The Pennsylvania Progressive

FBI Intimidating Wecht Jurors

Pittsburgh U.S. Attorney Mary Beth Buchanan isn't a good loser.  She has sicced FBI agents on some of the jurors who deadlocked on the Cyril Wecht trial.  The jurors contacted say they feel intimidated.  Buchanan targeted the famous Coroner and indicted him for the improper use of his staff for personal purposes.  Testimony showed he made his taxpayer financed staff for personal errands.  The U.S. Attorney herself however, according to a confidential source, used her government paid staff to write her speeches which she gave to the right wing Federalist Society.  According to Buchanan what's good for the goose isn't good for the gander.

Kanjorski Addressing Municipal Borrowing Costs

As I mentioned in the post below about student loans the credit crisis is affecting much more than just homes now.  The tightening markets for credit are also impacting municipal governments.  Your local school districts, counties and other municipalities fund their capital (major, long term buildings like schools, prisons, courthouses, etc) through the bond markets.  They bundle some of these loans to get lower rates.  Any local long term project, be it bridges, sewer systems, water reservoirs and other major projects necessary to provide basic services, are financed over the long term.

Municipal bond insurers guarantee these loans.  Without bond insurance few investors will purchase (invest) these debt instruments.  Bond insurance is the glue that puts such deals together.  Your local township or borough doesn't have a track record long enough to satisfy lenders that they'll get repaid so these bonds have to be insured.

Congressman Paul Kanjorski has been working to boost this segment and insure that municipal bonds and the projects they finance don't crumble.  Kanjorski

"applauded House Committee on Ways and Means Chairman Charles Rangel (D-NY) for including H.R. 2091 as Section 143 of H.R. 5720, the Housing Assistance Tax Act of 2008, and for moving quickly to pass the bill during a mark up in the Committee.  It passed by a bipartisan vote of 35-5.  Section 143 would help lower municipal borrowing costs as a result of ongoing problems in the bond insurance marketplace.  Chairman Kanjorski has led the recent effort in the House to examine problems with bond insurers and he has worked diligently for several years to enact H.R. 2091 into law. 

“I commend Chairman Rangel for swiftly passing this important legislation in his Committee.  Section 143 of H.R. 5720 will aid many communities throughout the country now experiencing higher borrowing costs as a result of turmoil in the bond insurance industry,” said Chairman Kanjorski.  “The legislation will help States and municipalities, like Wilkes-Barre in my own Congressional District in Pennsylvania, to continue issuing the low-cost, tax-exempt bonds that provide the capital needed to construct roads, build hospitals, renovate schools, repair bridges, and ease budgeting constraints.  Ensuring that municipalities continue to have access to affordable bonds will help alleviate some of the problems caused by the current strain in our credit markets.”

“Capital Markets Subcommittee Chairman Kanjorski is to be applauded for his efforts to help solve the problems in the municipal bond marketplace,” Wilkes-Barre Mayor Thomas M. Leighton.  “His legislation, H.R. 2091 will allow bonds guaranteed by the Federal Home Loan Banks to be treated as tax exempt bonds.   This will offer communities like Wilkes-Barre access to another AAA financial guarantee source, which will help lower our borrowing costs.”

The Federal Home Loan Banks and their members are the largest source of residential and community development credit in the United States.  The system consists of 12 regional banks that together serve 8,100 community banks, thrifts, credit unions, and major financial institutions. 

“Congressman Kanjorski’s active support of this legislation will help bolster our nation’s economy during a prolonged credit contraction,” added John R. Price, president of FHLBank Pittsburgh and Chair of the Bank Presidents Conference of the FHLBank System.  “We commend him for working diligently to get this meaningful legislation through Congress, most especially by circulating a letter of support among his colleagues in the aftermath of the downgrading of some key bond insurers.”

The current credit crunch and uncertainty in the bond insurance marketplace have raised borrowing costs and affected the ability of States and localities to issue bonds.  Section 143 of H.R. 5720 would help to fix these problems by allowing bonds that are guaranteed by Federal Home Loan Banks to become eligible for treatment as tax-exempt bonds.  Except for a two-year sunset period, Section 143 is similar to H.R. 2091, which Chairman Kanjorski helped to reintroduce in 2007.

In late February, after convening the first congressional hearing on problems in the bond insurance marketplace, Congressman Kanjorski led 40 bipartisan Members of the House Financial Services Committee in sending a letter to Chairman Rangel and Ranking Member Jim McCrery (R-LA) advocating the adoption H.R. 2091 as a solution to help lower municipal borrowing costs."

