Commentary Magazine


Topic: state treasurer

Banking for the Mob and Telling Tall Tales

Daniel Halper has the scoop on the latest problem for Alexi Giannoulias — banker for the mob, whose financial acumen led to a takeover of the bank by the feds. Halper explains:

Giannoulias is currently the state treasurer of Illinois. And, according to his official website, “He founded and chairs the AG Foundation, a not-for-profit charity that donates money to treat child-related illnesses, curb poverty and assist disaster relief organizations.” … The problem is, the charity no longer exists. According to the AG Foundation’s tax return, “The organization was in existence only for the two-year period from 2005 to 2006.”

In an election season driven by voter disgust with politicians, their misstatements and ethical problems are especially toxic. This just adds to the problem Giannoulias faces in convincing the voters that he’s not another sleezy pol. And by the way, with the Blago trial getting underway in Illinois, that may be even harder to do in the weeks ahead.

Daniel Halper has the scoop on the latest problem for Alexi Giannoulias — banker for the mob, whose financial acumen led to a takeover of the bank by the feds. Halper explains:

Giannoulias is currently the state treasurer of Illinois. And, according to his official website, “He founded and chairs the AG Foundation, a not-for-profit charity that donates money to treat child-related illnesses, curb poverty and assist disaster relief organizations.” … The problem is, the charity no longer exists. According to the AG Foundation’s tax return, “The organization was in existence only for the two-year period from 2005 to 2006.”

In an election season driven by voter disgust with politicians, their misstatements and ethical problems are especially toxic. This just adds to the problem Giannoulias faces in convincing the voters that he’s not another sleezy pol. And by the way, with the Blago trial getting underway in Illinois, that may be even harder to do in the weeks ahead.

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Illinois Senate Seat — Another GOP Pickup?

Jennifer Duffy of the Cook Political Report tells us (subscription required):

As expected, the Federal Deposit Insurance Corporation seized control Friday of Broadway Bank, the community bank owned by the family of Democratic Senate nominee Alexi Giannoulias. Giannoulias worked as the bank’s chief loan officer from 2002 until 2006 when he was elected state Treasurer.

The bank’s financial problems and its business relationships with people associated with corruption and organized crime have dogged Giannoulias’ campaign since early February when he became the nominee. Now that Broadway has failed — a failure that will cost the FDIC an estimated $394 million — its impact on Giannoulias’ campaign is enormous, and it is entirely possible that the fallout could force him from the race. …

Given recent events, it’s impossible to justify keeping the race in the Toss Up column. While current circumstances would seem to lend themselves to a rating of Likely Republican, we know that it’s entirely possible that we could well be dealt a different hand — and a very different race — a month or two from now. As such, the race moves to the Lean Republican column.

You can bet Illinois Democrats will be combing the state election laws. Can they dump Giannoulias? What if he refuses to leave the race? Could they find a viable replacement? All these questions swirl because Illinois Democrats were apparently in a world of their own when they elected him as their nominee. It’s not as if his ties to Tony Rezko and Illinois mobsters were not known. It’s not as if they didn’t know of his bank’s financial shakiness. But they plunged ahead, seemingly convinced that any Democrat could win in Illinois. Well, not this year and not in a year when the entire Democratic leadership is banking on populist anger against banks to turn out their base. It is, to put it mildly, a bad case of message confusion.

Jennifer Duffy of the Cook Political Report tells us (subscription required):

As expected, the Federal Deposit Insurance Corporation seized control Friday of Broadway Bank, the community bank owned by the family of Democratic Senate nominee Alexi Giannoulias. Giannoulias worked as the bank’s chief loan officer from 2002 until 2006 when he was elected state Treasurer.

The bank’s financial problems and its business relationships with people associated with corruption and organized crime have dogged Giannoulias’ campaign since early February when he became the nominee. Now that Broadway has failed — a failure that will cost the FDIC an estimated $394 million — its impact on Giannoulias’ campaign is enormous, and it is entirely possible that the fallout could force him from the race. …

Given recent events, it’s impossible to justify keeping the race in the Toss Up column. While current circumstances would seem to lend themselves to a rating of Likely Republican, we know that it’s entirely possible that we could well be dealt a different hand — and a very different race — a month or two from now. As such, the race moves to the Lean Republican column.

