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Hillary Clinton is just too wedded to Wall Street

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See this report by David Dayen:

Sen. Elizabeth Warren publicly challenged presidential candidates two weeks ago to support a bill intended to limit the revolving door between Washington and Wall Street.

The Financial Services Conflict of Interest Act would prohibit government officials from accepting “golden parachutes” from their former employers for entering public service.

Within days, Democratic candidate Martin O’Malley endorsed the legislation, and Sen. Bernie Sanders became a co-sponsor. But presumed Democratic front-runner Hillary Clinton has not said where she stands.

One possible explanation for Clinton’s lack of interest in banning golden parachutes is that she tolerated them when she ran the State Department — for two of her top aides. Robert Hormats and Thomas Nides previously worked as executives for financial firms Goldman Sachs and Morgan Stanley, respectively. Both received benefits tied to their Wall Street employment contracts for entering public service.

Hormats, who served as undersecretary for economics, energy and agricultural affairs from 2009 to 2013, was a managing director for Goldman Sachs for over 25 years. As he wrote in his 2009 letter to the Office of Government Ethics, “Before I assume the duties of the position of Under Secretary, Goldman Sachs will accelerate and pay out my restricted stock units, pursuant to written company policy.” Those unvested restricted stock units, which would have been forfeited had Hormats left Goldman for another Wall Street firm, are valued at between $250,000 and $500,000 on Hormats’ disclosure form.

Nides, a six-figure bundler in Clinton’s past and present presidential campaigns, worked for Fannie Mae, Credit Suisse and as a top executive at Morgan Stanley from 2005 to 2010. He became deputy secretary of state for management and resources in January 2011, replacing Jack Lew, who had himself received a golden parachute from Citigroup for entering government service. Nides received a payout on Morgan Stanley restricted stock units worth between $5 million and $25 million, according to his financial disclosure. His Morgan Stanley compensation plan “allows for acceleration of payout … if employee is required to divest of interest in order to comply with federal, state or local government conflict of interest requirements.”

Nides and Hormats are not alone in what has become a depressingly standard practicein recent years. But Clinton’s unusual control over staffing at the State Department makes her directly responsible for these particular golden parachutes, at a time when she wants to gain control over staffing of the entire executive branch.

“I would say these are textbook examples,” said Michael Smallberg of the Project on Government Oversight, which has closely followed this issue. “I would raise concerns on how these payments affect the officials’ views, not only toward their former employers but the industry more broadly.” . . .

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Written by LeisureGuy

30 July 2015 at 12:49 pm

Hillary Clinton Takes Aim at Capital Gains Taxes for the Rich

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Interesting post by Kevin Drum at Mother Jones:

The Wall Street Journal reports that Hillary Clinton’s tax plan is starting to take shape:

Hillary Clinton will propose a sharp increase in the capital-gains tax rate for the highest earners for investments held only a few years, a campaign official said Friday. Under the Clinton plan, investments held between one and two years would be taxed at the normal income-tax rate of 39.6%, nearly double the existing 20% capital gains rate.

….The rate for top-bracket taxpayers would be set on a sliding scale, with the lowest rate applied to investments held the longest. To qualify for the blog_capital_gains_distribution_tpcexisting 20% rate, one would have to hold an investment for at least six years.

This change would apply only to high-income taxpayers and only to short-term investments. Lower-income workers would continue to get a break on capital gains taxes compared to the rate they pay on ordinary income. This is mostly for show, however: low-income workers barely have any capital gains income in the first place. The chart on the right from the Tax Policy Center shows the breakdown. Anyone making less than a six-figure income pays virtually no capital gains taxes, so changing their rates serves no purpose. It’s only at the high end of the income spectrum that the preferential capital gains rate matters.

Hillary’s proposal will enrage conservatives, who are convinced that capital gains rates are the magic key to prosperity. Since there’s virtually no evidence linking capital gains rates to economic growth, the cynical among you might think that what really motivates their tireless advocacy of low rates is that it benefits the rich enormously. But that’s only for the cynical among you.