Kanjorski Steps Up to Solve Student Loan Crisis

We reported last week that Congressman Paul Kanjorski has sent a letter to Ben Bernanke asking the Federal Reserve to deal with the crisis in student loans.  He has received a reply that the Fed will not.  Therefore the Congressman has introduced legislation to deal with the problems:

"Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee, introduced emergency legislation to provide an important, temporary source of liquidity in the student loan marketplace, help prevent more originators from departing the industry, and maintain stability in the existing student loan distribution system.  Chairman Kanjorski is seeking a legislative solution in H.R. 5723, the Emergency Student Loan Market Liquidity Act, after receiving a reply last week from Federal Reserve Chairman Ben S. Bernanke indicating that the Federal Reserve will avoid taking action at this time to help the student loan marketplace.

“The student loan market currently faces severe liquidity problems and cannot access capital.  The Federal Home Loan Banks can help provide such access,” said Chairman Kanjorski.  “More and more student loan originators are also suspending or halting participation in the Federal Family Education Loan Program. Because the Federal Reserve, the Treasury Department and the Education Department have failed to appreciate the gravity of the situation, I am taking action now in Congress by introducing the Emergency Student Loan Market Liquidity Act to help that ensure that the anticipated nearly 7 million borrowers will have access to their student loans in the next school year.”

As of April 8, according to the award-winning FinAid.org website, 45 student loan originators have decided to exit or suspend their participation in all or part of the Federal Family Education Loan Program (FFELP) since last August.  These providers account for 12 percent of the Stafford and PLUS loan origination volume under the FFELP and 39 percent of the consolidation volume under the FFELP. 

Because many student loan originators are not depository institutions, liquidity vehicles, such as the ability of banks to access the Federal Reserve’s Discount Window, are unavailable.  Moreover, unlike the housing industry, there is no longer a government-sponsored enterprise to provide a reliable source of liquidity for the student loan industry.

To fix this problem, the Emergency Student Loan Market Liquidity Act contains three emergency authorizations that will last for two years from enactment.  First, the bill enables Federal Home Loan Banks to invest in student loan-related securities with their surplus funds.  Second, the bill allows the Federal Home Loan Banks to accept student loans and student-loan related securities as collateral.  Finally, the legislation permits the Federal Home Loan Banks to provide secured advances to its members to originate student loans or finance student loan-related securities.

“The addition of this temporary power is closely in line with the existing mission of the Federal Home Loan Banks to support community and economic development.  I spearheaded the effort in 1999 to improve this authority within the Federal Home Loan Bank System.  An educated workforce promotes economic development,” noted Chairman Kanjorski.  “Moreover, in order to protect the safety and soundness of the system, my bill has appropriate safeguards to ensure that the Federal Home Loan Banks only invest in and use as collateral those instruments with the highest investment ratings and which are federally guaranteed.”

On March 17, Chairman Kanjorski, joined by 31 other bipartisan Members of Congress, sent a letter to Federal Reserve Chairman Ben S. Bernanke urging him to take action to inject liquidity into the student loan marketplace to help all types of originators.  In his response last week, which Chairman Kanjorski just released, Chairman Bernanke expresses his concerns about the current student loan marketplace, but states that the Federal Reserve is unable to provide extensions of credit to student loan lenders at this time. This response prompted Chairman Kanjorski to take today’s legislative action on this issue.

In addition, Chairman Kanjorski and 20 other Members of Congress received a response on March 28 to their earlier letter in which they urged Secretary of the Treasury Henry M. Paulson, Jr. and Secretary of Education Margaret Spellings to take action to address capital access problems in the student loan marketplace.  The Administration’s response also failed to recognize the urgency of the student loan market situation."

Kanjorski To Speak at FDR Symposium, Urges Action On Home Appraisal Reforms

Congressman Paul Kanjorski has been busy working on the economic issues crippling the nation and has issued the following statements:

WASHINGTON - Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee, called on the Senate to take action on the bipartisan appraisal reform amendment filed by Senators Robert P. Casey, Jr. (D-PA) and Mel Martinez (R-FL) to the Senate’s housing stimulus bill. Chairman Kanjorski has been the leading advocate in the House for appraisal reform for many years. Chairman Kanjorski’s statement follows:

“The bipartisan amendment put forward by Senators Casey and Martinez has advanced the issue of enhancing appraisal independence. Their amendment contains many of the appraisal improvement provisions found in my bipartisan legislation, H.R. 3837. The House Financial Services Committee approved these reforms last fall. Last November, the House then adopted them as an amendment to H.R. 3915, the broader mortgage lending reform bill. I have long worked diligently to build an awareness of and consensus on these matters.

“Because I first became aware of the need to improve appraisal independence as a result of problematic loans made in the Poconos in my Congressional District in Northeastern Pennsylvania several years ago, I am very pleased that my friend, Senator Casey, has taken the lead in addressing this policy issue in the Senate. Appraisal independence is of great importance to not only homebuyers and homeowners in Pennsylvania, but also to every American who owns or wants to own a home.