You can bet Illinois Democrats will be combing the state election laws. Can they dump Giannoulias? What if he refuses to leave the race? Could they find a viable replacement? All these questions swirl because Illinois Democrats were apparently in a world of their own when they elected him as their nominee. It’s not as if his ties to Tony Rezko and Illinois mobsters were not known. It’s not as if they didn’t know of his bank’s financial shakiness. But they plunged ahead, seemingly convinced that any Democrat could win in Illinois. Well, not this year and not in a year when the entire Democratic leadership is banking on populist anger against banks to turn out their base. It is, to put it mildly, a bad case of message confusion.

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Obama Hides from Giannoulias

Obama isn’t about to waste political capital on Tony Rezko’s banker. That’s the gist of this report:

Sen. Dick Durbin slipped into the West Wing last week to ask Rahm Emanuel for White House help in saving Barack Obama’s old Senate seat. But he didn’t leave with any ironclad commitments. Durbin told Emanuel that Democratic nominee Alexi Giannoulias could use some serious presidential intervention in his uphill race against Republican Rep. Mark Kirk. At the moment, the White House seems open to the idea of losing Obama’s old seat rather than putting the president’s prestige on the line for Giannoulias, the brash and boyish Illinois state treasurer — and onetime Obama basketball buddy — whose campaign has been rocked by the financial meltdown of his family’s bank.

There are good reasons for Obama’s reticence. For starters, Obama has enough sticky connections to the Illinois corruption racket, so he’s wise to stay away from his former hometown. It seems he might, in fact, have had a conversation with the former governor about that Senate seat and another with a union official to relay his preferences to Blago. (If true, this is at odds with what Obama and his “internal review” related to the public when the Blago story first broke.) Blago’s lawyers are now trying to drag the president in to testify in Blago’s case — which will be going to trial this fall. Yikes!

Moreover, Giannoulias is in deep trouble, and it’s far from certain that Obama can help him. After all, he didn’t help Martha Coakley, Creigh Deeds, or Jon Corzine. Coming up short in his own state would prove embarrassing and tend to confirm that he lacks political mojo. Sometimes it’s better to just stay home.

It’s remarkable that a year and a half after Obama celebrated his victory before a throng in Grant Park, he needs to hide from the Democratic candidate seeking to fill his old Senate seat. That’s as much a comment on the shortcomings of Giannoulias as it is on those of Obama.

Obama isn’t about to waste political capital on Tony Rezko’s banker. That’s the gist of this report:

Sen. Dick Durbin slipped into the West Wing last week to ask Rahm Emanuel for White House help in saving Barack Obama’s old Senate seat. But he didn’t leave with any ironclad commitments. Durbin told Emanuel that Democratic nominee Alexi Giannoulias could use some serious presidential intervention in his uphill race against Republican Rep. Mark Kirk. At the moment, the White House seems open to the idea of losing Obama’s old seat rather than putting the president’s prestige on the line for Giannoulias, the brash and boyish Illinois state treasurer — and onetime Obama basketball buddy — whose campaign has been rocked by the financial meltdown of his family’s bank.

There are good reasons for Obama’s reticence. For starters, Obama has enough sticky connections to the Illinois corruption racket, so he’s wise to stay away from his former hometown. It seems he might, in fact, have had a conversation with the former governor about that Senate seat and another with a union official to relay his preferences to Blago. (If true, this is at odds with what Obama and his “internal review” related to the public when the Blago story first broke.) Blago’s lawyers are now trying to drag the president in to testify in Blago’s case — which will be going to trial this fall. Yikes!

Moreover, Giannoulias is in deep trouble, and it’s far from certain that Obama can help him. After all, he didn’t help Martha Coakley, Creigh Deeds, or Jon Corzine. Coming up short in his own state would prove embarrassing and tend to confirm that he lacks political mojo. Sometimes it’s better to just stay home.

It’s remarkable that a year and a half after Obama celebrated his victory before a throng in Grant Park, he needs to hide from the Democratic candidate seeking to fill his old Senate seat. That’s as much a comment on the shortcomings of Giannoulias as it is on those of Obama.

