INTRODUCTION: THE GOVERMENT RICH
1 Matthew Mosk, "Lawmakers Cashing In on Real Estate, Financial Reports Reveal," Washington Post, June 15, 2007.
2 Roger Scruton, "Politics as a Profession," American Spectator, October 2010.
3 Sean Wilentz, "Striving for Democracy," Wilson Quarterly, vol. 23, no. 2.
4 http://www.senate.gov/CRSReports/crs-publish.cfm?pid='*2%404P%5C%5B%3A%22%40%20%20%0A.
5 Andrew Biggs et al., "Are Taxpayers Getting Their Money's Worth? An Analysis of Congressional Compensation," Taxpayer Protection Alliance, July 2011.
6 Gabriel'S. Lenz and Kevin Lim, "Getting Rich(er) in Office? Corruption and Wealth Accumulation in Congress," http://papers.ssrn.com/Sol3/papers.cfm?abstract_id=1450077, July 2009.
7 http://www.reuters.com/article/2008/03/13/us-usa-congress-wealth-idUSN1330776120080313.
8 http://chartingtheeconomy.com/?page_id=27.
9 http://www.cbsnews.com/stories/2009/02/12/national/main4798225.shtml.
10 Kevin Drawbaugh, "Get Elected to Congress and Get Rich: Study," Reuters, March 13, 2008.
11 Alan J. Ziobrowski et al., "Abnormal Returns from the Common Stock Investments of the U.S. Senate," Journal of Financial and Quantitative Analysis, vol. 39, no. 4, 2004, and Brad M. Barber and Terrance Odean, "Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors," Journal of Finance, April 2000, and Leslie A. Jeng, Andrew Metrick, and Richard Zeckhauser, "Estimating the Returns to Insider Trading: A Performance-Evaluation Perspective," Review of Economics and Statistics, May 2003.
12 Alan J. Ziobrowski et al., "Abnormal Returns from the Common Stock Investments of Members of the U.S. House of Representatives," Business and Politics, vol. 13, 2011.
13 Andrew Eggers and Jens Hainmueller, "Political Investing: The Common Stock Investments of Members of Congress, 2004–2007," http://www.gsb.stanford.edu/facseminars/events/political_economy/ documents/pe_10_10_hainmueller.pdf.
14 http://www.bloomberg.com/news/2010-12-21/u-s-lawmakers-top-market-with-home-district-companies-stocks-study-says.html.
15 Jiekun Huang and Meng Gao, "Capitalizing on Capitol Hill: Informed Trading by Hedge Fund Managers," http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1707181, April 18, 2011.
16 Ahmed Tahoun and Laurence Van Lent, "Personal Wealth Interests of Politicians and Government Intervention in the Economy: The Bailout of the U.S. Financial Sector," http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1570219, December 31, 2010.
17 Gerald W. Scully, "Congressional Tenure: Myth and Reality," Public Choice, no. 83, 1995, and http://www.usatoday.com/news/washington/2009-01-05-new-congress_N.htm.
18 John P. Foley, ed., The Jeffersonian Cyclopedia: A Comprehensive Collection of the Views of Thomas Jefferson, Classified and Arranged in Alphabetical Order (New York: Funk and Wagnalls, 1900), p. 346.
19 Richard Painter, "Bailouts: An Essay on Conflicts of Interest in Ethics When Government Pays the Tab," McGeorge Law Review, vol. 41.
20 George Washington Plunkitt, Plunkitt of Tammany Hall (Gloucester, UK: Dodo Press, 2009), p 14.
21 Plunkitt, Plunkitt of Tammany Hall, p. 10.
22 Robert A. Caro, The Years of Lyndon Johnson: Means of Ascent (New York: Vintage, 1991), pp. 102–4.
23 Ziobrowski et al., "Abnormal Returns from the Common Stock Investments of the U.S. Senate," Journal of Financial and Quantitative Analysis, vol. 39, no. 4, December 2004, p. 662.
24 Thomas Peter Lantos, Financial Disclosure Statement, 2007, Schedule III—Assets and Unearned Income.
25 Timothy P. Carney, The Big Ripoff: How Big Business and Big Government Steal Your Money (New York: John Wiley and Sons, 2006), p. 79.
26 Carney, The Big Ripoff, pp. 80–81.
27 Daniel Michaels, "As Boeing Hits Turbulence, Uncle Sam Flies to Its Aid," Wall Street Journal, December 10, 2009.
28 William J. Hunter and Michael A. Nelson, "Tax Enforcement: A Public Choice Perspective," Public Choice, no. 82, 1995.
29 Maria C. Correia, "Political Connections, SEC Enforcement and Accounting Quality," Rock Center for Corporate Governance, Working Paper No. 61, July 2009.
