Skip to comments.Joe Barton is Right: There Was a $20 Billion Shakedown in the White House
Posted on 06/17/2010 3:22:49 PM PDT by BuckeyeTexan
Barton should have been apologizing to the American people, not BP, but other than that he is 100% correct. What happened in the White House yesterday was a shakedown of Godfather-like proportions. Lets review:
1) BP agreed to pay $20 billion over four years to an independent party;
2) BP immediately identified $20 billion in U.S. assets that could be liquidated should BP not be able to pay on time;
3) BP received no assurances that the ultimate economic damages would not be higher;
4) BP is still liable for all individual and state claims in court;
5) The fund is completely separate from any environmental damages, which the Obama administration says could top $30 billion;
6) BP paid another $100 million for workers made unemployed by President Obamas indefinite ban on offshore oil drilling;
7) BP received no assurance that the White House would not ask for more money if the ban becomes permanent.
All of this was negotiated while Attorney General Eric Holder, who has already threatened BP with criminal prosecution, stood in the corner. And what did BP get in return? A single statement from the President saying he did not want to drive BP into bankruptcy. Of course he doesnt. The mob cant collect from a bankrupt business. Clinton administration Deputy Attorney General turned BP lawyer Jamie Gorelick let slip what the game is really all about: We know what it looks like when a company is driven into bankruptcy. The claims that come first are the creditors, then the employees, then the environmental claims, and then the likes of shrimpers. This would not be a good result for anyone. Well, not anyone who expects the law to be followed.
(Excerpt) Read more at blog.heritage.org ...
Might as well add that $20 billion to the family budget because BP will be passing it down to their customers.
Barton could have pointed out Obama’s shakedown/power grab here w/o “apologizing” to BP. Talk about tone deaf.
Exactly! Way to kill momentum.
I applaud Barton...about time somebody calls a spade a spade or a crook. I’m tired of all this bull shitte nice talk..this is a shakedown pure and simple....call it as it is. Thanks Joe Barton...nice to see somebody has some stones in the congress!
I think it is in genes of Republicans. One of them finally gets tough, catch a little flack, and ham handedly apologize (w.g. Allen-Macaca) ad nauseum. Just stick with Cheney’s line: “Go F Yourself!”
Barton was correct but could not stand the pressure. That is why the Republican Party is called ‘stupid’. Not only was it a shakedown it was government extortion.
Obama is doing what he knows how to do - working this as any community activist would.
1. Identify a grievance
2. Asses blame
3. Get compensation for victims
4. Problem solved
5. On to the next ‘crisis’
Bloomberg is reporting that, from information submitted by BP to the Mining and Mineral Services (MMS), that BP was aware of cracks in the well at least since February, 2010.
BP has been at the forefront of lobbying for cap and trade legislation.
BP CEO Tony Hayward sold £1.4 million of his shares in BP weeks before the spill as reported by the Telegraph. Ironically, Goldman Sachs divested 44% of its shares in BP Oil during the first quarter of 2010. Could it be mere coincidence that the former chairman of BP, Peter Sutherland, is the current chairman of Goldman Sachs?
Right, nothing to see here, move along.
The agreement to pay 20 billion is questionable, why would a company agree to do that without some sort of court order.
However, what I really don’t like is who is going to control the dispensing of those funds. This really amounts to nothing more than a bribe from BP that will be used by obama to buy political favors.
Right. Total different approach of the Rats and GOP. A Rep says or does something not that bad or relatively tame, and all the leadership wants them gone. A Dem does it, and they circle the wagons. Media justifies different treatment by saying GOP is moralistic and sanctimonious, but Dems don’t claim to uphold any standards.
Example: Get in a car wreck. A big limo comes to your house. GF Tony says, “Pay me $100,000 and we’ll call it evenr”. You say, “Wait a minute: (a) it was maybe not all my fault, (b) the damage to your car was not that much and (c) I’d like a court or even a jury (ha) to decide it. Tony then takes you for a ride and settles it the “Chicago Way” (ala Sean Connery in “The Untouchables”). Is this an apt comparison?
Ed Schultz and the rest of the msnbc idiots were all orgasmic at the fact that o shook down BP. Now suddenly it’s a crime to mention that O shook down BP.
As for the repubs who ordered him to apologize. They can go straight to hell.
unfortunately Barton retracted his comment due to emotional mindless overreactions - by the GOP circular firing squad
REPEAL THE SHAKEDOWN FUND!
Real Americans are appalled at this move. We need to make it clear that our side will undo this deal — right after we repeal KenyaCare.
