Regulatory capture and the revolving door

The Columbia Journalism Review's primary blog, The Audit, recently linked to a Financial Times article about the SEC civil suit of Goldman Sachs. Citing "several former high-ranking officials," the article argues:

"The high stakes legal confrontation between the US Securities and Exchange Commission and Goldman Sachs has been mishandled by both sides and probably should have been avoided."

This isn't an entirely unorthodox line of reasoning. We've heard it from several corners (e.g. the business-oriented cable networks) and it's legitimate to question the potential politicization of the SEC suit. But buried in the seventh paragraph is this gem:

“I think the case will come back to bite the SEC. Goldman is really struggling and something awful could happen,” said one former top official who, like most of those interviewed, asked for anonymity because their employers either work for Goldman or are being probed by the SEC.

Talk about a misplaced lede. The Financial Times, like many of its counterparts in the media, has a tendency to gingerly disclose the affiliations (past or present) of its sources. The Nation recently ran a piece about the cable news networks' utter dereliction of duty in disclosing the tangled web of politics, business, and advocacy. Think about a lobbyist for a coal company arguing against cap and trade and being introduced as an "independent consultant." Or a La Raza affiliate claiming that immigration reform is a do-or-die situation. The potential for misleading the public is unlimited.

Without a committed watchdog media the bureaucrats and politicians would be granted free reign to administer and legislate as they see fit. It doesn't take a genius to see where that leads. New media is making up for some of the slack, but if the big networks and publications are unable to present analysis ethically, the functions of government could operate with little or no oversight.

Link to article: http://www.ft.com/cms/s/0/097a1850-4ef8-11df-b8f4-00144feab49a.html?catid=7

-Mike Pawlows

High Hopes

There was an event this past week, a holiday of sorts, being celebrated across the country. No, I’m not talking about Earth day, but there is definitely some green involved. On April 20, people joined together in cities all over the world to smoke marijuana. 420 has been associated with getting high for decades now and despite the illegal status of the drug, people still smoke or ingest the substance and strive for the legalization of pot. The people that support this type of legislation may be laughed at and are accused of being stoners or hippies by the media and politicians for not conforming to the status quo. This country has taken steps in the right direction as far as leniency towards the drug, from states allowing medicinal marijuana and decriminalizing the substance in some cases, to Attorney General Eric Holder announcing that he would no longer have the DEA interfere in state medical marijuana issues. Despite all of this, pot is continuously demonized and remains illegal.

I’m no pothead, in fact, I’ve never gotten high, but I have, for quite some time now, supported the federal regulation and taxation of the drug. There are so many reasons to pass legislation that would do this. Good legislation would include, but is not limited to, setting up licenses that would be required for people involved in all aspects of the business (growing, selling, transporting, and even individual licenses for people that want to use the product, limiting the amount they could carry on their person). Instead of throwing everybody in prison, we could set up a tiered fine system for violators of these new laws and only after they fail to pay their fines can they be arrested. Expunge instances of arrest and imprisonment for pot possession for those currently imprisoned or on probation, giving them a second chance to become a functioning member of society, where before they may have been rejected.

The economy would greatly benefit with this type of regulation, not only would there be an increase in job availability, new business opportunities, and brand new markets and fields for marijuana and hemp, the taxes collected on the substance would be able to go towards multiple programs such as helping with healthcare and education. Also, hundreds of millions of dollars would be saved by getting rid of that section of funding for the war on drugs, prosecution, court costs, and many others. Laws and programs could of course be corrected to adjust any new possible threats. For instance, people worry about driving and operating heavy machinery under the influence of this drug, there is a fairly simple solution to this problem, by equipping officers and employers with drug specific swabs that can detect how high the content is in their system to determine a time frame and then handle the situation as needed.