In any case, folks who make more than a million dollars a year are going to be pretty exercised about this, even though Hillary’s proposal allows them to keep a modestly preferential rate for investments held longer than two years and the current super-preferential rate for investments held for six years or more. Still, details aside, the rich account for virtually all the capital gains taxes paid, and raising that rate in any way would hurt them considerably. These are also the folks who are donating vast sums to the Republican candidates, so you can be sure they’ll be insisting that their favored candidate goes after this proposal hammer and tongs. But Hillary is right. There’s little evidence that higher capital gains rates do much harm, and a fair number of reasons to actively prefer a higher rate. Jared Bernstein has more here.

Written by LeisureGuy

24 July 2015 at 2:38 pm

Expectations over experience: The Iran Deal

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Kevin Drum has a very good comment.

Written by LeisureGuy

14 July 2015 at 4:35 pm

The Hillary in Our Future

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Michael Tomasky reviews a timely book in the NY Review of Books:

Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich
by Peter Schweizer
Harper, 243 pp., $27.99

As Hillary Rodham Clinton pursues the 2016 Democratic presidential nomination, we face a situation that is wholly without precedent in modern American electoral history. There have been presumptive nominees before, usually sitting vice-presidents—Al Gore in 2000, George H.W. Bush in 1988, and Hubert Humphrey in 1968, to name three. But even they faced competition from candidates who were certainly from the “first tier”—Bill Bradley, Bob Dole, Jack Kemp, Bobby Kennedy, and Gene McCarthy.

Clinton faces no such opposition within her party. It’s good that Senator Bernie Sanders has decided to enter the race. Clinton will have to debate him, and his mere presence will force her to take positions she could otherwise get away with not taking. But it’s rather unlikely that a socialist from Vermont can capture a major-party nomination. Similarly, former Maryland governor Martin O’Malley probably doesn’t arouse much concern at Clinton’s Brooklyn headquarters. He has a solid record of achievement in Annapolis and intriguing credentials as a Catholic committed to social justice. But he comes with baggage, too—the extremely incompetent implementation of Obamacare in his state and, now, the mere fact that he was once the mayor of the sad, segregated city of Baltimore, perpetually suspended in a kind of bitter aspic of deindustrialization, disinvestment, and broken promises. Sometimes governors exude clear presidential potential, as did Bill Clinton and George W. Bush. O’Malley, so far anyway, does not.

And that’s about it. Massachusetts Senator Elizabeth Warren is out; she plainly does not want to be president. Although she’s been active in opposing Obama’s proposed Pacific trade agreement, she’s never shown a deep interest in foreign policy, which is a rather important part of any president’s job, particularly so at this point in history. Short of incapacitating illness or a scandal of enormous proportions, Clinton will almost certainly be the Democratic nominee.

This puts her in a strong position, but it also places a special burden on her. It means that the nation’s liberals and Democrats, millions of people who usually have a choice to make, in essence don’t have one here. There is much at stake in next year’s election. For a start, a new president who serves two terms may well nominate three or even four justices to the Supreme Court, meaning either that the Court’s conservative majority will be solidified and enlarged, with more allies of Antonin Scalia and Samuel Alito, or that it will be reversed, giving the country a liberal Supreme Court majority for the first time since the 1980s. Such a Court could spend a generation or two reversing the precedents set by the Courts of William Rehnquist and John Roberts.

So Clinton, who leads in national polls and will benefit from an Electoral College map that favors any Democratic candidate, has a special obligation as a candidate. She has to run a better race than she ran in 2008. She needs to show—as she already has on issues like immigration, criminal justice, and the tax rates of hedge fund managers—that she is attuned to where the electorate is today. And she needs to take all reasonable steps to avoid taints of scandal. If a late-breaking controversy over Clinton’s record and character propels someone like Scott Walker to the White House, the sense of betrayal and despair will be ferocious.