“Appraisal independence is critical to a fair mortgage system. Appraisers are the one party in a mortgage transaction who can verify the true value of the property for the buyer, the seller, the lender, and the investor, among others. We need to provide better protection against appraiser collusion, coercion, bribery, and extortion. We also need to impose strong penalties for those who violate reasonable standards. We additionally need to provide consumers with access to appraisals at or before closing a loan, so that they can make more informed choices. The House-passed proposal I drafted and the Casey-Martinez amendment accomplish these goals.

“Now is the time for the Senate to act on appraisal reform. We have recently read too many stories about problematic appraisals in connection with subprime loans. Congress has also already studied this issue for several years, starting with the May 2003 GAO report for former Senators Paul Sarbanes and Zell Miller and the June 2004 House Capital Markets Subcommittee field hearing at East Stroudsburg University. We have achieved bipartisan support on the need for appraisal reform. We also have a growing consensus on the appraisal independence standards passed by the House and the similar changes contained in the Casey-Martinez amendment in the Senate. The Senate should act on these matters, and I will continue my efforts to enact these ideas into law.”

Kanjorski to Address the Current Financial Crisis

and Related Policy Solutions

WASHINGTON – Tomorrow, Congressman Paul E. Kanjorski (PA-11), the Chairman of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee, will participate in a panel symposium led by the Franklin and Eleanor Roosevelt Institute (FERI) in honor of the 75^th anniversary of the inauguration of Franklin D. Roosevelt and the New Deal.  FERI invited the Chairman to participate in a panel discussion focusing on the current financial crisis and on the policies needed to address it.

“I am honored that the Franklin and Eleanor Roosevelt Institute invited me to speak at this symposium on such an urgent and important topic.  The housing market faces many immediate problems, and homeowners throughout the country are in trouble,” said Chairman Kanjorski.  “While the financial turmoil began with improper subprime mortgage lending practices, it has spread into other areas of the economy.  There is no silver bullet solution, but I will continue to develop and to support effective legislative policies and to work toward innovative solutions aimed at shoring up the lagging housing industry and the troubled financial markets.”

Chairman Kanjorski will participate in a panel discussion entitled “Defending the Middle Class: The Glass-Steagall Act, The Mortgage Crisis, and Income Disparity” with Robert Kuttner, founder of The American Prospect; Senator Bernie Sanders (D-VT); Congresswoman Rosa DeLauro (D-CT); and Nell Minow, author and advocate on corporate social responsibility.  This panel will address the current financial crisis and its implications for the diminishing middle class and the poor, whose struggle with rising income inequality has only been exacerbated by this crisis.   

FERI is holding a day long symposium titled “Toward a new, New Deal: FDR’s Liberalism and the Future of American Democracy.”  The event will bring together political leaders, historians, policy analysts, and journalists to discuss the lessons and legacy of the New Deal.  By looking back at the successes of the New Deal, the symposium seeks to use history as a guide toward a new social contract for the 21^st century.         

Throughout his tenure as a member of the House Financial Services Committee and now as the leader of its Capital Markets Subcommittee, Chairman Kanjorski has acted to resolve many economic difficulties, from the Savings and Loan crisis in the late 1980s to the mortgage lending problems faced by his own district in the Poconos just several years ago.

Learning from these past experiences, Chairman Kanjorski has responded to the current crisis with specific legislative action in the 110^th Congress.  In November, the U.S. House of Representatives passed H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act.  Currently pending in the Senate, this bill includes Chairman Kanjorski’s Escrow, Appraisal, and Mortgage Servicing Improvements Act, which requires escrow accounts for many borrowers, improves appraisal independence, and enhances mortgage servicing.  Many of the provisions in his legislation address problems first identified at a field hearing Congressman Kanjorski held at East Stroudsburg University in June, 2004.  H.R. 3915 also includes broker licensing, education, and oversight reforms that Chairman Kanjorski first advocated putting in place nearly three years ago.

Chairman Kanjorski also recently introduced H.R. 5579, the Emergency Mortgage Loan Modification Act of 2008.  This bill aims to clarify the responsibilities of, and provide a safe harbor from legal liability for, mortgage servicers who help troubled borrowers remain in their homes by engaging in loan modifications and workouts according to specific criteria.  Chairman Kanjorski will hold a hearing on this bill on April 15.

Additionally, Chairman Kanjorski’s provision to temporarily increase the conforming loan limit for mortgages purchased by Fannie Mae and Freddie Mac was included in the economic stimulus package that passed the House on February 7. Chairman Kanjorski’s leadership also contributed to the passage of legislation to improve the regulation of the government-sponsored enterprises, such as Fannie Mae and Freddie Mac, and also of the Federal Home Loan Banks.  Action on this bill is now pending before the Senate Banking Committee.

