Tag: Eric Holder

Cross Posted from The Stars Hollow Gazette

This is a state by state breakdown of the foreclosure settlement (h/t Yves Smith):

An astute observation from Lambert Strether:

OMFG, look at the weasel wording in the press release:

   “This agreement is very significant in how it addresses the fraud that these banks committed against many homeowners across our state,” said ___.” This agreement not only provides much needed relief to (STATE) [Ha ha, fill in the blank!!!] borrowers, but it also puts a stop to many of the bad [criminal] behaviors that contributed to the mortgage mess in our state and across the country.”

And then there’s “fraud that these banks committed.” So if it’s fraud (against whom?!) then why is nobody going to jail?

UPDATE Oh, I’m sorry. I forgot. Banksters never go to jail. A banana republic like ours has a two-tier system of justice, and banksters have impunity for all crimes. Unlike you, peasants. My bad, seriously.

And is definitely a top comment:

Google tells it like it is. I google the first phrase as a complete string, a la “This agreement is very significant in how it addresses the fraud“, and the first thing that comes up is indeed Tom Miller’s press release, from 9 minutes ago (10:44AM EST), and two or three down after that, links to Nigerian 419 scams, triggered by the similarities between the Miller’s wording, and the scripts of scam artists. Shocker!

(all emphasis mine)

Some of the propaganda (again h/t Yves Smith):

Settlement Graphic and Settlement Graphic

Click the links but first put all heavy and sharp objects out of reach.

Cross posted from The Stars Hollow Gazette

The biggest banks involved in mortgage fraud have agreed to a $26 billion settlement along with 49 states attorneys general. Oklahoma is the only hold out because the state’s Attorney General, Scott Pruitt, did not believe that the banks should face any penalty. The agreement will “help borrowers owing more than their houses are worth, with roughly one million expected to have their mortgage debt reduced by lenders or able to refinance their homes at lower rates. Another 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 will receive checks for about $2,000. The aid is to be distributed over three years.”

Yves Smith at naked capitalism notes that while the final terms of the agreement have not been released but some of the details have been leaked:

   1. The total for the top five servicers is now touted as $26 billion (annoyingly, the FT is calling it “nearly $40 billion”), but of that, roughly $17 billion is credits for principal modifications, which as we pointed out earlier, can and almost assuredly will come largely from mortgages owned by investors. $3 billion is for refis, and only $5 billion will be in the form of hard cash payments, including $1500 to $2000 per borrower foreclosed on between September 2008 and December 2011.

   Banks will be required to modify second liens that sit behind firsts “at least” pari passu, which in practice will mean at most pari passu. So this guarantees banks will also focus on borrowers where they do not have second lien exposure, and this also makes the settlement less helpful to struggling homeowners, since borrowers with both second and first liens default at much higher rates than those without second mortgages. Per the Journal:

      “It’s not new money. It’s all soft dollars to the banks,” said Paul Miller, a bank analyst at FBR Capital Markets.

   The Times is also subdued:

       Despite the billions earmarked in the accord, the aid will help a relatively small portion of the millions of borrowers who are delinquent and facing foreclosure. The success could depend in part on how effectively the program is carried out because earlier efforts by Washington aimed at troubled borrowers helped far fewer than had been expected.

   2. Schneiderman’s MERS suit survives, and he can add more banks as defendants. It isn’t clear what became of the Biden and Coakley MERS suits, but Biden sounded pretty adamant in past media presentations on preserving that.

   3. Nevada’s and Arizona’s suits against Countrywide for violating its past consent decree on mortgage servicing has, in a new Orwellianism, been “folded into” the settlement.

   4. The five big players in the settlement have already set aside reserves sufficient for this deal.

Yves goes on to enumerate the top 12 reasons why this settlement really stinks. These are her top 5:

1. We’ve now set a price for forgeries and fabricating documents. It’s $2000 per loan. This is a rounding error compared to the chain of title problem these systematic practices were designed to circumvent. The cost is also trivial in comparison to the average loan, which is roughly $180k, so the settlement represents about 1% of loan balances. It is less than the price of the title insurance that banks failed to get when they transferred the loans to the trust. It is a fraction of the cost of the legal expenses when foreclosures are challenged. It’s a great deal for the banks because no one is at any of the servicers going to jail for forgery and the banks have set the upper bound of the cost of riding roughshod over 300 years of real estate law.

2. That $26 billion is actually $5 billion of bank money and the rest is your money. The mortgage principal writedowns are guaranteed to come almost entirely from securitized loans, which means from investors, which in turn means taxpayers via Fannie and Freddie, pension funds, insurers, and 401 (k)s. Refis of performing loans also reduce income to those very same investors.

