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Wednesday, January 7, 2009
Richardson scandal firm gave Rendell $$$$, was tied to Philly probe

 

Remember when I wrote the other day that the chickens were coming home to roost for the Democrats by going to the well of experienced -- but in some cases badly compromised -- career pols too many times. Well, I should have guessed that some of those chickens are roosting right here in Pennsylvania.

In fact, there are reports this morning that the company that is at the center of the federal grand jury that derailed the nomination of New Mexico Gov. Bill Richardson also does state business here in Pennsylvania, gave sizable donations to Gov. Ed Rendell, and hired a longtime Rendell pal as a lobbyist. And that's not all: The company -- CDR Financial Products -- is also the firm that sent disgraced and still-jailed former Philadelphia treasurer Corey Kemp of the scandal-scarred John Street administration to the 2003 Super Bowl as it was successfully seeking city business.

The reports come by way of the Pittsburgh Tribune-Review and the website TPMMuckraker. It should be noted that the state agency that awarded CDR a lucrative contract as a financial advisor denies receiving any pressure whatsoever from the governor or his people.

When the news broke that Richardson was out as Barack Obama's choice to serve as Commerce Secretary, most of the local reports focused on the national political drama and less on the specifics of the investigation that caused the 2008 presidential also-ran to withdraw his name. It turns out the company and its chief official, David Rubin, are no strangers to the murky world of politics here.

First, the allegations that are under investigation in New Mexico:

The probe is focused on how the company -- whose founder gave at least $100,000 in political contributions to the New Mexico governor's political action committees -- won two 2004 financial consulting contracts with the state, worth about $1.4 million. No real evidence has yet emerged that Richardson himself is currently a target of the investigation, but his abrupt decision to take himself out of the running for the Commerce post -- and his refusal to say, at a press conference this afternoon, whether he had hired a lawyer in connection with the investigation -- suggest the story won't soon go away.

But Rubin's CDR should have set off red flags long ago. Although it was not charged with any wrongdoing, the firm did play a significant role in the 2003 city corruption probe that included the bugging of Mayor Street's office and criminal convictions for Kemp and a cast of local political wheeler-dealers. As summarized here:

In April 2001, CDR hired Ron White, a bond lawyer and chief fundraiser for Philadelphia Mayor John Street, as a consultant, paying him a $5,000 retainer to help the company win business with the city. Rubin donated $15,000 to Street between December 2000 and June 2003, according to Pennsylvania state filings.

In addition, CDR gave White three tickets to the 2003 Super Bowl in San Diego and provided a limo ride to the game. White brought along Philadelphia treasurer Corey Kemp, according to a federal criminal indictment brought against White and Kemp in 2004.

Here, too, CDR -- which seems to make money both from government contracts and the banks with which it does business -- landed a lucrative deal from City Hall without any competitive bidding. But at the same time, with less fanfare (until now), CDR was forging close ties to Pennsylvania's then-new governor, Rendell. Summing up some of the reports so far this week:

* CDR's Rubin has given $35,000 in political contributions to Rendell, including some $20,000 during his 2002 campaign. After the ex-Philadelphia mayor was elected to his first term, Rubin was given a seat on the transition committee.

* CDR's lobbyist in Harrisburg has been one of Rendell's closest political fundraisers, Philadelphia lawyer Alan Kessler.

* Also in 2003, a state agency -- the Pennsylvania Housing Finance Agency -- awarded CDR a no-bid contract as a bond swaps advisor, a deal that has netted the controversial company hundreds of thousands of dollars in profits. That was before news about its role in the Philadelphia corruption probe had surfaced, but amazingly (OK, maybe not so amazingly) CDR continued to receive work locally, including a 2006 arrangement with Philadelphia Gas Works.

It's unclear how much of this is on the official radar screen of government agents who seem to be expanding their probe into CDR's coast-to-coast political activities. One other thing to wonder is this: Rendell was clearly not in the running himself for Obama's cabinet because of his political situation at home: The death of his lieutenant governor Catherine Baker Knoll and her constitutional replacement with a Republican, in particular. But you'd have to assume that Rendell was on Obama's short list for any openings after 2010.

Is he still?

Posted by Will Bunch @ 9:55 AM  Permalink | 1 comment
Tuesday, January 6, 2009
On Gaza: Could somebody please explain...

...why comedian Jon Stewart on "The Daily Show," does a better job reporting on this nightmare than anyone in the "real" news media.

More on this later:
Posted by Will Bunch @ 8:22 PM  Permalink | 38 comments
Tuesday, January 6, 2009
Panetta to CIA: "We cannot and we must not use torture under any circumstances"

 

How did someone like Leon Panetta, former chief of staff in the Clinton administration, with no career background in intelligence, get tapped to be the new director of the Central Intelligence Agency?

He earned it -- in a number of ways, but especially when he recently wrote this in the Atlantic Monthly:

We have preached these values to the world. We have made clear that there are certain lines Americans will not cross because we respect the dignity of every human being. That pledge was written into the oath of office given to every president, "to preserve, protect, and defend the Constitution." It's what is supposed to make our leaders different from every tyrant, dictator, or despot. We are sworn to govern by the rule of law, not by brute force.