30 Frank Yu and Xiaoyun Yu, "Corporate Lobbying and Fraud Detection," Journal of Financial and Quantitative Analysis, forthcoming.
31 R. Patrick Rawls and David N. Laband, "A Public Choice Analysis of Endangered Species Listings," Public Choice, no. 121, 2004.
32 John R. Gist and R. Carter Hill, "The Economics of Choice in the Allocation of Federal Grants: An Empirical Test," Public Choice, no. 36, 1981.
33 http://voices.washingtonpost.com/local-breaking-news/dc/7-of-10-richest-counties-in-dc.html.
1. THE DRUG TRADE
1 Tom Daschle and David Nather, Getting It Done: How Obama and Congress Finally Broke the Stalemate to Make Way for Health Care Reform (New York: Thomas Dunne Books, 2010), p. 11.
2 John Kerry, Financial Disclosure, 2011 and previous years.
3 http://www.nytimes.com/2009/08/06/health/policy/06insure.html.
4 John Kerry, Financial Disclosure, 2009, Schedule IV—Transactions.
5 Daschle and Nather, Getting It Done, pp. 178, 226.
6 Melissa L. Bean, Financial Disclosure, 2009.
7 Jared Polis, Financial Disclosure, 2009.
8 http://www.medicaltourismmag.com/newsletter/48/medical-tourism-expands-as-alternative-to-obamacare.html.
9 http://www.bridgehealthmedical.com/about-us/media-room/coverage/Company_cuts_medical_costs_by_sending_patients_to_US_hospitals_not_overseas.
10 Andrew Pollack, "Critics Say 12 Years Is Too Long to Protect Biotech Drugs from Generics," New York Times blog, Prescriptions: The Business of Health Care, October 15, 2009.
11 Richard Gayle, "Healthcare Reform Gave Biotech Everything It Wanted, and More," http://www.xconomy.com, March 24, 2010.
12 "Factbox: Winners, Losers, in House Healthcare Bill," Reuters, March 22, 2010, and Vanessa Fuhrmans, "Tax on High-End Health Plans Threatens Wider Group," Wall Street Journal, August 10, 2009.
13 http://query.nytimes.com/gst/fullpage.html?res=9400E5D91331F935A25756C0A9619C8B63.
14 Johnny Isakson, Financial Disclosure, 2007, and Sheldon Whitehouse, Financial Disclosure, 2007.
15 James Sensenbrenner, Financial Disclosure, 2003.
16 James Oberstar, Financial Disclosure, 2003.
17 Jeb Bradley, Financial Disclosure, 2003.
18 John Kerry, Financial Disclosure, 2003.
19 John Kerry, Financial Disclosure, 2005, which reports on his capital gains for 2004.
20 John Kerry, Financial Disclosure, 2004, Part IV—Transactions.
21 John Kerry, Financial Disclosure, 2003.
22 Max Baucus, Financial Disclosure, 2010, Part IV—Transactions.
23 John Boehner, Financial Disclosure, 2009.
24 http://voices.washingtonpost.com/ezra-klein/2009/12/the_death_of_the_public_option.html.
25 http://ipo.nasdaq.com/edgar_conv_html/2006/02/10/0000812796-06-000010.html.
26 Jim McDermott, Financial Disclosure, 2004, 2005.
27 Amo Houghton, Financial Disclosure Statement, 2005, Addendum, stock transactions with Market Street Trust Company.
28 Amo Houghton, Financial Disclosure, 2003.
2. CRISIS FOR ALL, OPPORTUNITY FOR SOME
1 "President Bush Discusses Emergency Economic Stabilization Act of 2008," FDCH Regulatory Intelligence Database, October 3, 2008.
2 Spencer Bachus, "Confronting the Crisis," National Mortgage News, February 2, 2009.
3 Henry M. Paulson, Jr., On the Brink: Inside the Race to Stop the Collapse of the Global Financial System (New York: Business Plus, 2010), pp. 13, 153, 220, 296, 299.
4 The VIX is an index that measures the implied volatility of Standard and Poor's 500 index options. Between 1990 and September 2008, the VIX averaged 19. By the end of October 2008, at the height of the crisis, it reached a high of 89.
5 Bachus, "Confronting the Crisis."
6 "End of Illusions," Economist, July 17, 2008.
