The Washington Post chronicles yet another example of oversight of the bailout bill. Congress required that executives receive limited bonuses — but only for those companies that receive federal money through the Toxic Asset Relief Program. Since the Treasury has shifted gears on how to use the money, the pay restrictions “are now all but gone,” says Sen. Chuck Grassley (R-IA). (Washington Post)
“The United States government has in place neither the policies and technical capacity nor the organizational structure that would be needed” to successfully rebuild Iraq, according to the draft of a lengthy government report obtained by the New York Times and ProPublica. When progress was slow, government officials invented evidence, such as inflating the number of Iraqi troops, the report finds. So far the effort has cost $117 billion and done little more than “restore what was destroyed during the invasion and the convulsive looting that followed.” (New York Times/ProPublica)
The pharmaceutical company Wyeth has become the focus of an investigation by Senator Charles Grassley (R-IA) after it came to light that the company pays ghostwriters to author positive journal articles regarding its products. The inquiry focuses particularly on articles encouraging hormone therapy for menopausal women. (The New York Times)
Mitchell Wade, a former defense contractor who pleaded in 2006 to bribing Rep. Randy “Duke” Cunningham (R-CA) for $1.8 million in exchange for government contracts, will be sentenced today. Wade’s apparent cooperation with investigators, including providing evidence against former Rep. Duke Cunningham (R-CA), is expected to help lessen his punishment. (San Diego Union Tribune)
The woman who is expected to be announced today as Obama’s pick for leadership of the EPA, despite popularity, has been criticized for her work while the head of the New Jersey Department of Environmental Protection. A former employee of Lisa Jackson accused her of pandering to business interests and withholding information from the public. (ProPublica)
A federal grand jury is looking into deals made between a municipal bond underwriter and the New Mexico Finance Authority after it came to light that the company had donated to Bill Richardson’s political action committee. CDR Financial Products contributed money towards voter registration efforts and expenses related to the 2004 Democratic National Convention. (Bloomberg)
Washington power couples where one spouse works for the government and the other lobbies it “present a particular ethical challege” and “illustrate a potential loophole in [Barack Obama’s] pledge of keeping special interests at a distance,” reports the New York Times. The paper highlights the lobbying activities of Linda Daschle, the wife of Obama’s pick for health secretary, and Tom Downey, the husband of Carol Browmer, his likely nominee for energy czar. (The New York Times)
