Friday
May072010
Sanders Defends Amendment To Audit The Fed
Sen. Bernie Sanders (I-Vt.) insisted on Friday that his amendment within a Senate financial regulatory reform bill to audit the Federal Reserve (Fed) would not grant Congress the authority to set monetary policy.
“That was not my intent,” Sanders said to reporters.
Sanders’s effort received a huge boost last night when he was able to strike a deal on the amendment with Senate Banking Committee Chairman Chris Dodd (D-Conn.) Under the agreement, the Government Accountability Office (GAO) would be authorized to perform a full audit of the Fed, going back to December 1, 2007. If the bill is signed into law, the GAO would be required to publish its findings online no later than one year after the law is enacted.
Most analysts say the amendment is not too radical of an idea. Sanders, on Friday, said it’s really just a matter of bringing about common-sense transparency to the financial system.
“The American people have a right to know what [Fed Chairman] Ben Bernanke has refused to allow them to know,” said Sanders, who admitted that the Chairman “is not one of my best friends.”
Indeed, the powerful banking agency along with firms on Wall Street are aggressively pushing back on the provision. Earlier this week, Bernanke wrote a letter to Dodd urging him to strip the amendment from the bill. But with Dodd -- the bill’s author -- as well as conservative South Carolina Republican Jim DeMint both saying they support Sanders, the measure looks like a safe bet to end up in the final Senate bill. Now, the question becomes whether or not it will survive a potential conference committee.
“Some of [the House bill’s] language is stronger that what we have, some of our language is stronger than what they have,” said Sanders, adding that the only thing on his mind right now is getting the 60 votes necessary to move forward on the legislation.
“That was not my intent,” Sanders said to reporters.
Sanders’s effort received a huge boost last night when he was able to strike a deal on the amendment with Senate Banking Committee Chairman Chris Dodd (D-Conn.) Under the agreement, the Government Accountability Office (GAO) would be authorized to perform a full audit of the Fed, going back to December 1, 2007. If the bill is signed into law, the GAO would be required to publish its findings online no later than one year after the law is enacted.
Most analysts say the amendment is not too radical of an idea. Sanders, on Friday, said it’s really just a matter of bringing about common-sense transparency to the financial system.
“The American people have a right to know what [Fed Chairman] Ben Bernanke has refused to allow them to know,” said Sanders, who admitted that the Chairman “is not one of my best friends.”
Indeed, the powerful banking agency along with firms on Wall Street are aggressively pushing back on the provision. Earlier this week, Bernanke wrote a letter to Dodd urging him to strip the amendment from the bill. But with Dodd -- the bill’s author -- as well as conservative South Carolina Republican Jim DeMint both saying they support Sanders, the measure looks like a safe bet to end up in the final Senate bill. Now, the question becomes whether or not it will survive a potential conference committee.
“Some of [the House bill’s] language is stronger that what we have, some of our language is stronger than what they have,” said Sanders, adding that the only thing on his mind right now is getting the 60 votes necessary to move forward on the legislation.
Kagan Nomination Sure To Spark Predictable Rhetoric
When you tour the Pentagon, there are a few rules. Among them: no carrying any weapons of mass destruction. Check. No chewing gum. Check. And most importantly, no cell phone use (the guide makes everyone turn them off). Not wanting to cause a stir, I politely obeyed that last rule. But my obedience came with a price, I would not be able to read all the breaking news and Tweets from reporters covering the major announcement.
My tour ended around 11:00 am. Naturally, the first thing I did was turn my phone on and check Twitter to see what had been written about the announcement. As I had expected, based on numerous reports both yesterday and earlier this morning, the President had nominated Solicitor General Elena Kagan to replace the retiring Justice John Paul Stevens at the end of the summer. The next thing I did was check my inbox for press releases. Not surprisingly, I had already received more than a few.
Now, I don't pretend to be a Supreme Court expert -- I'll leave that to my colleague -- so I'll spare you my misguided opinions on whether or not Ms. Kagan is qualified to serve on the High Court. However, as someone who covers Congress, I plan on paying close attention to the forthcoming nomination process because I am interested in seeing how it plays out in a political context.