7 Paulson, On the Brink, p. 153.
8 Spencer Bachus, Financial Disclosure, 2009.
9 http://financialservices.house.gov/press/PRArticle.aspx?NewsID=1684, and "FASB Delays Rule Affecting $10.5 Trillion in Bonds," National Mortgage News, August 21, 2008.
10 Paulson, On the Brink, p. 259.
11 Paulson, On the Brink, p. 260.
12 Paulson, On the Brink, p. 172.
13 Spencer Bachus, Financial Disclosure, 2009.
14 "Lead Financial Services Lawmaker Defends Trading," USA Today, September 23, 2008.
15 Paulson, On the Brink, p. 241.
16 James Moran, Financial Disclosure, 2009.
17 Shelley Capito, Financial Disclosure, 2008.
18 Richard Durbin, Financial Disclosure, 2009.
19 John Kerry, Financial Disclosure, 2008.
20 Rahm Emanuel, Financial Disclosure, 2003.
21 Alex J. Pollock, "GSE Reform on the Way," National Mortgage News, November 15, 2004.
22 http://www.washingtonpost.com/wp-dyn/content/article/2008/09/11/AR2008091102841.html, and Marc Hochstein, "U.S. Senator Is Urging Fannie, Freddie into the Subprime Market," American Banker, July 9, 1999.
23 John Kerry, Financial Disclosure, 2005.
24 Stephen Taub, "Global Blackout: Fannie Mae Freezes Employee Stock Sales," Compliance Week, May 24, 2005.
25 John Kerry, Financial Disclosure, 2006.
26 http://firstread.msnbc.msn.com/archive/2009/06/11/1962038.aspx.
3. IPOs: INVEST IN POLITICIANS OFTEN
1 Nancy Pelosi, Financial Disclosure, 2008.
2 "Visa Inc's $16 Billion IPO Oversubscribed, Analysts Say," MarketWatch.com, March 13, 2008.
3 National Retail Federation, nrf.com/swipefees.
4 "Fierce Fight Expected If Interchange Bill Reaches House Floor," CardLine, July 25, 2008.
5 "Congressmen Conyers and Cannon Introduce 'Credit Card Fair Fee Act,'" CardLine, July 18, 2008.
6 "And a Survey Says Most Americans Support the Act," CardLine, July 18, 2008.
7 "Fierce Fight Expected If Interchange Bill Reaches House Floor."
8 "Pelosi Statement on the House Passage of Expedited Card Reform for Consumers Act," http://pelosi.house.gov/news/press-releases/2009/11/releases-Nov09-card.shtml, November 4, 2009.
9 http://www.nacsonline.com/NACS/News/Daily/Pages/ND0526101.aspx.
10 http://washingtonexaminer.com/politics/2010/12/want-voice-washington-invest-politician.
11 Christine B. Whelan and Tom Hamburger, "Lawmakers Joined Executives in Profiting from IPO Access," Wall Street Journal, September 6, 2002.
12 Benjamin Lesser and Greg B. Smith, "Rep. Ackerman Confirms He Introduced Israeli Officials to Defense Contractor Xenonics," New York Daily News, January 12, 2010.
13 Gary Ackerman, Financial Disclosure, 2005, 2006, and 2007.
14 http://articles.nydailynews.com/2010-01-11/news/17943510_1_ alan-magerman-rep-gary-ackerman-annual-disclosure-forms.
15 Ian Talley, "Pelosi Investment Shows Unlikely Energy Alliance," Wall Street Journal, August 23, 2008.
16 http://seekingalpha.com/article/52737-this-week-s-energy-ipos-approach-resources-osg-america-quest-energy-partners-sandridge-energy.
17 Transcript, Meet the Press, August 24, 2008.
4. THIS LAND IS MY LAND
1 http://earmarks.omb.gov.
2 See Dennis Hastert's Personal Financial Disclosures, Kendall County Records, Doc. #200600025196, and Greg Hinz, "House Speaker Dennis Hastert Reaps Profit—and Controversy—Via Land Deal," Crain's Chicago Business, June 26, 2006.
3 http://www.sfweekly.com/2007-01-03/news/porkmistress-pelosi.
4 http://www.sfmta.com/cms/mcsp/cspover.htm.
5 "Public Transit Boosts Property Values, If Conditions Are Right," National Association of Realtors, http://realtor.org/transtools.
6 http://www.urbantools.org/policy-papers/transportation/light-rail- increases-land-value-a-california-case-study.
7 Matthew Mosk, "Lawmakers Cashing In on Real Estate, Financial Reports Reveal," Washington Post, June 15, 2007.
8 http://www.legistorm.com/earmarks/details/member/504/Rep_Bennie_Thompson_MS/sort/amount/type/desc/year/all/page/3.html, and http://www.opensecrets.org/politicians/earmarks.php?cid=n00003288.
