothered to point out the conflict during the CNN interview. That doesn't explain why they still brought him on when they know he's going to profit from the technology being expanded.

Transcript via CNN below the fold.

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The rightie tighties have their knickers in a wad because Jane Hamsher decided to point out that Joe Lieberman's wife not only made large sums annually on the payroll of insurance companies -- which creates a clear conflict of interest for Lieberman in taking a lead role in killing health-care reform -- but also in fact collects money from the Susan G. Komen Foundation as a "global ambassador" for women's health. Jane organized a campaign to have her removed.

Factually and logically, Jane's right that it's silly for outfits like Komen to be underwriting someone who has so badly damaged the ability of millions of women to obtain health-care insurance. But facts and logic have nothing to do with the world of right-wing nutcases.

Particularly those at Fox, who have been avidly denouncing Hamsher's campaign as "outrageous" and using it to paint Lieberman as a martyr of "the far left." Bill O'Reilly, among others, devoted a large chunk of last night's O'Reilly Factor, including his Talking Points Memo, to denouncing the campaign as "sickening" and "disgraceful."

The Giant Turnip of Wingnuttia, aka Glenn Beck, was particularly vicious. He devoted a whole segment to calling Hamsher out, holding up a reproduction of her infamous Lieberman "blackface" Photoshop from 2006 and repeatedly referring to it.

Having once worked for Jane, I can attest to the fact that she sincerely regrets having run that shot, and not just because it's constantly used to slap her down. But really, this is the kind of argumentation we've come to expect from Beck, a la his attacks on Van Jones and Anita Dunn: Latch onto a single rhetorical mistake, then play it over and over as though that's what the person is about.

Well, hey, that particular game is a two-way street. The only problem with Beck is that, as our Fearmonger in Chief, he gives us almost a daily example of complete asshattery that should in fact permanently discredit him. To wit:

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Where to start?


Open Thread

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Interesting how ABC doesn't see a conflict of interest in having a woman with no credentials on their "This Week" panel, to discuss the ever-livin' war on terrah, whose CLOTHES ARE PAID FOR from the trust fund war profits from that very same conflict. (comic bigger here)

Open Thread below...


Via the Plumline. You know, this wouldn't be difficult to fix. A phone interview with a staffer noting all major current issues and asking about any financial connection, and a release you sign to that effect before going on the air. In fact, it's so easy to do that I'd guess they just don't want to know.

I mean, why is a known GOP hack treated as an "expert," anyway?

Of course, if they fixed this, they'd have no one left to interview but neutral academic types and bloggers, but it would make for much more educational TV! Greg Sargent:

CNN has acknowledged in a statement to me that a high-profile Republican commentator who frequently discusses health care on the air is also the media buyer for one of the ad campaigns bankrolled by America’s Health Insurance Plans, the major industry trade group currently waging war against the White House and Dem reform proposals.

CNN tells me his ties to the industry will be disclosed in the future.

The CNN contributor, well-known GOP consultant Alex Castellanos, is best known for producing the racially-charged “Hands” ad, has repeatedly appeared on the network attacking Dem health care plans and the public option, which is strongly opposed by AHIP.

Castellanos’s consulting firm, National Media, also recently placed over $1 million of TV advertising for AHIP, according to info obtained by Media Matters. AHIP’s most recent $1 million ad buy attacks the health care plan as a threat to Medicare.

And in other CNN-related news, some real progress:

Some good news today-- we're raised enough to move forward with our TV ad buy with our partners at Media Matters and DropDobbs.com as part of the effort to hold CNN accountable for airing 260 hours of anti-immigrant hate (aka Lou Dobbs Tonight) a year.

We just sent this email out to our advocates, below. We look forward to continuing to work with our partners to keep the pressure on CNN.

Any help with blog coverage or social networking outreach would be much appreciated! I just tweeted this:

Spread the Word! RT @americasvoice: Success: Dobbs Ad to Air on CNN http://bit.ly/33FoZl #ri4a #CNN #p2 #immigration


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Now if only we could get the appointed judges to recuse themselves on similar conflicts:

WASHINGTON (AP) — The Supreme Court ruled Monday that elected judges must step aside from cases when large campaign contributions from interested parties create the appearance of bias.

By a 5-4 vote in a case from West Virginia, the court said that a judge who remained involved in a lawsuit filed against the company of the most generous supporter of his election deprived the other side of the constitutional right to a fair trial.

With multimillion-dollar judicial election campaigns on the rise, the court's decision Monday could have widespread significance. Justice at Stake, which tracks campaign spending in judicial elections, says judges are elected in 39 states and that candidates for the highest state courts have raised more than $168 million since 2000.

