Tentative Deal Hands JPMorgan Chase a Record Penalty

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Photo Credit: Leslye Davis/The New York TimesJPMorgan Chase and the Justice Department have reached a tentative $13 billion settlement over the bank’s questionable mortgage practices leading up to the financial crisis, people briefed on the talks said on Saturday. It would be a record penalty that would cap weeks of heated negotiating and underscore the extent of the bank’s legal woes.

The deal, which the Justice Department took the lead in negotiating and which came together after a Friday night call involving Attorney General Eric H. Holder Jr. and JPMorgan’s chief executive, Jamie Dimon, would resolve an array of state and federal investigations into the bank’s sale of troubled mortgage investments. That type of investment, securities typically backed by subprime home loans, was at the heart of the financial crisis.

While the deal would put those civil cases to rest, it would not save JPMorgan from a parallel criminal inquiry from federal prosecutors in California, the people briefed on the talks said. Under the terms of the preliminary deal, the people said, the bank would also have to assist prosecutors with an investigation into former employees who helped create the mortgage investments.

The $13 billion deal, which could still fall apart over issues like how much wrongdoing the bank is willing to acknowledge, would represent something of a reckoning for Wall Street, whose outsize risk taking in the mortgage business nearly toppled the economy in 2008. It might also provide a measure of catharsis to the investing public, which suffered billions of dollars in losses from buying bad mortgage securities.

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ObamaCare Site Glitches Run Risk of Turning Off Millenials

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Photo Credit: Fox News The prolonged glitches with the ObamaCare website are frustrating many of the president’s most high-valued customers — the young, tech-savvy generation that helped him win two terms and whose participation is critical to the success of the health care exchanges.

“You see this situation especially with college students,” Michael Cipriano, a student at American University told FoxNews.com on Friday. “They get frustrated, which creates a disincentive to sign up.”

President Obama is depending on young people being the backbone of his signature, 2010 health care law. Typically among the mostly healthy Americans, their premiums were supposed to help finance coverage for the elderly, poor and others with long-term illnesses and more frequent emergency-care visits.

However, the glitches and other problems that have plagued the exchanges since they went online Oct. 1 could put the plan in jeopardy. The administration runs healthcare.gov for the 36 states that chose not to have their own sites. The 14 other states and the District of Columbia run their own site but are still part of ObamaCare.

“Based on what I’ve seen, people were really excited at first, then turned away,” said Cipriano, who tried successfully to navigate the site and is a junior who writes for the conservative-leaning, online college publication The College Fix.

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Dick Cheney Feared Assassination by Shock to Implanted Heart Defibrillator

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Photo Credit: David J Phillip/APThe former United States vice-president Dick Cheney was so fearful of assassination by terrorists sending an electronic shock to his implanted heart defibrillator that he ordered doctors to fit a new device without a wi-fi capability.

The extraordinary admission comes in the 72-year-old’s new book Heart: An American Medical Odyssey, in which he also reveals that two months after his 2001 inauguration he prepared a letter of resignation to President George W Bush that he carried with him almost constantly, which he could hand over if he felt his health deteriorating.

Cheney, a fiercely loyal deputy during both terms of Bush’s administration, has suffered five heart attacks since the age of 37 and had a heart transplant last year. In an interview to support his book on the CBS show 60 Minutes, due to air on Sunday night, he describes his current health as “a miracle”.

But it is Cheney’s fear of assassination that will provide a major talking point from the interview and book, which was written in conjunction with his longtime cardiologist, Dr Jonathan Reiner.

A fictional vice-president in the hit US television drama Homeland was murdered by terrorists sending an electronic signal to his pacemaker, in an episode several years after Cheney had his device fitted, in June 2001. It was an alarming plotline, he said.

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Gunman in Clown Suit Kills Senior Mexican Drug Cartel Member

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Photo Credit: Steve SnodgrassA gunman in a clown costume shot and killed the oldest brother of one of Mexico’s most notorious drug trafficking families in the resort of Los Cabos, authorities said on Saturday.

Francisco Rafael Arellano Felix, 63, a former leader of the Tijuana Cartel, was shot in the head late on Friday at a family gathering in the southern tip of the state of Baja California Sur, a spokesman for state prosecutors said.

“A person dressed as a clown took his life,” he said.

Local media reported that the killer had two accomplices, but this was not yet clear, the spokesman said. The gunman fled the scene.

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De Blasio Will Continue Bloomberg’s Soda Cup Fight

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Photo Credit: Politicker After his mayoral campaign sent vague signals yesterday about whether he would maintain Mayor Michael Bloomberg’s legal effort to restrict soda cup sizes at restaurants, Bill de Blasio vowed to do precisely that this afternoon.

“I think the mayor is right and I would continue the legal process. We have to, of course, look at the specifics with our own lawyers to handle the mechanics, but there’s no question I want to see this rule go through,” the front-running candidate told reporters at a rally with Chinese-American supporters.

Yesterday, Mr. de Blasio’s spokesman, Dan Levitan, told The New York Times the candidate would “review the status of the city’s litigation” if elected.

Mr. Bloomberg’s proposed ban on sugary drinks larger than 16 ounces was struck down by a lower court earlier this year, following an intense lobbying effort from the soda industry, small business owners and some elected officials. The Bloomberg administration, however, appealed the decision to the state’s highest court, which agreed to hear the appeal yesterday.

Mr. de Blasio concurred with the mayor that the ban would help combat childhood obesity in particular.