9 http://www.countyofnapa.org/Pages/DepartmentContent.aspx?id=4294968331.
10 http://www.concordmonitor.com/article/226248/tallying-greggs-earmarks-for-nh?CSAuthResp=%3Asession%3ACSUserId%7CCSGroupId%3Aapproved%3ABA4A9537C4BF4594E11F4B09D8217743&CSUserId=94&CSGroupId=1.
11 Judd Gregg, Financial Disclosure, 2001–2008.
12 Sharon Theimer, Associated Press, February 27, 2009.
13 Theimer, Associated Press.
14 Jamie Klatell, "Judd Gregg Joins Goldman Sachs," The Hill, May 27, 2011.
15 Christine Jindra, "Rep. David Hobson Steered Federal Money to Projects Near Properties He Owns," Cleveland Plain Dealer, http://cleveland.com/openers/2008/05/Sabrina_eatonthe_plain_dealer.html.
16 http://oig.tva.gov/PDF/09rpts/OIGMFinalReporttoEthicsComm.pdf.
17 Maurice Hinchey, Financial Disclosure, 2004–2008.
18 http://dailyfreeman.com/articles/2010/05/21/news/doc4bf 60ccc73723880294024.txt.
19 Jeremiah Marquez, "Probe Targets Land Deal," San Bernardino Sun, September 6, 2006.
20 http://www.cnn.com/CNN/programs/anderson.cooper.360/blog/2007/07/earmark-request-hits-close-to-home.html.
21 Chuck Neubauer and Tom Hamburger, "Will the Pork Stop Here?" Los Angeles Times, November 13, 2006.
22 John Solomon and Kathleen Hennessey, "Reid Got $1 Million in Land Deal," Associated Press, October 11, 2006.
5. SPREADING THE WEALTH ... TO BILLIONAIRES
1 Chuck Neubauer and Tom Hamburger, "Obama Donor Received State Grant," Los Angeles Times, April 27, 2008.
2 James Atkinson, "Smart Grid Grants: Not Currently Taxable, but There's a Hitch," SmartGridNews.com, March 12, 2010.
3 Bringing the Outside In, White House blog, http://www.whitehouse.gov, March 20, 2009.
4 https://lpo.energy.gov/?page_id=45.
5 "The Department of Energy's Loan Guarantee Program for Clean Energy Technologies," Audit Report, U.S. Department of Energy, Office of the Inspector General, Office of Audits and Inspections, March 2011, DOE/IG-0849, and Statement of Gregory H. Friedman, Inspector General, U.S. Department of Energy, Before the Subcommittee on Oversight and Investigations, Committee on Energy and Commerce, U.S. House of Representatives, March 17, 2011.
6 Briefing Memo, the White House, October 25, 2010, "Memorandum for the President, From: Carol Browner, Ron Klain, Larry Summers, Subject: Renewable Energy Loan Guarantees and Grants," pp. 1–8.
7 "First Solar Shares Rise on Government Loans News," Associated Press, May 12, 2011, and Duncan Greenberg and Tatian Seuffin, "The Next Billionaire Boom," Forbes.com, April 1, 2009.
8 Lindsay Riddell, "Stimulus Funds Spark Cleantech Projects, IPOs," San Francisco Business Journal, January 6, 2010.
9 Council of Economic Advisers, "The Economic Impact of the American Recovery and Reinvestment Act of 2009, Fifth Quarterly Report."
10 Leslie Wayne, "Democrats Look to Lobbyist to Finance Convention," New York Times, July 14, 2008.
11 To learn more about Mr. Westly's exploits, read the joint investigative report on him by the Center for Public Integrity and ABC News: Ronnie Greene and Matthew Mosk, "Green Bundler with the Golden Touch: Obama Fundraiser Got Clean Energy Aid, Then Perch to Advise Energy Secretary," March 30, 2011.
12 "It's Official: Solynara Is First Solar Company Awarded Federal Loan," Wall Street Journal, September 4, 2009, and "Obama's Kaiser Ties Criticized," Tulsa World, April 1, 2008.
13 Iris Kuo, "Solyndra and Government Support for Clean Tech Under Fire," Reuters.com, February 22, 2011.
14 Yuliya Chernova, "Loan was Solyndra's Undoing," Wall Street Journal, September 16, 2011.
15 Lucy Johnson et al., Synapse Energy Economics, April 13, 2010, and "Phase Out Federal Subisidies for Coal," Coal Utilization Research Council, Issue Brief: DOE Guaranteed Loan Program, January 2010.