The Clinton Foundation—until recently the Bill, Hillary, and Chelsea Clinton Foundation—has done a lot of good in the world since its founding in 2001. By far its largest program—$128 million spent in 2013—is the Clinton Health Access Initiative, which facilitates the provision of, and negotiates price reductions for, AIDS and malarial drugs to millions of people in Africa and elsewhere. It does other work to expand access to health care in developing countries.

The second-largest of the foundation’s seven major programs ($23.6 million in 2013) is the Clinton Global Initiative (CGI), which “convenes global leaders to create and implement innovative solutions to the world’s most pressing challenges,” according to the foundation’s website. In early May, the CGI hosted a meeting in Marrakesh where regional leaders were introduced to experts on youth unemployment, innovation, entrepreneurship, and kindred topics. The foundation also funds work related to domestic poverty and the effects of climate change both in the United States and around the world.

Some critics have raised questions about several of the foundation’s programs. For example, does anything constructive actually happen in poor countries once those regional leaders go back home after getting to hobnob with Bill Clinton for a few days? The foundation often operates at the intersection of the nonprofit, public-sector, and management-consulting worlds, and it is hard to discern clear results of some of its activities. Yet at the same time, there can be little doubt that Bill Clinton’s work has saved and improved lives. Back when the foundation still used to get good press, anAtlantic article described in detail how Clinton and his old friend Ira Magaziner, then working with the foundation, succeeded in negotiating with pharmaceutical companies for lower anti-AIDS drug prices:

So the foundation went to governments in Africa and the Caribbean and organized demand for AIDS drugs, obtaining intentions to place large orders if prices could be cut. It simultaneously went to drug companies, offering them a much larger and less-volatile market for AIDS drugs in return for lower prices based on the projected higher volume. Although the foundation asked for aggressive “forward pricing” to kick-start demand, it pointedly did not ask for donations or charity. “To be sustainable,” says Magaziner, “this can’t be a charitable act.” Rather, the foundation was offering a business proposition: If we get you the demand, can you get us the supply?

It’s hard to argue with that, and no one outside of the right-wing fever swamps really does.

What people argue with are two things: the donations the foundation accepts from foreign governments and individuals, and the speaker fees paid to Bill and Hillary Clinton. For the most part those payments are not specifically related to the foundation; but they are given much emphasis by the Clintons’ numerous opponents. There is palpable fear among them that she will win the presidency, serve eight years, reshape the Supreme Court, and pursue the other lamentable goals one might expect from the Clintons. . .

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Written by LeisureGuy

19 June 2015 at 4:08 pm

Hillary’s Presidential Prospects Are Tanking

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Pam Martens and Russ Martens report in Wall Street on Parade:

The chickens are coming home to roost in the campaign of the quintessential Wall Street Democrat, Hillary Clinton. The mountains of cash sluiced into the Clinton pockets and their Foundation together with Hillary’s destruction of emails from her stint as Secretary of State caught up with her last week in two devastating polls showing that a majority of Americans don’t think she is trustworthy.

As cynical as we’ve become as a nation, surely a requirement to occupy the highest office in the land should include the belief by your fellow Americans that one is trustworthy.

On June 2, a CNN/ORC poll was released showing that 57 percent of those polled, up from 49 percent in March, say Hillary is not honest and trustworthy. The same day, the Washington Post published the findings from a poll conducted by itself and ABC, summarizing the findings as follows: “Clinton’s favorability ratings are the lowest in a Post-ABC poll since April 2008, when she was running for president the first time. Today, 41 percent of Americans say she is honest and trustworthy, compared with 52 percent who say she is not — a 22-point swing in the past year.”

A reader comment below the Washington Post article, posted by “Tobit” may be an epiphany. The reader noted that: “…Clinton’s favorability is at its lowest point since she ran for president two elections ago. This seems to indicate that the more people get to know Hillary, the less they like her. Of course her election ‘hide in plain sight’ strategy won’t work.”