The West Virginia case involved more than $3 million spent by the chief executive of Massey Energy Co. to help elect state Supreme Court Justice Brent Benjamin. At the same time, Massey was appealing a verdict, which now totals $82.7 million with interest, in a dispute with a local coal company. Benjamin refused to step aside from the case, despite repeated requests, and was part of a 3-2 decision to overturn the verdict.

The Massey Energy case was about as clear a case of a corporation trying to buy a verdict as I've ever seen - so egregious, it inspired John Grisham's "The Appeal." Nice to see this ruling.


This is so much worse than your typical conflict-of-interest case. This guy pushed a less-effective drug because he was the manufacturer's minion? I wonder how those Iraq veterans with the busted-up legs feel about this. I hope a few of them track this guy down and let him know what they think of him.

But let's not ignore the manufacturer in all this. After all, it was probably their idea:

A former surgeon at Walter Reed Army Medical Center, who is a paid consultant for a medical company, published a study that made false claims and overstated the benefits of the company’s product in treating soldiers severely injured in Iraq, the hospital’s commander said Tuesday.

An investigation by Walter Reed found that the study cited higher numbers of patients and injuries than the hospital could account for, said the commander, Col. Norvell V. Coots.

“It’s like a ghost population that were reported in the article as having been treated that we have no record of ever having existed,” Colonel Coots said in a telephone interview on Tuesday. “So this really was all falsified information.”

The former Army surgeon, Dr. Timothy R. Kuklo, reported that a bone-growth product sold by Medtronic Inc. had much higher success in healing the shattered legs of wounded soldiers at Walter Reed than other doctors there had experienced, according to Colonel Coots and a summary of an Army investigation of the matter.

Dr. Kuklo, 48, now an associate professor at the Washington University medical school in St. Louis, did not respond to numerous e-mail messages and telephone calls to his office and home seeking comment over the last two weeks. Walter Reed officials say he did not respond to their inquiries during their investigation.

Army investigators found that Dr. Kuklo forged the signatures of four Walter Reed doctors on the article before submitting it last year to a British medical journal, falsely claiming them as co-authors. He also did not obtain the Army’s required permission to conduct the study.

“This was a real letdown for us to have one of our former members do something like this,” one of those doctors, Lt. Col. Romney C. Andersen, wrote in an e-mail message Tuesday. Dr. Andersen, now posted at a combat hospital in Baghdad, said he could not comment further without the permission of his commanders.

It was Dr. Andersen who brought the problem to the Army’s attention last year, prompting the inquiry. In its March edition, at the Army’s request, the journal retracted the article — something that has gone largely unnoticed outside orthopedic circles.


Dear DSCC & DCCC —

I think this letter says it all, as I am a co-sponsor. So...


Stop Fake Reform:

We read that you have chosen to accept President Obama's ban on fundraising from PACs and lobbyists, but only for June 18 -- the day he headlines a fundraiser for you.

This isn’t just hypocritical -- it defies common sense that you'd think the public would believe this was a principled stand against special-interest influence.

For 364 days a year, your rules would allow members of Congress to leave a hearing about regulating Wall Street and then walk straight to the DSCC and DCCC offices to “dial for dollars” from Wall Street lobbyists who want more bailout money and less accountability to taxpayers. Most Americans would find that conflict of interest repulsive.

We call on you to ban PAC and lobbyist contributions 365 days a year, just as President Obama did.


This is actually the least you could do to take on special-interest influence.

Will the DSCC and DCCC reject donations from executives of bailout recipients such as AIG, the way you did for Enron? Will you require candidates you support to publicly endorse the real solution to special-interest influence: public funding of congressional elections?

The public is tired of political gamesmanship. Please recognize that your “one day of reform” is absurd on its face and, if left standing, an embarrassment to your organizations. We urge you to announce a 365-day ban of PAC and lobbyist contributions – at a minimum.

Sincerely,
Your signature.


Between Thee And The Bedpost

On Friday's Hardball, Chris Matthews interviewed his daughter, Caroline, as one of the student members of the group Concerned Youth of America, and just didn't bother mentioning the familial relationship. Apparently his daughter had asked not to be identified as such and, rather than interview another member of the group and thus preserve his journalistic integrity (heh), Matthews went right ahead anyways.

It's such a small-beer breach of what passes for journalistic ethics nowadays as to go almost un-noticed, although in the halcyon days of journalism it would probably have gotten him fired or at least earned the censure of his peers. It simply doesn't compare, though, with the likes of Andrea Mitchell reporting on the bank bailout plan - and blaming Obama for its failure - while married to Alan Greenspan and not making full disclosure of that fact before every report.

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