Do you honestly think Barton withdrew that comment on his own?
Seriously? He was pounded over the head by our party leaders until he gave up.
You can’t fight the complete Democrat party and the leadership of your own.
A pox on the Republican party.
Obama does not need court ordrs or legal authority to do what he wants to do, especially while Republicans are loathe to protest in any substantive, consistent and repetitive manner.
This slush fund will be used to reward labor unions, one way or another, much as fiscal liability for the economically unsustainable retirement annuity and medical care benefits that had been granted to UAW members by auto industry executives has been transferred to we taxpayers through the GM/Chrysler takeover scheme. The Obama Czardom also has plans to dump on taxpayers the liability for similar “benefits” that have been awarded via negotiated union contracts to SEIU members, aka Revolutionary Foot Soldiers/Street Demonstration Convincers .
When is a top Chicago-Style politician ever NOT a thug???
And the Publican Wimps went Ballistic....SCREW EM!
“All of this was negotiated while Attorney General Eric Holder, who has already threatened BP with criminal prosecution, stood in the corner.”
Shakedown is the correct term..
Extortion is also appropriate.
The 20 billion was clearly agreed to before they met. It was probably agreed to days before. That’s why zero said he would get money from them in his speech the prior evening.
(It is the Republican leadership who should be apologizing for threatening a Congressmen for his seat on a committee...for telling the truth, and RIGHTFULLY apologizing for an American Presidents 3rd world behavior)
[Barton] complained that the attorney general of the United States, who is legitimately conducting a criminal investigation and has every right to do so to protect the interests of the American people, [is] participating in what amounts to a $20 billion slush fund thats unprecedented in our nations history, thats got no legal standing, and which sets, I think, a terrible precedent for the future.
I apologize, Barton added. I do not want to live in a country where any time a citizen or a corporation does something that is legitimately wrong is subject to some sort of political pressure that is again, in my words, amounts to a shakedown. So I apologize.
Im speaking now totally for myself, he noted. Im not speaking for the Republican Party.
Sometimes there are coincedences.
Sometimes, things are as odd as they seem.
When I heard Jamie Gorelick was sitting on BP’s side of the table, I knew IMMEDIATELY that something odd was up.
Gorelick is a fixer of the first order.
With Holder in the room and Gorelick on BP’s sid eof the table, I have NO DOUBT that a bunch of strongarming and backroom dealing was done.
What is the link between BP and Goldman Sachs (the democratic money-suppliers)?
I am so disappointed with Rep. Barton. I stood up and cheered when I heard him speak the truth. Now I find out he cannot be a man.
No. It wasn’t a bribe. It was extortion.
That’s a mighty fine list. The only thing I would add would be that our Congresscritters insist on prematurely “investigating” BP’s actions rather than allowing them to focus on killing the well and cleaning up the mess.
It will be used to buy votes in the november election
The Acorn army has to put mickey D’s on the kitchen table
Don't forget, obama received more BP contributions than any other politician. Who knows what kind of dealings brought this about.
When the hell is this Obama gangster going to be halted by the courts of this land?
Very good point.
That's standard procedure in any claims process.
When you accept payment on an insurance claim, you sign a document waiving your rights to file suit.
You can bet those fisherman whom BP has already paid off had to sign waivers.
C’mon... It was like Joe Wilson yelling “liar” during the State of the Union. It was true, but was politically idiotic. If it was only about what was right as opposed to politically astute, McCain would be President.
This is not a traffic accident. Try again. I'll bet they didn't but they will now, that is for sure. After 9/11 Congress stepped and setup a process by law. The administration doesn't have the power to do what they are doing and the only people being screwed in the end will be the tax payers and probably the victims.
Barton should have stuck by what he said.
He would not have had to beg for money as long as he wanted to be re elected.
It all adds up. Extortion comes to mind.
That was quick.
Actually, also the Washington Examiner died too.
Here is the latest locales for the same links in case you want them.
The other two links in SNM’s post are still vital.
As should Congressman Wilson when he blurted out the truth in a "State Of The Union" message and then struck a deminished pose afterwards!!!
Back in the mid-1990s, the Clinton Administration came into power. With end of the Cold War, it was pretty obvious that low-level intensity conflicts and Terrorism would be the dominant security threat to the United States. As the United States battled terrorism, the liberals who came into power wanted to cripple the capabilities of the CIA, because as everyone knows, the CIA is biggest force for evil in the world (sarcasm there).
Anyway, there was a Deputy Attorney General who wrote a memo that set a higher standard than the law even set in keeping FBI criminal investigations for terrorism and counter-terrorism information separated. This memo erected an even higher wall, and made it even more difficult for intelligence information about terrorists to be used and disseminated in protecting the Citizens of the United States.
