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Oh, no…

Friday, Jan 19, 2007 - Posted by Rich Miller

From a press release issued at 6:27 Friday evening.

Governor Rod R. Blagojevich today directed the Illinois Department of Financial and Professional Regulations (IDFPR) to immediately suspend the Illinois Predatory Lending Database Pilot Program, also known as HB 4050.

That would be Speaker Madigan’s pet program. The program that Madigan twisted every arm at the Statehouse to pass, and then kept at it even after the bill became law.

From Madigan’s spokesman, Steve Brown:

T: Interested Parties
F: Steve Brown
R: “welcome back predator’s campaign'’

To paraphrase a recent advertising campaign “what was he thinking.”

Our comment tonight is:

The governor has made a very regrettable mistake.

It is not surprising that he waited until after dark to erect the “Welcome Back” sign for the predators.

Well, this should be fun.

More in Monday’s Capitol Fax.

*** UPDATE *** From the AP:

State Sen. Martin Sandoval (D-Chicago), the Senate sponsor of the law, said he was “disturbed and offended” that Blagojevich took action without consulting him or Madigan.

“The speaker and I know what’s best for our communities on the southwest side of Chicago,” Sandoval said.

Gerardo Cardenas, a spokesman for Blagojevich, said Saturday that the law allows the Department of Financial and Professional Regulation to designate the areas where the program will be applied. “By not designating any areas, which became effective as of last night, we are acting within the range of the law,” Cardenas said.

[Comments now open.]

  9 Comments      


READER COMMENTS CLOSED FOR THE WEEKEND

Friday, Jan 19, 2007 - Posted by Rich Miller

It’s been a pretty fun little week, but all good things must come to an end. If you must keep typing away, then by all means click yourself over to Illinoize.

  Comments Off      


Question of the day

Friday, Jan 19, 2007 - Posted by Rich Miller

Their last game just about drove me insane, but somehow the Bears managed to pull it off.

Handicap the upcoming playoff game against the Saints.

Bonus question. What do you think of Phil Luciano’s recent column?

Sports Illustrated depicts the Saints as miracle workers: “The Saints … will appear in their first conference championship to offer more salve to post-Katrina New Orleans.”

The San Antonio Express-News calls the team nothing less than “a beacon of hope for the Gulf South.” The paper, perhaps suggesting divine intervention on the side of the Saints, trots out a 77-year-old Roman Catholic priest to bluster: “This is not just good for the Saints. It’s good for the city of New Orleans.”

The New York Times, which usually is to sports coverage as I am to fashion critiques, insists that Saints’ success means nothing less than financial survival of the city via urban renewal: It quotes a Forbes editor as saying, “I think if they get to the Super Bowl, you’ll see a lot of talk of rebirth.” […]

Look, I’m sorry about Katrina. But are football fans and the rest of America so lunkheaded as to think New Orleans’ future rests on 60 minutes of football?

[Hat tip: Billy]

  23 Comments      


Obamarama - Levine, Rezko, Cari

Friday, Jan 19, 2007 - Posted by Rich Miller

The AP is reporting that Obama’s campaign is wooing an important cog in Hillary Clinton’s New York machine. [Hat tip: Curry]

Just because New York’s former state comptroller is backing Sen. Hillary Rodham Clinton doesn’t mean rival Sen. Barack Obama can’t call.

H. Carl McCall said Thursday that Obama is trying to make inroads on Clinton’s home turf, and he was among the Democrats to hear from Obama’s campaign. McCall ran for governor in 2002, the state’s first black candidate for governor from a major political party.

Who is Carl McCall? Well, he’s connected to Joe Cari and Stu Levine, two prominent players in Illinois corruption. Cari and McCall were managing directors for HealthPoint Partners, which made a full-on press in Illinois and California for pension fund investments in their firm. Levine was the power at the Illinois Teachers Retirement System board of directors.

HealthPoint held a 2003 fundraiser in New York City for Gov. Rod Blagojevich that still has people scratching their heads with wonder because right after the funder, HealthPoint got some big investments from Levine’s Teachers Retirement System.

HealthPoint Partners, a New York investment firm, held a fund-raiser for Blagojevich at the Harvard Club of New York City on Oct. 29, 2003. It was one of three money-raising events for the governor in New York that day, and his campaign stressed HealthPoint had nothing to do with the other two.

Two days later, TRS voted to invest $15 million with HealthPoint, following up on a $20 million investment it made with the firm in April 2003.