16 http://www.recovery.gov/Transparency/RecipientReportedData/pages/RecipientProjectSummary508.aspx?AwardIdSur=75488&AwardType=Grants.
17 Lindsay Riddell, "Solar Trust Wins $2.1 Billion Loan Guarantee." San Francisco Business Times, April 18, 2011, and Paul Bedard, "Exxon, Chevron, BP Greased Obama's Campaign," U.S. News & World Report, March 14, 2011.
18 Todd Woody, "Reading the Fine Print of Brightsource's $250 Million IPO," Forbes.com, April 22, 2011.
19 Jim McTague, "Our Tough-Luck President," Barrons.com, July 10, 2010.
20 Robert Yoon, "Goldman Sachs Was Top Obama Donor," CNN.com, April 20, 2010.
21 http://wallstcheatsheet.com/trading/first-solar-shares-lead-todays-gains.html.
22 "Recovery Act Funds Support Geothermal Project Loan Guaranteed," Environmental News Service, February 28, 2011.
23 http://www.recovery.gov/Transparency/RecipientReportedData/pages/RecipientProjectSummary508.aspx?AwardIdSur=80623&AwardType=Grants.
24 Anne C. Mulkern, "Stimulus Cash Flowed to Completed, Under-Way Renewable Energy Projects," New York Times, October 19, 2010.
25 Mulkern, "Stimulus Cash Flowed to Completed, Under-Way Renewable Energy Projects."
26 Kristen Lombardi and John Solomon, "Billions in Stimulus Money Given to Polluters," Washington Post, November 29, 2010.
27 Julie Rose, "Duke Energy Gives Democratic Convention Backing," NPR.org, April 15, 2011.
28 Erika Lovely, "Obama Biggest Recipient of BP Cash," Politico, May 5, 2010.
29 Mulkern, "Stimulus Cash Flowed to Completed, Under-Way Renewable Energy Projects."
30 David Callahan, Fortunes of Change: The Rise of the Liberal Rich and the Remaking of America (New York: John Wiley and Sons, 2010), p. 36.
31 Laura Litvan, "Emanuel Consults Buyout-Firm Allies in Debate Over Tax Increase," Bloomberg.com, July 26, 2007.
32 http://www.xconomy.com/seattle/2008/11/06/arch-co-founder-bob-nelsens-historic-close-up-with-president-elect-obama-and-the-tears-of-jesse-jackson.
33 http://www.businessinsider.com/meet-the-man-who-bought-jamie-dimons-house-michael-polsky-2010-9.
34 Greene and Mosk, "Green Bundler with the Golden Touch."
35 Greene and Mosk, "Green Bundler with the Golden Touch."
36 Michael Scherer, "How Fundraising Helped Shape Obama's Green Agenda," Time, March 15, 2010.
37 Dan Primack, "Amyris IPO: Which VC Backers Are (and Aren't) in the Black," CNNMoney.com, September 29, 2010.
38 http://english.unica.com.br/clipping/show.asp?cppCode=2757BCFA-ED51-44C5-8F0F-7C9C2E687D23.
39 http://www.telegraph.co.uk/earth/energy/6491195/Al-Gore-could-become-worlds-first-carbon-billionaire.html.
40 Jonathan Alter, The Promise: President Obama, Year One (New York: Simon and Schuster, 2010), p. 89.
41 Alter, The Promise, p. 60.
42 http://www.energy.gov/recovery/documents/RecoveryActCrop ped_24-34.pdf.
43 Paul Davidson, "Smart-Grid Standards an Issue in Economic Stimulus Bill," USA Today, February 4, 2009, and Alex Yu Zheng, "Stimulus Package Will Create Winners in Smart Grid Standards," SmartGridNews.com, February 17, 2009.
44 Matthew Wald, "U.S. Backs Project to Produce Fuel from Corn Waste," New York Times, July 6, 2011.
45 http://www.cmo.com/leadership/conversation-cmo-year-finalist-wesley-bolsen-coskata-inc.
46 Steve Coll, "Crony Capitalism," The New Yorker, July 2, 2009.
6. WARREN BUFFETT: BAPTIST AND BOOTLEGGER
1 Andrew Clark, "Banking Crisis: Warren Buffett Sees US Bailout as a Golden Opportunity," Guardian, September 24, 2008.
2 http://www.bloomberg.com/news/2011-05-09/berkshire-will-record-1-25-billion-gain-on-goldman-redemption.html.
