Chicago latest Political Scandal: A Senate Seat for Sale

On Tuesday, December 8 The Feds arrested Illnois Governor Rod Blagojevich, with selling the United States Senate seat of President Elect and  former US Senator Barack Obama to the highest bidder. Since then the incoming administration has a cloud hanging over it especially over the Presidents Chief of Staff Rahm Emanuel (which Ironically Emanuel had the congressional seat that Blagojevich held until Blago ran for Governor in 2002 and Emanuel  resigned the post  to be Obama campaign  manager and then being  President Obama Cheif of Staff)

The Governor has been arrested but not indited because this is an criminal complaint.

Since then US Senator Richard Durbin has said  that there should be an election for The president elect Senate. But the Governor and the democrats in the state legislature say it too expensive to run.  Nearly all of Illinois politicians want the Govenor to resign as well the public at large.

Attorney General Lisa Madigan went to the Illinois Supreme Court to remove  Blagojevch by say that is unfit to serve a Governor. On Thursday December the Illinois Supreme Court refuse to hear the case leaving Impeachment as the only option. On Tuesday,  December 16 The Illinois Legislature began Impeachment hearings.

Follow along the story via The Chicago Sun-times

The Chicago Tribune

Chicago Reader

WBEZ

WLS-TV

WGN-TV

As well as this space for the latest.

The Greatest Fraud Scheme Ever!

Bernard Madoff,  A week ago most people (like me) never heard of him. until as Last Thursday, When the Federal Bureau of Investigations arrested Madoff  the founder and head of Bernard L Madoff Securities;Charged with Securities Fraud. The feds called it the greatest Ponzi Scheme in World History.

Over $50 billion gone; affecting some of the  wealthiest  families in America have lost anywhere from middle class retirees loosing $500,000-over One Billion Dollars by HSBC Bank in United Kingdom through various hedge funds and fund of fund finance vehicles. Victims included Mort Zuckermann of U.S News and World Report  publisher through his Charitable Trust foundation. The Robert Shipro Family Foundation lost hundreds of millions of dollars. Even  Hollywood Power Players Jeffery Katzenburg and Movie Director Steven Speilberg two thirds of founding partners DreamWorks(SKG) Studios were affected because of their individual foundations lost money due to Madoff.

Each day brought more victims with more problems. This led President Elect Barack Obama on Thrusday,to nominate Mary Schapiro The new head of the Security and Change Commission and Gary Gensler to lead the Commodities Futures Trading Commission  In addition, Dan Tarullo to lead the Federal Reserve Board of Governors. The President Elect says the government has been “asleep at the switch” when it comes to overseeing the nation’s financial system.

He says Americans are “feeling frustrated that there’s not a lot of adult supervision.” He hopes this will right the ship of the final service industry.

Bailout Bonanza

President Bush and Republicans get blamed for everything.   Whether its the war or the tax cuts very little respect rightly or wrongly. But this one Republicans cannot blame President-Elect Barack Obama for the Spending Bonanza.  The ever changing $700 Billion bailout keeps morphing: First, to buy out bad mortgage securities that caused the housing collapse, then Treasury Secretary Henry Paulson changed it to bailout major banks; then changed their minds on to the buyout of bad mortgage backed securities.

The big three auto makers, General Motors, Ford Motor Company, Chrysler Corp which is owned by Cerbrus Corp( a private equity firm) has been asking for a bail out. Two week ago the CEO’s of the big  three car makers asked for $25 billion or they go out of business. But they were rebuffed by a Democrat controlled congress which supports the bailout of the industry but were embarrassed and rather pissed-off when CEO’s arrived in company owned private jets(and no plan on how to save the companies and their UAW based jobs)

This week the CEO’s of the car manufactuers came back to DC all now in their products (and tin cups) But Senate Majority Leader Harry Reid  says He doesnt have the votes to pass the bill in the senate.  On Thursday, December 5,2008  The US Senate voted No  on the bailout package.  So the workers are in a holding pattern. While the White House promise  a bailout.