Former TRS board member Stuart Levine paid for the private plane that flew Blagojevich to New York, but Blagojevich flew home separately. Also aboard the flight there was prominent Chicago lawyer Joseph Cari, who at the time was a HealthPoint managing director.

Levine and Cari have since been indicted in the TRS corruption probe, and the Blagojevich campaign has returned or donated to charity the cost of the flight and all other contributions the two gave — nearly $20,000 total. The $3,500 HealthPoint spent on meals for the event also has been donated.

Not mentioned in the article is that McCall reportedly organized a second fundraiser on that trip at an exclusive New York club.

Levine’s juice in the Blagojevich administration was Tony Rezko. Rezko was scheduled to be on the New York flight with the governor and his pals, but mega Blagojevich fundraiser Chris Kelly went instead.

And then there’s this.

Remember that Joe Cari was the first person to describe to the feds a “fundraising scheme” involving Public Official A and two of his henchmen, since revealed to be Blagojevich, Kelly and Rezko. The scheme essentially involved using the teachers pension fund to raise campaign cash.

One of Carl McCall’s major political patrons was James A. Harmon, an international financier whom Clinton appointed chairman and president of the Export-Import Bank of the United States. Harmon also sat on the global advisory board of an outfit called J. E. Robert Companies, an asset and real-estate management company based in McLean, Virginia. Harmon’s daughter, Deborah, was president of the company.

J. E. Robert had solicited the teachers’ retirement board for an $85-million investment, and McCall phoned Levine on Harmon’s behalf. Here is where the fundraising scheme described by Cari allegedly came into play. Levine, Cari says in his plea agreement, was willing to use his sway on the teachers’ pension board to award $85 million to J. E. Robert if, in return, the company would hire a consultant of Levine’s choice (which turned out to be for 1 per-cent of the investment—$850,000). Cari claimed the consultant would then contribute some of the money he or she made (without doing any work) to certain political or charitable organizations “as directed by Levine.”

McCall indirectly popped up in Illinois news again last month.

A state pension fund has decided to postpone dropping minority-owned money manager Ariel Capital Management LLC for poor investment performance, after lobbying by two state senators and a former aide to Gov. Rod Blagojevich.

The Illinois State Board of Investment (ISBI), which had decided to terminate Ariel at the end of this month, voted last Friday to keep Ariel through the end of next year as a mutual fund investment option for self-directed state employee pension plans. […]

Top ISBI officials were contacted by state Sens. James Meeks and Don Trotter, both Chicago Democrats, and by Cheryle Jackson, who recently left the Blagojevich administration to become president of the Chicago Urban League, where two Ariel executives are directors.

McCall sits on Ariel’s board of trustees.

One of the reasons McCall lost his 2002 race for New York governor were allegations like this:

During the gubernatorial campaign, Republicans unearthed letters McCall had written to executives of companies in which the fund was invested. These documents, written on official letterhead, sought jobs for three family members.

In the most egregious example, McCall wrote to Verizon executive Fred Salerno congratulating him on the merger of Bell Atlantic and NYNEX.

‘I am particularly pleased because New York’s Retirement Fund, which I manage, owns 3,833,300 shares of the combined companies,’ McCall wrote. ‘I hope you will keep me informed of your progress, and call me if I can help in any way. Under separate cover, I am sending the resume we discussed.’

Months later, McCall’s daughter was hired as a ‘specialist.’ She was terminated in early 2001 after improper personal use of a company credit card and later charged with larceny, according to the September 27, 2002 edition of the New York Post.

As noted above, HealthPoint, through McCall and Cari, were also involved in a big push for pension fund investments in California.

State Controller and gubernatorial candidate Steve Westly steered California’s giant pension system to invest in a fledgling venture capital fund whose politically connected partners helped him raise campaign cash.

Before Westly’s involvement, the pension board’s outside advisors had rejected the fund as ill-suited for its portfolio. After the investment was made, one of the partners became enmeshed in an unrelated pension-fund scandal in Illinois, pleading guilty to attempted extortion.

If Obama is gonna run as a breath of fresh air, then the campaign needs to vet their contacts a bit better. Or at least stop bragging to the press about them.

  27 Comments      


Second lawsuit filed

Friday, Jan 19, 2007 - Posted by Rich Miller

First, it was the Better Government Association, now it’s the infamous Judicial Watch. From a press release:

Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that it has filed an open records lawsuit against the office of Governor Rod Blagojevich (D-Ill.), who is under federal investigation on several fronts, including corrupt hiring practices. Judicial Watch’s lawsuit, filed on Jan. 16, 2007 in the Cook County, Illinois Circuit Court, specifically seeks, among other documents, any and all grand jury subpoenas received by the governor’s office or any state agencies under the governor’s control. The subpoenas reportedly were issued by U.S. Attorney Patrick Fitzgerald’s office.

