Barack Obama

Top Pentagon Official: Obama Team Still "The Opposition"

Zachary Roth | December 31, 2008, 5:57PM

The Hill reports today:

Despite keeping Defense Secretary Robert Gates in the Pentagon, President-elect Obama's transition team informed 90 Bush appointees their services will not be needed after Inauguration Day.

It's worth pointing out that another roughly 160 political appointees were kept on. But here at TPMmuckraker, we were more interested in what came next.

The paper reported that, in response to the Obama team's move, Jim O'Beirne, the special assistant to the secretary of defense for White House liaisons, sent an email to the dismissed DOD staffers, in which he suggested that they were being removed by political opponents as a result of their effectiveness in carrying out Bush administration policies.

Reports The Hill:

In the email, O'Beirne tried to assure the soon-to-be displaced employees that the decisions were based on "policy change in the Obama administration" and not based on performance.

However, he said, if employees "harbor residual doubts" then they can "content yourself with the likelihood that it was your outstanding performance as a Bush appointee that drew the opposition's attention to you."

"In that regard, you may take justifiable satisfaction that you were among the first to be chosen," O'Beirne wrote.

Now, this way of thinking -- that being removed by "the opposition" (that is, the man who'll be our president) is a badge of honor, because it shows that you were committed to implementing the policies of the previous president -- is misguided coming from anyone.

But The Hill doesn't note that in the case of O'Beirne, a longtime GOP operative who's married to the conservative commentator Kate O'Beirne, it's perhaps not surprising. Consider this excerpt from a Washington Post story from 2006:

After the fall of Saddam Hussein's government in April 2003, the opportunity to participate in the U.S.-led effort to reconstruct Iraq attracted all manner of Americans -- restless professionals, Arabic-speaking academics, development specialists and war-zone adventurers. But before they could go to Baghdad, they had to get past Jim O'Beirne's office in the Pentagon.

To pass muster with O'Beirne, a political appointee who screens prospective political appointees for Defense Department posts, applicants didn't need to be experts in the Middle East or in post-conflict reconstruction. What seemed most important was loyalty to the Bush administration.

O'Beirne's staff posed blunt questions to some candidates about domestic politics: Did you vote for George W. Bush in 2000? Do you support the way the president is fighting the war on terror? Two people who sought jobs with the U.S. occupation authority said they were even asked their views on Roe v. Wade.

In other words, O'Beirne led the disastrous process in which key posts in the Coalition Provisional Authority were given to Heritage Foundation research assistants who knew nothing about Iraq but were loyal to the GOP. And we all know how that turned out.

So perhaps it's to be expected that O'Beirne would continue to see government only through the prism of politics. Still, it's an outlook that's rarely expressed so crassly.

Thanks to reader W.M. for the tip.

Rod Blagojevich

Fitzgerald Asks For Extension On Blago Indictment

Zachary Roth | December 31, 2008, 12:43PM

US Attorney Patrick Fitzgerald has asked for a 90-day extension to bring an indictment against Illinois governor Rod Blagojevich.

In a motion filed today in U.S. District Court, Fitzgerald said that the length, scope, and complexity of the investigation, combined with the intrusion of the holiday season, has prevented him from meeting the January 7 deadline. The probe, writes the prosecutor, began in 2003 and "involves multiple potential defendants" and thousands of intercepted phone calls.

The move means that we likely won't learn much more from Fitzgerald about Blagojevich's alleged crimes until at least March. So speculation is likely to continue.

We'll have the motion for you soon...

Late Update: Here it is.

Bailout

Former FDIC Chair, Now Advising Paulson, Is Looking To Profit From Bailout

Zachary Roth | December 29, 2008, 12:14PM

The New York Times reports that several former government officials who helped organize the savings and loan bailout of the early 1990s are now putting that expertise to use by working as lawyers or lobbyists helping banks get a piece of the financial bailout -- or even by investing in some of the bad assets to be offered for sale.

Much of this, it appears, amounts to little more than an example of the decades-old revolving door between government and private business. But the paper reports that at least one former top government official is advising both the Bush and Obama teams on how to respond to the crisis, while at the same time being involved in efforts to profit from it.

Some of these former federal officials, like L. William Seidman, the first chairman of the R.T.C., are serving as advisers -- sharing ideas with Treasury Secretary Henry M. Paulson Jr. and the transition team for President-elect Barack Obama -- even while they are separately directing investors or banks on how to best profit from this advice.

"It is an enormous market," said Mr. Seidman, who has already joined two such potential money-making efforts and is evaluating proposals to participate in a third. "I am enjoying this."

As the chair of the Resolution Trust Corporation and the FDIC in the early 1990s, Seidman directed the government's disposal of the assets of failed savings and loans. So no one's suggesting that Paulson, and advisers to Obama, shouldn't be able to call on him for advice this time around.

But it would be nice to know more about what kind of ideas Seidman, and others like him, are sharing with current and future policymakers, and how those ideas line up with their own flourishing financial interests. And that's only more true given what we've learned about the inadequate efforts to monitor what the federal government has done with the bailout money and to protect against conflicts of interest.

Jesse Jackson Jr.

Jackson Has Been Talking To Feds About Blagojevich Since The Summer

Zachary Roth | December 16, 2008, 4:00PM

Looks like Jesse Jackson has been cooperating with Pat Fitzgerald's probe of Rod Blagojevich for longer than we knew.

The Associated Press reports:

A spokesman for Rep. Jesse Jackson Jr. tells The Associated Press the congressman has been talking to federal investigators about his dealings with Gov. Rod Blagojevich (bluh-GOY'-uh-vich) since summertime.