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Flotsam and Jetsam

A rapper and his entourage in the Situation Room? “Were Jay & Bey & Co. issued the relevant security clearances? Do we even care anymore?” Well, in any case, “Is an amazingly successful businessman-slash-rapper who rose from the mean streets of Brooklyn to world-wide fame and fortune less qualified to deal with the vicissitudes, the obstacles, the demands, the crises of foreign policy and national security than Mr. Obama’s little coterie of Chicago-pol friends who’ve been running it so surpassingly excellently thus far?”

Another retirement, another Democratic seat becomes a toss-up. According to the Cook Political Report: “[Rep. Bill] Delahunt’s decision to leave doesn’t make this district a lost cause for Democrats by any means, but credible Republicans including former state Treasurer Joe Malone and state Rep. Jeffrey Perry are likely to run, and no Democrat appears capable of clearing a primary field. In a normal year, Democrats would enjoy a considerable advantage in an open seat race in MA-10. But this year, Democrats’ initial advantage isn’t great enough to warrant rating this race more favorably than a Toss Up.”

This might explain why all those voters are so angry: “President Obama’s policies would add more than $9.7 trillion to the national debt over the next decade, congressional budget analysts said Friday, including more than $2 trillion that Obama proposes to devote to extending a variety of tax cuts enacted during the Bush administration. The 10-year outlook by the nonpartisan Congressional Budget Office is somewhat gloomier than White House projections, which found that Obama’s policies would add $8.5 trillion to the debt by 2020. While the two agencies are in relative agreement about the short-term budget picture, with both predicting a deficit of about $1.5 trillion this year and $1.3 trillion in 2011, the CBO is less optimistic about future years, predicting that deficits will grow rapidly after 2015.”

And why they don’t like ObamaCare, as James Capretta explains: “The president started off last year by saying he wanted to ‘bend the cost-curve’ even as he broadened coverage. But after a year of partisan political and legislative maneuvering, all that’s left is a massive entitlement expansion. The new costs would get piled on top of the unreformed and unaffordable entitlements already on the books. It’s a budgetary disaster in the making.”

How many times has “shpilkes” been used in a mainstream-media headline? (How many ABC.com readers even know what it means?)

Even before Harry Reid’s latest boneheaded remark: “Two of Senate Majority Leader Harry Reid’s Republican challengers have again crossed the 50% threshold and now hold double-digit leads in Nevada’s U.S. Senate race. One big hurdle for the incumbent is that most Nevada voters are strongly opposed to the health care legislation championed by Reid and President Barack Obama. The latest Rasmussen Reports telephone survey of likely voters in the state finds Sue Lowden, ex-chairman of the Nevada Republican Party, with a 51% to 38% lead on Reid. Seven percent (7%) prefer some other candidate, but just three percent (3%) are undecided.”

From the “2006 All Over Again” file: “Eager to avoid a repeat of the Mark Foley scandal, House Democratic leaders moved quickly last month when a staffer for Rep. Eric Massa complained that he’d made advances to a junior male aide. But rumors about Massa had been circulating for months in both Democratic and Republican circles on Capitol Hill, and GOP operatives even considered digging into them on their own. However, sources say there wasn’t evidence of any wrongdoing until Massa’s then-legislative director contacted the office of House Majority Leader Steny Hoyer (D-Md.) in early February. … But a Massa aide told POLITICO that Massa — who is married and has children — has been engaged in inappropriate behavior ‘for eight months.’”

And Massa will resign Monday.

John McCain is trying to get the Gang of 14 back to beat reconciliation. No takers. And reconciliation is sort of irrelevant. But other than that, a great idea.

A rapper and his entourage in the Situation Room? “Were Jay & Bey & Co. issued the relevant security clearances? Do we even care anymore?” Well, in any case, “Is an amazingly successful businessman-slash-rapper who rose from the mean streets of Brooklyn to world-wide fame and fortune less qualified to deal with the vicissitudes, the obstacles, the demands, the crises of foreign policy and national security than Mr. Obama’s little coterie of Chicago-pol friends who’ve been running it so surpassingly excellently thus far?”