Kyle Wingfield, writing in his blog at the Atlanta Journal Constitution on June 3, explained that the loss of confidence is dramatic among voters who identify as independents. Wingfield writes:

“In the course of just six weeks, Clinton’s standing with independents on the ‘cares about people like you’ question went from plus 51 to minus 17. Equally stunning is her drop on the ‘is honest and trustworthy’ question: from plus 37 to minus 24.

“Those do not look like the periodic gyrations that political candidates face over the course of a long campaign. They look like a hard flip from an overwhelmingly positive view of her to a sharply negative view of her.”

On June 4, Dana Milbank explained at the Washington Post how the $2 billion that the Clinton Foundation has sucked in from corporations, Wall Street firms, and foreign governments around the world can now tie it to “virtually any skullduggery.” Milbank writes:

“…Clinton and her husband have only themselves to blame for making themselves vulnerable to guilt-by-association attacks. They have managed to make Hillary Clinton conspicuously out of tune with the mood of the 2016 electorate: At a time of rising populist backlash against Wall Street, inequality and wealth-purchased privilege, there is no Democrat more closely tied to the rich and the powerful than Clinton. At a time when Democrats need to draw contrasts with Republicans by sticking up for the little guy, Clinton’s solicitation of — and favors for — the powerful make her an inauthentic messenger.”

Revelations of the Clintons’ money machine have been devastating. In June of last year, the Washington Post reported that Bill Clinton was paid “$104.9 million for 542 speeches around the world between January 2001, when he left the White House, and January 2013, when Hillary stepped down as secretary of state, according to a Washington Post review of the family’s federal financial disclosures.” This is their personal financial take, not monies flowing to the Clinton Foundation which has raked in over $2 billion.

Of that $104.9 million in personal income, $19.6 million came from speaking engagements at Wall Street firms and other financial institutions like hedge funds.

Just three weeks ago, . . .

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Written by LeisureGuy

8 June 2015 at 4:34 pm

Bernard Sanders: A serious candidate with a cause

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John Cassidy in the New Yorker has an interesting look at the Sanders candidacy:

Six days after formally entering the 2016 Presidential race, Senator Bernie Sanders is having some time of it. After attracting overflow crowds at a number of stops in Iowa late last week, Sanders moved on to Minnesota on Sunday, where he appeared at the Minneapolis American Indian Center and declared, “Our country belongs to all of our people and not just a handful of billionaires.” According to a report in the Minneapolis Star Tribune, about three thousand people turned out. A local television station estimated the number of attendees at four thousand.

Whatever the exact number was, the seventy-three-year-old from Vermont appears to be attracting bigger crowds than any other candidate, Democrat or Republican. With one recent national survey finding that fifteen per cent of likely Democratic voters support him, and a new Des Moines Register pollshowing him picking up sixteen per cent of the Democratic vote in Iowa, the media is starting to accord him some serious attention. The Times, having initially failed to report Sanders’s formal announcement of his candidacy in its print edition, ran a front-page story on Friday about his appeal to senior citizens, and another piece over the weekend about the enthusiastic reception he was receiving in Iowa. Before speaking in Minneapolis on Sunday, Sanders appeared on NBC’s “Meet the Press,” where he highlighted the “grotesque level of income and wealth inequality” in the U.S. and said, “I think we need a political revolution in this country.”

To be sure, not all of the Sanders coverage has been helpful to his campaign. Last week, Mother Jones, as an accompaniment to an interesting piece about his early years in left-wing politics, reprinted an article he wrote in 1972 for an alternative newspaper called the Vermont Freeman, the subject of which was male and female power relations, and sexual fantasies. One line in particular got quite a bit of media attention, including an explainer by NPR’s Danielle Kurtzleben. “A woman enjoys intercourse with her man—as she fantasizes being raped by 3 men simultaneously,” Sanders wrote. On “Meet the Press,” the host, Chuck Todd, asked the senator about the piece. Sanders described it as fiction, adding, “It was dealing with gender stereotypes, why some men like to oppress women, why other women like to be submissive. You know, something like ‘Fifty Shades of Grey.’ Very poorly written, forty-three years ago.”