Chairman Kanjorski has taken a leadership role to help ensure the continued availability of affordable, federally guaranteed student loans, as capital access problems continue in the student loan marketplace.  Today, Chairman Kanjorski introduced legislation to help provide students with loan options using the Federal Home Loan Banks as a source of liquidity.

Chairman Kanjorski also initiated an examination of the bond insurance industry to determine the implications of ratings downgrades for the financial marketplace and municipalities, and the potential need for regulatory reforms. Chairman Kanjorski convened hearings to shed light on the industry and to help prevent the effects of ratings downgrades from adversely affecting local governments.

FERI organized the symposium with its partner, the Roosevelt Institution (RI).  FERI aims to inform new generations of the ideals and achievements of Franklin and Eleanor Roosevelt and to inspire the application of their spirit of optimism and innovation to the solution of current problems.  RI is a non-profit, non-partisan national network of campus-based student think tanks.

Justice Waived Law For Torturers

The memo written by John Yoo which permitted DoD officials and employees to use "coercive interrogation techniques," what we commonly call torture, was released publicly yesterday.  Yoo wrote the memo in his capacity in the Department of Justice's Office of Legal Counsel and can be considered as a legal shield for those who violated the law.  The Bush Administration put him in this position precisely so he would write these legal opinions granting them unlimited, extra legal, unconstitutional powers.

Every person who authorized or inflicted torture on human beings in our names did so because of Yoo's memo.  Of course no one is actually above the law and George W. Bush and Dick Cheney could face indictment and conviction in Congress, something called impeachment, for these crimes.

I'm reading Naomi Klein's landmark book "Shock Doctrine" and in it she maintains the use of torture is necessary, in most cases, for corporatists to inflict their shock economic principles on an unwilling, uncooperative society.  This flagrant authorization and use of torture by the Bush Administration sends chills down my spine as I read her book and see how everything from the past seven years is finally coming together to make sense.

The biggest question, of course, is, exactly why did George W. Bush invade Iraq?  Why did he justify his invasion of that country by saying we were bringing "democracy" to Iraq?   Why is there so little effective government in Iraq and why is there such rampant and open corruption with no accountability?  The answers are all in this book.

Financial Sector Proposals

Treasury Secretary Henry Paulson finally got engaged in the economic crisis yesterday proposing new federal regulations designed to streamline the financial sector.  First of all I never trust a Republican to regulate Wall Street and be very apprehensive of their plans.   This one actually gives more power to the Federal Reserve after their actions under Alan Greenspan greatly contributed to the current crisis.    If that makes sense raise your hand.

Not seeing any but tyler's let's review a bit.  We're in this mess now because we refused to allow any oversight of the large financial markets.  They ran amok with greed.  These people want to privatize their profits but socialize their losses, as I heard one wise person put it recently.  This means when things are good they stand on claims of "personal responsibility" and decry any increased taxes or regulation.  When their unbridled greed inevitably leads to a collapse they suddenly abandon "personal responsibility" and run to Uncle Sam for bailouts.

This, again, is what we've witnessed recently.  We have no alternative however.  A complete economic collapse on the scale of the Great Depression isn't something anyone can allow to occur.  Basically the arguments here are between macro and micro approaches.  Macro means looking at the big picture, being involved in the markets as a whole.  Micro means targeting in on every detail, every mortgage loan, for example, or every bank.

We don't have time for a micro approach.  John McCain's laissez faire approach leaves those hurt on the micro level, individual homeowners, on the hook for their bad decisions while rescuing those bankers who did the same.  McCain's solution is only to bail out the institutions who engaged in the predatory lending, the bad practices and eave you, the voter, hanging for yours.  Classic Republican economic dogma:  screw the working people and save Wall Street.

Unfortunately the crisis is already spreading to other sectors of finance.  Student loans  are drying up and with them, millions of middle class dreams for our youth.   Bill Clinton laments on the campaign trail how he and Hillary borrowed money for college at 2% rates.  Back then normal loan rates were considerably higher, very considerably higher, than now.  We subsidized these loans instead of creating an entire new industry for Wall Street. 

Action is needed now to save student loans.  Congressman Paul Kanjorski is trying to get the attention of Secretaries Paulson and Spellings to no avail:

WASHINGTON – Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee, expressed concerns about a letter he received today from Secretary of the Treasury Henry M. Paulson, Jr. and Secretary of Education Margaret Spellings.  The letter responds to an inquiry from Chairman Kanjorski and 20 other Members of Congress urging the Administration to take action to address capital access problems in the student loan marketplace in order to ensure the continued availability of affordable, federally guaranteed student loans.