Another retirement, another Democratic seat becomes a toss-up. According to the Cook Political Report: “[Rep. Bill] Delahunt’s decision to leave doesn’t make this district a lost cause for Democrats by any means, but credible Republicans including former state Treasurer Joe Malone and state Rep. Jeffrey Perry are likely to run, and no Democrat appears capable of clearing a primary field. In a normal year, Democrats would enjoy a considerable advantage in an open seat race in MA-10. But this year, Democrats’ initial advantage isn’t great enough to warrant rating this race more favorably than a Toss Up.”

This might explain why all those voters are so angry: “President Obama’s policies would add more than $9.7 trillion to the national debt over the next decade, congressional budget analysts said Friday, including more than $2 trillion that Obama proposes to devote to extending a variety of tax cuts enacted during the Bush administration. The 10-year outlook by the nonpartisan Congressional Budget Office is somewhat gloomier than White House projections, which found that Obama’s policies would add $8.5 trillion to the debt by 2020. While the two agencies are in relative agreement about the short-term budget picture, with both predicting a deficit of about $1.5 trillion this year and $1.3 trillion in 2011, the CBO is less optimistic about future years, predicting that deficits will grow rapidly after 2015.”

And why they don’t like ObamaCare, as James Capretta explains: “The president started off last year by saying he wanted to ‘bend the cost-curve’ even as he broadened coverage. But after a year of partisan political and legislative maneuvering, all that’s left is a massive entitlement expansion. The new costs would get piled on top of the unreformed and unaffordable entitlements already on the books. It’s a budgetary disaster in the making.”

How many times has “shpilkes” been used in a mainstream-media headline? (How many ABC.com readers even know what it means?)

Even before Harry Reid’s latest boneheaded remark: “Two of Senate Majority Leader Harry Reid’s Republican challengers have again crossed the 50% threshold and now hold double-digit leads in Nevada’s U.S. Senate race. One big hurdle for the incumbent is that most Nevada voters are strongly opposed to the health care legislation championed by Reid and President Barack Obama. The latest Rasmussen Reports telephone survey of likely voters in the state finds Sue Lowden, ex-chairman of the Nevada Republican Party, with a 51% to 38% lead on Reid. Seven percent (7%) prefer some other candidate, but just three percent (3%) are undecided.”

From the “2006 All Over Again” file: “Eager to avoid a repeat of the Mark Foley scandal, House Democratic leaders moved quickly last month when a staffer for Rep. Eric Massa complained that he’d made advances to a junior male aide. But rumors about Massa had been circulating for months in both Democratic and Republican circles on Capitol Hill, and GOP operatives even considered digging into them on their own. However, sources say there wasn’t evidence of any wrongdoing until Massa’s then-legislative director contacted the office of House Majority Leader Steny Hoyer (D-Md.) in early February. … But a Massa aide told POLITICO that Massa — who is married and has children — has been engaged in inappropriate behavior ‘for eight months.’”

And Massa will resign Monday.

John McCain is trying to get the Gang of 14 back to beat reconciliation. No takers. And reconciliation is sort of irrelevant. But other than that, a great idea.

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Democrats Need an Exit Plan in Illinois

The Chicago Sun Times reports:

State Treasurer Alexi Giannoulias acknowledged Wednesday that his family bank, the Broadway Bank, will probably fail.

But Giannoulias strongly denied he ever engaged in “reckless” or “risky” loan-making when he served as chief loan officer for his family’s now-struggling Broadway Bank. Giannoulias ran for state treasurer four years ago touting his know-how as a bank executive.

Well, it gets better — or worse, depending on your perspective:

Giannoulias denied having any role in getting his former campaign policy director in 2006, Brent Adams, his current post as Acting Secretary of Financial and Professional Regulation for the state of Illinois, which has jurisdiction over Broadway Bank. …

He strongly denied the family was irresponsible for taking $69 million out of the bank just before the real estate collapse that he said they did not see coming.

“In 2007, if we knew the market was going to go sour, we would have stopped making loans,” Giannoulias said. “The bank was appraised in 2006 or 2007 for $300 million, so they could have sold the bank, even if just for $200 million.”