3. That $5 billion divided among the big banks wouldn’t even represent a significant quarterly hit. Freddie and Fannie putbacks to the major banks have been running at that level each quarter.

4. That $20 billion actually makes bank second liens sounder, so this deal is a stealth bailout that strengthens bank balance sheets at the expense of the broader public.

5. The enforcement is a joke. The first layer of supervision is the banks reporting on themselves. The framework is similar to that of the OCC consent decrees implemented last year, which Adam Levitin and yours truly, among others, decried as regulatory theater.

She goes on to explain how there are no constraints on servicers cheating to reduce their losses and will face no consequences when caught as in the past. With the law suits against Countrywide somehow “folded into the deal”, Bank of America, who is by far the worst offender in the chain of title disaster, gets a “special gift”: “that failing to comply with a consent degree has no consequences but will merely be rolled into a new consent degree which will also fail to be enforced”. As David Dayen at FDL News Desk explains:

As far as the release goes, AG offices that signed onto the lawsuit claimed it was narrowly crafted to only affected foreclosure fraud, robo-signing and servicing (which I don’t feel is all that narrow, but I’m trying to just-the-facts this – ed). The lawsuit that New York AG Eric Schneiderman filed last Friday, suing MERS and three banks for their use of MERS, was preserved fully. There was a last-minute request by the banks to dissolve that lawsuit, but it was not successful. In addition, Schneiderman reserves the right to sue other servicers for their use of MERS along the same lines as the current lawsuit. [..]

Other lawsuits, like Delaware AG Beau Biden’s lawsuit against MERS, Missouri AG Chris Koster’s criminal indictments against DocX, and Nevada AG Catherine Cortez Masto’s suit against LPS and its employees would be able to go forward as well because the banks are not a party to them. However, it’s unclear whether any of those AGs will be able to work their way up the chain to indict bank officers for the same conduct; the likely answer, I assume, would be no. In California, Kamala Harris preserved the right for state officials and large pension funds to sue under the state’s False Claims Act over mortgage backed securities that later fell in value.

The status of Massachusetts AG Martha Coakley’s suit against five banks for foreclosure fraud is unknown. In all likelihood, the Nevada/Arizona suit against Bank of America for failing to follow their responsibilities in the Countrywide settlement will be folded into the deal.

In that settlement, BofA promised to deliver $8.5 billion in relief for Countrywide borrowers who fell victim to deceptive practices in the mortgage process. In reality, only $236 million was ever spent. Weak settlement terms allowed BofA to take credit merely for offering loan modifications to borrowers. And the Nevada suit alleged that BofA immediately started abusing borrowers who tried to get relief under the deal. But that suit is now gone.

As to the role of new Federal task force, if it were to be taken seriously this settlement should have not been completes until the task force’s investigation was finished. A good investigation takes charges that are easy to prove to help get the more evidence for the more difficult ones. By letting the banks walk. As Yves sees it, and she is correct, the investigations in Nevada and Missouri led to criminal charges and arrests that might have led to deals to catch the criminals “higher up the food chain.” There is plenty of evidence of bankruptcy-related filings, such as inflated and bogus fees, and even substantial, completely made up charges that has been ignored that could have led to a bigger settlement and prosecutions. By cutting a deal on robosigning the deeper chain of title problem has now been covered up making it even more difficult to address the on going fraud at high levels, the banks themselves.

So the bottom line is the banks have three years to hand out $5 billion in cash to about one million homeowners that will amount to about $2000 each for the loss of their homes through fraud. They will suffer no other consequences and there will be no further means to prosecute them, even if there is clear evidence of complicity in fraud related to robosigning. There is still the issue of 10 million underwater homeowners with $700 billion in negative equity that will continue to drag on the housing market and the economy for years to come. It would seem the Obama administration has once again screwed the vast majority of Americans to protect the Banks and Wall St. and his supporters are cheering this as another reason to reelect him. I see no reason for the Republicans to worry about another four years of Obama.

Up Date: If you’re one of the victims of the banking ghouls, you might not want to visit the new website for “The National Mortgage Settlement” The picture alone might make you want to do something you’d regret. The site details the agreement. David Dayen gives a brief synopsis of some of the gorier detail:

$750 million in a payment to the federal government;

$4.5 billion in direct payments to the states, of which $1.5 billion will go to those $2,000 checks to borrowers, and $2.75 billion to state foreclosure prevention services like legal aid, mandatory mediation and other programs. So the hard money comes to $5.25 billion.