Spokesman Rick Bryant wouldn't give details of those discussions Tuesday morning.

But a report from WLS-TV in Chicago cites unidentified sources as saying Jackson has told investigators Blagojevich wouldn't appoint Jackson's wife as state lottery director because Jackson wouldn't donate $25,000 to the governor's campaign fund.

Jackson has admitted to being "Senate Candidate 5" identified in the charging document against the Illinois governor. Blagojevich says in a recorded conversation that an "emissary" from Candidate 5 proposed a "pay to play" deal for Barack Obama's vacated Senate seat.

Late update: In fact, Jackson's cooperation may have gone on for much longer than that. CNN reports:

Rep. Jesse Jackson, Jr. has served as an informant to the U.S. attorney's office in Illinois, two sources close to Jackson tell CNN.

Jackson has served as an informant for more than a decade and has relayed information relating to embattled Gov. Rod Blagojevich since 2006, the sources said.

Blackwater

Will Hillary Follow Through On Campaign Pledge To Ban 'Private Mercenaries'?

Justin Elliott | December 15, 2008, 6:36PM

Back in February, Senator Hillary Clinton cosponsored legislation calling for the Secretary of State to ban the use of private contractors like Blackwater from guarding State Department employees -- a position that takes on new significance now that she is Secretary Of State designate.

It was about three weeks after Super Tuesday in the heat of the Democratic primary -- and five months after the killing of 17 Iraqi civilians at Nisour Square by now-indicted Blackwater employees working for the State Department -- when Clinton took an aggressive stand against the use of private forces. A strongly-worded statement issued by her office lashed out at "private mercenary firms":

From this war's very beginning, this administration has permitted thousands of heavily-armed military contractors to march through Iraq without any law or court to rein them in or hold them accountable. These private security contractors have been reckless and have compromised our mission in Iraq. The time to show these contractors the door is long past due.

And in late February, Clinton became the sole Senate cosponsor of a bill, S.2398, the Stop Outsourcing Security Act that had been introduced by Sen. Bernie Sanders (I-VT).

In a major speech on Iraq a couple of weeks later, Hillary reiterated her support for removing private contractors from "combat-oriented and security functions in Iraq."

Read more »

Arlen Specter

To Placate GOPers, Leahy Delays Holder Hearings

Zachary Roth | December 15, 2008, 2:10PM

It looks like Republicans on the Senate Judiciary committee have won at least a partial victory in that battle with Judiciary chair Pat Leahy over the timing of confirmation hearings for Eric Holder, Barack Obama's nominee for Attorney General.

In a press release sent moments ago, Leahy wrote the he was delaying the hearings, and made clear he wasn't happy about it:

The Committee has not yet received the names of other designees for high-ranking Department of Justice officials that we had anticipated and more time is now available to the Judiciary Committee. Therefore, to accommodate the Republicans on the Judiciary Committee, at their request we are delaying the hearing, again, until January 15.
...

It is disappointing to me that they are insisting that we delay at a time when the nation needs its top law enforcement officer and national security team in place and working.

The delay is only a week, since Leahy had been planning to begin the hearings on January 8. He had argued that, after the politicization of the Bush years, it's particularly important for fresh leadership to be installed quickly.

The committee's GOP minority, led by Arlen Specter, has been arguing that Leahy's schedule doesn't allow enough time to review documents pertaining to Holder's role in the controversial pardon of Marc Rich in the waning days of the Clinton administration.

The dispute had gotten unusually pointed for an intra-committee disagreement. Leahy, in a letter to Specter, implied that the Republican's trip to Europe and the middle east this month was a congressionally sponsored junket. Leahy also dredged up a year-old quote from Republican Jon Kyl, arguing for a speedy confirmation of Michael Mukasey as Attorney General, which appears to contrast with today's GOP position on Holder. In announcing the delay today, Leahy again brought up Kyl's quote on Mukasey.

The full release follows after the jump...

Read more »

Arlen Specter

Partisan Flare-Up Over Pace Of Holder Hearings

Zachary Roth | December 12, 2008, 1:30PM

We told you Wednesday about the developing fight over the pace of confirmation for Eric Holder, Barack Obama's nominee for Attorney General. And it looks like it's heating up.

Politico reports that several Senate GOPers took the floor of the chamber last night to agree with Arlen Specter, the ranking Republican on the Judiciary committee, who has argued that the January 8th start date for confirmation hearings, set by Democrats, doesn't allow for enough time to scrutinize Holder's record -- in particular his role in the controversial pardon of Marc Rich in the last days of the Clinton administration.

Minority Whip Jon Kyl said:

Nobody is talking about a long, long, long delay. We do ask that we be accorded the same consideration that was given to others in this situation and that there be adequate time to confirm him.

And another Senate Republican, Charles Grassley, agreed:

I understand the Judiciary Committee has a large number of boxes of archived documents relating to his employment at the Justice Department and those materials need to be reviewed. We haven't even gotten Mr. Holder's questionnaire, nomination materials or F.B.I. background investigation yet.

But Democrats fired back in support of Pat Leahy, the Judiciary chair who's pushing to begin hearings quickly.

Sheldon Whitehouse, who sits on the Judiciary committee, argued that the schedule was not out of keeping with precedent. He said that the average time between a presidential announcement of a nominee and the first hearing has been 29 days. If the Holder hearings began January 8th, that would be 38 days after the nomination was announced on December 1st.

And now Leahy himself has issued a lengthy statement reiterating his desire to stick to the January 8th start date.