We cannot simply suspend these beliefs in the name of national security. Those who support torture may believe that we can abuse captives in certain select circumstances and still be true to our values. But that is a false compromise. We either believe in the dignity of the individual, the rule of law, and the prohibition of cruel and unusual punishment, or we don't. There is no middle ground.

We cannot and we must not use torture under any circumstances. We are better than that.

God knows the Obama team has had a couple of swings and misses here in the transition, and a big whiff with the Bill Richardson, but late in the game they're hit a home run with this selection and with his late appointments to the Justice Department, all of whom seem committed to human rights and to the Constitution.

Panetta's words show he truly wants to bring change to the intelligence community, and his experience as a top governmental official who understands the kind of information that's useful to the White House should help him carry it out. He's not a career spy? So what? We don't pick a career military person, generally, as Secretary of Defense, so maybe the CIA should be treated the same way.

Look at George H.W. Bush, who ran the CIA in 1975-76 and had their building named after him -- he wasn't a career spy (was he?). I just wish that all of Obama's Cabinet choices had sent as clear a signal as this one.

Posted by Will Bunch @ 12:33 PM  Permalink | 61 comments
Tuesday, January 6, 2009
Newspapers and the Internet: THEY KNEW!

Jack Shafer has an excellent piece in Slate (h/t Romenesko) that tears down another myth: That newspapers never saw the Internet coming. To the contrary, his article notes that newspaper owners reacted aggressively to radio, TV, the possibility of an electronic newspaper and even the actual Internet when it came of age in the 1990s. The problem wasn't that they didn't react, but how they chose to do so.

His devastating conclusion:

From the beginning, newspapers sought to invent the Web in their own image by repurposing the copy, values, and temperament found in their ink-and-paper editions. Despite being early arrivals, despite having spent millions on manpower and hardware, despite all the animations, links, videos, databases, and other software tricks found on their sites, every newspaper Web site is instantly identifiable as a newspaper Web site. By succeeding, they failed to invent the Web.

Posted by Will Bunch @ 10:58 AM  Permalink | 18 comments
Monday, January 5, 2009
UPDATED: Honest, Ronnie was better than Abe?

UPDATE: Dana Milbank in today's Washington Post: "Aspiring RNC Chairmen Wonder: What Would Reagan Do?:

Luckily, all six RNC candidates agreed on a solution to the party's woes: They would say Ronald Reagan's name over and over, as if it were a tantric incantation.

Anuzis quoted Reagan in his opening statement. Former Ohio secretary of state Ken Blackwell lamented that too many Republicans "campaign like Ronald Reagan and then govern like Jimmy Carter." Saltsman talked about his high school days: "Ronald Reagan was president, and he got me excited."

Katon Dawson, chairman of the South Carolina GOP, tried to top that. "I was inspired as a college graduate by a fellow who walked in the room by the name of Ronald Reagan."



The five GOP chairman candidates (maybe we should call them the Washington Generals, since they're all losers) just voted for their favorite Republican president, and it was a rout.

Reagan 5.

Lincoln...who's that?

I guess the rule here is that, by definition, the best Republican president can't be anyone that a Democrat might pick. That's a shame, because as the song (not by Cher, unfortunately) says, "he freed a lot of people." Maybe that's the problem. Also, shouldn't Ike get an honorable mention.

Tear down this myth.

Blogger's note: Changed the headline from the original because....I can. It's my blog.

Posted by Will Bunch @ 8:21 PM  Permalink | 65 comments
Monday, January 5, 2009
How tweet it is


My friend Jim MacMillan, late of the Daily News and recent of the Pulitzer Prize, weighs in on the great social media debate with a post called "Tweet This Book." To back up his point, you can follow Jim on Twitter here.
Posted by Will Bunch @ 7:48 PM  Permalink | 2 comments
Monday, January 5, 2009
The Al Franken 6/10 Decade

He's good enough, he's smart enough, and doggone it he has 225 more votes than the other guy.

Stuart Smalley is headed to the United States Senate.

Discuss this, or whatever else is on your mind -- it's an open thread. Jan. 5 is a horrible day for blogging. Who knew!

Posted by Will Bunch @ 1:00 PM  Permalink | 39 comments
Sunday, January 4, 2009
Social(media)ism

 

Has blogging become sooooo 2004? Some days I wonder. There were a lot of stories around this time last year about a surprising drop in blog traffic, considering how the 2008 election was at hand, and the authors threw out a lot of theories -- but they all missed what I thought the obvious answer was: People were spending too much time with their friends on Facebook to check out blogs as much. The number of Internet diversions keeps increasing, but last time I checked the number of hours in the day stayed fixed at 24.

And this was before Twitter -- now Facebook can seem soooo 2007 at times. I had my doubts about Twitter -- a network where you exchange pithy observations with friends and other followers, and by pithy I mean they can't be more than 140 characters. So today on an Eagles Sunday I'm reading lots of "tweets" (I know, I know, but that's what they call them) along the lines of "Westbook, yes!"