Giannoulias defended his use of “brokered deposits” — under his tenure they became 68 percent of the bank’s deposits compared to the industry standard of four percent — saying Broadway did not have a lot of branches and ATMs to bring in deposits.

And what about his bank’s Mob clients? Ah, those would be “‘a few colorful characters’ — convicted bookmaker Michael Giorango, Russian mobsters Boris and Lev Stratievsky, and convicted influence peddler Tony Rezko — [who] were not representative of his portfolio. Giannoulias denied, even though he went down to Florida to inspect the properties, that he was aware of Giorango’s mob ties.”

Really, what were the Democrats thinking when they nominated him? Well, the lieutenant-governor nominee already stepped down after his domestic-violence issue came to light. So I’m not convinced that Giannoulias is going to make it all the way to November. Frankly, if there isn’t a Frank-Lautenberg-for-Robert-Torricelli game plan in the works, I think that seat is a goner for the Democrats. After all, they don’t want to fall behind (jump ahead of?) New York in the most-embarrassing-political-culture race, do they?

The Chicago Sun Times reports:

State Treasurer Alexi Giannoulias acknowledged Wednesday that his family bank, the Broadway Bank, will probably fail.

But Giannoulias strongly denied he ever engaged in “reckless” or “risky” loan-making when he served as chief loan officer for his family’s now-struggling Broadway Bank. Giannoulias ran for state treasurer four years ago touting his know-how as a bank executive.

Well, it gets better — or worse, depending on your perspective:

Giannoulias denied having any role in getting his former campaign policy director in 2006, Brent Adams, his current post as Acting Secretary of Financial and Professional Regulation for the state of Illinois, which has jurisdiction over Broadway Bank. …

He strongly denied the family was irresponsible for taking $69 million out of the bank just before the real estate collapse that he said they did not see coming.

“In 2007, if we knew the market was going to go sour, we would have stopped making loans,” Giannoulias said. “The bank was appraised in 2006 or 2007 for $300 million, so they could have sold the bank, even if just for $200 million.”

Giannoulias defended his use of “brokered deposits” — under his tenure they became 68 percent of the bank’s deposits compared to the industry standard of four percent — saying Broadway did not have a lot of branches and ATMs to bring in deposits.

And what about his bank’s Mob clients? Ah, those would be “‘a few colorful characters’ — convicted bookmaker Michael Giorango, Russian mobsters Boris and Lev Stratievsky, and convicted influence peddler Tony Rezko — [who] were not representative of his portfolio. Giannoulias denied, even though he went down to Florida to inspect the properties, that he was aware of Giorango’s mob ties.”

Really, what were the Democrats thinking when they nominated him? Well, the lieutenant-governor nominee already stepped down after his domestic-violence issue came to light. So I’m not convinced that Giannoulias is going to make it all the way to November. Frankly, if there isn’t a Frank-Lautenberg-for-Robert-Torricelli game plan in the works, I think that seat is a goner for the Democrats. After all, they don’t want to fall behind (jump ahead of?) New York in the most-embarrassing-political-culture race, do they?

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Democrats Select Tony Rezko’s Banker for Illinois Senate

You almost wonder whether Karl Rove has infiltrated the Democratic Party. How else to explain how the Democrats could nominate to replace Roland Burris, the senator from Blagojevich, the banker for Tony Rezko? As the Chicago Tribune explained, state treasurer Alexi Giannoulias beat back a feisty challenger who made hay out of Giannoulias’s “handling of the state’s college loan program, which lost $150 million; and of loans Giannoulias gave to controversial recipients while working as vice-president of his family’s now-struggling Broadway Bank.” Those controversial recipients include Rezko and some figures of organized crime. The Chicago Sun Times explained:

Among the loans Giannoulias has gotten heat for:

* More than $10 million from 2001 to 2005 to alleged Father & Son Russian mobster team Lev and Boris Stratievsky. Father Lev has passed away. Son Boris is in jail facing money-laundering charges. Broadway funded development projects some on the South Side — that tenants and city attorneys complained were roach motels. Broadway has been unable to collect on the loans.