It's no secret that the divide between the two major parties has only grown larger over the past few years. Now, thanks to one-party control of both Houses, the rise of the anti-big government Tea Party movement and a monumental healthcare reform bill that re-ignited a once politically doormant legion of voters nationwide, that divide is arguably at an all-time high.
The first email I read was a lengthy statement on the nomination from Senate Judiciary Committee Chairman Patrick Leahy, a sure-to-be VIP in the months to follow. Near the end of his statement, Leahy said the following:
"Among the most serious constitutional duties entrusted to the Senate is the confirmation of Supreme Court Justices. Americans are looking to Washington to cast aside the political rancor and partisanship that has fueled so many recent debates."
Indeed, driven by such partisan rancor, the battle lines have been definitively drawn on every single substantive issue Congress has worked on lately. From health care, to extending unemployment benefits, to Wall Street reform, the debate has become fairly predictable. In a nutshell it's this: if you're a 'D', you're probably with the President and his administration. If you're an 'R', you're opposed.
Case in point, the following three statements were sent to my inbox from Democrats this morning:
"President Obama has chosen a candidate who will protect and defend the Constitution of the United States. Solicitor General Kagan's outstanding service as a lawyer, professor, public servant, and administrator prepares her for this challenge, and she will come to the bench with a deep knowledge of the law and respect for all individuals."
"Elena Kagan has won the respect and admiration of colleagues on both the left and the right for her legal and policy knowledge and for her success in working with advocates of a wide range of viewpoints. I have no doubt that she will bring the same skills to the Supreme Court, as its unprecedented third female justice, where I know that she will be mindful of the impact of the law on the lives of ordinary Americans."
"It appears that Elena Kagan would bring a great deal of knowledge and real-world experience to the Supreme Court...Elena Kagan’s experience outside courtrooms should not be held against her."
Which three Democrats issued those statements, you ask? I say, does it matter? To me, anyone with a D after their name could've written them. 100% of Democrats (at least in the Senate) will do anything the current President asks or demands of them. During last year's confirmation battle over Sonia Sotomayor, Democrats often chided Republicans, saying they wouldn't even vote to confirm Moses if he had been nominated to serve (they're still using that talking point, by the way). I don't know about that, but let's suppose the President had chosen a candidate completely lacking in qualification. I am willing to bet that most Democrats would have uniformly supported a quick confirmation.
To be fair, when it comes to solidarity, the same can be said of the other side as well. Here are some excerpts of a few emails I received this morning from Republicans.
“President Obama's decision to nominate Elena Kagen to the Supreme Court demonstrates his willingness to sacrifice experience and judicial impartiality for political activism. Despite Ms. Kagen's lack of judicial experience and limited legal practice, it is clear that she will use her position to push her personal and political agenda."
“We know that several areas warrant close scrutiny. Ms. Kagan’s lack of judicial experience and short time as Solicitor General, arguing just six cases before the Court, is troubling."
“There is nothing that requires the President to replace a liberal Justice with a liberal; but unfortunately it appears President Obama is doing just that. Though Kagan has no prior judicial record for the Senate to review, her role as an Obama-insider and senior official in the Administration indicates that she shares the same liberal judicial philosophy as the President and his top advisors."
Again, I'd reveal the names of the Republicans that released these statements, but it's a moot issue. They are Republicans, they CAN'T support anything this administration attempts to do. Especially with mid-terms coming up.
Listen, if you're still not convinced that this is about anything more than D versus R, consider Arlen Specter. As a Republican last year, he voted against confirming Ms. Kagan as Solicitor General. Now, as a Democrat, he says he is open to supporting her confirmation to the Supreme Court. Really? Did she change that much over the past 12 months? Hmmmmmm.
The bottom line is this: In the end, Elena Kagan will be sworn in as our nation's next Supreme Court Justice, probably sometime before the Fall. The question is, will her confirmation process go smoothly? That all depends on whether or not the divide between parties diminishes or grows larger. And based on what I'm seeing so far, I'd say it's safe to expect bumpy conditions this summer.