“While I appreciate Secretary Paulson and Secretary Spellings’ response that they understand the scope of the problems affecting the student loan industry and that they are closely monitoring the situation,” said Chairman Kanjorski, “I find it unfortunate that the Administration is not taking greater action at this time to fix the problem.  How many more lenders must drop out of the Federal Family Education Loan Program before the Administration will take action?  Students and their families preparing to go to college this fall need to know that they will have access to affordable higher education loans.”

In their reply, Secretary Paulson and Secretary Spellings note that because there are more than 2,000 lenders who originate loans in the Federal Family Education Loan Program (FFELP), the student financial aid market should be able to “quickly address instances where some…lenders choose to limit their participation” in the FFELP.

“While they may be technically correct about the current statistics, we are seeing an ever increasing number of student loan originators deciding to exit or suspend their participation in the FFELP,” observed Chairman Kanjorski.  “Within the last 9 days alone, this list has grown by 16 more providers.  I am, therefore, concerned that the problems in our capital markets may soon result in a significant decrease in the student loan distribution system for which the Administration will not be able to provide an adequate, timely and effective solution.”

On March 19 the FinAid.org website, an award-winning source of information on student financial aid, noted that 21 originators had exited or suspended their participation in all or part of the FFELP since last August.  As of March 28, there are now 37 student loan lenders classified as such.  These 37 providers account for nearly 10 percent of the Stafford and PLUS loan origination volume under the FFELP.  They also account for more than 30 percent of the consolidation volume under the FFELP.

“Moreover, I am very concerned that the Administration’s response fails to recognize the views of the professionals on the front lines of our nation’s financial aid system who want action now to ensure the continued availability of federally guaranteed student loans this fall,” added Chairman Kanjorski.

Earlier this week, the National Association of Student Financial Aid Administrators called for an infusion of liquidity in the student loan marketplace.  The non-profit association represents financial aid professionals at 3,000 universities and colleges.

“We need proactive, swift action now to provide stability in the student loan marketplace.  The Administration is in the best position to provide such leadership,” concluded Chairman Kanjorski.  “In the weeks ahead, I will continue to push for action on this critical issue.”

Chairman Kanjorski has worked for several months to raise awareness about the problems in the student loan marketplace and urge swift action by the Administration.  On February 15, for example, Chairman Kanjorski spearheaded the effort to send the group letter to Treasury Secretary Paulson and Secretary Spellings.

On March 17, Chairman Kanjorski joined by 31 other bipartisan Members of Congress also sent a letter to Federal Reserve Chairman Ben S. Bernanke urging him to take action to inject liquidity into the student loan marketplace to help all types of originators.  They are still awaiting a response to their inquiry.

Update:  Kanjorski today released this statement on the Treasury Secretary's proposals:

Overview

“Treasury’s efforts to address the deficits in our current regulatory system are a step in the right direction. Their recommendations include some short-term proposals to address the problems created by the current credit crunch, as well as a long-term conceptual model with several intermediate steps to reform the regulatory system. Given the current uncertainty in our financial markets, we need to move in a way that does not add further stress. We should work in the short term on implementing surgical regulatory reforms before pursuing broader change. I commend Treasury for coming to such a realization.

“After addressing these short-term needs, I am—as I indicated in hearings last fall—very interested in examining how well the regulators created in the last century are responding to the realities of the new century. Our capital markets have significantly evolved. After all, no one had conceived of mortgage-backed securities at the time we created the Federal Reserve and the Securities and Exchange Commission.

Credit Unions

“I am very apprehensive about Treasury’s recommendation to consolidate regulation of credit unions with other depositories. There is a need to put credit unions on a level playing field with other financial institutions in areas like capital standards and business lending, but it should not come at the expense of eliminating the current regulatory system, which has worked well and serves the financial needs of more than 90 million Americans. We must preserve and protect the unique cooperative nature of the American credit union system.

Insurance

“Treasury calls for the creation of a federal insurance regulator and an optional federal charter for insurers. An optional federal charter would respond to the global competitive pressures of the insurance marketplace.

“I have worked toward this goal for some time. Under my leadership, the Capital Markets Subcommittee has already held several hearings in the 110^th Congress on insurance regulatory reform, all of which addressed creating an optional federal charter, and I expect to convene another hearing in April to further examine this issue. The Treasury Department should have a seat at the table at this hearing.

“As an intermediate step toward the establishment of a federal insurance charter and regulator, Treasury suggests creating an Office of Insurance Oversight to collect information about the industry and advise the Administration about insurance policy. I have also previously called for the establishment of such an entity. In today’s markets, the federal government needs in-house expertise on insurance policy.

Mortgage Lending

“Finally, in light of the current problems in the mortgage markets, Treasury calls in the short term for creating a commission to establish uniform minimum licensing qualification standards for mortgage originators. I proposed in legislation such standards for mortgage brokers more than three years ago, and last year the House passed H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act, to put in place such a system. It is my hope that we can finally move toward enacting these reforms into law.

