Tag Archives: street

Here Is Rex Tillerson’s Awesome Record at ExxonMobil

Mother Jones

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Was Rex Tillerson a good CEO at Exxon? Over at Bloomberg, Vincent Piazza says Tillerson has two big claims to fame:

Number one, it’s the relationship with Russia and the expanding relationship there as well. But also the recent acquisition of XTO back in 2010. That was a major bet on natural gas that did not pan out—a $35 billion bet on natural gas that seemed to turn the other way on them.

So…a lousy acquisition and, um, Russia. The Wall Street Journal goes into more detail on that:

“I have a very close relationship with Mr. Putin,” Mr. Tillerson told students at the University of Texas, his alma mater, in February….He was successful, in part because he negotiated with Mr. Putin, who became Russian prime minister in 1999 and has run the country, either as president or prime minister, ever since. Mr. Tillerson’s ties helped him catapult past other executives to lead the company in 2006.

….At a June 2012 meeting with Mr. Putin, Mr. Tillerson said Exxon’s Arctic deal enhanced U.S.-Russian ties. “I agree, as you point out, that nothing strengthens relationships between countries better than business enterprise,” a Kremlin transcript quoted him as saying. The next year, Mr. Putin awarded him Russia’s Order of Friendship for his work.

Well, OK then. He’s chummy with Vladimir Putin and he blew $35 billion on a bad acquisition. But at least he’s a great businessman, right? Here is ExxonMobil’s performance over the past decade:

But at least they paid dividends regularly! Sounds like Secretary of State material to me.

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Here Is Rex Tillerson’s Awesome Record at ExxonMobil

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Friday Cat Blogging – 9 December 2016

Mother Jones

For years we’ve had a regular feline visitor to our house. However, a few days ago, for the first time I can remember, he visited during daylight hours. This caused considerable alarm, and in the ensuing dustup both of our cats somehow ended up on the roof. I’m not quite sure how or why, but after it was all over they roamed around for a while and then settled down on the patio cover. As you can see, Hilbert is keeping a watchful eye out for any further invasions of his territory.

Speaking of territory, the Downing Street mouse problem has still not been solved. So now, in addition to Larry, Palmerston, and Gladstone, the staff has added a mother and son pair of cats, Evie and Ossie. We now have an army of five cats on Downing Street patrol. Would you like to see them and hear about all the inside dirt? (Turf wars! Dog terrorizing! Tarantulas!) This is the kind of thing for which tabloids are really and truly your best source. Forget the Guardian. I recommend the Sun or the Mirror for this story.

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Friday Cat Blogging – 9 December 2016

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Swamp Watch – 5 December 2016

Mother Jones

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Donald Trump has chosen Ben Carson as his Secretary of Housing and Urban Development. Why? He’s not remotely qualified for the position and he’s publicly (!) stated that he doesn’t have the experience to lead a government agency. Still, Carson is black and the U in HUD stands for Urban, and that’s probably enough for Trump.

Does this sound unbearably smug and elitist? Sure, I’ll cop to that. But as near as I can tell, Trump has already picked a Defense Secretary solely on the strength of the fact that his nickname is “Mad Dog,” and a UN ambassador because she looks kind of foreign. So it fits.

By the way, you’ll notice that in my table below I’ve finally decided to label Mnuchin and Ross as part of the swamp. My original hesitation was because they weren’t part of DC politics. Does Wall Street count as part of the swamp? Upon reflection, of course it does. Hell, Mnuchin even comes from Goldman Sachs. If that’s not part of the swamp, what is?

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Swamp Watch – 5 December 2016

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The Wall Street-Washington Complex Invades Trump’s Cabinet

Mother Jones

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Of all the ways Donald Trump has fallen short of his campaign promise to “drain the swamp” of Washington politics with his Cabinet appointments, none is starker than his choice of Elaine Chao as transportation secretary. Chao is as much of a Washington insider as they come: She served as deputy transportation secretary under George H.W. Bush and as secretary of labor for eight years under George W. Bush. She’s also married to Senate Majority Leader Mitch McConnell, and this year he used his perch to undermine a federal agency that was going after the bank where she works.

