Ethics in Government

Hot off of singlehandedly ending the Israeli-Palestinian conflict, America’s Son-In-Law-In-Chief has put himself in charge of handling half of the White House response to the coronavirus crisis. Didn’t you know that? No? Oh, well, it seems the White House just decided that, ah, the people didn’t need to hear about this. Oh, and FYI, most of his team are from the private sector. That’s not a problem, Congressional Democrats, is it?

Amidst an economy-crashing pandemic, several Senators appear to be more concerned with their stock portfolios than with the well-being of their constituents or with their Senatorial responsibility to offer a solution. Sadly, this will almost certainly not be the only instance of crisis profiteering during the coronavirus outbreak.

Today, the Demand Progress Education Fund and Revolving Door Project submitted a complaint to the Securities and Exchange Commission (SEC) requesting that the agency investigate Senator Richard Burr for insider trading.

Dear Inspector General Wertheimer and Inspector General Thorson:

We write to request an investigation into whether officials at the Federal Housing Finance Agency (FHFA) or Office of the Comptroller of the Currency leaked information about the agency’s plans regarding reform to the Government Sponsored Entities (GSEs) with intent to manipulate markets for the benefit of investors in preferred and common shares. Sharing this confidential, market-moving information with the intent of benefiting Fannie Mae and Freddie Mac’s shareholders would represent a breach of securities law.

Eleanor Eagan, Jeff Hauser, and Adewale Maye
You have likely not heard of Joseph Otting, as he has generated comparatively little attention amidst the circus that is President Trump’s executive branch. However, he is a deeply problematic official who has quietly amassed power in critical agencies that receive far too little attention given their impact on the economy and housing. Amazingly, Otting seems to be using these agencies to act upon resentments he developed as a “controversial,” at best, banking executive, making him a perfect representative of why we are concerned by the revolving door problem in our federal government.

With the departures of Gary Cohn, Steve Bannon, and Dina Powell from the White House, has Goldman Sachs’ initial influence on the Trump Administration dwindled?

CNN asked that question this spring, noting that “one by one, almost all the high-profile Goldman Sachs alums have left the White House.” But as CNN, to its credit, also noted that while who is up and who is down in the Trump White House changes, leadership at the Securities and Exchange Commission (SEC) has been more stable — and Goldman Sachs’ former lawyer, Chairman Jay Clayton, runs that key agency.

At first glance, the contentious Brett Kavanaugh confirmation process and the Trump Administration’s response to the apparent brutal assassination of Jamal Khashoggi have very little in common. But there is one disturbing commonality — a shocking lack of transparency into the motivations of key players.

The most important battleground of the Kavanaugh confirmation fight is not a specific issue, but whether people pay attention to the nomination itself. To some, the focus on Trump and Russia is a distraction from the Supreme Court fight.  But, in reality, the focus on Trump and Russia helps highlight exactly what’s at stake in this fight.

From cable news to social media, from the NFL to Kanye West’s Twitter feed — people spend an enormous amount of time discussing President Donald Trump. Oddly, the only people not spending much time discussing Trump — his corruption, his malfeasance, his lack of fitness for office — are the ones who have the most invested in publicizing Trump’s blatant corruption: the Democrats. As evidenced by recent national security news, Trump’s corruption poses a clear and present danger to your wallet, your economic future, and the health and well-being of the planet. And yet somehow, the Democrats are failing to connect the dots.

From investigating money laundering to enforcing America’s drug laws, U.S. attorneys possess a considerable amount of discretion in how to allocate the Department of Justice’s scarce law enforcement resources. Each of the 93 U.S. attorneys has the ability to make prosecutions of various federal statutes more or less likely and sentencing for any violations more or less draconian.

The only solution out of the quagmire of Trump’s National Finance Chair supervising an agency critical to Mueller’s investigation is for Mnuchin to recuse himself from supervision of FinCEN during the duration of Mueller’s investigation.

Jeff Hauser runs the Revolving Door Project, an effort to increase scrutiny on executive branch appointments and ensure that political appointees are focused on serving the public interest, rather than personal professional advancement. Today’s announcement that the Trump Administration would install David Kautter as the Commissioner of the Internal Revenue Service on November 12th, 2017 without a Senate confirmation process marks a further erosion of the Senate’s “Advice and Consent” power and a great day for all tax evaders, past and future. Kautter, a tax avoidance professional, has no history of work at the IRS, which many people have incorrectly assumed is (as it ought to be) a precondition for an ostensibly temporary hire. However, Kautter does have experience with the IRS. When Kautter was Director of National Tax at EY (formerly Ernst and Young) National Tax practice, their practices were so abusive that they ultimately had to pay $123 million to avoid criminal indictment. Why would the American people trust Kautter to rein in tax evasion when his firm behaved so egregiously under his ineffective and/or malevolent watch?

On the 17th of this month, a group of House Democrats, including Representative John Delaney (D-MD.), delivered a letter to President Trump offering, essentially, a trade: A tax holiday for international corporations in exchange for the guarantee that the money from that repatriation would be used exclusively to fund the country’s long-overdue infrastructure maintenance projects. Earlier this year Rep. Delaney also authored a tax and infrastructure bill which would allow corporations with funds outside the U.S. to return that money to the country at a tax rate of 8.57 percent (instead of the top corporate tax rate of 35 percent). Delaney, in his statement, called the bill a “pro-growth reform” and his co-sponsor, Rep. Rodney Davis (R-IL), said that it would “spur job creation”.