$20 billion in “direct consumer relief”;

$3 billion to help current underwater borrowers refinance, and $17 billion in “credits” for principal reductions. HUD estimates that the dollar value of this will come to $32.3 billion in the end, as we’ve discussed. HUD Secretary Donovan has alternately said that a “substantial” amount of this money will come from MBS investor loans, and also that the large majority would come out of bank-owned loans. Also second liens have to be reduced along with firsts at least pari passu (on equal terms).

In addition, officials are touting the nationwide servicing standards that will be ushered in with this deal. Left out of this is the fact that the CFPB now has control over the servicing market, and can regulate national standards all by themselves.

The site mentions what the settlement doesn’t cover:

Release any criminal liability or grant any criminal immunity.

Release any private claims by individuals or any class action claims.

Release claims related to the securitization of mortgage backed securities that were at the heart of the financial crisis.

Release claims against Mortgage Electronic Registration Systems or MERSCORP.

Release any claims by a state that chooses not to sign the settlement.

End state attorneys general investigations of Wall Street related to financial fraud or the financial crisis.

We still don’t have any specific answers to the letter that Nevada AG Masto sent to the settlement negotiators. What Davyen finds really annoying is that the specific details haven’t been released to the  public who really deserves to know how badly they are being screwed.

I may have a separate article later as more specifics trickle down

Cross posted from The Stars Hollow Gazette

Another slap on the wrist by the government for the banks that caused the housing bubble and the crash that sank the economy world wide with unregulated derivatives and credit default swaps:

The Department of Justice has announced a $335 million settlement with Countrywide, the former subprime mortgage giant now subsumed into Bank of America, on claims of housing discrimination.

   The Justice Department on Wednesday announced the largest residential fair-lending settlement in history, saying that Bank of America had agreed to pay $335 million to settle allegations that its Countrywide Financial unit discriminated against black and Hispanic borrowers during the housing boom.

   A department investigation concluded that Countrywide had charged higher fees and rates to more than 200,000 minority borrowers across the country than to white borrowers who posed the same credit risk. It also steered more than 10,000 minority borrowers into costly subprime mortgages when white borrowers with similar credit profiles received prime loans, the department said.

   The pattern and practice covered the years 2004 to 2008, before Countrywide was acquired by Bank of America.

   “The department’s actions against Countrywide makes clear that we will not hesitate to hold financial institutions accountable, including one of the nation’s largest, for discrimination,” Attorney General Eric H. Holder Jr. said. “These institutions should make judgments based on applicants’ creditworthiness, not on the color of their skin.”

I’m waiting for someone to hold financial institutions accountable for discrimination against every one of its customers, by defrauding them and destroying the residential home mortgage market. That’s obviously not going to happen here.[..]

Here’s the settlement agreement, and once again you see that Countrywide doesn’t have to admit wrongdoing for their crimes.

But the Department of Justice and the Securities and Exchange Commission will enthusiastically pursue the one agency that didn’t cause the crash but just inherited it, at tax payers expense:

The walls have closed in over the past couple weeks on mortgage giants Fannie Mae and Freddie Mac. The SEC charged former CEOs and executives at the companies with fraud. California Attorney General Kamala Harris sued them for imformation (sic)in a wide-ranging fraud investigation. And now we learn that the FBI is investigating them[..]

If Fannie and Freddie are guilty of misleading investors, they deserve to pay the penalty. And yet, I do sense more enthusiasm to go after these government sponsored enterprises than to go after the private banking firms which were far more responsible for subprime. This feeds a false narrative that government somehow caused the financial crisis by forcing lending to poor people. Fannie and Freddie followed the market in subprime and did not originate it.

Cross posted from The Stars Hollow gazette

Massachusetts Attorney General Martha Coakley filed a law suit against five major banks and MERSover deceptive mortgage practices. One of those entities, GMAC, the mortgage lender of Ally Financial Inc., decided to stop mortgage lending in Massachusetts. The nation’s fifth-largest mortgage originator said it “has taken this action because recent developments have led mortgage lending in Massachusetts to no longer be viable,”. Seriously, they are not going to play in the state because Martha wants them to play by the rules. How dare she!

Yves Smith at naked capitalism says that in essence GMAC Mugs Massachusetts for Insisting on the Rule of Law, Suspends Mortgage Lending in the State

This move by GMAC, now Ally, is remarkably brazen. GMAC has effectively said that Massachusetts must hew to its demands of how to deal with foreclosures. It announced it is withdrawing from mortgage lending in the state in an effort to bring it to heel. [..]

GMAC is trying to get other big banks to follow suit. I hope the state and other groups that do substantial financial business with banks (largish churches are also attractive clients) make it clear than any effort to punish the state for enforcing the law will be met by moving their accounts to smaller institutions that respect the law. [..]