The United States needs to move past the negative propaganda of yesteryear and previous generations. People should not fear marijuana, but embrace the possibilities it can provide us. There is no “Reefer Madness”, just the madness of certain individuals who cannot grasp the positive potential of the regulation and taxation of marijuana. SRF

New Arizona Immigration Law - Fair or Foul?

Immigration is an important facet of America’s organization and structure as it always has been; after all it is the foundation of America’s existence. America was built on immigrants coming to find work, live the dream, and find a better life in general. Today, the immigration issue causes controversy in the political, economical, social and public forums. Personally, I feel that immigration was more “important” in the past, for the growth and development of our great country, but recently the issue has been gaining traction specifically during the economic turmoil our nation has faced of late.

The immigration issue has been spotlighted recently when Jan Brewer, the governor of Arizona, signed an immigration bill into law. The bill requires police officers to question people if they “have reason to suspect” they are in the United States illegally. It also requires legal immigrants to carry their alien registration documents at all times.

People that support the law say it may be a drastic measure, but it’s the only real measure that has been taken to defend our nation and its borders. They claim illegal immigrants are breaking laws every day, so giving police officers this capability can stop the problem on its forefront.

Everyone that is opposed trusts that this law gives officers the freedom to discriminate against anyone and stop him or her with “reasonable cause.” The opposition strongly believes that this law will open the floodgates for more like it. It is also believed that this law will further the race discrimination debate that has plagued this country for so long. There are many groups that are ready to take this law to the courts.

This is a very interesting and important issue that deserves to be in the limelight because it will affect everyone at some point. I’m sure this will be in the news for a long time to come.

-AAM

National Museum of the American Indian

“Being an Indian is not about being part something; it is about being part of something.”
-Angela Gonzales (Hopi), 2007

The National Museum of the American Indian is the 18th of the Smithsonian Institution’s museums. The museum, located on The Mall, opened in 2004 serving as a major exhibition space and a center for performances and events. When you first enter, you step into the Potomac Atrium. When I visited, there was an exhibition of canoes and boats. However, when I visited a few years ago, there was a live drum performance which was great. The exhibit I enjoyed the most was called “Indivisible” which tells the story and history of how African and Native peoples came together through both cooperation as well as strife. For example, early in the 1800s, some Cherokees acquired slaves and in the 1830s, enslaved African Americans accompanied the Cherokees when the federal government forced them to move to Indian Territory (Oklahoma) where the tribe struggled to rebuild its culture. The exhibit also highlights how to officially become a member of a Native nation and what criteria must be met for enrollment. Among them, some criteria include a certain percentage of Native ancestry (“blood quantum”) and residency on tribal land. However, African and Native communities also interacted positively, intermarrying, establishing communities, and sharing their traditions. The blended tribes worked to preserve their land and rebelled against displacement. At the end of the exhibit, there was a movie that interviewed African-Native American people; it was a moving piece that illustrated the hardships some of the people faced in forming and embracing their identity. The rest of the museum was also very interesting and informative and I highly recommend going- there is amazing beadwork, artwork both old and new, as well as a great outdoor space!

-LJB

Derivatives & Regulation

Today's big financial news comes from the Senate Agriculture Committee, which passed the derivative regulation bill championed by Chairman Blanche Lincoln (D-AR). Sen. Chuck Grassley (R-IA), ranking member on Finance, was the only Republican to vote for the bill.

The reaction has and will be a mixed bag. Many financial reform advocates have been pushing for airtight derivative regulation provisions and some thought that Lincoln would produce a bill with strong restrictions. Lincoln is facing a serious challenge from her left in Arkansas and her opponent, Lt. Gov. Bill Halter, has been pandering to the liberal base. The idea was that Lincoln would release a robust regulatory package in order to undermine Halter's support and win the affection of primary voters. Yet the bill passed out of markup has some serious flaws.

Clearinghouses are at the core of the Agriculture bill. Currently only a select few types of derivatives are subjected to clearinghouse procedures (which basically enhance accountability and transparency). But under Lincoln's legislation practically all derivatives would be subject to clearinghouses. That's a plus.