“We must also move forward in the short term with other surgical reforms for our mortgage markets. As such, I recently worked with Congressman Michael N. Castle (R-DE) to introduce H.R. 5579, the Emergency Mortgage Loan Modification Act. To promote private sector loan modifications, our bill would provide mortgage servicers with a safe harbor from investor lawsuits. I am hopeful that the Administration will support this narrow reform.”

HUD Secretary Resigns

Housing and Urban Development Secretary Alphonso Jackson has resigned amid allegations he was got involved in a scandal involving the Philadelphia Housing Authority and Kenny Gamble, a founder of "The Sound of Philadelphia."  Gamble wanted a choice piece of real estate valued at $2 million from PHA and Jackson intervened when the housing authority refused to give it to Gamble.  Jackson then lied to Congress saying he couldn't testify when he knew he could.  Good riddance to one more corrupt BushCo man.

Casey Unveils New Website

Sen. Bob Casey has a new website and it's pretty nice.  Visit it here.  It has a very simple and easy to remember domain, casey.senate.gov.   The top bar has several of the most important links, his bio, constituent services, issues, the newsroom (press releases for those like me) and one about Pennsylvania.  It's a nicely appealing website and easy to navigate and find information.  You can sign up for his newsletter at the bottom of the home page. 

Kanjorski Updates

I have several items from Congressman Kanjorski's office to catch up with for those in Northeastern Pennsylvania.

First is a reminder about the senior citizens session in Hazleton tomorrow about the economic incentive program and how to obtain your rebate checks.  It is tomorrow at 9:30 am in Hazleton at the Senior Citizens Center at 24 E. Broad Street.  Disabled vets are also included in this program.

The second item is the Congressman's statement on the economic crisis and it has to do with liquidity in the mortgage markets:

WASHINGTON − Congressman Paul E. Kanjorski (D-PA), the Chairman of the House Financial Services Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee offered the following comments on the agreement to enhance liquidity in the mortgage markets announced today by the Office of Federal Housing Enterprise Oversight (OFHEO), Fannie Mae, and Freddie Mac.  The Capital Markets Subcommittee has jurisdiction over the two housing government-sponsored enterprises and their regulator.

“Today’s announcement will provide a significant and immediate source of capital for America’s mortgage markets at a very important time.  Through this agreement, Fannie Mae and Freddie Mac will be able to help finance more housing loans and assist more families to purchase or remain in their homes.  These actions will help to bring stability to the mortgage marketplace.

“Now that Fannie Mae and Freddie Mac have become current on their financial reporting, it is prudent to review and revise their excess capital requirements.  As I currently understand, today’s agreement appears to achieve this objective in a way that also protects their long-term safety and soundness.  I commend all of the parties involved for taking these steps.

“In the coming weeks, I remain hopeful that the Senate will consider legislation to make the regulation of the two housing enterprises more bank-like, and that we will move to conference the regulatory reform bill passed by the House last year.  A strong, independent, and world-class regulator with robust supervisory and enforcement powers will help to ensure that Fannie Mae and Freddie Mac can continue to help Americans buy homes for many years to come.”

Here's the fact sheet the office has prepared for seniors and disabled vets:

Understanding the 2008 Tax Rebate/Economic Stimulus

Will I get a rebate check?

The majority of Americans who are required to file federal taxes will receive a rebate check without taking any additional action.   Many seniors and disabled veterans, who do not normally file a tax return, will need to file a tax return for 2007 in order to receive the cash rebate.

In order to receive a check, you must have at least $3,000 in income. If you receive a total of at least $3,000 from any of the following, you are eligible for a cash rebate check: 

·  Earned Income;

·  Social Security retirement, survivor and disability benefits, not including Supplemental Security Income (SSI);

·  Railroad Retirement benefits; and/or

·  Veterans’ disability compensation, pension or survivors’ benefits.

What do I need to do?

If you already filed a tax return for 2007 that includes more than $3,000 in qualified income as listed above:

You will need to do nothing.  The IRS will process your rebate.

If you normally do not file a tax return, but received more than $3,000 in qualified income as listed above:

You will need to file a tax return this year in order to receive the rebate. You will need to file either the IRS Form 1040 or IRS Form 1040A.  

For the purposes of verifying eligibility, individuals need to report the amount of their benefits from Social Security, Railroad Retirement or Veterans’ Disability on Line 14a of the IRS Form 1040A or on Line 20a of IRS Form 1040. 

For those on Social Security, you will report the Social Security benefits included on your SSA-1099 form.  If you do not have your 1099 form, you can estimate your Social Security benefits based on your monthly amount.

You will need to write “Stimulus Payment” on the top of the form to ensure that the IRS processes your return for the stimulus payment.

If you already filed a 2007 return showing less than $3,000 in qualified income but did not list your Social Security, Railroad Retirement or certain veterans benefits:

You will need to file an amended 2007 tax return.  You can do so by filing IRS Form 1040X. 

You will need to write “Stimulus Payment” on the top of the form to ensure that the IRS processes your return for the stimulus payment.

Where can I get the IRS forms?

You can pick up forms at the local IRS offices located at:

Wilkes-Barre IRS Office:                               Scranton IRS Office:

7 North Wilkes-Barre Boulevard                  409 Lackawanna Ave.

Wilkes-Barre, PA 18702                                  Scranton, PA 18503

570-821-4076    570-961-2493

You can also print the forms from the internet.  They can be found on the IRS website at www.irs.gov.

Where do I mail the completed IRS forms?

If You File the 1040 and Are Not  If You File the 1040 and Are Enclosing a Check:                                Enclosing a Check:

Department of the Treasury  Department of the Treasury

Internal Revenue Service Center  Internal Revenue Service Center

Kansas City, MO  64999-0002  Kansas City, MO  64999-0102

If You File the 1040A and Are Not                       If You File the 1040A and Are

Enclosing a Check:                                      Enclosing a Check:

Department of the Treasury  Department of the Treasury

Internal Revenue Service Center  Internal Revenue Service Center

Kansas City, MO  64999-0015                            Kansas City, MO  64999-0115

What is the deadline for submitting my forms?

According to the IRS, in order to ensure you receive your rebate check, those eligible for the stimulus should file their forms by October 15, 2008.

Nonetheless, the IRS is encouraging those eligible for the stimulus to file your forms by the regular deadline of April 15, 2008.  If you file after April 15^th, your payment may be delayed. 

What if I need help filing out the forms?

For assistance, the following organizations are available:

The Volunteer Income Tax Assistance (VITA) program provides help to low-and-moderate income taxpayers. Call 1-800-906-9887 to locate the nearest site.

The Tax Counseling for the Elderly (TCE) Program provides free tax help to people who are 60 or older.  As part of the Internal Revenue Service-sponsored TCE program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. To find an AARP Tax Aide site call 1-888-227-7669 or visit www.aarp.org. 

A complete list of tax help sites for seniors in Northeastern Pennsylvania is attached.  You should call first to check availability and make an appointment, if necessary.

How much will my rebate be?

Individuals will receive a minimum of $300 ($600 for taxpayers who file a joint return). The maximum benefit is $600 for individuals ($1,200 for taxpayers who file a joint return).

Individuals claiming a qualifying child will receive an additional $300 per child. To qualify, the child must be eligible under the Child Tax Credit and have a valid Social Security Number.

When can I expect my rebate?

The Internal Revenue Service will begin sending taxpayers their payments in early May after the current tax season concludes. 

To accommodate taxpayers who file tax returns later in the year, the Internal Revenue Service will continue sending payments until December 31, 2008.

Is there anything else I should know?

The Internal Revenue Service will mail two information notices to taxpayers advising them of the stimulus payments. 

However, taxpayers should be on alert for tax rebate scams such as telephone calls or emails claiming to be from the Internal Revenue Service and asking for sensitive financial information. 

The Internal Revenue Service WILL NOT CALL OR EMAIL taxpayers about the rebate nor will it ask for financial information.

Shuster Chief Of Staff Embarrasses Himself in Email

Someone else has caught Castoritis.  This affliction is spreading quickly among Pennsylvania Republicans.  It began when Montgomery County DA and County Commissioner candidate (at the time) Bruce Castor emailed me trashing his running mate Jim (Chris' brother) Matthews for taking large sums of money from Bob Asher (once convicted of political corruption).

Now Congressman Bill Shuster's Chief of Staff has sent some unfortunate, embarrassing emails.  They weren't to me but they did wind up in my inbox.  It seems the financial disclosure forms for federal staffers are public information.  A website called LegiStorm.com posted those of Jeff Loveng.  He is Congressman Shuster's (PA-09) Chief of Staff.

Upset with this public disclosure Mr. Loveng left this comment at the website:

"Since you have put financial disclosure's on your web site I (and my wife and children) are being harassed by telemarketers with specific information about the stock holdings we have and the financial institutions where we have them. Calls like, " Hi I am calling about your investments with Northern Trust Bank..."
Apparently the little box that you have to check to log into your site does not dissuade evil doers. What do you intend to do to protect me and my family? Just because I am a public servant does not mean I should be subject to this type of harassment. Please tell me how you will protect me. I am eagerly awaiting your reply.
Sincerely, Jeff Loveng"

This was his response after the website owner responded:

From: Loveng, Jeff [mailto:[email protected]]
Sent: Friday, March 14, 2008 11:06 AM
To: LegiStorm; [email protected]; [email protected]
Subject: RE: Your LegiStorm feedback

 

Mr. Friedly –

 

Thank you for responding to my inquiry regarding the placement of Financial Disclosure Forms (FD) on your web site.  I would like to point out a couple of errors in your response.

