When Wall Street Writes Its Own Rules, It’s An Age of Unprecedented Corruption

From today’s New York Times:

On July 25, 2013, a high-ranking federal law enforcement officer took a public stand against malfeasance on Wall Street. Preet Bharara, then the United States attorney for the Southern District of New York, held a news conference to announce one of the largest Wall Street criminal cases the American justice system had ever seen.

Mr. Bharara’s office had just indicted the multibillion-dollar hedge fund firm SAC Capital Advisors, charging it with wire fraud and insider trading. Standing before a row of television cameras, Mr. Bharara described the case in momentous terms, saying that it involved illegal trading that was “substantial, pervasive and on a scale without precedent in the history of hedge funds.” His legal action that day, he assured the public, would send a strong message to the financial industry that cheating was not acceptable and that prosecutors and regulators would take swift action when behavior crossed the line.

Steven A. Cohen, the founder of SAC and one of the world’s wealthiest men, was never criminally charged, but his company would end up paying $1.8 billion in civil and criminal fines, one of the largest settlements of its kind. He denied any culpability, but his reputation was still badly — some might argue irreparably — damaged. Eight of his former employees were charged by the government, and six pleaded guilty (a few later had their convictions or guilty pleas dismissed). Mr. Cohen was required to shut his fund down and was prohibited from managing outside investors’ money until 2018.

Now, with the prohibition having expired in December, Mr. Cohen has been raising money from investors and is set to start a new hedge fund. He’ll find himself in an environment very different from the one he last operated in. His resurrection arrives as Wall Street regulation is under assault and financiers are directing tax policy and other aspects of the economy — often to the benefit of their own industry. Mr. Cohen is a powerful symbol of Wall Street’s resurgence under President Trump.

As the stock market lurched through its stomach-turning swings over the past week, it was hard not to worry that Wall Street could once again torpedo an otherwise healthy economy and to think about how little Mr. Trump and his Congress have done to prepare for such a possibility. Stock market turbulence typically prompts calls for smart and stringent financial regulation, which is not part of the Trump agenda. One of Mr. Trump’s first acts as president was to fire Mr. Bharara, who made prosecuting Wall Street crime one of his priorities. Mr. Trump has also given many gifts to people like Mr. Cohen.

Read the complete article here.

#VotingRights Update: Group Targets GOP States to Attack Gerrymandering

From today’s New York Times:

A Democratic group backed by former President Barack Obama intends to pour millions of dollars into an eclectic array of elections in a dozen states, in an effort to block Republicans from single-handedly drawing congressional maps after 2020, officials leading the group said.

The National Democratic Redistricting Committee, formed last year under the leadership of Eric H. Holder Jr., the former attorney general, has settled on a strategy to contest a combination of governorships, legislative seats and more obscure state offices to chip away at Republicans’ sweeping control of the redistricting process.

Mr. Holder said in an interview that the group was chiefly determined to deny Republicans so-called trifectas in state governments — places where a single party controls the governorship and an entire legislature, as Republicans do in Ohio and Florida, among other critical battlegrounds.

The group’s list of high-priority states includes most of the critical states in presidential elections. Mr. Obama, who has made redistricting a focus of his attention since leaving office, plans to visit some of those states in 2018, and Mr. Holder reviewed his strategy with the former president in Washington on Monday, aides said.

States at the top of the just-finalized target list include traditional purple states like Michigan and Wisconsin, where Republicans can currently design maps without Democratic input, and others — including Colorado, Minnesota and Nevada — where Democrats have significant influence in government but must defend it in the 2018 elections.

Read the complete article here.

Justice Department Dismisses Corruption Case Against Menendez

From today’s New York Times:

The Department of Justice on Wednesday dismissed all the remaining charges against Senator Robert Menendez, a decision that underscores how a 2016 Supreme Court ruling has significantly raised the bar for prosecutors who try to pursue corruption cases against elected officials.

The motion to dismiss comes less than two weeks after prosecutors said they were intent on retrying Mr. Menendez, a New Jersey Democrat, and it allows him to run for re-election without having to face a second trial.

The Justice Department on Wednesday cited last week’s decision by Judge William H. Walls to throw out several charges the senator had faced, including bribery counts stemming from accusations that Mr. Menendez lobbied on behalf of a wealthy Florida eye doctor in exchange for political donations. All charges against the doctor, Salomon Melgen, were also dismissed.

“Given the impact of the court’s Jan. 24 order on the charges and the evidence admissible in a retrial, the United States has determined that it will not retry the defendants on the remaining charges,” said Nicole Navas, a spokeswoman for the Justice Department, declining to provide any more details about the agency’s rationale.

The unraveling of the case against Mr. Menendez is the latest example of how difficult it has become to win public corruption cases after the Supreme Court’s landmark decision to overturn the conviction of the former Republican governor of Virginia, Bob McDonnell, who had been accused of accepting luxury items, loans and vacations in exchange for helping a businessman, Jonnie R. Williams Sr.

Read the complete article here.

In Montana, Governor Bullock Signs Order to Enforce Net Neutrality

From the New York Times:

Most efforts underway to restore so-called net neutralityface big obstacles and would take many months, if not years, to succeed.