Sorry, for the first decade plus of the private mortgage securitization business, banks and servicers did hew to the requirements of state law. It was only in the late 1990s through 2004 or so that they started to fail to comply with the requirements of their own contracts (the breakdown appears to have taken place over time, with the biggest decay taking place during the 2002-2003 refi boom). That’s what has put their foreclosures on shaky footing, which in turn has led to wideranging legal abuses to get around the mess they created.

The insolence of the securitization industry continues to be astonishing. They act as if they have an imperial right to dictate to governments, and refuse to admit any role in a disaster of their own creation. I hope those of you who do business with Ally close your accounts immediately and tell the bank that it is due to their Mafia style move in Massachusetts.

If you’re a GMAC customer in Massachusetts, it’s time to move your loan.  

Cross posted from The Stars Hollow Gazette

Another state attorney general is suing five major banks and Mortgage Electronic Registration System Inc. and its parent company over deceptive foreclosure practices. Massachusetts Attorney General Martha Coakley  filed the suit on Wednesday seeking redress from Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc., and Ally Financial.

Ms. Coakley joins a small group of state attorney generals from larger states that have been hit the hardest by the foreclosure/mortgage fraud scandal:

Ms. Coakley, whose reputation was tarnished after her loss to a Republican for the late Ted Kennedy’s senate seat, has been strong on tightening state regulations and force banks to assist financially stressed homeowners save their homes:

Coakley spoke in support of legislation she filed in January with state Senator Karen Spilka, an Ashland Democrat, and Representative Steven M. Walsh, a Lynn Democrat. The proposed law, which they call An Act to Prevent Unlawful and Unnecessary Foreclosures, focuses on mortgage loans that are considered to be risky, including those with interest-only payment and adjustable rates.

The bill would require lenders to analyze a borrower’s financial information to determine whether modifying the loan to a more affordable payment would be more beneficial financially to the lender than going through the lengthy and costly process of taking the property through foreclosure. Many lenders already undertake such a study before deciding whether to foreclose, but the bill would permit homeowners to file a lawsuit if the process does not occur, according to Coakley’s staff.

The proposed law also would force lenders to prove they are the legal owner of mortgages before foreclosing, incorporating the findings of recent foreclosure-related decisions from the state’s Supreme Judicial Court.

These five state attorney generals are doing the hard work that should be done by the US Attorney General Eric Holder. Instead Mr. Holder is still clinging to Iowa AG Tom Miller’s stalled negotiations with the banks to settle the fraud for a mere $25 billion and exoneration from criminal prosecution. Mr. Holder has made protecting banks and corporations his priority and just recently announced a new initiative to prosecute intellectual property rights thefts by the public. This is not what Americans elected this administration to do.

Cross posted from The Stars Hollow Gazette

Once again the President who campaign on the restoration of the rule of law falls on the wrong side. The New York Times writer, Gretchen Morgensen, revealed in an article that the Obama Justice Department and Housing and Urban Development were putting pressure on New York State Attorney General Eric Schneiderman to drop his investigation into the banking industries foreclosure fraud that led to the economic housing crisis:

Eric T. Schneiderman, the attorney general of New York, has come under increasing pressure from the Obama administration to drop his opposition to a wide-ranging state settlement with banks over dubious foreclosure practices, according to people briefed on discussions about the deal.

In recent weeks, Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade the attorney general to support the settlement, said the people briefed on the talks.

Mr. Schneiderman and top prosecutors in some other states have objected to the proposed settlement with major banks, saying it would restrict their ability to investigate and prosecute wrongdoing in a variety of areas, including the bundling of loans in mortgage securities.

But Mr. Donovan and others in the administration have been contacting not only Mr. Schneiderman but his allies, including consumer groups and advocates for borrowers, seeking help to secure the attorney general’s participation in the deal, these people said. One recipient described the calls from Mr. Donovan, but asked not to be identified for fear of retaliation.

In other words, this is going to take too long and we have an election to finance. Please, do not piss off the banksters, they’re the only ones with money.

Obama administration doesn’t want to help the homeowners or prosecute those who committed this fraud, as David Dayen so bluntly states, they want to “white wash the fraud”:

The White House must think that if they can get Schneiderman, the AG with the most leverage over the talks by virtue of New York’s important position with respect to mortgage securitization, to bend, they can roll the rest as well. The WSJ article says that federal officials have a Labor Day target date for a settlement, and that they’ll continue “outreach” to all AGs. I bet they will.