3 John McCormick, "Buffett Is Obama Meal Ticket," Chicago Tribune, August 16, 2007.
4 Ben Nelson, Financial Disclosure, 2008.
5 Jeff Zeleny, "Obama Sells Bailout Plan to Skeptics," New York Times, October 1, 2008.
6 "Buffett Calls Bailout Bill 'the Right Thing,'" New York Times, September 24, 2008.
7 Daniel Dombey et al., "U.S. Bill to Contain Payback Provision," Financial Times, September 29, 2008.
8 http://www.msnbc.msn.com/id/26976416/ns/business-us_business/t/warren-buffett-invests-billion-ge/#.TjhN1M033V0.
9 Charles Piller, "Bailout Helps Buffett Plenty," Houston Chronicle, April 4, 2009.
10 Daron Acemoglu et al., "The Value of Political Connections in the United States," Social Science Research Network, December 2010.
11 Ran Duchin and Denis Sosyura, "The Politics of Government Investment," Ross School of Business Working Paper No. 1127, University of Michigan, April 2011.
12 Robert Lenzner, "Calling Out Politically Connected Banks," Forbes.com, April 25, 2009.
13 Piller, "Bailout Helps Buffett Plenty."
14 Rolfe Winkler, "Buffett's Betrayal," blogs.reuters.com, August 4, 2009.
15 Piller, "Bailout Helps Buffett Plenty."
16 http://seekingalpha.com/article/100720-here-i-go-criticizing-warren-buffett.
17 Henry M. Paulson, Jr., On the Brink: Inside the Race to Stop the Collapse of the Global Financial System (New York: Business Plus, 2010).
18 http://blogs.wsj.com/deals/2011/04/21/warren-buffetts-profit-on-ge-investment-1-2-billion.
19 http://www.nytimes.com/2010/11/17/opinion/17buffett.html.
20 http://www.futureofcapitalism.com/2010/11/buffett-thanks-uncle-sam.
21 Andrew Frye, "Sokol Violated Berkshire Insider-Trading Rules, Audit Finds," Bloomberg.com, April 27, 2011.
22 Josh Mitchell, "Rail Deal Is Bet on Obama's Infrastructure, Climate Policies," Wall Street Journal, November 3, 2009.
23 Mitchell, "Rail Deal Is Bet on Obama's Infrastructure, Climate Policies."
24 See, for example, http://www.whitehouse.gov/the-press-office/2011 /02/08/vice-president-biden-announces-six-year-plan-build-national-high-speed-r.
25 Matthew Lewis, "Buffett's New Company Sure Knows How to Lobby," Center for Public Integrity, November 6, 2009, and http://www.opensecrets.org/lobby/clientsum.php?id=D000021757&year=2009.
26 "Buffett's Obama Pigout," New York Times, August 25, 2011.
27 Steven Rattner, Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry (Boston: Houghton Mifflin Harcourt, 2010), p. 102.
7. CRONIES ON PARADE: HEDGE FUNDS, DEFENSE CONTRACTORS, COLLEGES, BIG OIL ... AND GEORGE SOROS
1 "Former US Secretary of State Offers New Hedge Fund Option," http://www.atrader.com.
2 Meng Gao and Jiekun Huang, "Capitalizing on Capitol Hill: Informed Trading by Hedge Fund Managers," Social Science Research Network, April 18, 2011.
3 Gao and Huang, "Capitalizing on Capitol Hill."
4 "Washington Whispers to Wall Street," Businessweek.com, December 26, 2005.
5 Brody Mullins, "Hedge Funds Use Lobbyists for Tips in Washington," Associated Press, December 8, 2006.
6 Mullins, "Hedge Funds Use Lobbyists for Tips in Washington."
7 Jessica Holzer, "Wall Street Goes Bargain Hunting in the Farm Bill," The Hill, April 23, 2008.
8 Joe Nocera, "From Pentagon, a Buy Rating on Contractors," New York Times, February 11, 2011.
9 "Did Steve Eisman Unduly Influence the Education Dept.?" CNNmoney.com, November 2, 2010, and Jim Angle, "Education Department Rules on For-Profit Schools Created with Investor's Help," Foxnews.com, May 31, 2011, and Andy Kroll, "Steve Eisman's Next Big Short: For-Profit Colleges," Motherjones.com, May 27, 2010. E-mails concerning Eisman's meetings with Department of Education officials are available from CREW: http://crew.3cdn.net/37fff23ac9f0c849a8_vbsm6hbc5.pdf.
10 "Did Markets Know Obama Was Going to Tap Oil Reserve?" CNBC.com, July 6, 2011.
11 http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer.