Insightful? I had my huge doubts about the Twitter phenominon and resisted joining, but now that I finally did a month ago I am learning its usefulness as well: A passenger in the Denver plane crash was twittering even before he fled the burning plane, I read about an environmental disaster in Tennessee on Twitter before reading it in the mainstream media, and I've been introduced to the writing of a student journalist named Suzanne Yada who should be offered a job upon graduation somewhere withi Philadelphia Media Holdings -- if only we did that sort of thing (i.e., hire people) anymore.

So now I am a tiny cog in the Twitter revolution (although only when I'm on the big clunky PC, since the next email or even text message that I send from a cell phone will be my first). Any remaining Attytood fans :-) can follow me on Twitter by going here.

The funny thing is that when it came to promoting my upcoming book on Ronald Reagan -- "Tear Down This Myth: How the Reagan Legacy Has Distorted Our Politics and Haunts Our Future" -- I would have guessed not long ago that having a blog would be a valuable tool for getting the word out. I still think that's true, but I'm already seeing evidence that social networking, via Facebook especially, may be a more valuable tool for spreading the word -- virally, starting with my online friends (and I'm always looking for more of these) and then with their friends. On New Year's Day, while Penn State was getting routed, I launched a Facebook group for Tear Down This Myth, which now already has more than 400 members (!) and continues to grow. If you're interested in news about the book (i.e., in-person or media appearances, or where to, ahem, buy it) I hope that you'll join as well.

The rise of social media is an exciting thing -- if you haven't tried it, it's a great way to reconnect with old friends from high school, college, etc., while possibly making some new ones, but I think this development is also one more clue that points to why newspapers and other local news organizations are in trouble. I've come to see over the last couple of years that most people are the most obsessed with news from two areas. One is what I would call "media world" -- TV. movies, music, pro and big-college sports, and politics as practiced on a national level over shoutfests and yukfests from Rush Limbaugh to Keith Olbermann to "The Daily Show." The second wave is what I would call "friend world." Just a couple of years ago, the idea of marketing "news" about your circle of friends and family would have seemed patently absurd but now, thanks to Facebook, Twitter and the like, it is this type of "news" that many people seek out first.

Newspapers fall into a dangerously grey area here. While we overlap, obviously, with "media world," (and almost not at all with "friend world"), the real goal of most local media is to peddle news of "your hometown world" -- a world that especially on the metro-area scale is becoming increasingly irrelevant in the TV/computer age (with one huge exception, hometown pro sports teams, which have literally kept us in business). Some have suggested newspapers move more into social media and to some degree they have (you can follow Philly.com on Twiiter here, for example), but a newspaper isn't going to invent Facebook or Twitter.

Because else somebody already did.

Posted by Will Bunch @ 9:37 PM  Permalink | 52 comments
Sunday, January 4, 2009
Tavares: "Heaven Must Be Missing a Mediocre Quarterback" *

And we'll see you....next week in the Meadowlands!

* (Yet another obscure '70s song reference, as noted below)


Posted by Will Bunch @ 8:03 PM  Permalink | 4 comments
Sunday, January 4, 2009
Roosted chickens


By and large, a Democratic White House held its own on the policy front during the 1990s (I know it was a while ago, but remember that whole peace and prosperity thing?) but they lost me at times with their corruption as well as their constant sucking up to big business. Monica was one thing but the selling of the Lincoln Bedroom to big-ticket donors was much, more more troubling. Maybe that's why I had a queasy feeling that Barack Obama was going to the Clinton-era well too many times for his new team -- and I was apparently right.

The chickens of the Clinton era are coming home to roost, or they almost did:

WASHINGTON (AP) - New Mexico Gov. Bill Richardson on Sunday announced that he was withdrawing his nomination to be President-elect Barack Obama's commerce secretary amid a grand jury investigation into how some of his political donors won a lucrative state contract.

Meanwhile, this story by the New York Times' Charlie Savage isn't getting the play it deserves:

WASHINGTON — An upstate New York developer donated $100,000 to former President Bill Clinton’s foundation in November 2004, around the same time that Senator Hillary Rodham Clinton helped secure millions of dollars in federal assistance for the businessman’s mall project.

The donor dude is nominally a Republican, which makes it smell more fishy. Blago is Blago, but Obama didn't pick him for anything. Richardson and Clinton are a different story. My favorite Obama cabinet choice so far has been Steven Chu for Energy Secretary, a Nobel laureate who's a complete D.C. outsider. I know Obama wants to hit the ground running, but you can't run very fast when you're carrying so much baggage. Sometimes change means, you know, change.
Posted by Will Bunch @ 6:30 PM  Permalink | 10 comments
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About Will Bunch
Will Bunch, a senior writer at the Philadelphia Daily News, blogs about his obsessions, including national and local politics and world affairs, the media, pop music, the Philadelphia Phillies, soccer and other sports, not necessarily in that order.

E-mail Will by clicking here.

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