Leahy argues that the politicization of the department under Bush makes it especially crucial to move quickly:

This is no ordinary time. Over the last eight years, political manipulation and influence from partisan political operatives in the White House have undercut the Department of Justice in its mission, severely undermined the morale of its career professionals, and shaken public confidence in our Federal justice system. Never has it been more important to have an experienced hand as Attorney General. I hope our Republican members will resist the temptation toward partisanship and join with us to consider this appointment fairly and promptly.

Leahy even dredges up an old quote from a Senate Republican, from last year when GOPers were pushing for quick hearings on President Bush's nominee, Michael Mukasey. "Attorney general nominees have been confirmed, on average, in approximately three weeks, with some being confirmed more quickly," said one Republican at the time, according to Leahy.

Late Update: More on that quote from last year, just dredged up today by Pat Leahy, in which a Senate Republican argues for a quick confirmation for Bush AG nominee Michael Mukasey. Turns out the quote was from none other than Jon Kyl, who now is stressing the dangers of a quick process for Holder. Thanks to reader CR for the tip.

Barack Obama

Report: Rahm And Blago Talked About Senate Seat

Zachary Roth | December 12, 2008, 12:03PM

Did Rahm Emanuel speak to Rod Blagojevich about the governor's plans to fill the Senate seat left open by Barack Obama?

That's what a Fox affiliate in Chicago has reported, based on "a source familiar with the investigation" into the Illinois governor.

Fox Chicago News reports that Emanuel, the Chicago congressman who was appointed shortly after the election to be Obama's White House chief of staff, had "multiple conversations" about the issue with the governor himself and with Blagojevich's chief of staff, John Harris -- who this week was charged along with his boss.

The source said it was likely that these conversations were recorded, since they took place after the federal wiretaps had begun.

Of course, it would not be surprising if Emanuel had spoken to the governor about options to fill the seat. Fox Chicago said that the source didn't say whether those conversations involved any quid pro quo or dealmaking.

Obama yesterday pledged to canvass his staff about conversations with Blagojevich's office over the seat, and disclose what he finds out soon. Obama said that none of his staff had discussed any kind of deal for the seat.

Barack Obama

Axelrod: Jarrett Withdrew From Senate Contention Because Obama Wanted Her In WH

Zachary Roth | December 12, 2008, 11:18AM

Looks like David Axelrod is trying to push back against talk that Valerie Jarrett, a close friend and adviser to Barack Obama, may have abruptly pulled out of the contest for the president-elect's Senate seat because she had an idea of how the governor was approaching the task of filling the seat.

Bloomberg reports that Axelrod, Obama's top strategist, told an audience last night at Harvard's Kennedy School of Government:

[Obama'] preference was always that she serve in the White House, and ultimately he expressed that to her and said look, 'I just need you,' and that's why she made that decision.

Jarrett withdrew from contention days after a Nov. 10 conference call where, according to charging documents filed by prosecutors, Blagojevich talked about appointing "Senate Candidate 1" in exchange for his wife getting a corporate board appointment. Soon afterwards, Jarrett was announced as a White House adviser to Obama.

The Chicago Tribune has identified Jarrett as Senate Candidate 1.

Axelrod added:

No one in their wildest imagination could have imagined the scenario that ensued. There's a vacancy, the governor, apparently, in the complaint of the government had some ideas about what to do with it. We were not involved in that discussion or any discussion of that nature.

Jesse Jackson Jr.

Report: Businessmen Said They Were Raising Money For Blago To Get Senate Seat For Jackson

Zachary Roth | December 12, 2008, 10:57AM

This doesn't look great for Jesse Jackson Jr.

The Chicago Tribune reports:

As Gov. Rod Blagojevich was trying to pick Illinois' next U.S. senator, businessmen with ties to both the governor and U.S. Rep. Jesse Jackson Jr. discussed raising at least $1 million for Blagojevich's campaign as a way to encourage him to pick Jackson for the job, the Tribune has learned.

At a luncheon meeting on October 31, Nayak and Rajinder Bedi told many of the attendees that they were organizing a fundraiser for Blagojevich, and that the purpose of the event was to get Jackson named to the Senate seat, two sources tell the Trib.

The meeting led to a fundraiser last Saturday which was attended by Jesse Jackson's brother, a former business partner of one of the businessmen, Raghuveer Nayak.

One source told the paper that he overheard Nayak and Bedi discussing plans with another politically active Indian-American businessman.

Raghu said he needed to raise a million for Rod to make sure Jesse got the seat," the second businessman said. "He said, 'I can raise half of it, $500,000.' The idea was that the other two would help raise the rest.

Nayak and Bedi are politically active in Chicago's Indian-American community. Nayak has raised money for Blagojevich and contributed to Jackson. Bedi is an aide to Blagojevich, who the governor is said to call "my Sikh warrior."

Speaking to a local Fox affiliate outside his home this morning, Jackson responded to the Trib's report.

He called Nayak a "great man" and a" family friend, but then said: "I'm confident that no one on my behalf made a single offer to anyone for anything. I wouldn't accept the position if it were offered under those circumstances."

Jackson continued:

I had not met with Governor Blagojevich in four years until I was granted a meeting on Monday, where I presented the governor with my credentials. What I was unaware of was that the governor was pitting Candidate 1 against Candidate 5, against Candidate 2, against Candidate 3, trying to exact (sic) something out of everyone in the process.

Jackson's own lawyer has all but confirmed that Jackson is Candidate 5. In the charges filed Tuesday against Blagojevich, the governor says he was approached by an "emissary" from Candidate 5, proposing a "pay to play" arrangement for the Senate seat.

Barack Obama

Obama Pledges Openness On Blago Contacts

Zachary Roth | December 11, 2008, 11:34AM

If any of Barack Obama's aides talked to Rod Blagojevich about the Senate seat the president-elect left open, we may be about to find out who it was, and what was said. And that's a lot better than we've been used to over the last few years.

At an appearance moments ago to announce his healthcare team, Obama led off by telling reporters that he has asked his team to gather the facts about contacts with the governor on the subject. "What I want to do is to gather all the facts about any staff contacts that may have taken place" between the governor's office and the transition team, he said. In response to a question, he added that he would present the findings publicly in the next few days.

But Obama said he is "absolutely certain" that if such contacts took place between his team and the governor's office, they would not have included discussion of any kind of "deal" for the seat.

Obama also repeated that he himself never spoke to the governor about the seat. "I did not speak to the governor about these issues," he added.

It's worth noting that Obama's pledge to canvass his staff and present what he's found stands in contrast to the approach taken by President Bush after news reports suggested that a member of his team had improperly leaked the name of a covert CIA operative. Bush at first pledged to get to the bottom of the matter, but soon appeared uninterested in quickly doing so, or in disciplining those members of his administration -- Karl Rove, Scooter Libby, and Richard Armitage -- who were ultimately found to have been the culprits.

We should wait to see if Obama fully delivers on his pledge to reveal what he's found, but so far, he seems to be approaching the issue with greater openness than his predecessor.

Arlen Specter

Leahy and Specter At Odds Over Holder Confirmation

Zachary Roth | December 10, 2008, 6:09PM

Trouble in paradise?

Pat Leahy and Arlen Specter, the ranking Democrat and Republican respectively on the Senate Judiciary committee, have had a relationship over the years that, on the whole, has been a model of bipartisan comity as they've passed the gavel back and forth.

But are they falling out over Eric Holder?

In a speech on the Senate floor today, reports The Hill, Specter expressed surprise that Leahy, the committee chair, had scheduled a January 8 kickoff for Holder's confirmation hearing for the Attorney General job. Barack Obama is scheduled to be sworn in January 20.

Specter cited concerns about Holder's role in the pardon of Marc Rich in the
waning days of the Clinton administration.

"We need to be sure the attorney general does not bend his views in any way that is partisan or political," Specter said. "There are many other matters that warrant inquiry."

Given the amount of material to go through, Specter said, the hearings should not begin until January 26 at the earliest.

The speech followed a letter sent last night by Specter to Leahy.

In response, Leahy just now fired off a letter back to his longtime colleague -- "Dear Arlen", it begins -- expressing surprise at Specter's surprise.

Leahy writes:

As I have said repeatedly from the time reports of his likely designation began appearing in the press in mid-November, I thought we should move promptly. It hardly came as a surprise when the President-elect announced that Eric would be a key part of his national security team at the designation announcement on December 1. My recollection is that your initial reaction on November 18 was that you were at that time already reviewing his record. Of course, Eric is someone you and I both know well and have known and worked with for years.

Leahy also cites historical precedent to argue that the timing of the hearings is not unusual:

After the contentious 2000 presidential election, I also proceeded promptly to hold the hearing on the designation by President-elect Bush of John Ashcroft to be Attorney General. John's designation was not formally announced until December 22, but I held his hearing 25 days later. I do not think President-elect Obama should be penalized for proceeding promptly with transition and designating his Attorney General selection three weeks before President Bush had.

I am sure you recall during your first year in the Senate how promptly Chairman Thurmond proceeded on the designation of William French Smith to be Attorney General at the beginning of the Reagan administration. The Committee completed its consideration of President Reagan's lawyer to be the Attorney General of the United States with a vote on January 16, even though he was not designated until December 11. We have known about Eric's designation officially for 10 days, and unofficially for more than three weeks. The Committee would have to vote on January 6, the first day of the new Congress, to approximate that timeline.

President Carter's first Attorney General, Griffin Bell, was not designated until December 18, yet his hearing and Committee consideration were completed by January 19. Approximating that timeline would have the Committee voting before the new Congress even comes into session.

Leahy even brings up past favors he has done for Specter:

I have sought to accommodate your interests on many occasions. I scheduled field hearings for you in Pennsylvania on foreclosure and health care mergers issues, and worked hard to ensure fair treatment and confirmation for nominations in which you had a personal interest.

We'll keep you posted on how this plays out...

Barack Obama

Jackson: I Did Nothing Wrong

Zachary Roth | December 10, 2008, 4:40PM

Rep. Jesse Jackson Jr. just gave a press conference adamantly denying any wrongdoing in connection with the Blagojevich charges.

"I reject and denounce pay-to-play politics, and have no involvement whatsoever in any wrongdoing,"Jackson said.

He added: "I did not initiate or authorize anyone at any time to promise anything to Governor Blagojevich at any time."

Jackson continued: "I spoke to the US Attorney's office and they shared with me that ... I am not accused of any misconduct."

Jackson said he met with the governor Tuesday (he meant Monday, it appears) to discuss the Senate seat, as was reported at the time, but that he believed he was in consideration on the merits.

He closed with an effort to associate himself with civil-rights history, saying he wanted to be judged "on the content of my character."

Earlier today, Jackson's lawyer all but admitted that Jackson is Senate Candidate 5. In the indictment filed against Blagojevich, the governor claims that an "emissary" from Candidate 5 approached him about a "pay to play" deal for the open Senate seat that Blagojevich has the power to fill.

Jesse Jackson Jr.

Jackson's Lawyer: I "Assume" He's Candidate 5

Zachary Roth | December 10, 2008, 3:59PM

In a televised press conference this afternoon, Jesse Jackson Jr.'s lawyer all but confirmed that his client is Senate Candidate 5 -- as we suspected from the start.

Asked whether he believes that Jackson is Candidate 5, James Montgomery said: "I do." He added: "He did not specifically tell me that, but I can assume it from our conversation."

Montgomery said that Jackson is guilty of no wrongdoing, and that both Montgomery and Jackson have been told by law enforcement that Jackson is not a target of the investigation. And he said that he and Jackson are scheduled to meet with US Attorney Pat Fitzgerald on Friday or Monday.

Just to remind you, in the indictment filed against Rod Blagojevich, the governor claims that an "emissary" from Candidate 5 approached him about a "pay to play" deal for the open Senate seat that Blagojevich has the power to fill.

Jesse Jackson Jr.

Report: Jackson Jr. Is Candidate Five

Zachary Roth | December 10, 2008, 11:49AM

ABC News is reporting that Rep. Jesse Jackson is "Senate Candidate 5". The report is attributed to "federal law enforcement sources."

The charging documents in the Rod Blagojevich case quote the governor telling an aide that an "emissary" from Candidate 5 contacted him and proposed a "pay to play" arrangement in regard to the US Senate seat left open by Barack Obama, which Blagojevich has the authority to fill.

The governor also says he thinks he might be able to get something "tangible, up front" from Candidate 5 in return for the appointment.

Jackson Jr. said this morning he was contacted by federal prosecutors who "asked me to come and share with them my insights and thoughts about the selection process."

Asked whether he was Candidate 5, Jackson Jr. said "I don't know," but added that he had been told he was not a target of the investigation.

We suggested yesterday that Jackson Jr. might be Candidate 5.

Rod Blagojevich

Blago Lawyer: Gov "Didn't Do Anything Wrong"

Zachary Roth | December 9, 2008, 6:04PM

Rod Blagojevich's lawyer has said the governor has no plans to resign and will be vindicated, Politico reports.

The attorney for Illinois Gov. Rod Blagojevich said the governor will be vindicated and he has no plans to resign.

"He didn't do anything wrong," attorney Sheldon Sorosky told reporters after Blagojevich was arraigned. "A lot of this is just politics."

Blagojevich should be in the office Wednesday, Sorosky added.

So, reporters asked, he does not intend to resign?

"Not that I know of, no," said Sorosky, who added that the governor was "surprised" by the day's events.

Rod Blagojevich

CREW To Blago: "Resign Immediately"

Zachary Roth | December 9, 2008, 2:37PM

In what is likely the start of a trend, Citizens for Responsibility and Ethics in Washington (CREW), the DC-based good government group, has released a statement calling on Blagojevich to resign as Illinois governor.

It's fair to say that if the allegations in the charging documents are true, the governor has shown neither responsibility nor ethics.

Barack Obama

Blago: Senate Candidate 5 Wanted To Trade Campaign Cash For Seat

Zachary Roth | December 9, 2008, 2:10PM

We don't know for sure who Senate Candidate 5 is. But we'll likely find out. So it's worth understanding what his or her (though it appears to be his) alleged role in the affair is.

For Candidate 5, the most damaging passage in the document is this:

On December 4, 2008, ROD BLAGOJEVICH spoke to Advisor B and informed Advisor B that he was giving Senate Candidate 5 greater consideration for the Senate seat because, among other reasons, if ROD BLAGOJEVICH ran for re-election Senate Candidate 5 would "raise money" for ROD BLAGOJEVICH, although ROD BLAGOJEVICH said he might "get some (money) up front, maybe" from Senate Candidate 5 to insure Senate Candidate 5 kept his promise about raising money for ROD BLAGOJEVICH. (In a recorded conversation on October 31, 2008, ROD BLAGOJEVICH described an earlier approach by an associate of Senate Candidate Five as follows: "We were approached 'pay to play.' That, you know, he'd raise me 500 grand. An emissary came. Then the other guy would raise a million, if I made him (Senate Candidate 5) a Senator.")

That last part, in which the governor says he was approached by an "emissary" from Candidate 5 proposing a pay-to-play deal for Barack Obama's vacated Senate seat, is the key. Though it's worth noting, of course, that Blagojevich hardly has a reputation for honesty.

There is also this passage:

Later on December 4, 2008, ROD BLAGOJEVICH spoke to Fundraiser A. ROD BLAGOJEVICH stated he was "elevating" Senate Candidate 5 on the list of candidates for the open Senate seat. ROD BLAGOJEVICH stated he might be able to cut a deal with Senate Candidate 5 that provided ROD BLAGOJEVICH with something "tangible up front." ROD BLAGOJEVICH noted he was going to meet with Senate Candidate 5 in the next few days. ROD BLAGOJEVICH told Fundraiser A to reach out to Individual D, an individual who ROD BLAGOJEVICH is attempting to obtain campaign contributions from and who, based on intercepted phone calls, ROD BLAGOJEVICH believes to be close to Senate Candidate 5. ROD BLAGOJEVICH told Fundraiser A to tell Individual D that Senate Candidate 5 was very much a realistic candidate for the open Senate seat, but that ROD BLAGOJEVICH was getting "a lot of pressure" not to appoint Senate Candidate 5. ROD BLAGOJEVICH told Fundraiser A to tell Individual D that ROD BLAGOJEVICH had a problem with Senate Candidate 5 just promising to help ROD BLAGOJEVICH because ROD BLAGOJEVICH had a prior bad experience with Senate Candidate 5 not keeping his word. ROD BLAGOJEVICH told Fundraiser A to tell Individual D that if Senate Candidate 5 is going to be chosen to fill the Senate seat "some of this stuffs gotta start happening now . . .right now. . . and we gotta see it. You understand?"

ROD BLAGOJEVICH told Fundraiser A that "you gotta be careful how you express that and assume everybody's listening, the whole world is listening. You hear me?" ROD BLAGOJEVICH told Fundraiser A to tell Individual D if there is "tangible political support (campaign contributions) like you've said, start showing us now." Fundraiser A stated he will call Individual D on the phone to communicate ROD BLAGOJEVICH's message. ROD BLAGOJEVICH responded that "I would do it in person. I would not do it on the phone." ROD BLAGOJEVICH told Fundraiser A to communicate the "urgency" of the situation to Individual D.

So it certainly seems clear that the governor believed Candidate 5 would play along -- though that's not proof that he was correct in that assumption.

Barack Obama

Looks Like AG Madigan Is Candidate 2

Zachary Roth | December 9, 2008, 1:35PM

Senate Candidate 2 appears to be Illinois Attorney General Lisa Madigan.

From the charging document:

On November 6, 2008, ROD BLAGOJEVICH talked with Spokesman. ROD BLAGOJEVICH told Spokesman to leak to a particular columnist for the Chicago Sun-Times, that Senate Candidate 2 is in the running for the vacant Senate seat. According to ROD BLAGOJEVICH, by doing this, he wanted "to send a message to the [President-elect's] people," but did not want it known that the message was from ROD BLAGOJEVICH.

Thereafter, ROD BLAGOJEVICH and Spokesman discussed specific language that should be used in the Sun Times column and arguments as to why Senate Candidate 2 made sense for the vacant Senate seat. A review of this particular Sun Times column on November 7, 2008, indicates references to the specific language and arguments regarding Senate Candidate 2 as a potential candidate for the Senate seat, as discussed by ROD BLAGOJEVICH and Spokesman.

So let's look at that November 7 item. Written by Michael Sneed and headlined: "Tipsville", it reads (via Nexis):

The latest from Blagoville: Is Gov. Rod Blagojevich toying with tossing Barack Obama's U.S. Senate seat to Illinois Attorney General Lisa Madigan, who wants Blago's job?
- It's his pick . . . and it would get rid of a rival.
- It may endear him to powerful House Speaker Mike Madigan, Lisa's dad, who is Blago's political foe.
- It would enable Gov. Blago to choose a new Illinois attorney general.
- Hmmm: Even though this sounds like looneyville . . . stay tuned.

It's worth making clear: Candidate 2 is not accused of wrongdoing.

Barack Obama

Fitzgerald: "The Conduct Would Make Lincoln Roll Over In His Grave"

Zachary Roth | December 9, 2008, 12:25PM

At a press conference to announce the charges against Blagojevich, Pat Fitzgerald said:

But the most cynical behavior in all this -- the most appalling -- is the fact that Governor Blagojevich tried to sell the appointment to the Senate seat vacated by President-Elect Obama. The conduct would make Lincoln roll over in his grave.

Here's the video:

It's good to have America's favorite prosecutor back on the scene.

Barack Obama

Is Jesse Jackson Jr. Candidate 5?

Zachary Roth | December 9, 2008, 12:06PM

Is Senate Candidate 5, who appears to have been particularly willing to play ball with Blago, Rep. Jesse Jackson Jr?

The unnamed candidate appears to be a man. From the charging documents:

Rod Blagojevich told Fundraiser A to tell Individual D that Rod Blagojevich had a problem with Senate Candidate 5 just promising to help Rod Blagojevich because Rod Blagojevich had a prior bad experience with Senate Candidate 5 not keeping his word. (our itals)

That rules out Valerie Jarrett -- already assumed to be Candidate 1 -- Tammy Duckworth, Lisa Madigan, and Rep. Jan Schakowsky.

There's also this from the charges:

On December 4 ... ROD BLAGOJEVICH noted he was going to meet with Senate Candidate 5 in the next few days.

Now look at this from the Chicago Tribune on December 6:

Jackson, the South Side and south suburban congressman, said Blagojevich's office is looking to set up a meeting between him and the governor, who has the sole power of filling the vacancy.

"Every indication, I believe, is in the next four or five days a meeting will take place," Jackson said.

And indeed, Jackson and Blagojevich met yesterday.

And as of December 3, National Journal reported at the time, he had already met with Rep. Luis Gutierrez as well as some of the female candidates.

That's a long way from proof that Candidate 5 is Jackson. But it's at least suggestive.

Barack Obama

Blago Thought Zell Promised To Go After Trib Ed Board

Zachary Roth | December 9, 2008, 11:16AM

Is Sam Zell, the Tribune Company owner, implicated in the charging documents of Rod Blagojevich?

From Fitzgerald's statement:

According to the affidavit, intercepted phone calls revealed that the Tribune Company, which owns the Chicago Tribune and the Chicago Cubs, has explored the possibility of obtaining assistance from the Illinois Finance Authority (IFA) relating to the Tribune Company's efforts to sell the Cubs and the financing or sale of Wrigley Field. In a November 6 phone call, Harris explained to Blagojevich that the deal the Tribune Company was trying to get through the IFA was basically a tax mitigation scheme in which the IFA would own title to Wrigley Field and the Tribune would not have to pay capital gains tax, which Harris estimated would save the company approximately $100 million.

Intercepted calls allegedly show that Blagojevich directed Harris to inform Tribune Owner and an associate, identified as Tribune Financial Advisor, that state financial assistance would be withheld unless members of the Chicago Tribune's editorial board were fired, primarily because Blagojevich viewed them as driving discussion of his possible impeachment. In a November 4 phone call, Blagojevich allegedly told Harris that he should say to Tribune Financial Advisor, Cubs Chairman and Tribune Owner, "our recommendation is fire all those [expletive] people, get 'em the [expletive] out of there and get us some editorial support."

On November 6, the day of a Tribune editorial critical of Blagojevich , Harris told Blagojevich that he told Tribune Financial Advisor the previous day that things "look like they could move ahead fine but, you know, there is a risk that all of this is going to get derailed by your own editorial page." Harris also told Blagojevich that he was meeting with Tribune Financial Advisor on November 10.

In a November 11 intercepted call, Harris allegedly told Blagojevich that Tribune Financial Advisor talked to Tribune Owner and Tribune Owner "got the message and is very sensitive to the issue." Harris told Blagojevich that according to Tribune Financial Advisor, there would be "certain corporate reorganizations and budget cuts coming and, reading between the lines, he's going after that section." Blagojevich allegedly responded. "Oh. That's fantastic." After further discussion, Blagojevich said, "Wow. Okay, keep our fingers crossed. You're the man. Good job, John."

In other words, the Tribune company wanted a deal that would save them millions. Harris, the governor's aide, told them that if they removed the paper's ed board, the governor would play ball. In response, Harris got the impression that Zell had received the message and would do what Blagojevich wanted. The governor was pleased.

Late Update: Here's a statement from the Tribune Company, denying the charge.

Barack Obama

Feds: Obama Wouldn't Play Ball With Blago

Zachary Roth | December 9, 2008, 11:05AM

From Fitzgerald's statement:

In a conversation with Harris on November 11, the charges state, Blagojevich said he knew that the President-elect wanted Senate Candidate 1 for the open seat but "they're not willing to give me anything except appreciation. [Expletive] them."

Looks like Obama wouldn't pay to play.

Barack Obama

Jarrett Is Senate Candidate One

Zachary Roth | December 9, 2008, 10:53AM

From the Fitzgerald statement:

On November 12, Blagojevich spoke with SEIU Official who was in Washington. This conversation occurred about a week after Blagojevich had met with SEIU Official to discuss the Senate seat, with the understanding that the union official was an emissary to discuss Senate Candidate 1's interest in the Senate seat. During the November 12 conversation, Blagojevich allegedly explained the non-profit organization idea to SEIU Official and said that it could help Senate Candidate 1. The union official agreed to "put that flag up and see where it goes," although the official also had said he wasn't certain if Senate Candidate 1 wanted the official to keep pushing her candidacy. Senate Candidate 1 eventually removed herself from consideration for the open seat. (itals ours)

Both Valerie Jarrett, a friend and adviser to Barack Obama, and Tammy Duckworth, an Iraq vet who runs the Illinois Veteran Affairs Department, have been mentioned as candidates for the seat.

There appears to be no allegation of wrongdoing by Senate Candidate 1.

Late update: The charges themselves say:

By this time, media reports indicated that Senate Candidate 1, an advisor to the President-elect, was interested in the Senate seat if it became vacant, and was likely to be supported by the President-elect.

Barack Obama

Blago on Senate Seat Authority: "I've Got This Thing And It's [Expletive] Golden"

Zachary Roth | December 9, 2008, 10:42AM

A great nugget from the Fitzgerald statement:

Later on November 5, Blagojevich said to Advisor A, "I've got this thing and it's [expletive] golden, and, uh, uh, I'm just not giving it up for [expletive] nothing. I'm not gonna do it. And, and I can always use it. I can parachute me there."

Rod Blagojevich

Fitzgerald: Blago Thought About Appointing Himself To Senate, Mulled Prez Run

Zachary Roth | December 9, 2008, 10:35AM

More from Fitzgerald's statement:

Throughout the intercepted conversations, Blagojevich also allegedly spent significant time weighing the option of appointing himself to the open Senate seat and expressed a variety of reasons for doing so, including: frustration at being "stuck" as governor; a belief that he will be able to obtain greater resources if he is indicted as a sitting Senator as opposed to a sitting governor; a desire to remake his image in consideration of a possible run for President in 2016; avoiding impeachment by the Illinois legislature; making corporate contacts that would be of value to him after leaving public office; facilitating his wife's employment as a lobbyist; and generating speaking fees should he decide to leave public office.

Rod Blagojevich

Blago Was Rushing To Raise Money Before Ethics Law Kicked In

Zachary Roth | December 9, 2008, 10:27AM

Here's a bit more from the statement, which goes some way to explaining why Blagojevich might have been reckless enough to put a Senate seat up for sale even while knowing that he was under federal investigation:

The charges focus, however, on events since October when the Government obtained information that Blagojevich and Fundraiser A, who is chairman of Friends of Blagojevich, were accelerating Blagojevich's allegedly corrupt fund-raising activities to accumulate as much money as possible this year before a new state ethics law would severely curtail Blagojevich's ability to raise money from individuals and entities that have existing contracts worth more than $50,000 with the State of Illinois. Agents learned that Blagojevich was seeking approximately $2.5 million in campaign contributions by the end of the year, principally from or through individuals or entities - many of which have received state contacts or appointments - identified on a list maintained by Friends of Blagojevich, which the FBI has obtained.