12 http://www.nytimes.com/2010/08/29/opinion/29rich.html.
13 Richard Rahn, "You Lose, Soros Wins," Washington Times, October 24, 2008.
14 "Axis of Soros," Wall Street Journal, May 9, 2009.
15 Robert Kuttner, A Presidency in Peril (White River Junction, VT: Chelsea Green, 2010), p. 14.
16 Eamon Javers, "Soros, Gore among W.H. Visitors," Politico, October 31, 2009.
17 Louis Uchitelle, "Volcker Pushes for Reform, Regretting Past Silence," New York Times, July 11, 2010.
18 http://www.spiegel.de/international/business/0,1518,592268,00.html.
19 George Soros, "The Game Changer," Financial Times, January 28, 2009.
20 http://www.emc.com/leadership/tech-view/stimulating-ah-ha-phenomenon.htm.
21 http://www.teradata.com/t/industry-expertise/government.
22 http://4g-wirelessevolution.tmcnet.com/broadband-stimulus/topics/broadband-stimulus/articles/63191-extreme-networks-pushes-broadband-networks-into-rural-america.htm.
23 http://www.radware.com/Solutions/Enterprise/Industries/Government_US.aspx.
24 "Emerging Trends in Education Publishing," Cognizant.
25 http://www.nytimes.com/gwire/2009/06/12/12greenwire-doe-revives-futuregen-reversing-bush-era-decis-47303.html.
26 http://www.chron.com/disp/story.mpl/business/energy/6911328.html.
27 http://pseg.com/info/media/thought_leader/carbon_strategy.jsp.
28 General Electric Annual Report, 2008.
8. SOME ARE MORE EQUAL THAN OTHERS
1 Quoted in Edward Roeder, "Slippery Slopes: How Politicians Can Draw the 'Get Out of Jail Free' Card in the Game of Politics," Campaigns and Elections, August 2006.
2 Tony Mauro, "Recusal Report," Legal Times, October 10, 2008.
3 Kathleen Clark, "Regulating the Conflict of Interest of Government Officials," in Michael Davis and Andrew Stark, eds., Conflict of Interest in the Professions (New York: Oxford University Press, 2001), p. 53.
4 http://www.nytimes.com/2009/05/16/business/16insider.html.
5 See, for example, http://www.azauditor.gov/Reports/Counties/Yuma/SIU/SIU03-1.pdf.
6 Leonard J. Brooks, "Conflict of Interest in the Accounting Profession," in Davis and Stark, eds., Conflict of Interest in the Professions, p. 93.
7 http://www.nytco.com/press/ethics.html#B3.
8 Eleanor Randolph, "Guards of Press Troubled by SEC Suit," Washington Post, May 21, 1984.
9 U.S. Senator Ron Wyden, http://wyden.senate.gov/newsroom/press/release, July 15, 2010.
10 John Dorschner, "Senator Tells University of Miami He's Troubled over Hiring," Miami Herald, June 10, 2010.
11 U.S. Constitution, article 1, section 5.
12 Jacob R. Straus, "House Committee on Ethics: A Brief History of Its Evolution and Jurisdiction," Congressional Research Service Publication 7-5700, http://www.crs.gov.
13 Catharine Richert, "Public Citizen Gets It Right about Insider Trading Rules," Politifact, St. Petersburg Times, August 6, 2009.
14 Senate Ethics Manual, 2003, pp. 160–75.
15 Jeffrey Birnbaum, "Ethics Panel Finds Conflict with Senator's Job as Physician," Washington Post, April 6, 2005.
16 Committee on Standards of Official Conduct, 110th Congress, 2nd Session, House Ethics Manual, 2008 ed., pp. 234–37.
17 Andrew George, "Public (Self)-Service: Illegal Trading on Confidential Congressional Information," Harvard Law and Policy Review, vol. 2, 2008, p. 162.
18 Stephen M. Bainbridge, "Insider Trading Inside the Beltway," UCLA School of Law, Law-Econ Research Paper No. 10-08, June 30, 2010, http://ssrn.com/abstract=1633123.
19 Daylian M. Cain, George Loewenstein, and Don A. Moore, "Coming Clean but Playing Dirtier: The Shortcomings of Disclosure as a Solution to Conflicts of Interest," in Don A. Moore et al., eds., Conflicts of Interest: Challenges and Solutions in Business, Law, Medicine, and Public Policy (New York: Cambridge University Press, 2005), and Daylian M. Cain, George Loewenstein, and Don Moore, "The Dirt on Coming Clean: Perverse Effects of Disclosing Conflicts of Interest," Journal of Legal Studies, January 2005.
