Cousin Vinnie Goes to Washington

Cousin Vinnie Goes to Washington

During the 8-year stretch of the Bush administration, backroom politicking went on steroids with the poster children (Cheney/Rumsfeld) of such tactics on display at various prisons around the world as American interrogations turned to the dark side of torture.

Outing Valerie Plame as a CIA agent also ramped up the political tit for tat game of sore winner and loser. Relations with big business under the Bush regime couldn’t have been better. Deregulating energy gave rise (and fall) to Enron, and a whole new meaning for “cooking the books” of large corporations (Worldcom comes to mind) was presented by non other than the accounting firms responsible to keep those very same books clean. As it turns out the accounting firms (Arthur Anderson) wanted in on the investment action making millions with insider information.

On January 20th, 2009 a new administration came to Washington to clean up the mess of the previous 8-years. Forming a strong and seasoned team of cabinet members, Secretaries of this and that, and many others, a congenial Barack Obama began his work as Chief Executive. Much has been said about the first 100 days and whether it has been a success so far, but out on the fringes from the central events in the political 3 ring circus, disturbing news dribbles out.

The first piece of news was the firing of General Motors CEO Rick Waggoner by Barack Obama. It seemed a little unusual at the time, but I gave a pass to the action with the rationalization that CEO’s, not just bankers, have some ass whoppin’s comin’ and with Mr. Waggoner’s’ firing some justice had been done.

Recently news has come out that in the restructuring of Chrysler Motors there has been some very heavy handed back room warfare. The protagonist; government car czar Mr. Rattner, and on the receiving end Perella Weinberg an officer of a non-TARP fund holding Senior debt obligations belonging to Chrysler. What makes this so appalling comes to light with the following except of the action from a blog site I follow:
“Then you have White & Case attorney Tom Lauria, describing the experience of one of his clients, holders of Senior debt in Chrysler, to Frank Beckmann:
Lauria: One of my clients was directly threatened by the White House, and in essence compelled to withdraw its opposition to the deal under threat that the full force of the White House press corps would destroy its reputation if it continued to fight. That's how hard it is to stand on this side of the fence.”

What finally resolved in this instance with Chrysler is holders of Senior Debt for Chrysler (who are first in line to collect in the event of bankruptcy) were told they were moved to the back of the line. While this is a clear violation of business law, it is the government that makes these laws and is changing them at will.

If that isn’t enough how about Ken Lewis CEO of Bank of America describing under oath to NY District Attorney Andrew Cuomo his interactions with Treasury Secretary Paulson and Federal Reserve Chairman Bernanke: “Mr. Lewis told prosecutors that then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke instructed him to keep silent about deepening financial difficulties at Merrill Lynch.”
In fact what Paulson and Bernanke told Lewis was that they (the government) would replace the entire board of B of A if the acquisition of Merrill Lynch was not completed by Lewis.

In the parley of gangsta rap cousin Vinnie is the strong-arm you call on when someone needs some “convincing”. I am not naïve enough to think there are only pleasantries between politicians in Washington or anywhere for that matter. After the Nixon tapes many of us were educated by the tone and use of foul language in the oval office. Even the goon squads (ie Nixon’s Plumbers) that were formed during those years were outsourced thugs. These days it seems we have removed the middleman and have appointed the thugs unabashedly to our most prestigious government posts.

I recall the welling of pride in my chest when watching the Frank Capra movie “Mr Smith Goes to Washington”. Witnessing Jimmy Stewart as Mr. Smith, following his integrity at all costs and fighting the beasts in the dark corridors of government, framed for me the hope of what this country could be, should be. Today, I am quite sure that should Mr. Smith show up in Washington, cousin Vinnie (or Bernanke or Rattner) might see that he had a little accident in the Potomac.

The halls of American government are littered with lobbyists (lobbyists for the banking sector alone number 5 for every member of congress) whose intentions are to write legislation favorable for their industry. These lobbyists write very large checks for such favors.

What we are now witnessing is the cleansing of corruption by reason of this financial meltdown. Rest assured there is plenty more to come before some terra firma is underfoot. Attempts to keep the prevailing structure of business as usual will not hold it together but will add to the general pain and suffering. So remember, when cousin Vinnie comes a knockin’ whether it be your door or the one’s in Washington, if you let him in, there is a price to pay that relates to more than money, cause cousin Vinnie, even though he doesn’t know it (he ain’t too smart, never was) steals your soul.