But the bill starts to run off of the rails when it comes to direct regulation. Derivatives would be traded on exchanges (primarily the Commodity Futures Trading Commission) and subject to regulation by those exchanges. Problems arise out of exemptions granted on several types of derivatives. For example, foreign exchange swaps are exempt and placed under regulatory frameworks determined by Treasury. This is a massive loophole. By failing to create a strict set of rules, Lincoln has opened up foreign exchange swaps to undue influence from special interests. Moreover, every time you exempt something from exchange oversight you create the potential for more bailouts, more taxpayer dollars wasted, and thus fewer votes at the polls.

More on this later.

-Mike Pawlows

The International Spy Museum

I went down to the International Spy Museum yesterday. It was one of the stops I really wanted to make it to because I always loved the whole spy culture. It does cost money to check out this specific museum, but I thought that it was well worth it. I spent a good majority of the day going through all of the exhibits and examining all of the displays. I felt like a bright-eyed little kid. They try to explain the spy world and all of the terminology in fun and hands-on ways, giving the history of certain technology and spies. They have you pick a ‘cover’ and you have to remember the details. They also have computers set up where you have to identify certain targets using satellite images, decipher a code, or identify the threat. Some of my favorite exhibit included the Aston Martin DB-5 from the movie Goldfinger, the cloak and dagger exhibit, and the interesting history of the ‘bug wars’ between the United States and the Soviet Union during the Cold War. I recommend this place if you enjoy things like the James Bond movies or Robert Ludlum books, or just U.S. history in general because spying and acts of espionage really are essential to the history of America, from the times of the Revolutionary war until today, including new threats such as cyber terrorism. They also offer more in-depth opportunities for those who want more than jut a museum, like a chance for individuals to explore D.C. and all of its spy related sights all while trying to find and defuse a bomb and a spy at night experience. These cost more money but are supposed to be fun; I may try them some other time. The gift shop at the end was pretty interesting as well; they had items ranging all the way from children’s toys to actual spy equipment that is available to the public.

SRF

National Cathedral and Sewall-Belmont Shed New Light on D.C.

Beautiful weather and a map of sites in D.C. leads us once more to the various sights this city has to offer, okay so the first of our excursion was found in our front yard. The Sewall-Belmont House sits comfortably caddy-corner to our residence. Passing the arched stained glass doorway every day to and from the Hart Senate Office building, where I work, I have always wondered what laid behind the colored glass of this unique old house entrenched with ivy. Once a make shift bunker for soldiers to fire down upon the British, the house became one of the only private residences to survive the burning of the U.S. capitol. Most recently, the house is home to the National Women’s Party by whom it was purchased in 1929. It wasn’t until taking a tour of the house that I realized the gravity of the women’s suffrage movement. While imprisoned for simply standing with banners outside the White House (as seen above), they went on hunger strikes from the maggot-ridden food. The remedy for such militant behavior was to cram tubes down their throats, forcing them to consume a mixture of eggs and milk. This damaged many of the women’s teeth leaving them embarrassed to smile in many of the pictures throughout the house. With a glance at the map we were off to surf the metro. We (Davide Mike and I) landed at a stop that provided us with a 30-minute walk to the National Cathedral. After almost 80 years of construction it was finally completed in the early nineties. Surrounded by a campus town the ornate gothic architecture can be seen from blocks away. Inside the cathedral a full spectrum of color piercing through the stained glass, melts across the web of stone buttresses and granite floors. Both destinations shed new light in their own way on history. The Cathedral represents an almost hundred year project to realize a dream of one church for all to gather, the Sewall-Belmont house, with its wartime past and Woman’s Party present represents the dream of equal rights for all to enjoy.