The banks want at least 40 states signing off on this settlement before they agree to it. I can think of at least 10 AGs right now who wouldn’t agree to the broadest terms. Democrats Madigan, Schneiderman, Delaware’s Beau Biden (the VP’s son, who has joined Schneiderman on his intervention into the Bank of America settlement with investors over mortgage backed securities), Massachusetts’ Martha Coakley and Nevada’s Catherine Cortez Masto are on the record against a broad liability release in one way or another, and others like Washington’s Rob McKenna (R), Colorado’s John Suthers (R), California’s Kamala Harris, and even Utah’s Mark Shurtleff (R) and Michigan’s Bill Schuette (R) have active investigations or lawsuits on this issue. That’s an incomplete list off the top of my head. And if you add Republican anti-government types who don’t want to see any monetary penalty at all, you might not get to 25 in favor.

Of course this has earned a couple of people the dubious honor of not being named “wankers” but two of the worst people by Dayen and our man of few words, Atrios.

From Dayen the honor goes to Kathryn S. Wylde, board member of the Federal Reserve Bank of New York:

   The lawsuit angered Bank of New York Mellon, and as Mr. Schneiderman was leaving the memorial service last week for Hugh Carey, the former New York governor who died Aug. 7, an attendee said Mr. Schneiderman became embroiled in a contentious conversation with Kathryn S. Wylde, a member of the board of the Federal Reserve Bank of New York who represents the public. Ms. Wylde, who has criticized Mr. Schneiderman for bringing the lawsuit, is also chief executive of the Partnership for New York City. The New York Fed has supported the proposed $8.5 billion settlement {…}

   Characterizing her conversation with Mr. Schneiderman that day as “not unpleasant,” Ms. Wylde said in an interview on Thursday that she had told the attorney general “it is of concern to the industry that instead of trying to facilitate resolving these issues, you seem to be throwing a wrench into it. Wall Street is our Main Street – love ’em or hate ’em. They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.”

And from Atrios, his honor goes to HUD Secretary Shaun Donovan for this gem:

In recent weeks, Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade the attorney general to support the settlement, said the people briefed on the talks. … In an interview on Friday, Mr. Donovan defended his discussions with the attorney general, saying they were motivated by a desire to speed up help for troubled homeowners. But he said he had not spoken to bank officials or their representatives about trying to persuade Mr. Schneiderman to get on board with the deal.

Remember HAMP? Right. They just want to help.

Cross posted from The Stars Hollow Gazette

Shortly after taking office, the Barack Obama’s Attorney General announced new Department of Justice guidelines for medical marijuana in states that had laws permitting its dispensing.

U.S. Atty. Gen. Eric H. Holder Jr. said Wednesday that the Justice Department has no plans to prosecute pot dispensaries that are operating legally under state laws in California and a dozen other states — a development that medical marijuana advocates and civil libertarians hailed as a sweeping change in federal drug policy

Well, apparently the word didn’t get out to the field and in the last two weeks there have been 28 raids on medical marijuana clinics in Montana where 26 raids took place:

GREAT FALLS, Mont. – Federal agencies conducted 26 raids on medical marijuana facilities in 13 Montana cities this week, as agents seized thousands of marijuana plants and froze about $4 million in bank funds.

The raids stunned medical marijuana advocates, many of whom believed the Obama administration’s policy was to leave states with medical marijuana laws alone.

That belief stemmed from Attorney General Eric Holder’s announcement in October 2009 that the pursuit of “individuals whose actions are in clear and unambiguous compliance” with existing state medical marijuana laws would be the lowest priority of U.S. law enforcement.

and California:

Federal drug enforcement agents Tuesday raided two West Hollywood medical marijuana stores in the first such action in the city since the Obama administration decided two years ago to take a hands-off approach to dispensaries that abide by state laws.

The dispensaries — Alternative Herbal Health Services and Zen Healing on Santa Monica Boulevard — are among four that the city has authorized to operate. West Hollywood was one of the first California cities to regulate medical marijuana sales and is often cited as a model.

In the tradition of the previous administration, the DOJ and the IRS began the raids after new memo (pdf) was issued that is up front about the new policy. The memo issued on February 1st by US Attorney Melinda Haag (who, ironically, represents Northern California) directly contradicts Holder’s edict. She declares that ANYONE engaging in the buying or selling of marijuana, regardless of their protection under state laws, will be punished by the federal government.

As the Department has stated on many occasions, Congress has determined that marijuana is a controlled substance. Congress placed marijuana in Schedule I of the Controlled Substances Act (CSA) and, as such, growing, distributing, and possessing marijuana in any capacity, other than as part of a federally authorized research program, is a violation of federal law regardless of state laws permitting such activities.