Attorney General Lisa Madigan has already said that the governor needs to fork over the information, which prompted the BGA’s lawsuit. Judicial Watch filed a FOIA last November for the information and was turned down.

“There is an air of lawlessness in how Governor Blagojevich is handling
this document request. He ought to listen to the advice of the state’s top legal officer and release these documents,” stated Judicial Watch President Tom Fitton. “The citizens of Illinois have a right to know the full details related to alleged corruption in the governor’s office.”

It’s not posted yet, but eventually the entire lawsuit can be downloaded here.

Also, the governor’s rationale for not handing over the subpoenas appears to be evolving.

Terry Mutchler, the public access counselor for Attorney General Lisa Madigan, wrote in a letter to the administration that without additional legal reasoning “the Office of the Governor and the agencies under his control cannot withhold Federal grand jury subpoenas in their possession and must release these documents.”

Abby Ottenhoff, a spokeswoman for Blagojevich, said the governor’s office had received viewpoints from the attorney general’s office that did not agree with Mutchler.

According to Anne Spillane, Madigan’s chief of staff, even though the governor’s office has not laid out the appropriate legal reasoning yet for withholding the documents, it is ongoing process.

Ottenhoff said U.S. Attorney Patrick Fitzgerald was “crystal clear” that the governor’s office should not disclose or discuss any subpoenas.

  10 Comments      


ISBE recommends aid increase

Friday, Jan 19, 2007 - Posted by Rich Miller

The State Board of Education is recommending an $801.6 million increase in school spending.

State aid to schoolchildren would jump by $355 per student next year–the largest increase in nearly a decade–under a recommendation Thursday from the Illinois State Board of Education.

In the first glimpse of what public schools might expect from the state next school year, the board proposed significant increases in a variety of programs, from special education to dropout prevention to preschool.

The proposed state aid per student would increase from $5,334 to $5,689, but…

The proposed figure for basic state aid falls short of the per-pupil amount recommended by the Education Funding Advisory Board, the state’s school finance advisers. The group recommended in 2005 that the state spend $6,405 per student. It is scheduled to update that recommendation this year.

Actually, the governor hasn’t even reconvened EFAB yet, so we don’t know when that new recommendation will be offered up.

  14 Comments      


Morning Shorts

Friday, Jan 19, 2007 - Posted by Paul Richardson

* Editorial: Big 3 have lean and hungry look for tax increase

* Technology (and Booze): Voting snafus

* New AmerenCILCO bill broken down: “But what really annoys me about the bill is the sleazy attempt at making the rate hike more palatable by hiding it in a plethora of new rates and fees.”

* Tribune: Challengers take share of spotlight from Daley

* Tribune: Lawsuit claims Daley pals sought discounts, kickbacks

* Claypool Says Doctors Cheating The System Might Be Adding To Fiscal Woes: “It’s actually unconscionable that front line health care workers are being laid off when all these high-paid six-figure bureaucrats pushing paper around who happen to have political connections are not losing their job”

* Public Defender’s Office Blast Stroger’s Budget Cuts

* Does ‘Republican’ Qualify as a Trademark?

* Illinois to Broaden Variable Energy Pricing

* Technology improvements paying dividends in Cook County Treasurer’s office

* Tribune Editorial: Statewide Smoking Ban

There’s another important benefit to passing this law. The ban would be effective on Jan. 1, 2008. That would shorten the excessively long grace period granted to Chicago restaurants with bars and freestanding taverns. As it stands now, they don’t have to clear the air until July of 2008–2 1/2 years after the City Council banned smoking in Chicago.

* Feared “Hole in the Wall” mobster dies in prison

* Buchwald’s Farewell Column, Written to Be Released at Death

* Site of Obama’s announcement still a mystery

* Candidate agrees with Giannoulias on hotel; SMEAA chief opposed

* Jackson Sr. will back Obama

* Felon candidates give logic a run for its money

* Family man Obama: dual demands on time, energy

* Friday Beer Blogging

  16 Comments      


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* Friday hearing set for Sean Grayson release conditions, as state's attorney plans appeal to top court
* Showcasing The Retailers Who Make Illinois Work
* Illinois voter turnout was 70.42 percent, but registered voters were down a quarter million from peak four years ago
* It’s just a bill
* Roundup: Madigan corruption trial
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