But in Montana, the governor has used the stroke of a pen to bring the rules to broad parts of his state.

Through an executive order, Gov. Steve Bullock declared on Monday that any internet service provider with a state government contract cannot block or charge more for faster delivery of websites, two core aspects of net neutrality, to any customer in the state.

Many major landline and mobile broadband providers, including Charter, CenturyLink, AT&T and Verizon, hold government contracts in the state. The new requirements apply to new and renewed contracts signed after July 1, 2018.

The action, the first of its kind by a governor, could face legal challenges.

In December, the Federal Communications Commission rolled back rules meant to protect a free and open internet. The new rules say states cannot create net neutrality laws. The agency did not respond to a request for comment about the Montana action.

Read the complete article here.

In win for #VotingRights, Federal Court Rules NC Electoral Map Unconstitutional

From the New York Times:

A panel of federal judges struck down North Carolina’s congressional map on Tuesday, condemning it as unconstitutional because Republicans had drawn the map seeking a political advantage.

The ruling was the first time that a federal court had blocked a congressional map because of a partisan gerrymander, and it instantly endangered Republican seats in the coming elections.

Judge James A. Wynn Jr., in a biting 191-page opinion, said that Republicans in North Carolina’s Legislature had been “motivated by invidious partisan intent” as they carried out their obligation in 2016 to divide the state into 13 congressional districts, 10 of which are held by Republicans. The result, Judge Wynn wrote, violated the 14th Amendment’s guarantee of equal protection.

The ruling and its chief demand — that the Republican-dominated Legislature create a new landscape of congressional districts by Jan. 24 — infused new turmoil into the political chaos that has in recent years enveloped North Carolina. President Trump carried North Carolina in 2016, but the state elected a Democrat as its governor on the same day and in 2008 supported President Barack Obama.

The unusually blunt decision by the panel could lend momentum to two other challenges on gerrymandering that are already before the Supreme Court — and that the North Carolina case could join if Republicans make good on their vow to appeal Tuesday’s ruling.

In October, the court heard an appeal of another three-judge panel’s ruling that Republicans had unconstitutionally gerrymandered Wisconsin’s State Assembly in an attempt to relegate Democrats to a permanent minority. In the second case, the justices will hear arguments by Maryland Republicans that the Democratic-controlled Legislature redrew House districts to flip a Republican-held seat to Democratic control.

Read the complete article here.

Al Franken will resign from Senate after more allegations of sexual improprieties

From today’s LA Times:

Al Franken announced Thursday he will resign his Senate seat, falling to a whirlwind of sexual misconduct allegations like those that have enmeshed other politicians, business leaders and media figures across the country in recent months.

The Minnesota Democrat, a second-term senator once seen as a potential presidential candidate in 2020 or beyond, earlier had said he would not leave office but would submit to a Senate ethics investigation into his behavior. He had acknowledged some misconduct, but denied other allegations.

His fate appeared sealed, however, on Wednesday, when more than half of Senate Democrats issued calls for his resignation in an uprising led by female senators. The choreographed move came as yet another woman came forward to accuse Franken of unwanted advances before he was elected to the Senate, and Senate Democratic leader Charles E. Schumer of New York privately met with Franken to tell him the time had come to quit.

Franken’s announcement marked the second departure this week of a once-heralded Democrat caught in unsavory accusations. On Tuesday, the senior member of the House, Rep. John Conyers Jr. of Michigan, quit after multiple complaints by aides that he had sexually harassed them.

The departure marks the end of the legislative career that began when Franken squeaked into office on an exceptionally narrow win, was reelected more easily and had emerged as a well-regarded member of the party’s growing liberal wing.

Franken’s resignation will not change the balance of power in the Senate, where Republicans hold the majority with 52 seats. Minnesota Gov. Mark Dayton, a fellow Democrat, will appoint a replacement to serve until a special election can be held in November 2018. The winner of that election will hold the seat until what would have been the end of Franken’s second term, in January 2021.

Read the entire article here.

Rep. John Conyers (D-MI) to resign amid many accusations of sexual harassment

From today’s LA Times:

Rep. John Conyers Jr. of Michigan, the longest-serving member of the House of Representatives, resigned Tuesday after his support among fellow Democrats collapsed amid accusations of sexual harassment by several female employees.

Conyers endorsed his son, John Conyers III, in a rambling radio interview with Detroit host Mildred Gaddis.

“I am retiring today, and I want everyone to know how much I appreciate the support, incredible undiminished support I’ve received,” Conyers said.

Conyers’ use of the word “retiring” rather than “resigning” left some uncertainty over when he was vacating the congressional seat he has held since 1965. Later in the day, however, he sent a letter to congressional leaders saying he was stepping down “effective today.”

Conyers’ replacement will be chosen in a special election.

The Detroit-area seat is strongly Democratic, so Conyers’ departure will not affect the balance of power in the House. But it does set up a potential family fight: While the congressman endorsed his son to succeed him, a great-nephew, state Sen. Ian Conyers, has publicly said he intended to seek the seat.