The prosecution of individuals and organizations involved in the trade of any illegal drugs and the disruption of drug trafficking organizations is a core priority of the Department. This core priority includes prosecution of business enterprises that unlawfully market and sell marijuana. Accordingly, while the Department does not focus its limited resources on seriously ill individuals who use marijuana as part of a medically recommended treatment regimen in compliance with state law as stated in the October 2009 Ogden Memorandum, we will enforce the CSA vigorously against individuals and organizations that participate in unlawful

manufacturing and distribution activity involving marijuana, even if such activities are permitted under state law. The Department’s investigative and prosecutorial resources will continue to be directed toward these objectives.

Schedule I drugs are determined to have “no currently accepted medical use in treatment in the United States.” and carry the harshest penalties resulting in a prison population in which 1 in 8 prisoners in the U.S. is locked up for a marijuana-related offense. However, recently a federal agency has determined that marijuana does have a medicinal purpose. The National Cancer Institute (NCI), a division of the National Institute of Health, which is itself one of the 11 component agencies that make up the U.S. Department of Health and Human Services, added to its treatment database a summary of marijuana’s medicinal benefits, including an acknowledgment that oncologists may recommend it to patients for medicinal use:

The potential benefits of medicinal Cannabis for people living with cancer include antiemetic effects, appetite stimulation, pain relief, and improved sleep. In the practice of integrative oncology, the health care provider may recommend medicinal Cannabis not only for symptom management but also for its possible direct antitumor effect.

The Supreme Court ruled in 2001 that medical use of marijuana cannot be considered in any federal court deliberating on a marijuana possession or distribution case. While a solution to this would be to reschedule marijuana and put it under the regulation of the FDA but the possibility of this Congress acting on this anytime soon is nil to zero.

That leads to the question of the administrations policies which are conflicting to say the least and appear to have some political motivation to molify the criticism of the hard right wing that is now dominating the conversation. It begs to question whether Holder is being dishonest and hypocritical? Or does he simply lack strong leadership among US Attorneys General? Either way, this isn’t the way this administration is winning any support.

The Just Say Now campaign at FDL has a petition telling Holder to enforce his memo and stop raiding marijuana clinics.

There are over 15,000 clinics and hospitals in this country, which get their drugs for poorer patients from a government discount – drug act which was created in 1992.   They spend over $6 billion, and they are supposed to get a discount of 30% to 50% off.

During the past 8 years, (that’s mostly during the Bush administration 2002 – , with some overlap into the 3rd Term of Bipartisanbamaship ) the inspector general for HHS noticed drug manufacturers were overcharging their customers, but not getting dinged for it and being motivated to be good contractors.

Ted Slafsky, executive director of Safety Net Hospitals for Pharmaceutical Access — which represents 600 hospitals in the program — said that “manufacturers have been able to overcharge covered entities with impunity.”

http://www.californiahealthlin…

Santa Clara County and Santa Cruz County in California sued Astra Zeneca USA.   This upset Big Pharma.

In Dec 2009, the Ninth Circuit Court of Appeals of San Francisco ruled that clinics and hospitals could sue.

The Supreme Court is asked to rule next.

The U.S. Department of Justice, Eric Holder, Attorney General, under the Presidency of Barack Obama, is now siding with the Pharmaceutical companies to overturn that decision, and telling the Supreme Court they don’t want counties and clinics suing over drug price rip offs.   Per the DOJ, only the Federal Government (not meaning Congress, I guess, but the secret deal maker- in – chief) had the authority to enforce the law.

Each of us can help in trying to alleviate or end the plight that PFC Bradley Manning finds himself in — that of total isolation for seven months running now, no sheets nor  pillows for his bed, unpermitted to exercise and is under constant surveillance.  The U.S. government is holding Manning under these deplorable conditions, supposedly, for his role in having sent various various TRUTHS to Wikileaks, concerning areas in our wars and otherwise, without any charges having been had or placed against him. (Some of which information was known to some of us before such revelations through our own truth-seeking, but not to Americans, in general!)

Thanks to David Swanson, published with his thanks to Ed Fisher, there is very complete information as to how WE may help this 23-year old Bradley Manning.

How to Report the Torture of Bradley Manning to the United Nations

Here is where you can report Bradley Manning’s torture to a higher legal authority than Eric “The Law Is What Obama Says It Is” Holder.

Sample information to include:

a. Full name of the victim:

Bradley E. Manning (born 17 December 1987), Private First Class (PFC), United States Army

b. Date on which the incident(s) of torture occurred (at least as to the month and year):

Ongoing from May, 2010.