 

You mentioned that you already take measures to protect staffers from unauthorized use of disclosures by putting a legal warning on the site and requiring use only by registered users.  Your site does do these two things, however these are protections in name only, they have no effect.   As you may know, the 1978 Ethics in Government Act and subsequent amendments do not contain any penalty provisions for misuse of the data – the law simply states in the Appendix that it is unlawful.   I don’t know of any criminal case where an individual has been charged for an unlawful event cited in an Appendix of an Act.  Additionally, if hypothetically an individual was charged, the Act has no penalty provisions, thereby rendering it useless.   

 

You also noted that you do not believe telemarketers phoned me because of information obtained on your site… that financial records of millions of Americans are available to customers of Lexis-Nexis and other specialized databases for this purpose and that it “strains credibility” to believe that someone spent hours culling through your site looking for the holdings of a small handful of individuals.  Your answer here is not only insulting and accusatory, but again incorrect.  As you may know, proper compliance with the FD form requires the inclusion of all financial data including the names of financial institutions, specific names of holdings and their value range, property, mortgage information and the creditors and debt levels associated with the owned assets, as well as other information.  Your statement that this type of data is widely available also “strains credibility”.  This type and level of financial data detail is not available anywhere else through any purchasable data source - period. For a person to acquire this type of information without access to FD's would require a breach of banker/client privacy that only a grand jury or judge could grant.

 

You also mentioned that you doubted people would spend the time to look through the data.  Apparently (and confirmed by a Google search reveling your plethora of self promotion you flood the internet with that shows your limited professional experience) you have never been in a job that was sales/commission based while in a downward trending economy like most brokers are today.  Brokers will go to great lengths to find leads on potential new clients.  Not to mention it is very easy and quick to go through the reports.  Once potential abusers of the data know it is a potential good source of new clients and since it has been widely reported on the news and on-line that Legistorm is making this data available – it does not take a rocket scientist (or even a physicist) to figure it out.

You also mentioned that if I continue to believe companies may be misusing this information, you would advise me to refer these telemarketers to the Justice Department so that any illegal behavior can be stopped.  Given my response above in reference to no penalty section in the 1978 Act…how exactly is the Justice Department supposed to stop this illegal behavior?  With a time out or a wag of the finger?   

 

I realize that the FD’s have been publicly available under section 105 of the Act for 30 years, but I think any logical person would agree that the 1978 Act did not foresee the internet and all its mass media potential.  When FD's were contained to the basement of the Cannon Building it was a different world where staff could find out the identity of anyone who looked at their records. However, now once the FD file goes through your Legistorm web laundering process the old check and balance system is lost, striping staff of what little privacy they had and of any ability to keep the highly personal data out of the hands of the unscrupulous. But given that you think it is no big deal, I challenge you to put your own Financial Disclosure on your web site in an up front positioning where anyone visiting the site can see it. 

 

Your biography indicates that you have led all of your adult life on the “peeping Tom” end of the microscope of public servant scrutiny and thereby you do not have a semblance of a clue to know what it feels like to have your personal financial information strewn about the internet.  But I would hope that since you are a person that has a family you might possibly understand the feeling of protection that a man will have for his wife and children.  To see the personal financial information on public display of the people closest to you leaves you with only a feeling of nausea. 

 

I recognize that my ability to protect the privacy of my family is significantly limited as long as I continue to perform my duties as a public servant.  But I do think that the actions by yourself and Legistorm violate both the spirit and intent of the 1978 Act.

 

Sadly, I feel that I will have to sit idly by and wait for harm to be done to either myself or my family before I will have any legal recourse against Legistorm and specifically you Mr. Friedly - a situation that I deeply hope and pray will never occur.

 

I hope you savor this time in your life where you feel you have other people at your mercy while you conduct your witch hunt.  Because the recent events of the man you appear to admire, Governor Eliot Spitzer show – you may some day find yourself as the Emperor with no clothes.

 

Regards,

 

Jeff Loveng

Chief of Staff

Congressman Bill Shuster

 

Wow, how over the top can you get?  He makes it all personal and insults the man for posting public information.  Perhaps someone should tell Jeff Loveng about the federal Do Not Call List.  Also note Mr. Loveng used his official Capital Hill email address for this personal correspondence.  Jock responded with the trump card:

Jeff,

 

You seem to have a lot of time on your hands. Therefore, I would suggest that rather than engage in name-calling, you could take it up with your boss and his colleagues and set about changing the law in the manner you suggest. After all, you guys write the laws. We don’t.

 

Jock