Texas state lawmakers considered a GOP-backed bill Tuesday that would require voters to present photo identification at the polls, what Democrats call “a modern-day poll tax” because it disproportionately impacts minorities. Republicans claim that this law is necessary to prevent voter fraud, but have offered little evidence that such fraud is a problem. Dems, in the minority, called Attorney General Greg Abbott — who spent $1.4 million probing voter fraud claims without finding a single vote — to testify. But, backed by a GOPer, Abbott didn’t show up. (Dallas Morning News)
New York Attorney General Andrew Cuomo is investigating whether the massive bonuses paid to Merrill Lynch executives were designed in part to give traders and incentive to mark down their shares, the Financial Times reports. That might suggest that B of A pressured Merrill to understate its fourth quarter earnings in order to make the companies subsequent gains under B of A appear larger. (Reuters)
E-mails released Monday indicated a number of previously unknown links between the Chicago-based Tribune Co. and the Governor Rod Blagojevich. Tribune Co. retained Marc Ganis as a sports business consultant to work with the Blagojevich administration to broker the sale of Wrigley Field. Ganis spoke to Blagojevich chief of staff John Harris about the declining state of the Chicago Tribune and openly expressed his desire for a spot on the 2016 Olympic Committee. Federal agents also allege that members of the Blagojevich administration pressured Nils Larson, an executive vice-president of Tribune Co., to fire members of the Tribune editorial board in exchange for the Governor’s assistance in the sale of Wrigley Field. (Chicago Tribune)
Prosecutors in the Bernard Madoff case are investigating whether Madoff’s employees and family members engaged in the alleged $50 billion Ponzi scheme along with Madoff himself. Madoff claims that he worked alone, but prosecutors are skeptical because of the massive scope of the fraud and the complicated structure used to scam thousands of investors. Though Madoff is expected to plead guilty tomorrow of eleven counts of fraud, a source close to Madoff told the Wall Street Journal that he will not cooperate in the investigations of his employees and family members. (Wall Street Journal)
One of Madoff’s lawyers, Daniel J. Horowitz, fought with federal prosecutors Tuesday over demands that the disgraced money manager give up $177 billion in funds and assets tied to the alleged $50 billion fraud. The lawyer argued that the sum was “grossly overstated” because precedent requires an alleged criminal to forfeit net profits, not net receipts. The lawyer added that Madoff had already ceded billions to investors. (New York Times)
The SEC chair, Mary Schapiro, told a group of compliance executives that the agency would pressure U.S. financial institutions to be more transparent with investors and make regulation a priority. Though Schapiro urged companies to implement their own compliance mechanisms, she said that the SEC would impose reforms in order to regain investor confidence. (Reuters)