While it is embarrassing to Sanders, the flap about his literary effort, which he wrote while trying to get by as a carpenter and freelance journalist, seems unlikely to have much lasting effect on his campaign. That’s partly because Sanders’s run for the White House isn’t based on his personal character, or even his record as a mayor, congressman, and U.S. senator. Sanders is running for a cause—a resurgent progressivism that was conceived during decades of wage stagnation and rising inequality, born during the great financial crisis of 2008, and announced on the political stage by the street protests of the Occupy Wall Street movement and the widespread public support they engendered.

Of course, many candidates claim that their campaigns aren’t about them but about something larger. But when Sanders uses this line, which he does all the time, he is merely stating a fact. Before he entered the 2016 race, the new progressivism was a cause in search of a candidate. After Senator Elizabeth Warren refused to step up and run, Sanders seized his chance, and he is now getting his reward. In a contest dominated by a consummate insider with strong ties to the moneyed élite, many disaffected Democrats are embracing him as an underdog and an outsider. During a general election, almost all of Sanders’s supporters would vote for Clinton over Jeb Bush or any other Republican, but, right now, his presence in the primary gives them the opportunity to raise a rumpus, and to try to pull the party in a liberal direction.

As the campaign progresses, it will be fascinating to see how far this effort succeeds. Already, Clinton has shifted her stance on immigration reform and the criminal-justice system. In two recent speeches, she pledged to extend President Obama’s initiatives aimed at undocumented workers and their families, and called for an end to mass incarceration.

Although each of these policy proposals is important in its own right, neither would cost the Democratic Party’s donor class any money. The political test for Clinton will come in the area of economic policy, where Sanders has put out a comprehensive and, by American standards, quite radical manifesto. It includes reforming the tax code to make the rich pay more, raising the federal minimum wage to fifteen dollars an hour, reforming trade policies, breaking up the big banks, and turning Medicare into a public health-care system for Americans of all ages. . . .

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Written by LeisureGuy

1 June 2015 at 4:42 pm

Posted in Democrats, Election

Clinton sleaze and an unattractive lust for money

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The Clintons’ unbridled avarice is unattractive if not actively repulsive. Deborah Sontag, doubtless now on a Clinton “enemies” list—and that seems in keeping with their style—reports in the NY Times:

To commemorate the 10th anniversary of the 2004 Indian Ocean tsunami, Petra Nemcova, a Czech model who survived the disaster by clinging to a palm tree, decided to pull out all the stops for the annual fund-raiser of her school-building charity, the Happy Hearts Fund.

She booked Cipriani 42nd Street, which greeted guests with Bellini cocktails on silver trays. She flew in Sheryl Crow with her band and crew for a 20-minute set. She special-ordered heart-shaped floral centerpieces, heart-shaped chocolate parfaits, heart-shaped tiramisù and, because orange is the charity’s color, an orange carpet rather than a red one. She imported a Swiss auctioneer and handed out orange rulers to serve as auction paddles, playfully threatening to use hers to spank the highest bidder for an Ibiza vacation.

The gala cost $363,413. But the real splurge? Bill Clinton.

The former president of the United States agreed to accept a lifetime achievement award at the June 2014 event after Ms. Nemcova offered a $500,000 contribution to the Bill, Hillary and Chelsea Clinton Foundation. The donation, made late last year after the foundation sent the charity an invoice, amounted to almost a quarter of the evening’s net proceeds — enough to build 10 preschools in Indonesia.

Happy Hearts’ former executive director believes the transaction was a “quid pro quo,” which rerouted donations intended for a small charity with the concrete mission of rebuilding schools after natural disasters to a large foundation with a broader agenda and a budget 100 times bigger.

“The Clinton Foundation had rejected the Happy Hearts Fund invitation more than once, until there was a thinly veiled solicitation and then the offer of an honorarium,” said the former executive director, Sue Veres Royal, who held that position at the time of the gala and was dismissed a few weeks later amid conflicts over the gala and other issues. . .

Continue reading.

Written by LeisureGuy

29 May 2015 at 9:50 am

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