Good news, New York Attorney General Eric Schneiderman issued a wide-ranging subpoena yesterday. Only it had nothing to do with the financial fraud task force he’s co-chairing. Instead, this was a subpoena about campaign contributions to tax-exempt groups:
Attorney General Eric T. Schneiderman of New York has begun investigating contributions to tax-exempt groups that are heavily involved in political campaigns, focusing on a case involving the U.S. Chamber of Commerce, which has been one of the largest outside groups seeking to influence recent elections but is not required to disclose its donors.
Mr. Schneiderman issued a wide-ranging subpoena on Tuesday to executives at a foundation affiliated with the chamber, seeking e-mails, bank records and other documents to determine whether the foundation illegally funneled $18 million to the chamber for political and lobbying activities, according to people with knowledge of the investigation.
The investigation is also looking at connections between the chamber’s foundation, the National Chamber Foundation, and another philanthropy, the Starr Foundation, which made large grants to the chamber foundation in 2003 and 2004. During the same period, the National Chamber Foundation lent the chamber $18 million, most of it for what was described as a capital campaign.
OK. I’m not going to argue with the notion that the Chamber of Commerce and other groups on the right are abusing their tax-exempt status to ensure the secrecy of their donor networks. The FEC and the IRS have not moved the ball, so a state Attorney General taking this up makes some sense, particularly one in New York state. The Starr Foundation is based in New York, for example, and New York law mandates that tax-exempt groups file tax returns and auditor reports through the AG office.
And yet. Attacking the campaign finance system is a very acceptable thing to do on the Democratic side; this has been the rallying cry post-Citizens United for the last couple years. You hear it from the President and all national leaders. You hear less about, you know, the systematic destruction of the housing market through outright fraud. And that was designed to be Schneiderman’s role, designed by him and his staff, actually. I’m wondering how this new initiative helps one citizen struggling with foreclosure in New York State, rather than helping to further a national political fight over transparency. I’m all for having that fight, but my understanding was that Schneiderman had a lot on his plate, what with co-chairing a task force looking into the greatest consumer and investor fraud in history and all.
Schneiderman did recently introduce a foreclosure fraud prevention bill in the New York state legislature, which criminalizes robo-signing and false preparation of foreclosure documents, and imposes penalties including jail time for perpetrators and managers who “knowingly tolerate fraudulent foreclosure practices committed by their employees and agents.” It has so far passed the Assembly but has not yet come up in the state Senate. Schneiderman also recently announced a $60 million program for housing counseling and legal services, out of the hard dollars from the foreclosure fraud settlement. So there’s been some activity, though it remains to be seen whether it will bear full fruit.
And again, I’m happy to see anyone bust the Starr Foundation, which is run by former AIG chairman Hank Greenberg. Surely Schneiderman should be able to walk and chew gum at the same time. But I’m waiting on subsequent announcements on the chewing gum – the task force – part of this scenario. And time is running out.




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I predicted from the beginning that Selloutman would sellout, far before he did.
So here’s the bottom line: Fuck Schneiderman, and fuck all the Dems.
Seems tax-exempt corporate status determined by the IRS and the filings requirement and standards for tax exempt corporate status needs to be revisited, and changed? Herein lies a massive bastion of corporate control and manipulation, to which Americans are grossly ignorant!
Trade organizations essentially engaging in politics under the guise of “trade issues” and health insurers extracting trillions of dollars from the population, as tax exempt public charities? Go figure. That’s what money buys the right, to lie, cheat and steal?
schneiderman is just an attention whore.
this box of massengill should get no face time.
shun him till an act of value is realized.
I thought this was the strategy. Slow walk the mortgage fraud “issue” until the frauds can’t be prosecuted. So far, so good. Statute of limitations end line in sight.
I think the banks are untouchable at this point, they’ve taken over the world.
Maybe, possibly when they decide to take another bite of the apple, we’ll see some pushback. But if all they do is what Jamie Dimon did, lose a few billion here and there, they’re probably going to stay untouchable.
You do realize you just made a sexist comment, don’t you?
no, and I’m not going to get in a flame exchange.
I apologize to the manufacturers of massengill.
Further proof that we need consciousness raising groups again…flaming ones or not.
Slightly O/T, but just curious about sexist comments:
Is “prick” or “dick” a sexist comment?
What about asshole? I realize everybody has one, but I can’t recall ever hearing a woman described as such.
Macho?
Testosterone-fueled, testosterone-crazed, etc?
I hear Schneiderman is part Poospatuck.
I’ve described women as assholes but never used the b- or c-word. Sometimes putz and schmuck and also prick.
Sexism (foul and harmful) and chauvinism sometimes commingle in our sentiments and expressions. If the playing fields were constantly level, sexism would not exist but chauvinism probably would persist without harm or foul.
Completely disagree with you on this one, David. Attacking the “campaign finance system,” as you call it, is NOT an acceptable thing to do on the Democratic side. Sure, rhetorically Democrats like to deride the influence of money in politics…but God forbid they actually do anything about it. The truth of the matter is that there is a national consensus among BOTH political parties with respect to this issue: the more money the better. That’s part of the reason it’s going to take close to a billion dollars to become President of the United States in 2012 – neither party wants to “bite the hand that feeds” so to speak.
And that is to say nothing about what the practical implications are of the influence of money in politics. It is part of the reason why politicians are beholden to the big banks, and in a post Citizen’s United world, why we’ve seen a push for less regulation in all industries. The housing crisis that you mention is hugely important, and I certainly hope AG Schneiderman’s task force lives up to its promise. but make no mistake: the crash of 2008 DOES NOT HAPPEN if politicians and regulations up and down the line hadn’t been bought and paid for by the big banks in the first place. This investigation is the first meaningful one I’ve seen that attempts to hold accountable the people that are holding our democracy hostage. Given the stranglehold corporations and organizations like the US Chamber of Commerce have on this nation, I think it took a lot of courage for Schneiderman to lead on this issue. And it shouldn’t be glossed over.