20 Clark, "Regulating the Conflict of Interest of Government Officials."
21 Beth Burger, "Businessman Dennis Kim Charged with Extortion," Bradenton.com, February 13, 2009.
22 Fred McChesney, Money for Nothing: Politicians, Rent Extraction, and Political Extortion (Cambridge: Harvard University Press, 1997).
23 R. Beck, C. Hoskins, and J. M. Connolly, "Rent Extraction Through Political Extortion: An Empirical Examination," Journal of Legal Studies, January 1992.
9. WHY THIS MATTERS
1 George Washington Plunkitt, Plunkitt of Tammany Hall (Boston: Bedford Books, 1993), p. 34.
2 http://money.cnn.com/2003/03/20/pf/saving/war_military_pay/table.html.
3 Scott Higham, Kimberly Kindy, and Dan Keating, "Senate Panel Ban Seen as Double Standard," Washington Post, December 19, 2010.
4 Plunkitt, Plunkitt of Tammany Hall, p. 42.
5 http://www.rollcall.com/issues/56_119/financial-disclosure- congress-205462-1.html.
6 National Conference of State Legislatures, "To Vote or Not to Vote: State Provisions on Conflicts of Interest and Voting," November 2009.
7 http://fppc.ca.gov/index.php?id=37.
8 http://www.washingtonpost.com/wp-dyn/content/article/2006/05/22/AR2006052201080.html.
9 "Judge Rules FBI Raid on Rep. Jefferson's Office Was Legal," Associated Press, Foxnews.com, July 10, 2006.
10 Joel'S. Kahn and Francesco Formosa, "The Problem of 'Crony Capitalism': Modernity and the Encounter with the Perverse," Thesis Eleven, vol. 69, May 2002.
11 Andrew Redleaf and Richard Vigilante, Panic: The Betrayal of Capitalism by Wall Street and Washington (Minneapolis: Richard Vigilante Books, 2010).
12 Richard H. Lester et al., "Former Government Officials as Outside Directors: The Role of Human and Social Capital," Academy of Management Journal, vol. 51, no. 5, 2008.
13 Myles Mace, Directors: Myth and Reality (Boston: Harvard Business School Press, 1986), p. 86.
14 Lester et al., "Former Government Officials as Outside Directors."
15 Market Call, CNNfn, December 12, 2002.
16 Eitan Goldman, Jorg Rocholl, and Jongil So, "Do Politically Connected Boards Affect Firm Value?" Review of Financial Studies, vol. 22, no. 6, pp. 2331–60.
17 http://www.futureofcapitalism.com/2011/02/introducing-the-crony-capitalist-index.
18 Marisa Katz, "Family Ties," National Journal, March 31, 2007.
19 http://coburn.senate.gov/public/index.cfm?a=Files.Serve&File_id=f036d73d-7a10-4a57-a9ee-de3987049c31.
20 Carl Hulse, "In Capitol, Last Names Link Some Leaders to Lobbyists," New York Times, August 4, 2002.
10. WHAT NEEDS TO BE DONE
1 Tim Golden and David Kocieniewski, "Businessman Says Torricelli Arranged Stock Deal," New York Times, April 12, 2001, and Robert Ingrassia, "Old Pal Helped Torricelli; Probes Followed," New York Daily News, March 20, 2001.
2 Megan J. Ballard, "The Shortsightedness of Blind Trusts," Kansas Law Review, vol. 56, 2007.
3 Senator Charles Grassley and Jennifer Shaw Schmidt, "Practicing What We Preach: A Legislative History of Congressional Accountability," Harvard Journal on Legislation, vol. 35, 1988.
4 Henry G. Manne, Insider Trading and the Stock Market (New York: Free Press, 1966), p. 171.
5 Donna Nagy, "Insider Trading, Congressional Officials, and Duties of Entrustment," Boston University Law Review, vol. 91, 2011, p. 1105.
6 Bud Jerke, "Cashing In on Capitol Hill: Insider Trading and the Use of Political Intelligence for Profit," University of Pennsylvania Law Review, vol. 158, no. 5.
7 Jerke, "Cashing In on Capitol Hill."
8 United States v. Mississippi Valley Generating Co., 364 U.S. 520, 549 (1960).
9 David G. Savage, "Supreme Court Upholds Conflict-of-Interest Laws," Los Angeles Times, June 14, 2011.
10 State of Florida Case No. SC 09-1910, Nineteenth Statewide Grand Jury, First Interim Report, "A Study in Public Corruption in Florida and Recommended Solutions," December 17, 2010, p. 43.