The announcement by John Conyers came after House Minority Leader Nancy Pelosi (D-San Francisco), fellow Congressional Black Caucus leader Rep. James Clyburn (D-S.C.) and increasing numbers of House members urged him to quit as former aides offered detailed accounts of inappropriate sexual advances he had made over decades.

A longtime civil rights activist — the only remaining member of Congresswho was elected in the 1960s — Conyers is the highest-profile political figure to be forced from office in the midst of a national debate over sexual harassment that began weeks ago with accusations against movie producer Harvey Weinstein.

Conyers has continued to deny any wrongdoing, although on Nov. 26, he agreed to step down as the top Democrat on the House Judiciary Committee in what served as the first acknowledgment of his vulnerability.

Read the entire article here.

Breaking News: State Assemblyman resigns in wake of harassment scandal

California Assemblyman Raul Bocanegra, who represents a large part of the East San Fernando Valley, announced Monday he will resign “immediately,” one week after multiple women alleged he sexually harassed them.

In a statement Monday, he said he decided to accelerate his resignation, which he said was his “original intention.”

“By doing so I hope the community will have a new representative sooner rather than later. Furthermore, it is my hope that in taking this action we can help clear the path so that women and men who have been truly victims of sexual assault and workplace harassment can step forward and get justice for any crimes committed against them. While I am not guilty of any such crimes, I am admittedly not perfect,” Bocanegra said in the statement.

He continued: “I sincerely hope that my decision to resign immediately does not embolden those who are using this serious problem in our society to advance their own personal political gain, rather it is my hope that this action can instead help to widen the doors for victims of sexual assault and workplace harassment to find justice and solace.”

He submitted a resignation letter, “effective immediately,” to Assembly Speaker Anthony Rendon (D-Paramount).

His announcement comes the day before the Assembly will hold a public hearing on how to prevent harassment, discrimination and retaliation in the Capitol.

Sexual harassment claims in Congress have been buried from public oversight

From today’s Buzzfeed by P. McLeod and L. Villa:

Michigan Rep. John Conyers, a Democrat and the longest-serving member of the House of Representatives, settled a wrongful dismissal complaint in 2015 with a former employee who alleged she was fired because she would not “succumb to [his] sexual advances.”

Documents from the complaint obtained by BuzzFeed News include four signed affidavits, three of which are notarized, from former staff members who allege that Conyers, the ranking Democrat on the powerful House Judiciary Committee, repeatedly made sexual advances to female staff that included requests for sexual favors, contacting and transporting other women with whom they believed Conyers was having affairs, caressing their hands sexually, and rubbing their legs and backs in public. Four people involved with the case verified the documents are authentic.

And the documents also reveal the secret mechanism by which Congress has kept an unknown number of sexual harassment allegations secret: A grinding, closely held process that left the alleged victim feeling, she told BuzzFeed News, that she had no option other than to stay quiet and accept a settlement offered to her.

“I was basically blackballed. There was nowhere I could go,” she said in a phone interview. BuzzFeed News is withholding the woman’s name at her request, because she said she fears retribution.

Last week the Washington Post reported that the office paid out $17 million for 264 settlements with federal employees over 20 years for various violations, including sexual harassment. The Conyers documents, however, give a glimpse into the inner workings of the Office of Compliance, which has for decades concealed episodes of sexual abuse by powerful political figures.

Read the entire article on Congressional coverups here.

Takeaways From Tuesday’s Elections

From today’s New York Times Election Review:

By any measure, Tuesday was a big night for Democrats, especially in Virginia, where they swept the top offices, including governor, and made strong gains in the General Assembly. Here are some key takeaways from the biggest election night since President Trump’s victory a year ago.

Susan Johnston helping coordinate canvassing efforts at the Mainers for Health Care headquarters in Portland on Tuesday. Maine became the first state to vote to expand Medicaid. 

A suburban rebellion propels Democrats. It was largely a suburban rebellion, where more moderate voters rejected Mr. Trump and embraced Democrats. Be it New Jersey, Virginia or Charlotte, N.C., Democrats rode a miniwave of victories that will give them energy for candidate recruitment and fund-raising heading into the midterm elections next year.

In addition to winning the top races, for governor of New Jersey and Virginia, Democrats also captured the mayoral post in Manchester, N.H., the State Senate in Washington, along with other important victories in statehouse elections. Maine also became the first state to vote to expand Medicaid, the 32nd in all under President Barack Obama’s signature Affordable Care Act.

It’s hard to have Trumpism if you don’t have Trump. Ed Gillespie, the Republican candidate for governor in Virginia, tried his best to sound the call of Mr. Trump’s followers in stoking the nation’s culture wars. He was harsh on immigration, supportive of Confederate monuments and opposed to those N.F.L. players who have taken a knee. But his public record before, as a national party chairman, White House counselor and Washington lobbyist, had few of those harsh edges. And like a lot of Republicans, he only grudgingly supported Mr. Trump’s candidacy. Most notably, Mr. Gillespie did not seek to campaign with the president in Virginia, settling for support via Twitter. That left him with almost all of Mr. Trump’s baggage and few potential benefits.
Read the entire review article here.