Since 2011, Chao has sat on the board of Wells Fargo, earning more than $1.2 million in pay over that period. This year, it was revealed that the bank had fraudulently set up millions of fake accounts that customers had never requested. That activity earned Wells Fargo a $185 million fine from the Consumer Financial Protection Bureau (CFPB), the largest penalty levied so far by the new financial watchdog agency.

The Senate called in Wells Fargo CEO John Stumpf in September, and both Democrats and Republicans attacking the company’s behavior. “This is about accountability,” Sen. Elizabeth Warren, who helped create the CFPB, said at the hearing. “You should resign. You should give back the money that you took while this scam was going on, and you should be criminally investigated.” Stumpf resigned a few weeks later.

But McConnell didn’t quite share that sentiment. Instead, he chose to go after the federal agency that had penalized Wells Fargo. As liberal consumer rights group Public Citizen pointed out, less than a week after the CFPB announced its fine against Wells Fargo, McConnell used his authority to try to fast-track a bill that would defang the CFPB by changing its funding structure.

The bill ultimately failed to advance, although the CFPB could lose significant power under President Trump. And McConnell is far from the only Republican to target the CFPB. But for Trump, who ran a populist campaign decrying the power of Washington insiders and the moneyed interests they support, the selection of Chao for a top administration role seems to show he’s not as opposed to the Wall Street-Washington complex as he might have suggested.

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The Wall Street-Washington Complex Invades Trump’s Cabinet

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The Investment Firm Started by Trump’s Commerce Secretary Pick Was Accused in Fraud Case

Mother Jones

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During the presidential campaign, Donald Trump repeatedly cast himself as an anti-Wall Street populist and blasted an international cabal of bankers for supposedly screwing American workers. Yet, since being elected, he has turned to Big Finance titans to run his administration, and one of them—Wilbur Ross, Trump’s pick for secretary of commerce—founded a giant private equity firm that was accused of committing fraud and deceit in a case the firm settled by paying a multimillion-dollar fine.

In 2000, Ross founded WL Ross & Co., a private equity firm that specialized in taking over troubled companies. In August this year, the firm settled a case with the Securities and Exchange Commission regarding the firm not accurately disclosing fees it was charging investors, resulting in them paying excessive fees for nearly a decade. Ross had sold the firm in 2006, but the failure to properly disclose fees began in 2001 and continued until 2011. The settlement was part of a much larger crackdown by the SEC on how private equity firms charged fees to their investors.

According to SEC documents in the case, WL Ross & Co. advised investment funds in exchange for management fees, but those fees were supposed to be offset by special “transaction fees” paid by some of the companies that were being invested in. But millions in those transaction fees were allocated to other funds, and investors ended up overpaying their management fees to WL Ross & Co. The SEC determined the firm had violated the law prohibiting firms from engaging “in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client.” In August, the firm agreed to pay back $11.9 million in fees and a $2.3 million civil penalty, although it did not admit any wrongdoing.

Under Wilbur Ross’ management, the firm helped engineer the purchase and combining of a number of American steel companies, including the iconic Bethlehem Steel, which Ross united as the International Steel Group. Ross sold the collection of American steel companies to Indian billionaire Lakshmi Mittal, who folded the companies into the international steel conglomerate ArcelorMittal.

Ross, who made his name and billions of dollars as a specialist in buyouts and restructuring troubled and bankrupt companies, has a long history of working with Trump. In the early 1990s when Trump’s Atlantic City casinos were floundering, Trump managed to stave off lenders and keep the businesses afloat with the help of Ross, who at the time ran the Rothschild Inc. investment firm’s bankruptcy practice.

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The Investment Firm Started by Trump’s Commerce Secretary Pick Was Accused in Fraud Case

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Wall Street Sure Is Happy That Hillary Clinton Lost

Mother Jones

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Great news from the Wall Street Journal!

Sectors Go Wild: S&P 500 Correlations Crumble

Financial sector makes pronounced gain as investors bet on lighter regulations under Trump administration

Among the sharpest collapses is the link between financial stocks in the S&P 500 and the broader gauge….Shares of banks, asset managers and insurance companies as a group have jumped 11% since election day as investors bet on lighter regulation for the sector under the Trump administration. The financial sector’s performance trounced other groups, such as utilities and consumer staples, each of which are down more than 3%.

I had heard that Hillary Clinton was a Wall Street shill and neolib corporate sellout beloved by all the big banks. But I guess not. The Wall Street boys sure seem to be pretty happy she lost.

