Reuters blog archive
Here are comments from a U.S. Treasury official on Secretary Jack Lew’s meeting with incoming Acting IRS Commissioner Daniel Werfel this morning, following a scandal of political targeting that cost the previous acting commissioner his job. Treasury officials knew about the problem as early as last June, according to this report in the Wall Street Journal:
Secretary Lew met with incoming Acting IRS Commissioner Werfel this morning and directed him to conduct a thorough review of the organization in an effort to restore public confidence in the IRS and ensure the organization is providing excellent and unbiased service to the taxpayer. Secretary Lew also requested that he take actions immediately as appropriate, and that within the next 30 days, Werfel report back to the President and him about progress made in three areas: 1) ensuring staff that acted inappropriately are held accountable 2) examine and correct any failures in the system that allowed this behavior to happen and 3) take a forward-looking systemic view at the agency’s organization.
from The Great Debate:
George Washington was ruthless.
As commander in chief of the Continental Army, Washington was prepared to crush those who attacked American liberty. He set up military commissions to swiftly hang enemies. He sparked an international incident when he ordered the execution of a random teenage prisoner. He even justified torture. But he reserved his ferocity for foreign enemy combatants.
Following the firestorm of last week’s Boston bombing and the ensuing violent manhunt, we are trying to find our bearings. We need to aggressively extract information, identify additional threats and hunt down any accomplices, whether foreign or homegrown. Yet we must remain careful not to slide toward an Orwellian state – where Big Brother runs roughshod over local authorities, monitors Americans without probable cause, restrains the movements of innocent civilians or rains drone missiles on U.S. soil.
from Unstructured Finance:
Wall Street is shrinking, but so are some of its bankers.
Eight years ago, Goldman Sachs Group’s Kishan Shah weighed 400 pounds and couldn’t find a suit that fit his 62” waist for a job interview. Now he’s 195 pounds, and he’s quitting Goldman to spread the gospel of healthy weight loss as chief executive of a chain of gyms for obese Americans.
“I made a vow that day to focus on diet and exercise, and I lost over 200 pounds – no surgeries, no fad diets, no trainers,” Shah said in a video chat this month with First Lady Michelle Obama.
from Anatole Kaletsky:
Ronald Reagan had a catchphrase when faced with a crisis, especially a synthetic “crisis” of the kind Washington loves to concoct. He would call in the officials and media advisers rushing manically around the West Wing and calmly tell them: “Don’t just do something - stand there.” In this respect, as in several others, “No Drama Obama” seems to resemble the man he once admiringly described, despite their ideological animosity, as the last great “transformational” U.S. president.
With Wall Street hitting new records as Washington supposedly plunges into its latest fiscal crisis with the budget sequestration that began this week, Obama could do well to emulate Reagan’s laid-back style. In addition to doing nothing about the latest manufactured fiscal crisis, he could explain why nothing is the right thing to do.
from Chrystia Freeland:
President Barack Obama's State of the Union speech this week confirmed it: The pre-eminent political and economic challenge in the industrialized democracies is how to make capitalism work for the middle class.
There is nothing mysterious about that. The most important fact about the United States in this century is that middle-class incomes are stagnating. The financial crisis has revealed an equally stark structural problem in much of Europe.
from Unstructured Finance:
By Matthew Goldstein
Don't be surprised if President Obama includes a line or two in his State of Union address this evening about the need for a plan to allow millions of struggling homeowners whose mortgages are packaged into so-called private label mortgage-backed securities to get a chance to either refinance their loans or restructure them.
The Washington Post is reporting today that mortgage refinancing may be one of the laundry list of items Obama will talk about tonight. And for several months now, investors in private mortgage-securities--deals issued by Wall Street banks and financial firms and not guaranteed by Fannie or Freddie--have been quietly bracing for the Obama administration to move forward with a new refinancing effort.
If President Obama’s chief counterterrorism advisor John Brennan is confirmed as director of the CIA on Thursday, he will take the role of the lead authority for CIA drone strikes, institutionalizing a program that has killed an unknown number of suspected militants and civilians since 2004. Although his confirmation is expected to help preserve the drone program while glossing over concerns about its transparency and effectiveness so far, his appointment leaves a bigger question about the CIA's future role.
Brennan’s open hearing before the Senate Intelligence Committee on Thursday has been pegged as a time to demand answers about the highly secretive U.S. campaigns to target and kill al Qaeda militants using unmanned aerial vehicles in places like Pakistan, Somalia, and Yemen. The administration is tight-lipped on the subject, and critics have assailed the campaign over its lack of public accountability. U.S. drone strikes have killed not just foreign militants, but also civilians and American citizens. Rights groups have lambasted the extrajudicial killings of American citizens, including the “Internet imam” Anwar al-Awlaki and his 16-year-old son in Yemen. A New York Times report last May revealed that the government’s troubling definition of a “militant” suggests any military-age man in a strike zone is fair game. On Tuesday, a 16-page memo from the Justice Department published by NBC News further outlined the vague criteria for who can target and be targeted, as well as showed an expanded definition of conditions that the government can use to order strikes.
from The Great Debate:
The first months of President Barack Obama’s second term promise to be full of big political fights on issues ranging from comprehensive immigration reform to the problem of gun violence to addressing America’s fiscal woes. Last week’s decision on recess appointments by three Republican-appointed judges on the D.C. Circuit Court of Appeals, however, proves there’s another battle worth waging: over the confirmation of judges to that court.
In invalidating Obama’s recess appointments to the National Labor Relations Board and the Consumer Financial Protection Bureau, the three-judge panel issued a troubling decision. And one that should spark a response. For it shows us, yet again, that it matters who sits on our courts.