The following is a summary of the conditions under which PFC Manning is being held, which in the opinion of experts and even International Law, constitute torture:

“Bradley Manning, the 22-year-old U.S. Army Private accused of leaking classified documents to WikiLeaks, has never been convicted of that crime, nor of any other crime. Despite that, he has been detained at the U.S. Marine brig in Quantico, Virginia for five months — and for two months before that in a military jail in Kuwait — under conditions that constitute cruel and inhumane treatment and, by the standards of many nations, even torture. Interviews with several people directly familiar with the conditions of Manning’s detention, ultimately including a Quantico brig official (Lt. Brian Villiard) who confirmed much of what they conveyed, establishes that the accused leaker is subjected to detention conditions likely to create long-term psychological injuries”  Salon

Journalist Glenn Greenwald has investigated and published an extensive report on this issue. Please refer to this article in full for more details: Salon

c. Place where the person was seized (city, province, etc.) And location at which the torture was carried out (if known):

* Camp Arifjan, a military jail in Kuwait

* U.S. Marine brig in Quantico, Virginia

“Manning was arrested by agents of the U.S. Army Criminal Investigation Command in May 2010 and held in pre-trial confinement in a military jail at Camp Arifjan in Kuwait.”

source:

d. Indication of the forces carrying out the torture:

The President of the United States, The Congress of The United States, The United States State Department, The United States Justice Department, The United States Department of Defense, The United States Army, The United States Navy, The United States Marine Corps. All of the above are responsible for this illegal activity.

Furthermore, the torture of PFC Manning is not an isolated incident, rather, it is part of a policy shift that has been documented in The United States over the course of at least two Administrations, those of George W. Bush and Barack Obama.

For example, The United States has been found by the United Nations Committee against Torture to be responsible for:

* the US opinion that the Geneva Convention does not apply to, and would undermine, its War on Terror

* the US attempt to sidestep provisions of the Convention by applying it only to US territory, rather than areas under US control

* the fact that detainees are not always registered, depriving them of safeguards against acts of torture

* allegations of secret detention facilities which are not accessible to the International Red Cross

* the US refusal to comment over the existence of such facilities, and the allegations of torture and cruel, inhumane and degrading treatment which have emanated from them

* the US involvement in enforced disappearances and its refusal to accept that this is a form of torture

* the rendition of subjects, without judicial procedure, to states where they face a real risk of torture

* the use of secret ‘diplomatic assurances’ to justify deporting detainees to country’s with poor human rights records

* the indefinite detention of prisoners without charge at Guantanamo Bay without legal safeguards or judicial assessment of justification

* the inadequate training provided to police and military personnel on the UN’s prohibition of torture

* the 2002 authorization of the use of interrogation techniques, such as water-boarding, shackling, sexual humiliation, and dogs, which have resulted in the deaths of some detainees

* the apparent impunity of police and military personnel accused of torture and not prosecuted

* the lenient sentences given to many people convicted of torture

* the proposal to withdraw the right of habeas corpus to Guantanamo detainees

* the difficulties that victims of abuse have faced in obtaining redress and compensation

* the apparent failure to ban evidence obtained under torture from being used at military commissions, and the limitations placed on the right of detainees to complain

* substantiated information which indicates that US sanctioned executions can be accompanied by severe pain and suffering

* numerous, reliable reports of sexual assault of detainees and sexual violence perpetrated by detainees on each other, to which ‘persons of differing sexual orientation’ are particularly vulnerable

* the humiliation of female prisoners and the shackling of female detainees during childbirth

* the large number of children sentenced to life imprisonment

* the extensive use of electro-shock devices which have caused several deaths

* the harsh regime imposed in ‘supermaximum’ security prisons, and prolonged isolation periods which may be used as a form of punishment

* reports of brutality and excessive force used by law enforcement officers and the numerous allegations of the ill-treatment of racial minorities, migrants and homosexuals which have not been properly investigated.

source:

e. Description of the form of torture used and any injury suffered as a result;

* PFC Manning has been placed in a form of solitary confinement that is cruel and unusual. This is a term utilized within US Constitutional Law, and US citizens are supposed to enjoy protection against this form of treatment.

The US Supreme Court has had occasion to adjudicate on this issue. As long ago as 1890, the US Supreme Court wrote:

“A considerable number of prisoners fell, after even a short confinement, into a semifatuous condition, from which it was next to impossible to arouse them, and others became violently insane; others still, committed suicide; while those who stood the ordeal better were not generally reformed, and in most cases did not recover sufficient mental activity to be of any subsequent service to the community. (In re Medley, 1890)”

. . . . .

