Category Archives: Politics

David Dayen: SEC Convenes Foot-Dragging Roundtable on Rating Agency Reform, While Securities Issuers Return to Familiar Rating-Shopping Tricks

A few months ago, I wrote a story for The American Prospect about the credit rating agencies, and their thus-far successful effort to ward off any change to their business model, despite their wretched performance during the crisis. This is true even though Dodd-Frank contained a measure, written by Al Franken, to alter the issuer-pays model that incentivizes higher ratings in the pursuit of future profits. The Franken-Wicker rule (the “Wicker” is Republican Senator Roger Wicker) would create a self-regulating organization to randomly assign securities to accredited rating agencies, with more securities over time going to the agencies that rated the most accurately.

Dan Kervick: Did the House of Representatives Just (Unintentionally) Eliminate the Debt Ceiling?

My fellow NEP blogger Joe Firestone wrote recently about House Resolution 807, the Full Faith and Credit Act, which was passed on May 9th by the US House of Representatives. The supposed purpose of the act is to prevent default on the public debt as a result of the debt ceiling… But if I am not mistaken, this act would provide the Secretary of the Treasury with the power to meet all US spending obligations, and effectively eliminate the debt ceiling as a serious political and operational consideration going forward.

Nathan Tankus: The Transit Coup – How Robber Barons got New York City to Bail Out Their Subway Lines.

By Nathan Tankus, a student and research assistant at the University of Ottawa. You can follow him on Twitter at @NathanTankus

Since the Reagan/Thatcher era, it is common to view politics over infrastructure as simply a battle between right wing forces attempting to privatize infrastructure and others trying to defend it (I covered the latest attack by President Obama on the TVA). However, this is only the recent history of United States infrastructure policy.

Josh Rosner on How Dodd Frank Institutionalizes Too Big to Fail

Josh Rosner of Graham Fisher testifies before a subcommittee of the House Financial Services committee today on why Dodd Frank has not ended too big to fail, but also has managed to entrench the megafirms’ advantaged position.

Attacking Iran’s Nuclear Sites Would be Sheer Madness

By Claude Salhani, journalist, author and political analyst based in Beirut, specializing in the Middle East, politicized Islam and terrorism. He is also the former editor of the Middle East Times and. C the former International Editor with United Press International and also ran UPI’s Terrorism & Security Desks. Cross posted from OilPrice

A timely article by Wade Stone for Global Research examines what would happen to the oil producing nations of the Gulf in the event that Israel would target Iran’s nuclear reactors and facilities; the reply and the scenario given is nothing short of a nightmare.

Mel Watt, Nominee to Head FHFA, Opposes Administration by Voting to Deregulate Derivatives

Good progressives like MoveOn, New Bottom Line, the Alliance of Californians for Community Empowerment, AFR, Elizabeth Warren, and Richard Trumka, head of the AFL-CIO have all fallen in line with Obama’s nomination of Mel Watt, Representative from ~~Bank of America~~ North Carolina.

It might help if they looked harder at Watt. If they were honest about it, there’s not much to like.

The Limits of Governing Budgetary Policies by Rules

By Daniela Schwarzer, who heads the research unit European Integration at the German Institute for International and Security Affairs, Stiftung Wissenschaft und Politik (SWP) in Berlin. Cross posted from Triple Crisis

The European squabble over budgetary austerity reached a new peak a good week ago when a document drafted by leading representatives of the French Socialist Party, which reportedly had been seen by Elysée officials close to President Hollande, personally attacked German Chancellor Angela Merkel. Less mediatized, but more telling about the nature of the governance problems facing the euro area, are the statements made by Finance Minister Pierre Moscovici this weekend.

Bill Black: Brown-Vitter Will Not and Cannot Work but it is Criminogenic

Yves here. Like Black, I see Brown-Vitter as well-intended but seriously flawed.

California Attorney General Sues JP Morgan Over Debt Collection Abuses, Including Sewer Service, Robosigning

California Attorney General Kamala Harris is on a roll.

Feel Good, Naked Capitalism

Here’s what you helped us to do. Hoisted from comments:

More Foreclosure Settlement Fiascoes: Rust Consulting Underpays Some Harmed Borrowers

Rust Consulting, which handled the borrower mailings during the Independent Foreclosure Review and is now acting as paying agent, continues to screw up in every way imaginable.