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Wall Street Sure Is Happy That Hillary Clinton Lost

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NSA Chief: WikiLeaks Hacks of Democrats’ Emails Were a “Conscious Effort by a Nation-State”

Mother Jones

The WikiLeaks release of internal emails from the Democratic National Committee and the Hillary Clinton campaign constituted a “conscious effort by a nation-state to attempt to achieve a specific effect,” the head of the National Security Agency said Tuesday.

“There shouldn’t be any doubt in anybody’s mind,” NSA Director Michael S. Rogers said in an interview with the Wall Street Journal on Tuesday. “This was not something that was done casually, this was not something that was done by chance. This was not a target that was selected purely arbitrarily.” Rogers acknowledged in October that Russians were behind the hacks.

News that the DNC had been compromised broke earlier this June, when hacker Guccifer 2.0 released a trove of documents containing campaign emails and memos—most notably emails implying that the committee favored Clinton over Sen. Bernie Sanders during the Democratic primary. The release of the emails led to the resignation of DNC chair Debbie Wasserman-Schultz.

WikiLeaks also published thousands of emails from John Podesta, Clinton’s campaign chair. Though Russia was long suspected of being behind the hacks, US officials did not formally accuse the Russian government of orchestrating the cyber attacks until October. In November, just four days before the election, DNC officials told Mother Jones they had found evidence that the DNC headquarters may have been bugged and had submitted a report to the FBI.

Watch the video of Rogers’ full remarks above.

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NSA Chief: WikiLeaks Hacks of Democrats’ Emails Were a “Conscious Effort by a Nation-State”

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Things We Can Count On In the Next Two Years

Mother Jones

What is Donald Trump going to do in office? Beats me. For the most part, I’d ignore what he said on the campaign trail, since he said so many different things at different times. It’s obvious that (a) he doesn’t know much, and (b) he doesn’t truly care about very many things—and that means he’s going to be willing to negotiate. On that score, I mostly agree with Tyler Cowen, who speculates that “his natural instinct will be to look for some quick symbolic victories to satisfy supporters, and then pursue mass popularity with a lot of government benefits, debt and free-lunch thinking.”

However, this also means Trump is likely to follow the lead of Congress, which is completely in Republican hands and likely to follow the lead of Paul Ryan. Given that, I think there are a few things we can speculate about. Here’s a short list:

The filibuster is toast. Republicans will get rid of it as soon as they need to.

There are three Supreme Court justices who support Roe v. Wade and are getting on in years: Stephen Breyer (78), Anthony Kennedy (80), and Ruth Bader Ginsburg (83). Using standard actuarial tables, there’s a 60 percent chance that at least one of them will die during Trump’s term. That means there’s a 60 percent chance that Roe v. Wade will be overturned.

Repealing Obamacare will be harder than Republicans think, and it’s possible that they’ll shrink from it when they truly have to face up to the consequences. For one thing, it’s impossible to keep the “good parts” (pre-existing conditions, community rating, etc.) and only get rid of the bad parts. In the best case, they’ll pass a bill that repeals Obamacare in name, but leaves most of it in place under a different name. But I doubt that. In the end, I think they’ll rip down the whole thing.

There will be a recession sometime during Trump’s term. I don’t know what this means. But I’ll bet the Republican Congress will be a whole lot more eager to fix it with crude Keynesian pump priming than they were for Obama.

Trump seems to really care about infrastructure, which makes sense since he thinks of himself as a builder. So we might very well get an infrastructure bill passed. I expect that a wall on the southern border will be part of it.

Congress will pass a big tax cut for the rich. Not as big as Trump’s, I think, but plenty big anyway.

Winners from a Trump presidency: rich people; pro-lifers; Paul Ryan, who will now be reelected Speaker easily; China; Wall Street; Vladimir Putin; James Comey; and CNN president Jeff Zucker, who did everything in his power to help elect a guy who could keep his ratings up.

Losers from a Trump presidency: poor people; anyone on Obamacare; illegal immigrants; climate change; the white working class, which fell for Trump’s con but will get virtually nothing from his presidency; anyone who cares about human decency and national dignity; Barack Obama, whose presidency will now be considered a failure; and the Democratic Party, which has lost control of the presidency, the House, the Senate, the Supreme Court, and most of the states.