Also during this time frame, the Clinton Administration, led by the Janice Reno Justice Department, began to investigate lenders who were not meeting the aims of the CRA (Community Reinvestment Act) This investigation, and threat of investigation, led to Fannie Mae beginning the dangerous lending practices that eventually led government officials to bankrupt this country over STUPID loans made by these lending institutions. Fannie Mae and Freddie Mac, the federally chartered mortgage lending institutions, basically defrauded and lied their way into insolvency starting in the late 1990s.
After the 9/11 attacks, the President established the 9/11 Commission to investigate how this was allowed to happen. Of course, Washington DC being Washington DC, the Democrats had to make sure it was a bi-partisan commission. So it shouldnt be any great shock that when the commission was grilling Attorney General John Ashcroft about how difficult it was for intelligence information to flow freely from agency to agency, there was a Democrat on the Commission grilling him about the Bush Administrations failure to get intelligence information passed from agency to agency. It came as a shock to the public when Ashcroft declassified a document revealing that the person grilling Ashcroft was none other than the former Deputy Attorney General who wrote the infamous wall memo, Jamie Gorelick.
So, when it was said and done, the Clinton Administration had the ultimate insider placed on the 9/11 Commission to insure that the blame would not be deflected back on it. That, my friends, is a political fix.
Move forward to 2008.
After the debt crisis and with our economy tanking, carrying much of the world economy with it, investigations began as to why this happened. One of the revelations was that Fannie Mae had misreported earnings, and executives had earned millions in bonuses by participating in excessive and risky lending practices, practices which were at the heart of the housing bubble collapse.
In all of this, the Washington Post reported Fannie Mae employees falsified signatures on accounting transactions that helped the company meet earnings targets for 1998, a “manipulation” that triggered multimillion-dollar bonuses for top executives, a federal regulator said yesterday .. Fannie Mae reported paying the following executive bonuses in 1998: chairman and chief executive James A. Johnson received $1.932 million; Franklin D. Raines, chairman-designate, received $1.11 million; Chief Operating Officer Lawrence M. Small received $1.108 million; Vice Chairman Jamie S. Gorelick received $779,625; Chief Financial Officer J. Timothy Howard received $493,750; and Robert J. Levin, an executive vice president, received $493,750.
Did any of those names jump out at you? If it didnt, it should. You see, one of those executives who was receiving excessive bonuses was none other than Jamie Gorelick. Yes, this is the same Jamie Gorelick who was part of the Reno Justice Department that threatened criminal investigations for not making more loans to people who couldnt pay them back. Gorelick was working at Fannie Mae after leaving the Justice Department in the mid-90s. She was replaced by Eric holder.
So, now, we have Jamie Gorelick deeply involved and partially responsible for two of the huge crisis that have shook this nation and, in the case of the credit industry, is still threatening to plunge us into a depression.
Now, fast forward to yesterday.
President Obama summoned the BP Chairman to the Whitehouse. Eric Holder, the Attorney General, was present. That was highly sensitive because he has already announced that a criminal investigation of BP is underway. Im wondering why BP would even sit down with the President when they are being investigated.
Anyway, they had a sit-down where the President basically conducted a shakedown of BP. BP agreed to put $20,000,000,000 into an escrow fund to administered by someone the President appoints. It is being reported this morning that Joe Biden leaned over the table and told BP Listen, either you put 20 million in escrow or well do it for you. Since this is not a government office, the normal rules of government accountability dont apply. This has the potential for all kind of bad things to happen.
But imagine my surprise and amazement when I found out who was sitting on BPs side of the table during this meeting at the Whitehouse. None other than Jamie Gorelick.
3 issues that have shaken this country to its core, and Jamie Gorelick is in the middle of all three of them.
Boys, that is some set of coincidences.
Yes. I know all about Jamie Gorelick, Satan’s Mistress. There is no doubt in my mind that she’s building a new wall of some kind.
Suppose Obama’s lack of leadership in the Gulf is nothing more than a political con to frustrate the public’s patience and overwhelm the economic conditions of an already troubled area of the U.S. How much power would that give Obama to circumvent the law in order to address the crisis? Similar to the TARP strategy, no?
Bill O’Reilly endorsed Obama’s shakedown of BP as a necessary evil to protect the victims of the oil spill. That’s what Obama wants - the public’s endorsement to circumvent the law. Why Boehner, Cantor, and Pence couldn’t see this before slapping down Barton is totally beyond me.