* About $12.9 million to convicted bookmaker Michael Giorango for a Miami Beach hotel and a Hollywood, Fla., restaurant, among other ventures, according to Crain’s Chicago Business. Broadway has sued Giorango and his partner, Demitri Stavropoulos, convicted of running a betting operation in Chicago, seeking to get the money back. Giannoulias initially downplayed his relationship with Giorango, noting the loans to him started before he joined the bank. Later he said he went to Miami to meet Giorango and inspect the property, and that another $3 million loan to Giorango was for a South Carolina casino.

It’s hard to believe this is the candidate whom the Democrats wanted as their nominee. As Ben Smith dryly noted, Giannoulias “is about as un-changey as you get.” The Republicans are obviously delighted to have such a target-rich opponent. I suspect this will be another seat added to the political gurus’ ”leans Republican” lists.

And if all that weren’t enough to worry the Democrats, Tom Jensen of Public Policy Polling notes:

Based on the current numbers 885,268 voters were cast in the Democratic primary for Senate compared to 736,137 on the Republican side. Those numbers are awfully close to each other for a state that’s overwhelmingly Democratic.

For sake of comparison the last time there were competitive Senate primaries on both sides in Illinois, in 2004 when Barack Obama was nominated, there were nearly twice as many votes cast in the Democratic primary as the Republican one. 1,242,996 voted in the Democratic race to 661, 804 for the Republicans. Last night’s turnout is yet another data point on the enthusiasm gap, showing that Republicans are much more excited about this year’s elections than Democrats, even in a deep blue state.

It’s a long way to November, but Republicans will soon seize on this as a highly gettable seat with symbolic value. Had it not been for Massachusetts, one could say that the flip in the Illinois seat previously held by the president would be a political tsunami. But it seems as though in this election season, it might simply be par for the course.

You almost wonder whether Karl Rove has infiltrated the Democratic Party. How else to explain how the Democrats could nominate to replace Roland Burris, the senator from Blagojevich, the banker for Tony Rezko? As the Chicago Tribune explained, state treasurer Alexi Giannoulias beat back a feisty challenger who made hay out of Giannoulias’s “handling of the state’s college loan program, which lost $150 million; and of loans Giannoulias gave to controversial recipients while working as vice-president of his family’s now-struggling Broadway Bank.” Those controversial recipients include Rezko and some figures of organized crime. The Chicago Sun Times explained:

Among the loans Giannoulias has gotten heat for:

* More than $10 million from 2001 to 2005 to alleged Father & Son Russian mobster team Lev and Boris Stratievsky. Father Lev has passed away. Son Boris is in jail facing money-laundering charges. Broadway funded development projects some on the South Side — that tenants and city attorneys complained were roach motels. Broadway has been unable to collect on the loans.

* About $12.9 million to convicted bookmaker Michael Giorango for a Miami Beach hotel and a Hollywood, Fla., restaurant, among other ventures, according to Crain’s Chicago Business. Broadway has sued Giorango and his partner, Demitri Stavropoulos, convicted of running a betting operation in Chicago, seeking to get the money back. Giannoulias initially downplayed his relationship with Giorango, noting the loans to him started before he joined the bank. Later he said he went to Miami to meet Giorango and inspect the property, and that another $3 million loan to Giorango was for a South Carolina casino.

It’s hard to believe this is the candidate whom the Democrats wanted as their nominee. As Ben Smith dryly noted, Giannoulias “is about as un-changey as you get.” The Republicans are obviously delighted to have such a target-rich opponent. I suspect this will be another seat added to the political gurus’ ”leans Republican” lists.

And if all that weren’t enough to worry the Democrats, Tom Jensen of Public Policy Polling notes:

Based on the current numbers 885,268 voters were cast in the Democratic primary for Senate compared to 736,137 on the Republican side. Those numbers are awfully close to each other for a state that’s overwhelmingly Democratic.

For sake of comparison the last time there were competitive Senate primaries on both sides in Illinois, in 2004 when Barack Obama was nominated, there were nearly twice as many votes cast in the Democratic primary as the Republican one. 1,242,996 voted in the Democratic race to 661, 804 for the Republicans. Last night’s turnout is yet another data point on the enthusiasm gap, showing that Republicans are much more excited about this year’s elections than Democrats, even in a deep blue state.

It’s a long way to November, but Republicans will soon seize on this as a highly gettable seat with symbolic value. Had it not been for Massachusetts, one could say that the flip in the Illinois seat previously held by the president would be a political tsunami. But it seems as though in this election season, it might simply be par for the course.

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Flotsam and Jetsam

Lynn Sweet on Obama’s home state: “Never ending ethics scandals and the near insolvency of the state government burst the bubble of any post Obama euphoria months ago. On Saturday, Chicagoans awoke to these stories: a suburban mayor sentenced for bribery; a Chicago alderman taking a bribery plea deal, and a former alderman learning he may face prison time for a real estate kickback scheme. Illinois Democrats are splintered and frazzled in the wake of the impeachment of former Gov. Rod Blagojevich, who will be tried this summer on federal public corruption charges for, among other items, trying to auction off Obama’s seat.” Probably doesn’t help that the likely Democratic Senate nominee for state treasurer, Alexi Giannoulias, is Tony Rezko’s banker.

Another precarious Blue State Senate seat: “Sen. Patty Murray (D-Wash.) isn’t yet considered highly vulnerable in 2010. But a new poll, coupled with Scott Brown’s upset win in Massachusetts, has Republicans rethinking their chances against the three-term senator. A poll released Thursday from Moore Insight, an Oregon-based GOP polling firm, showed Dino Rossi, a two-time Republican candidate for governor, leading Murray 45 percent to 43 percent, with 9 percent undecided.”

Not even Chuck Schumer is holding up under the torrent of anti-incumbent anger: “Senator Chuck Schumer’s once rock solid approval rating has taken a slide. For the first time in nearly nine years, Schumer’s approval rating has fallen below 50%. According to the latest Marist Poll in New York, 47% of registered voters statewide report Schumer is doing either an excellent or good job in office. 31% rate the job he is doing as fair, and 17% view him as performing poorly. This is Schumer’s lowest job approval rating since April 2001 when 49% of voters approved of the job he was doing.”

The moment of reckoning: “President Barack Obama’s new $3.83 trillion budget is a chickens-come-home-to-roost moment for Democrats who skipped past the deficit to tackle health care last year and now risk paying a heavy price in November. The great White House political gamble was to act quickly — before the deficits hit home — and institute major changes which proponents say will serve the long-term fiscal health of the country. Instead, a year of wrangling and refusal to consider more incremental steps have brought Obama and Congress to this juncture, where waves of red ink threaten to swamp their boat and drown reform altogether.”

How vulnerable is Obama on the mega-deficit he is proposing? Glenn Reynolds: “One telling indicator is a growing effort by the remaining Obama partisans to paint Bush as an equivalent big spender, even though the Bush deficits were much smaller than Obama’s, and declining throughout most of his second term. Not that Bush was any prize, but Obama’s deficits are of an entirely different magnitude.” This raises another issue — who exactly is still an Obama partisan? Not even Chris Matthews and Jon Stewart are on board.

Shocking as it may be, the Obami are making stuff up. On the number of terrorists they claim to have convicted in the criminal justice system, Andy McCarthy explains: “The DOJ ‘fact sheet’ goes on to tell us there are 300 ‘terrorists’ in custody. But look at what they have to do to get there: (a) gone is the ‘since 9/11′ limitation — the 300 figure represents all terrorists ever convicted who are still in jail; and (b) they have to add in domestic terrorists to goose up the numbers — even though no one is contending that domestic terrorists should be treated as enemy combatants. We are at war with al-Qaeda, not PETA.” Even the lesser figure of 195 is highly suspect. McCarthy has a good idea: have the Justice Department release all the backup data. It would be the transparent thing to do.

Even those who like the idea of civilian trials for terrorists are furious with the Obami. Edward Alden of the Council on Foreign Relations: “There is no question that the Obama administration blundered by failing to ensure that New York’s leaders were fully committed to a civilian trial for KSM in New York City. The result has been a dismal outcome — an embarrassing climb down that leaves the United States looking too scared to mete out justice to the architect of the worst mass murder in U.S. history.”