 

First we had the leftover Bush era reefer madness drug policy :

Holder’s DOJ Setting Record Marijuana Busts

https://www.docudharma.com/diar…

FBI stats say 858,408 people were arrested for marijuana in 2009, under US Atty General Holder’s DOJ,  the 2nd highest total ever, and it was an increase of + 1.3% from under the Bush administration’s last year in office, 2008.  (the record was 872,721 in 2007)

per this FBI sourced chart here,  http://www.fbi.gov/ucr/cius200…      251,740 Californians were arrested last year for drug offenses, if 52% of them were for marijuana, that would be  130,940  citizens of California busted for pot,  the equivalent of 2 large sport stadiums filled with people,  or about the population of the cities of Elk Grove or Thousand Oaks.   If 88% of those people were charged with possession only, that’s still about  

         – 115, 196 Californians getting arrested in 2009 just for possessing marijuana

Then we had CA vs. the Feds and DiFi & Baca :

Prop 19: AG Holder Issues Shocking Threat Against State’s Rights To Legalize MJ

https://www.docudharma.com/diar…

If Proposition 19, the Decriminalize and Tax initiative had passed, Attorney General Eric Holder said he’d keep prosecuting them anyway, per a letter written to ex DEA (and now private Homeland Security contractors) agents who petitioned him to keep prosecuting legal marijuana users and growers.

Opposition to Prop 19 was funded by Indian Casino gambling such as the San Manuel Band of Mission Indians, the beer and wine industry, including both large ones like EJ Gallo and Anheiser Busch and smaller artisan breweries in the state of CA, Big Oil companies like Chevron, Big Tobacco such as Phillip Morris,  and even most of the major pharmaceutical manufacturers of mood altering drugs like Pfizer, Glaxosmithkline, Eli Lilly, and even Perdu Pharma, the makers of Oxycontin.  CALBUSPAC, one of the multi donor PACs against prop 19, lists many of them thru one of the pharma pac subdonors.   http://cal-access.ss.ca.gov/Ca…

_______________________________

Now we have the leftover Bush Era DEA Appointee looking for an Obama administration upgrade. An appointee already so lousy, Republican President George W Bush first tried foisting her off on the taxpayer in 2003.   Then in April 2008, the Bush White House said it wanted to promote her to replace Karen P Tandy, who had resigned in 2007.  The Senate was not enthused. Again.  Now, 7 years later, like fungus, “Democratic”  President Barack Obama is proposing Dubya’s leftover appointee, Michele Leonhart, be promoted from Deputy Administrator to head the Drug Enforcement Administration.

Michele Leonhart,  under Bush’s era, was the Special Agent in Charge for the DEA in Los Angeles, and the ranking agent in charge for many, many Bush era raids on legitimate medical marijuana, which has been legal now in CA for 14 years.  Then she started doing them for the Obama administration.  And she must be very good at it.   The Senate is supposed to have hearings on this Wednesday (tomorrow).  Are you excited yet ?  Yes We Can Waste Money We Don’t Have On Going After Stoners Because We Have Nothing Else to Do !

This is a Bush era appointee, Michelle Leonhart,  who makes a living raiding from CA Medical Marijuana Dispensaries.  Now President Obama wants to promote her to head his DEA.  Attention younger voters who are going to be watching the 2012 nominees – is this the sort of thing that appeals to you as a constituent ?

From CNN, Your Most Trusted News Source:  

The October Surprise

Anonymous NATO Spokesperson Upgrades Osama Bin Laden From Cave To House in Pakistan, Getting a Jump on the Latest Wikileaks Which Will Show He’s Working at al- Zawahiri’s International House of Naancakes

Kabul, Afghanistan, CNN, Monday, October 18, 2010

http://www.cnn.com/2010/WORLD/…

Osama bin Laden and his deputy Ayman al-Zawahiri are believed to be hiding close to each other in houses in northwest Pakistan, but are not together, a senior NATO official said.

“Nobody in al Qaeda is living in a cave,” said the official, who declined to be named because of the sensitivity of the intelligence matters involved.

___

The official would not discuss how the coalition has come to know any of this information, but he has access to some of the most sensitive information in the NATO alliance.

Wikileaks Donation Site Shut Down

CNN, Friday October 15, 2010

http://articles.cnn.com/2010-1…

WikiLeaks founder Julian Assange claims the U.S. government was behind the decision by Moneybookers to shut down the account, an allegation denied by American officials.

According to e-mails provided to CNN by Assange, Moneybookers informed WikiLeaks of its decision in August, shortly after the Pentagon demanded WikiLeaks return all of the military documents and remove them from its website. WikiLeaks refused to do so and is expected to release hundreds of thousands of additional Pentagon papers later this month.

The first e-mail from Moneybookers that notified WikiLeaks of its decision indicated one of the potential grounds for termination was “to comply with money laundering or other investigations conducted by government authorities, agencies or commissions.”

When Assange asked for a further explanation, he received another e-mail from the company saying the account was initially suspended “due to being accessed from a blacklisted IP address. However following recent publicity and the subsequently addition of the WikiLeaks entity to blacklists in Australia and watch lists in the USA, we have terminated the business relationship.”