Since I have the Reconstruction era on my mind right now, it’s hard to avoid the obvious comparison. Reconstruction lasted about eight years, and then was dismantled almost completely. Barack Obama’s presidency lasted eight years and will now be dismantled almost completely. I will withhold my opinion for now on the obvious reason for this similarity.

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Things We Can Count On In the Next Two Years

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Even Hillary Clinton’s Victory Rally Is Trolling Donald Trump

Mother Jones

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Election night is 13 days away, and Politico reports that Hillary Clinton finally has a venue for her victory rally: the Jacob V. Javits Center, overlooking the Hudson River in Manhattan. The venue, with its soaring glass ceiling, comes with obvious symbolic value for a candidate vying to become the first woman president. But the Javits Center also has an added significance for Republican presidential nominee Donald Trump—it’s one of his least favorite buildings in all of New York City.

It wasn’t always that way. Trump acquired the option to develop the site early in his career as a real estate developer, and he spent years trying to get the city to build a convention center at his location on West 34th Street. “There wouldn’t be a new convention center in New York today if it hadn’t been for the Trumps,” he wrote in his first book, The Art of the Deal, Trump even lobbied the city to name the building named after his family, offering to waive his $833,000 fee if they slapped the “Trump” name on the center.

But when the city chose a different developer for the project, Trump turned on it. In his book, he held the ensuing project responsible for “perhaps the most horrendous construction delays and cost overruns in the history of the building business”:

The Art of the Deal

Trump was also upset that the developers had ruined the view of the Hudson by facing the building in the wrong direction.

The Art of the Deal

Trolling Donald Trump may be the least of the Clinton campaign’s concerns when it comes to an election night rally—the election will, after all, be over by then. But it’s certainly a nice touch.

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Even Hillary Clinton’s Victory Rally Is Trolling Donald Trump

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McCabegate Is the Latest Scandal That Will Totally Destroy Hillary Clinton

Mother Jones

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Today in the category of…oh, forget it. I don’t have the heart for snark. It’s just so goddamn tiresome. The Wall Street Journal headline on the right describes the latest pseudo-scandal in Hillaryland, and it’s obviously intended to make you think there’s yet more fishiness in the Clinton family. In a nutshell, here’s the story:

In early 2015, Virginia governor Terry McAuliffe recruited Dr. Jill McCabe to run for state Senate.
Various organizations under McAuliffe’s control donated lots of money to her campaign.
She lost.
Several months later, McCabe’s husband was promoted to deputy director of the FBI. Because of that promotion, he “helped oversee the investigation into Mrs. Clinton’s email use.” This was presumably in addition to the hundreds of other things that a deputy director has oversight responsibility for.

There’s literally nothing here. Not “nothing substantial.” Not “nothing that other politicians don’t do.” Literally nothing. There’s not a single bit of this that’s illegal, unethical, or even the tiniest bit wrong. It’s totally above board and perfectly kosher. And even if there were anything wrong, McAuliffe would have needed a time machine to know it.

Honest to God, I’m so tired of this stuff I could scream. I’ve been joking about it lately by appending gate to every dumb little non-scandal that’s tossed in Hillary’s direction, and I guess I’ll keep doing that. But our illustrious press corps needs to pull its collective head out of its ass. If you’ve got real evidence of Hillary being engaged in something fishy, go to town. I won’t complain. But if all you’ve got is a thrice-removed, physics-challenged gewgaw that proves nothing except that you know how to play Six Degrees of Hillary Clinton,1 then give it a rest. It just makes you look like those monomaniacs with thousands of clippings glued to their wall and spider webs of string tying them all together.

Just stop it.

1Here’s how it works:

  1. Make a list of the entire chain of command that had some oversight over the FBI’s investigation of Hillary Clinton’s email server. That’s going to be at least half a dozen people.
  2. Make a list of all their close family and friends. Now you’re up to a hundred people.
  3. Look for a connection between any of those people and the Clintons. Since FBI headquarters is located in Washington DC and the Clintons famously have thousands and thousands of friends, you will find a connection. I guarantee it.
  4. Write a story about it.

See how easy this is? But please don’t try it at home. This is a game for trained professionals only.

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McCabegate Is the Latest Scandal That Will Totally Destroy Hillary Clinton

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