Unlike Bob McDonnell in Virginia, Rep. Joe Sestak says he’d be “open to the idea” of hosting the KSM trial in his state.

Lynn Sweet on Obama’s home state: “Never ending ethics scandals and the near insolvency of the state government burst the bubble of any post Obama euphoria months ago. On Saturday, Chicagoans awoke to these stories: a suburban mayor sentenced for bribery; a Chicago alderman taking a bribery plea deal, and a former alderman learning he may face prison time for a real estate kickback scheme. Illinois Democrats are splintered and frazzled in the wake of the impeachment of former Gov. Rod Blagojevich, who will be tried this summer on federal public corruption charges for, among other items, trying to auction off Obama’s seat.” Probably doesn’t help that the likely Democratic Senate nominee for state treasurer, Alexi Giannoulias, is Tony Rezko’s banker.

Another precarious Blue State Senate seat: “Sen. Patty Murray (D-Wash.) isn’t yet considered highly vulnerable in 2010. But a new poll, coupled with Scott Brown’s upset win in Massachusetts, has Republicans rethinking their chances against the three-term senator. A poll released Thursday from Moore Insight, an Oregon-based GOP polling firm, showed Dino Rossi, a two-time Republican candidate for governor, leading Murray 45 percent to 43 percent, with 9 percent undecided.”

Not even Chuck Schumer is holding up under the torrent of anti-incumbent anger: “Senator Chuck Schumer’s once rock solid approval rating has taken a slide. For the first time in nearly nine years, Schumer’s approval rating has fallen below 50%. According to the latest Marist Poll in New York, 47% of registered voters statewide report Schumer is doing either an excellent or good job in office. 31% rate the job he is doing as fair, and 17% view him as performing poorly. This is Schumer’s lowest job approval rating since April 2001 when 49% of voters approved of the job he was doing.”

The moment of reckoning: “President Barack Obama’s new $3.83 trillion budget is a chickens-come-home-to-roost moment for Democrats who skipped past the deficit to tackle health care last year and now risk paying a heavy price in November. The great White House political gamble was to act quickly — before the deficits hit home — and institute major changes which proponents say will serve the long-term fiscal health of the country. Instead, a year of wrangling and refusal to consider more incremental steps have brought Obama and Congress to this juncture, where waves of red ink threaten to swamp their boat and drown reform altogether.”

How vulnerable is Obama on the mega-deficit he is proposing? Glenn Reynolds: “One telling indicator is a growing effort by the remaining Obama partisans to paint Bush as an equivalent big spender, even though the Bush deficits were much smaller than Obama’s, and declining throughout most of his second term. Not that Bush was any prize, but Obama’s deficits are of an entirely different magnitude.” This raises another issue — who exactly is still an Obama partisan? Not even Chris Matthews and Jon Stewart are on board.

Shocking as it may be, the Obami are making stuff up. On the number of terrorists they claim to have convicted in the criminal justice system, Andy McCarthy explains: “The DOJ ‘fact sheet’ goes on to tell us there are 300 ‘terrorists’ in custody. But look at what they have to do to get there: (a) gone is the ‘since 9/11′ limitation — the 300 figure represents all terrorists ever convicted who are still in jail; and (b) they have to add in domestic terrorists to goose up the numbers — even though no one is contending that domestic terrorists should be treated as enemy combatants. We are at war with al-Qaeda, not PETA.” Even the lesser figure of 195 is highly suspect. McCarthy has a good idea: have the Justice Department release all the backup data. It would be the transparent thing to do.

Even those who like the idea of civilian trials for terrorists are furious with the Obami. Edward Alden of the Council on Foreign Relations: “There is no question that the Obama administration blundered by failing to ensure that New York’s leaders were fully committed to a civilian trial for KSM in New York City. The result has been a dismal outcome — an embarrassing climb down that leaves the United States looking too scared to mete out justice to the architect of the worst mass murder in U.S. history.”

Unlike Bob McDonnell in Virginia, Rep. Joe Sestak says he’d be “open to the idea” of hosting the KSM trial in his state.

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