~ Jared, Davide, Mike

Checking out the sights

This past weekend, I went down to the Japanese Cultural festival with a small group. As I walked through the crowd, examining overpriced trinkets that didn’t really interest me all the while hearing the music from the stage. I was kind of hungry so I walked over to the food area and the lines were a bit excessive and all for overpriced “authentic” food. I was beginning to think that the whole trip was a bust and I started walking. While Mike and I were sitting at a bench, I noticed that the building in front of me was one I remembered well from television from my childhood. The J. Edgar Hoover Building, F.B.I. headquarters, the building that was shown multiple times during the X Files. It truly brought out my inner dork from elementary school. As it brought back memories of Agents Mulder and Scully investigating the paranormal, I began texting a fellow fan of the show and making inside jokes. I then decided to look and see what other buildings were around in the area. I really enjoyed walking around and seeing the Department of Justice building, the IRS Federal building, the Navy memorial, and many others. I liked walking around and seeing all of the buildings and plan on making another trip down there to see the rest. Walking around with no rhyme or reason can lead to some interesting finds.

SRF

Refugee Protection

Now having been in Washington D.C. for a few weeks, I have settled into my internship with Human Rights First. Although I am mainly working with the office's Communications Director, I have had the opportunity to work with other Human Rights First programs, specifically the Refugee Protection Program. The office works with people who are seeking political asylum - those who leave their home country for fear of persecution or violence. When the Refugee Program is evaluating whether or not it will be able to take someone's case and find them a lawyer, they do an 'intake.' This process involves meeting with the client and having the person tell their story of why they are fleeing their country and seeking refuge in the United States. I was able to help with one of these intakes because the speaker was from Cote d'Ivoire, and with my major and back ground in French, I was able to help with the translation of his story. This was a great opportunity for me to apply what I have learned in the classroom to my internship and job skills. Also, Human Rights First has been commemorating the 30th anniversary of the passage of the Refugee Protection Act of 1980 which established uniform refugee eligibility and eliminated the biases that had dominated prior laws. However, Senator Leahy (D-VT) has introduced new legislation, the Refugee Protection Act of 2010, that would make several changes to existing legislation, trying to ensure that innocent people are not unfairly denied access to the United States by laws enacted after September 11, 2001, while always ensuring that provisions are in place to prevent terrorists from manipulating the immigration system. Overall, my internship has already provided me with great opportunities.
-LJB

Folger Shakespeare Library and National Postal Museum

On Saturday Davide and I ventured out into the nations capitol for some experiential education. We first graced the doors of the Folger Shakespeare Library, nestled behind the Library of Congress. We quickly joined a tour and found the rich history of the Folger Shakespeare Library to be quite interesting. Mr. Folger came to be the president of Standard Oil where he found great wealth. Instead of decorating the hills with picturesque mansions and vacation homes, he and his wife collected rare literary works. Of those being the first folio of William Shakespeare's plays to ever be composed. To study at this library you must be a scholar or author with respected credentials. Unfortunately, Mr. Folger was never able to see the grandeur of his life's work (of which he oversaw every detail), the Folger Shakespeare Library. From there we walked over to the National Postal Museum adjacent to Union Station. While at the Museum I couldn't help but think about those who are outraged by the purposed legislation that would eliminate mail service on Saturdays and how far this country's mail service has come. The first mail carriers would use Indian trails to navigate from town to town notching trees to pave the way for others. Now "snail mail" as we call it is being overrun by technological advances in virtually instant communication and endless information transfer capabilities. The future of our nation's postal service may be in jeopardy but I'm thankful that the past is preserved.

