The Daily Muck

Start your day with TPM.
Sign up for the Morning Memo newsletter

Rep. Elijah Cummings (D-MD) called for an investigation into whether AIG and other medical benefits providers denied costly treatment for civilian contractors injured in Iraq and Afghanistan. In a letter Tuesday to Rep. Dennis Kucinich (D-OH), who chairs the Subcommittee on Domestic Policy of the House Oversight Committee, Cummings said he was “absolutely disgusted to read about the atrocities that individuals are being forced to endure as they attempt to get treatment for the injuries they received while serving our country.” The LA Times and ABC News reported last week that providers of medical benefits were unwilling to fund basic medical needs like artificial limbs, surgery, and psychological counseling. (LA Times)

Sen. Dianne Feinstein (D-CA) introduced a bill to increase FDIC funding by $25 billion shortly after a firm chaired by her husband Richard Blum received a large real estate contract from the agency, the Washington Times reported Tuesday. Blum’s private investment company also reported to the SEC that it bought more than $10 million worth of new shares in CB Richard Ellis Group, the firm which received the government contract, around the time the bill was introduced. In a statement, Feinstein said that the story “makes inaccurate and unfair suggestions of impropriety that are simply not supported by facts” and that she supported the bill to address California’s rising number of foreclosures. (Washington Times/San Francisco Chronicle)

Some of the top recipients of federal bailout funds spent millions on lobbying in the first three months of this year, according to financial disclosure records. Together, companies that received significant assistance have spent $22 million on lobbying since the bailouts began six months ago. The biggest spenders, J.P. Morgan Chase, Citigroup, and General Motors have all spent at least $1 million since January. An executive at an investment fund familiar with labor unions said that this lobbying contradicts the purpose of the TARP program: “It’s business as usual with taxpayers picking up the bill.” (Washington Post)

Federal inspectors general sought to expand powers with respect to foreign contracting before a Senate subcommittee Tuesday. The Senate Homeland Security and Governmental Affairs subcommittee is concerned about the amount of federal funds spent on contracting, reacting to the $500 billion spent last year. Sen. Claire McCaskill (D-MO), the subcommittee chair, said, “Our subcommittee has an important responsibility to make government contracting as honest, transparent and accountable as possible.” Inspectors general said yesterday that in order for the process to be transparent, they need subpoena powers regularly reserved for grand juries. Currently, inspectors general must notify suspects before they seize financial records, which some say gives suspects time to destroy evidence. (Washington Post)

A group of investors trying to push one of Bernard Madoff’s companies into bankruptcy filed to move their case from Florida to New York Tuesday. Citing “overlapping discovery, related assets and common investors,” the investors said that the bankruptcy case should move to New York to join other cases pending against Madoff which are being held there. Last week, the London-based Madoff Securities International filed for Chapter 15 bankruptcy in Florida and attempted to seize the $200,000 Aston Martin of Peter Madoff, Bernard’s brother. (Bloomberg)

The state treasurer of Connecticut said Tuesday that that she would vote against the re-election of Ken Lewis as the Bank’s CEO at an upcoming shareholder meeting. Denise Nappier — also a B of A shareholder — said that the bank needs to “substantially reconstitute itself” in the coming weeks and months following its dismal performance since Lewis announced the acquisition of Merrill Lynch in September. Lewis has been widely criticized for approving massive bonuses to Merrill executives directly before B of A requested billions in federal bailout dollars. Last week, the SEIU called for Lewis to be fired for poor performance. (Reuters)

Latest Muckraker
Comments
Masthead Masthead
Founder & Editor-in-Chief:
Executive Editor:
Managing Editor:
Associate Editor:
Editor at Large:
General Counsel:
Publisher:
Head of Product:
Director of Technology:
Associate Publisher:
Front End Developer:
Senior Designer: