Today's Stories

August 31, 2009

Pam Martens
Madoff and the SEC's Revolving Door

August 28-30, 2009

Alexander Cockburn
Teddy Kennedy the Hollow Champion

Joshua Frank /
Jeffrey St. Clair
From the Ledge to the Edge: How Tre Arrow Became America's Most Wanted Environmental "Terrorist"

Steve Early
Kennedy's Sins Against Labor

Michael Hudson
Learning About Financialization the Hard Way

Carl Ginsburg
Bernanke in Obamatime

Saul Landau
The Nuclear Gang Rides Again

Dave Marsh
Trapped Again: Michael Jackson's Crossover Dream

Mike Whitney
Band-Aids for the Recession

Dave Lindorff
Obama's War

José Pertierra
A Decision in the Posada Case

Joe Bageant
Obama's Fake Fight for Reform

Ricardo Alarcón de Quesada
Spies Without Espionage

Lee Sustar
On Strike for Health Care Justice

David Ker Thomson
Life in the 'Shed

David Rosen
The Silent Slaughter: Sex Wars and Nation-Building in Iraq

Alison Weir
Israeli Organ Harvesting

Ron Jacobs
Will There be Free Speech in Pittsburgh?

David Swanson
Bush Tortured

Udi Aloni
An Appeal to Israeli Filmmakers

Charles R. Larson
Children During Wartime

Kim Nicolini
District 9: Science Fiction of the Now

David Yearsley
The Wagner Cult in Seattle

Lorenzo Wolff
Riding the Rails with King Curtis

Poets' Basement
Three Poems by Marc Beaudin

Website of the Weekend
The Hidden History of Katrina

August 27, 2009

Andrea Peacock
Bearly Making It: How Many Biologists Does It Take to Count a Dead Grizzly?

Ricardo Alarcón de Quesada
Incapacitating the Cuban Five

Ray McGovern
Closing in on the Torturers

Gideon Levy
The Last Refuge: Neve Gordon and the Boycott of Israel

Shamus Cook
World Bankers Agree: the Recession is Over ... Maybe

Norman Solomon
The Afghanistan Gap

Marshall Auerbach
We Already Have a Public Option

Benjamin Dangl
Reclaiming a Continent

Kathryn Gray
The Water Privateers

David Macaray
Please Buy Our Beer (And Join Our Union)

Website of the Day
Stop the Privatization of Ocean Fisheries

August 26, 2009

Gareth Porter
The Leaking Game: Planted News Stories About Iran and Nuclear Weapons

Dave Lindorff
Getting Away With Torture: Holder's Limited, Modified Hangout

Dean Baker
The Reappointment of Bernanke

Laura Carlsen
The Coup and Honduran Women

Paul Craig Roberts
When the Government Comes First

Laura Raymond /
Bill Quigley
Haiti One Year After the Hurricane

Jordan Flaherty
Still Homeless, Still Struggling in New Orleans

Jonathan Cook
The Long Struggle to Reclaim Beersheva's Great Mosque

Robert Bryce
Bamboozled About Energy

Danny Weil
The Future of Charter Schools

Cindy Sheehan
Farewell, Senator Kennedy

John V. Walsh
Cindy Sheehan's Lonely Vigil in Obamaland

Website of the Day
The President's Laugh Line

August 25, 2009

Gabriel Kolko
Israel: A Stalemated Action of History

Danny Weil
The Charter School Hype and How It's Managed

Martine Bulard
China's Wild West

Ricardo Alarcón de Quesada
The Cuban Five: The Face of Impunity

Bélen Fernández
Why Didn't the Leopard Eat Tom Friedman?

August 24, 2009

Danny Weil
Obama and Duncan's Education Policy: Like Bush's, Only Worse

Neve Gordon
Stopping the Apartheid State
Boycott Israel

John Ross
Mexico's Supreme Court Tosses a Bombshell into Chiapas

Open Letter to Kenneth Roth
Why Has Human Rights Watch Fallen Silent on Honduras?

Dan Bacher
A Burston-Marsteller Greenwash:
Westlands Hoards Surplus Water While Farmers Suffer

August 21-23, 2009

Alexander Cockburn
The Right Wing's Prince of Gonzo

Patrick Cockburn
The Truth About Afghan Election

Ray McGovern
Unwritten CIA Death Contract Awarded to Blackwater

Carl Ginsburg
Paycheck President

Dave Lindorff
American Justice is Not Blind, But it is Truly Sick

M. Shahid Alam
An "Abnormal" Nationalism

Ron Jacobs
The Continuing Story of Camp Ashraf

Eric Walberg
Russia/Georgia/U.S. One Year Later
Who Came Out Ahead

No War on the Moon!
In Defense of the Dark Side of the Moon

Gilad Atzmon
The Hostage Dream: Loving Oneself at the Expense of Another

Crawdad Nelson
What It's Like to Die

David Yearsley
Why I Chose to Play Scarlatti on Bainbridge Island

Justin Frew
Grim Times for Irish Travelers

Website of the Day
Picket Whole Foods Friday!

August 20, 2009

Eugenia Tsao
Inside the DSM:
The Drug Barons' Campaign to Make Us All Crazy

Dave Lindorff
The Worst and the Best Thing to Happen to the Democratic Party in Years

Yonatan Preminger
The Strategy Behind Israel's Migrant Labor Policies

Wajahat Ali
The Detention of Shah Rukh Kahn

Website of the Day
How to cope with flu pandemics

August 19, 2009

David Michael Green
Guess What? He's a Terrible President

Paul Craig Roberts
Americans: Serfs Ruled by Oligarchs

Marshall Auerback
Debt Revolt? Tax Strike? There are a Lot of Angry People Out There

Franklin Lamb
AIPAC Sends in the Clowns

John Ross
Three Amigos Summit

Marjorie Cohn
Legendary Lawyer Doris Brin Walker Dies; Represented Angela Davis, Smith Act Defendants

August 18, 2009

Michael Hudson
The Specter of Debt Revolt Is Haunting Europe?

Mary Lynn Cramer
Obama-Fraud: Don't Confuse Medicare with Single-Payer

Jonathan Cook
U.S. Turns Blind Eye to Israel's New Separation Policy

Uri Avnery
Whose Acre?

Ralph Nader
Block Obama's Abject Surrender to Insurance and Drug Companies

Bill Quigley & Davida Finger
Katrina Pain Index - 2009

August 17, 2009

Ray McGovern
Can the Washington Post Save Dick Cheney?

Andy Worthington
Bagram Isn't the New Guantánamo, It's the Old Guantánamo

Patrick Cockburn
Life and Death in Baghdad as Americans Leave

Don Fitz
The True Story of Fox's Hero, Kenneth Gladney

P. Sainath
Drought of Justice, Flood of Funds

Helena Cobban
Zionist Pioneer Renounces Zionism

August 14-16, 2009

Alexander Cockburn
Health Plans and Death Plans

Jeffrey St. Clair
The Fall of the House of Stanford

Peter Linebaugh
The Commons, the Castle, the Witch and the Lynx

Esam Al-Amin
What Actually Happened in Fatah's Elections?

Marshall Auerback
Why a Debtor's Revolt Would Work

Mike Whitney
Bulletins From Clunkerville

Paul Krassner
Woodstock at Forty

Saul Landau
Health Care and the Seeds of Disunity

Nikolas Kozloff
Colombian Elites Fear Bolivaran Revolution

Henry A. Giroux
Politics After Hope

John Ross
Sleepwalking Through the Minefield

Jonathan Cook
Israeli Land Sale

Isabella Kenfield
Monsanto's Man in the Obama Administration

David Rosen
Sexual Torture, Yet Again

Ron Jacobs
Unconditional Negotiations, Now!

Wajahat Ali
Obama's Immigration Reforms: Neither Humane Nor Thoughtful

David Macaray
Prison Games

Greg Moses
Down in South Texas: the Geometries of Bob Dylan

Charles R. Larson
Egyptian Economics 101

David Yearsley
Stalked by Bill Evans' Ghost: Kind of Blue at Fifty

Lorenzo Wolff
There Ain't Much to Country Livin': the Drive-By Truckers and the Fine Print

Kim Nicolini
Class, Race and Clint

Poets' Basement
Reiss, Ford and Moser

Website of the Weekend
Timidity and Transparency

August 13, 2009

Eduardo Galeano
I Hate to Bother You

Joanne Mariner
Letting Cheney Off the Hook

Michael Donnelly
Burning Forests for Electricity

Norman Solomon
When the Dead Have No Say

Russell Mokhiber
Boycott Whole Foods

Tim Wise
Sick Heil! The Hitlerizing of Obama

Brian M. Downing
Succession and the Pakistani Taliban

Dave Lindorff
Single-Payer and Medicare

David Manning / Miriam Cotton:
Iran Versus Honduras: a Subtle Difference

Martha Rosenberg
John Hughes, Gone With Only 59 Candles

Website of the Day
Congress Can't Find Their As-teroids

August 12, 2009

Michael J. Watts
Nigeria on the Brink

Bouthaina Shaaban
Where are the Arabs to Stand Up for the Hanoun and Ghawi Families?

Ricardo Alarcón
The Cuban Five: Justice in Wonderland

Binoy Kampmark
Terror Australis

Paul Craig Roberts
Concocting the Appearance of Recovery

Alan Farago
Going Down Absurd: the Future of Florida Bay

James Ridgeway
Ghostwriting Your Meds

Dave Lindorff
10 Questions to Ask If You Find Yourself at an ObamaCare Town Hall Meeting

David Macaray
Labor and the Conventional Wisdom

Niranjan Ramakrishnan
The Assimilation of Niranjan Ramakrishnan

Website of the Day
A Petition in Support of Janice Harper

August 11, 2009

Ricardo Alarcón
Forbidden Heroes

Marshall Auerback
America's Biggest Economic Problem?

Reza Yavari
Inside Iran's Most Infamous Prison

Winslow T. Wheeler
How Congress Pays For Its Pork

Tim Wise
Red-Baiting and Racism

Uri Avnery
A Moral Person

Deepak Tripathi
Getting Away With Torture

Greg Moses
Time to Plan for the Worst

Benjamin Dangl
Boycotting Big Beer

Dave Lindorff
Hecklers Unite! Why Aren't Progressives Disrupting ObamaCare Town Halls?

Website of the Day
What Bush Told Chirac About the Iraq War

August 10, 2009

David Price
Trial by FBI Investigation

Mike Whitney
There is No Recession; It's a Planned Demolition

Alan Farago
Seeds of Destruction: How the National Economy was Wrecked by the Politics of Deregulation in Florida

Conn Hallinan
The Honduran Coup: a U.S. Connection

Russell Mokhiber
Health Care: In Defense of Disruption

Paul Krassner
The Mystery Behind the Manson Murders

Sousan Hammad
Orgy of the Dead: the 2009 Fatah Conference

Jonathan Cook
Israeli School Apartheid

Ira Glunts
Netanyahu's Sister-in-Law Detained by Israeli Police; Calls Evictions an Unjustified Folly

George Wuerthner
Dead Tree Hysteria

Website of the Day
Conyers: ObamaCare is Crap

August 7 - 9, 2009

Alexander Cockburn
It Pays to Have a Nuke

Mike Whitney
Economy on a Scaffold

Elaine C. Hagopian
Obama's Israel Albatross

Carl Ginsburg
RX For Healthcare

Miguel Tinker Salas
Honduras is Only Part of the Story: the Conservative Counter-Attack in Latin America

Saul Landau
The Kidney Broker and the Money Laundering Rabbis

John Ross
The Mexican Genome: Big Science in the Service of Indian Genocide?

Anthony DiMaggio Obama and the Israel Lobby: Origins of Power

John Stanton
Expanding Human Terrain Systems?

Christopher Brauchli Legal Absurdities: Outing Three Strikes

Wajahat Ali
A Muslim American Hero: an Interview with Dave Eggers on "Zeitoun"

Ron Jacobs
As Long as the Wars Continue, We Must Resist Them

Franklin Lamb
Sunday Morning on the Dunes: Cleaning "Free Gaza Beach"

Bruce E. Levine
Protect Us From Our Friends

Michael Winship
Neighborhood Watch for Planet Earth

David Macaray
Glimmers of Hope for Labor?

Stephen Fleischman
Suicide Squad

Robert Bryce
Unplugging the Next Big Thing: the Hype Over Electric Cars

Robert Dodge, MD: Hiroshima and Nagasaki Remembered

Mark Seth Lender
The Message of the Glossy Ibis

David Yearsley
Vaucanson's Faun and the Duck in the Attic

Ben Sonnenberg
Chris Fuller's Brilliant Debut

Lorenzo Wolff
When Music's the Character

Poets' Basement
Dominguez and Corseri

Website of the Weekend
Warren Buffett's Betrayal

August 6, 2009

Ishmael Reed
Let's All Have a Beer

Paul Craig Roberts
The Expiring Economy

William Blum Assassinations and Coups: Keeping Track of the Empire's Crimes

Michael Donnelly
Rod Coronado: the Hardest Working Man in Animal Rights "Terrorism"

Jonathan Cook
Rabbis Ban Marriage for Israeli "Untouchables"

Dave Lindorff
The Health Care Reform Sell-Out

Ellen Brown
The Public Option in Banking

Website of the Day
Ellsberg on Hiroshima

August 5, 2009

Dedrick Muhammad /
Barbara Ehrenreich
The Destruction of the Black Middle Class

Norman Solomon
The Incredible, Shrinking Health Care Plan

William Blum
The Myths of Afghanistan: Past and Present

Gareth Porter
The ISI and the Taliban: US Officials Are Protecting Pakistani Aid to Taliban

Mary Lynn Cramer
The Myth of Medicare for All

Jim Goodman
Obama Needs to Take a Stand on Trade

Nadia Hijab
Playing From Strength in the Middle East

Gretchen Kroth
Guatemala's Garbage Dump Education System

Steve Macek /
Scott Sanders
Privatizing the Airwaves

Sarah Lazare
Inside G.I. Resistance

Website of the Day
The Locavore Myth

August 4, 2009

Mike Whitney
Bernanke's Shell Game

Dave Lindorff
The Recession Isn't Over, By a Long Shot

Patrick Cockburn
Did British Bomb Attacks in Iran Provoke Hostage Crisis?

Jonathan Cook
Israel's Campaign to Silence Human Rights Groups

Jeff Sher
Making a Mess of Health Care Reform

Dean Baker
Why Don't We Globalize Health Care?

Andy Worthington
Gitmo as Hotel California

Uri Avnery
A Jeremiad

Mark Weisbrot
U.S.-Brokered Mediation in Honduras Has Failed

Alvaro Huerta
Hold That Dustbin! So Much for the "End of Racism"

Website of the Day
Pentagon to Ban Facebook and Twitter?

August 31, 2009

Will the IG Report Cover the Role of White Shoe Law Firms?

Madoff and the SEC's Revolving Door

By PAM MARTENS

The long-awaited investigative report by the Securities and Exchange Commission’s (SEC) Inspector General on how the SEC bungled multiple investigations of Bernard Madoff is set for release this week. Unfortunately, according to media reports, the long suffering investing public will not receive the report until the SEC itself has had a chance to review it.

The team that produced this report on one of the most long-running and convoluted frauds in the history of Wall Street included Inspector General H. David Kotz who came to the SEC-IG post in December 2007 after five years as Inspector General and Associate General Counsel for the Peace Corps. The Deputy Inspector General, Noelle Frangipane, also came to the SEC from the Peace Corps where she had served as Director of Policy and Public Information.

This lack of Wall Street cronyism by the top two in the Inspector General’s office might have been refreshing to some in Congress and compensated for their not knowing the difference between puts and calls and peaks and troughs and the intricacies of Mr. Madoff’s split-strike conversion strategy (he splits with your money while converting you to a pauper). But the background of the member of the team heading up the Inspector General’s Office of Investigations, J. David Fielder, should have rang serious alarm bells to Congressional investigators.

For the ten years leading up to July 2007, J. David Fielder worked for the SEC as a Senior Counsel in the Division of Enforcement. In February 1999, he moved to the Division of Investment Management, first as Senior Counsel on the Task Force for Adviser Regulation, then as Advisor to the Director. In November 2000, SEC Chairman, Arthur Levitt, appointed Fielder Counsel to the Chairman.

In July 2007, Mr. Fielder was invited to join the corporate law firm, Haynes and Boone LLP, as a partner. In other words, Mr. Fielder’s government issue rolodex filled with the names, home numbers and email addresses of his colleagues at the SEC along with the investigatory matters in his head is deemed fungible currency among corporate law firms and can be freely exchanged for partner status, instantaneously moving one from the lowly wages and attendant lifestyle of public servant to the rarefied bracket and luxuriant trappings of corporate law firm partner.

But what happened next is where things get interesting. In March 2009, just as the SEC Inspector General was hot in pursuit of Madoff aiders and abettors, Mr. Fielder gave up his lucrative partner status at Haynes and Boone to accept the lowly post of Assistant Inspector General of Investigations, working under a boss from the Peace Corps. In other words, he gave up big bucks for a demotion at the SEC.

What Mr. Fielder did might not raise alarm bells were it not happening on a regular basis throughout the corridors of Washington and Wall Street. To understand the implications, this maneuver deserves an appropriate name. A revolving door is assumed to mean one gets all the right connections as a public servant and cashes them in to the highest bidder in private industry. That concept doesn’t typically entertain the door revolving back to public servant status. On Wall Street, they call a maneuver like that a round trip: you buy 100 shares and eventually sell the same 100 shares. You end up back where you started: a round trip.

Just how many lawyer round trippers are involved in the Madoff investigation? Enough to raise a strong stench of circular corruption.

Linda Chatman Thomsen left the SEC in February and has now returned to the corporate law firm that represents many of the largest Wall Street firms, Davis Polk & Wardwell LLP. Ms. Thomsen, who served as head of Enforcement at the SEC, also achieved partner status in this round trip. Ms. Thomsen is married to Steuart Hill Thomsen, a partner in the law firm, Sutherland Asbill & Brennan LLP, which brags as follows in its brochure: “Many of our financial services attorneys have worked in the federal government, including regulatory agencies such as the SEC, FINRA and the Department of Justice.” Mr. Thomsen represents “many in the financial services industry” including “securities fraud cases.”

Linda Thomsen’s February 4, 2009 appearance before the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises left Chairman Paul E. Kanjorski (D-PA) and Committee Member Gary Ackerman (D-NY) smoldering over her smug attitude and refusal to answer questions. Congressman Ackerman erupted at one point, telling Ms. Thomsen and her colleagues: “You have single handedly diffused the American public of any sense of confidence in our financial markets if you are the watchdogs…”

Congressmen Kanjorski and Ackerman’s outrage was set off by earlier testimony that day from whistleblower Harry Markopolos who presented the multi year, documented complaints he had filed with the SEC advising that the Madoff operation was a giant Ponzi scheme, without any serious action on the part of the SEC. Markopolos said the agency “roars like a mouse, bites like a flea” and “when an entire industry you were supposed to be regulating disappears due to unregulated, unchecked greed, then you are both a captive regulator and a failed regulator….”

On May 14, 2009, Wayne Jett, Managing Principal and Chief Economist of Classical Capital LLC summed up Ms. Thomsen’s more recent SEC tenure as follows in a published letter to the SEC:

“As SEC's director of enforcement, Thomsen presided over the firing of her investigating attorney, Gary Aguirre, in 2005 shortly after Aguirre disclosed to Paul Berger, Thomsen's immediate subordinate, evidence of insider trading by a hedge fund. Berger learned that Aguirre's evidence pointed to Wall Street player John Mack [the head of Morgan Stanley] as the "tipper" in insider trading by Pequot Capital, a major hedge fund. Berger fired Aguirre and closed the investigation of Pequot…

After a statute of limitations expired foreclosing further action against Mack, Berger resigned from the SEC to accept a position with a major Wall Street law firm -- the same law firm which had contacted the SEC on behalf of investment bank Morgan Stanley to inquire whether Mack was exposed to any pending investigation. Berger pursued his new position as he exercised authority in the Pequot investigation and in the inquiry by Morgan Stanley.

Two Senate committees investigated Aguirre's firing and a joint minority report found appearances of impropriety. The report was followed by resignations of the SEC's inspector general, chief economist and three commissioners. A new SEC inspector general investigated and recommended disciplinary action against Thomsen for her conduct in the Pequot/Mack/Aguirre matter. But the Enforcement staff issued its own press release denying misfeasance. Commissioners voted to take no action against Thomsen despite the inspector general's report, and laudatory comments followed her eventual resignation.

In other words, if you’re only a domestic diva like Martha Stewart, SEC round trippers may see fit to throw you to the wolves. If you’re a major Wall Street firm generating tens of millions in billable hours to round trippers and their legal colleagues, you may get a gift-wrapped get out of jail free card.

This isn’t just my suspicion. U.S. District Court Judge Jed Rakoff smelled something fishy in the August 3rd deal the SEC cooked up with Bank of America. The Judge refused to approve what he perceived as a measly SEC settlement of $33 million in a lawsuit over Bank of America withholding from investors information that it had approved of Merrill Lynch paying out billions of dollars in bonuses as part of its rescue acquisition of the firm. (Both firms required life support from the public purse known as TARP.) Bloomberg News quotes Judge Rakoff as follows: “I would be less than candid if I didn’t express my continued misgivings about this settlement at this stage…When this settlement first came to me, it seemed to me to be lacking, for lack of a better word, in transparency. I did not know much about the facts from the complaint. I did not know much, or really anything, about the basis for the settlement.”

That was the same view held by the Congressional questioners in the Madoff matter at the February 4, 2009 dust up with top SEC officials. After many rounds of pointed questions produced unresponsive answers, round tripper Andrew Vollmer, then Acting General Counsel of the SEC, explained why. He and his fellow SEC panelists were claiming executive privilege. This position elicited the following outburst from Congressman Ackerman: “Your value to us is useless…Our economy is in crisis, Mr. Vollmer. We thought the enemy was Mr. Madoff. I think it’s you…you were the shield…You come here and fumble through make believe answers that you concoct and attribute it to executive privilege….”

On April 2, 2009, another of Wall Street’s favorite law firms, WilmerHale, announced that Andrew Vollmer would be returning to the firm as a partner. According to the press release, before joining the SEC, Vollmer was a vice-chair of WilmerHale’s Securities Department.

The idea that highly paid corporate lawyers have an insatiable altruistic bent to periodically serve as low wage staffers at the SEC is worthy of its own Congressional hearing. Any serious reading of the facts will likely prove these lawyers are going to protect that big Wall Street firm that represents their next big pay day and fast track to partnership.

And just what does the Madoff fraud have to do with the big firms on Wall Street? The multi billion dollar proceeds of the fraud were wired in and out of JPMorgan Chase where Madoff maintained his firm’s account. Also, Madoff partnered with Citigroup’s Smith Barney, Morgan Stanley, Merrill Lynch and Goldman Sachs to compete head on with the New York Stock Exchange in a venture called Primex Trading as reported here at CounterPunch on January 15, 2009.

Pam Martens worked on Wall Street for 21 years; she has no security position, long or short, in any company mentioned in this article. She writes on public interest issues from New Hampshire. She can be reached at pamk741@aol.com

Now Available from CounterPunch Books!

Yellowstone Drift:
Floating the Past
in Real Time
by John Holt
Introduction by Doug Peacock

Click here to Buy!

Spell Albuquerque:
Memoir of a
"Difficult Student"
By Tennessee Reed

Waiting for Lightning
to Strike:
The Fundamentals
of Black Politics
Kevin Alexander Gray

Click Here to Buy!

Click Here to Buy!

The Inside Story of the Shannon Five's Smashing Victory Over the
Bush War Machine
By Harry Browne

Born Under a Bad Sky:
Notes from the Dark Side
of the Earth
By Jeffrey St. Clair

Buy End Times Now!

Click Here to Buy!

Click Here to Order!

Humanitarian Imperialism
By Jean Bricmont