~JJB and Davide

An Afternoon at the American History Museum

At the beginning of my time in Washington, I went over to the Smithsonian Museum of American History. Though, it was not my first time at the museum, it's always fun to look around and see things that have been added, or look at exhibits in a new perspective. One of the highlights for me was the "First Ladies" exhibit, which displays photos, anecdotal stories about various first ladies and their inaugural ball gowns. The exhibit is fun, in the sense you get to look at the various beautiful gowns from the ages, but it also is an interesting perspective of fashion through the history of the United States. Seeing the dresses in a row, shows the changes in style and the change in fashion philosophy through the ages.
Another exhibit I really enjoyed seeing again was Julia Child's kitchen. This exhibit had a lot of people milling around, enchanted by seeing her equipment up close-thanks to the movie Julia and Julie.
However, the best part about visiting the History Museum, is the multitude of special events that happen throughout the year. While I was there, I had the opportunity to attend Helen Thomas' book signing. Meeting Helen Thomas was an incredible moment as she was such a force in White House journalism.
The History Museum also is home to a fair amount of pop culture, like Carol Burnett's drapes from her Gone with the Wind skit and Dorothy's Ruby Slippers.
The museum is a great place to go if you have all day, or even an hour as you're bound to learn something new and see artifacts that represent American history, in all of its facets.
LMM

Photos!!

World War II Memorial

During the weekend, several of us went to the Mall to see the Washington Monument and World War II Memorial. Both were impressive but the WWII Memorial was particularly moving. The Memorial can trace its beginnings to 1987, the year in which a World War II veteran asked his congresswoman why no national war memorial had been built. That congresswoman, Marcy Kaptur (D-OH), introduced a bill that authorized the building of the Memorial. The bill languished in the House until Sen. Strom Thurmond (R-SC) introduced companion legislation in the Senate. Finally, it was signed into law by President Clinton in 1993 and dedicated by President Bush in 2004.

I feel honored to be interning in Rep. Kaptur's office for several reasons. However, the role she has played in WWII's legacy may trump everything else.

-Mike P.

First Fridays @ Dupont Circle

Dupont Circle was the compass heading and off we were. . . The arrangement not reflecting the well marked strip of galleries involved in "Gallery Hop" (a similar event occurring the first weekend of every month, weather permitting) in the Short North back home, but more of a word of mouth treasure hunt of galleries sprinkled across the Dupont district. As fate had it the first disguised gallery we stumbled upon was a private establishment with open doors and a guest book. Stairs stretched up into multiple floors of the townhouse as if they were once part of a bound accordion. At the first floor we were greeted with shrimp cocktail, assorted cheeses, and freshly ground hummus. I instantly thought to myself that not only am I out of my element but I am extremely under dressed. The latter of the two conclusions served to our advantage. Scott the tallest of the bunch, as seen in the picture above, was proudly sporting a scarlet and grey Ohio State tee. The bold collegiate lettering caught the eye of what we soon found out to be the artist, Scooter Flaherty (artwork displayed in background), a former Ohio State Alum. We reminisced. What began as a stab in the dark attempt at cultural enlightenment became a chance to connect with a renowned artist and former alum at that.

~JJB

44th Annual Smithsonian Kite Festival

Having never been to Washington before, I arrived on Friday, a couple days before our Sunday, March 28th move-in date. I wanted to spend a couple days getting acquainted with the city and the transit system. My girlfriend and I took a stroll over to the Department of Commerce building on 14^th & Constitution, NW, where I would be interning during the quarter. When we arrived, we saw thousands of people surrounding the Washington Monument with an unimaginable amount of kites in the sky, so we decided to check it out.

At first, we chalked it up as just a normal weekend on the Washington Monument in the gorgeous spring weather (57 ° and sunny). We thought that kite flying was just something that everyone did around here. But after browsing around for a while, we came across a flag and literature that read, “44^th Annual Smithsonian Kite Festival, CRAFTed for Flight.” At this moment, it all made sense.

We found out that the annual kite festival, sponsored by the Smithsonian Associates and the National Air and Space Museum, is a pretty big event in the area. It features handmade kite competitions, kite displays and demonstrations by professional kite flyers. Other activities include children learning to write their names in Japanese characters and in unity with the National Aquarium, children can build kites that look like stingrays.

This is a great date or family event and something everyone should see at least once!

AAM