Barack Obama

Charges: Blago Discussed Cash For Obama Seat

Zachary Roth | December 9, 2008, 10:21AM

More from Pat Fitzgerald's statement on the Blagojevich charges:

A 76-page FBI affidavit alleges that Blagojevich was intercepted on court-authorized wiretaps during the last month conspiring to sell or trade Illinois' U.S. Senate seat vacated by President-elect Barack Obama for financial and other personal benefits for himself and his wife. At various times, in exchange for the Senate appointment, Blagojevich discussed obtaining:
- a substantial salary for himself at a either a non-profit foundation or an organization affiliated with labor unions;
- placing his wife on paid corporate boards where he speculated she might garner as much as $150,000 a year;
- promises of campaign funds - including cash up front; and
- a cabinet post or ambassadorship for himself.

Just last week, on December 4, Blagojevich allegedly told an advisor that he might "get some (money) up front, maybe" from Senate Candidate 5, if he named Senate Candidate 5 to the Senate seat, to insure that Senate Candidate 5 kept a promise about raising money for Blagojevich if he ran for re-election. In a recorded conversation on October 31, Blagojevich claimed he was approached by an associate of Senate Candidate 5 as follows: "We were approached 'pay to play.' That, you know, he'd raise 500 grand. An emissary came. Then the other guy would raise a million, if I made him (Senate Candidate 5) a Senator."

Who's Senate Candidate 5? Sounds like we'll find out...

Rod Blagojevich

Blagojevich Charged With Selling Obama's Senate Seat, Plotting To Purge Trib

Zachary Roth | December 9, 2008, 10:12AM

From a statement from US Attorney Pat Fitzgerald...

Blagojevich was intercepted on court-authorized wiretaps during the last month conspiring to sell or trade Illinois' U.S. Senate seat vacated by President-elect Barack Obama for financial and other personal benefits for himself and his wife.

It's also alleged that Blagojevich wanted to purge Chicago Tribune editorial board and in return help them sell Wrigley Field.

After the jump is the full statement...

Read more »

Rod Blagojevich

Illinois Governor Arrested

Zachary Roth | December 9, 2008, 9:51AM

Beleaguered Illinois governor Rod Blagojevich was taken into custody by law enforcement authorities at his home this morning, reports the Tribune Company, sourcing a US Attorney's office spokesman. The governor's chief of staff, John Harris, was also arrested.

Hours earlier, the Chicago Tribune reported that the federal probe of pay-to-play politics in the Blagojevich administration had expanded to include the question whether the process of filling Barack Obama's US Senate seat -- for which the governor is responsible -- had become tainted.

Earlier this week, the same (also beleaguered!) paper reported that the feds had secretly taped Blagojevich as part of their investigation.

Yesterday, the governor told reporters: "I don't believe there's any cloud that hangs over me. I think there's nothing but sunshine hanging over me".

Late Update: Prosecutors have filed a criminal complaint.

Rod Blagojevich

Report: Feds Secretly Taped Blagojevich

Zachary Roth | December 5, 2008, 5:19PM

Federal agents recently worked with one of Rod Blagojevich's closest former aides to secretly tape the Illinois governor as part of a wide-ranging probe into corruption in his administration, reports the Chicago Tribune.

Says the paper:

The cooperation of John Wyma, 42, one of the state's most influential lobbyists, is the most stunning evidence yet that Blagojevich's once-tight inner circle appears to be collapsing under the pressure of myriad pay-to-play inquiries.

Wyma has made frequent appearnaces in the scandal. Adds the Tribune:

Indeed, Wyma's and the Blagojeviches' relationship has always been both personal and professional. The governor routinely reported exchanging personal gifts and often appeared at Wyma-sponsored fundraisers where Wyma's clients hobnobbed with the governor before turning over checks for his campaign fund.

Blagojevich, who will decide on Barack Obama's replacement in the U.S. Senate, has been under federal scrutiny for over three years, but has not been formally charged with wrongdoing.

Barack Obama

Holder: I'm No Gonzo -- And I'll Go After Corporate Crime

Zachary Roth | December 1, 2008, 4:26PM

Earlier we noted that, in speaking this morning about Eric Holder, his pick for Attorney General, Barack Obama seemed to go out of his way to suggest that Holder would reverse the politicization of DOJ that we saw under President Bush and Alberto Gonzales.

Holder's own remarks backed up that notion. He said:

It is incumbent upon those of us who lead the Department to ensure not only that the nation is safe but also that our laws and traditions are respected. There is not a tension between those two. We can and we must ensure that the American people remain secure and that the great constitutional guarantees that define us as a nation are truly valued. For example, working with Republicans and Democrats in Congress, should I be confirmed, we look forward to actually structuring policies that are both protective and consistent with who we are as a nation.

And Holder included an interesting hint suggesting that he may be more aggressive than his predecessors under Bush in going after corporate malfeasance -- specifically, one would assume, in regard to the current financial crisis:

National security concerns are not defined only by the challenges created by terrorists abroad, but also by criminals in our midst, whether they be criminals located on the street or in a boardroom.

Holder's full remarks follow after the jump...

Read more »

Alberto Gonzales

Obama: Holder Won't Be Another Gonzo

Zachary Roth | December 1, 2008, 2:33PM

Given our coverage of the unprecedented politicization of the Department of Justice under President Bush, we thought this passage from Barack Obama's prepared remarks this morning -- at which he announced Eric Holder as his pick for Attorney General, among other selections -- was worth noting:

Eric also has the combination of toughness and independence that we need at the Justice Department. Let me be clear: the Attorney General serves the American people. And I have every expectation that Eric will protect our people, uphold the public trust, and adhere to our Constitution.

In other words, Obama is sending a message that Holder won't see his role as being the president's personal lawyer -- which was how Alberto Gonzales, who had been Bush's lawyer both in the White House and in Texas, seemed to view the job.