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The Case for GOP Optimism

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Photo Credit: National Review The shutdown is over, and the Democrats have won. Now, we will be told incessantly about the damage that was done to the Republican party, about the insurrectionist “fever” that the president masterfully succeeded in “breaking,” and about the free hand that the White House has to implement Obamacare, its central achievement.

All of this is to be expected, but it is not necessarily to be taken seriously. Given the romantic and unrealistic goals that it established at the outset — and the calamitous absence of anything approaching a strategy throughout — the Republican party can certainly have been said to have “lost” the shutdown. And yet this was a loss that was marked not by any serious policy concessions but by the maintenance of the status quo. The president succeeded in ensuring that his side did not lose anything it wanted, yes. But as Dan Meyer, Newt Gingrich’s former chief of staff, observes, he also “didn’t get more revenue. He didn’t get the sequester caps lifted. All those decisions were punted.”

Punted to less promising ground for the Democratic party, too.

Whether or not the national media will elect to focus on the Obamacare rollout mess now that it cannot claim to be distracted by the shutdown will, in truth, be largely irrelevant going forward. Up and down the country, local newspapers are telling brutal stories of breathtaking technical incompetence and of genuine sticker shock. The national papers can continue to append to objective criticisms the usual “Republicans say . . . ” but it is pretty clear to all but the truest of believers that the administration’s promises are in tatters and that its critics are starting to look happily prescient. The media are corrupt; but they’re not corrupt enough to hide the debacle.

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Kentucky-Bribed Statesman: Mitch McConnell Unmasked

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Anthony Weiner recently lamented that “if the internet didn’t exist,” he’d be the mayor of New York.  In other words, if John Q. Public weren’t so privy to the facts, and so readily able to investigate those facts and exchange opinions about them online, politicians could more easily manipulate their political images and determine the outcome of elections.

Likewise, Kentucky Senator Mitch McConnell is now feeling the stinging disapproval of an informed public that he may not have felt twenty years ago.  Like the grand reveal at the end a Scooby-Doo episode, McConnell the “fiscally conservative” Senate leader has been unmasked in the last month’s proceedings and identified as what he really is — a career politician who’d sell his constituents and American taxpayers down the river for a buck (or in this case, a couple billion bucks).  And he would have gotten away with it, too, if it weren’t for meddling Matt Drudge and the like.

In late September, Mitch McConnell used his lofty position in the Republican minority to stand against Senate conservatives like Ted Cruz and fellow Kentucky Senator Rand Paul.  He made and underhanded effort to block a House bill which would fund the government and raise the debt ceiling in exchange for defunding ObamaCare.  Knowing that the Senate would not have the 60 votes necessary to amend the House bill to fund ObamaCare, he and fellow collaborators voted in favor of a cloture vote which would allow Harry Reid and Senate Democrats to amend the bill with an easily attainable straight majority vote.  Then, having cleared the Senate Democrats’ path to funding ObamaCare, he cast a show vote against the amended spending bill, which included the funding of ObamaCare, hoping it would absolve him of any blame.

We noticed it.  In fact, it was insulting and infuriating that McConnell took such care to conceal the betrayal of his stated conviction to oppose ObamaCare.  Now, his efforts to fund ObamaCare have culminated in what’s being described as the “Kentucky Kickback” by the Senate Conservatives Fund.  “In exchange for funding ObamaCare and raising the debt limit,” the group says, “Mitch McConnell has secured a $2 billion earmark” to a pet project in his home state of Kentucky.

Of course, in a further insult to our intelligence, McConnell is again trying to shirk any responsibility for billions in new taxpayer liability which will uniquely benefit his state.  The language, his office reminds reporters, was introduced by Dianne Feinstein (D-Calif.) and Lamar Alexander (R-Tenn.), and the provision will raise the spending limit of Kentucky’s Olmsted Lock and Dam project from $775 million to $2.9 billion. 

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U.S. Debt Jumps a Record $328 Billion — Tops $17 Trillion for First Time

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Photo Credit: Jacquelyn MartinU.S. debt jumped a record $328 billion on Thursday, the first day the federal government was able to borrow money under the deal President Obama and Congress sealed this week.

The debt now equals $17.075 trillion, according to figures the Treasury Department posted online on Friday.

The $328 billion increase shattered the previous high of $238 billion set two years ago.

The giant jump comes because the government was replenishing its stock of “extraordinary measures” — the federal funds it borrowed from over the last five months as it tried to avoid bumping into the debt ceiling.

Under the law, that replenishing happens as soon as there is new debt space.

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The Great Eclipse: Rubio or Cruz?

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Photo Credit: National Review Senator Marco Rubio began this year amid buzz that he was the logical choice to win the Republican presidential nomination in 2016. He is likely to finish it on a decidedly lower note, partly removed from the national spotlight, eclipsed by the rising star from Texas, Ted Cruz.

Last week, attendees at the conservative Values Voter Summit in Washington, D.C., overwhelmingly chose Cruz as their preferred GOP candidate for 2016. The freshman senator blew away the competition with 42 percent of the vote. Rubio, meanwhile, placed fifth, behind Senator Rand Paul, political novice Dr. Ben Carson, and unsuccessful 2012 candidate Rick Santorum. Granted, fewer than 1,000 people took part in the survey, but the results reinforce what has become obvious to political observers: Ted Cruz is the undisputed darling of the Right, and Rubio’s stock has fallen considerably.

Rubio had been making all the moves one might expect of a leading 2016 candidate. He delivered a major speech in Iowa just days after the 2012 election, accepted the Jack Kemp Foundation’s Leadership Award in December, and gave the Republican response to the State of the Union address in February.

“Everyone wants to see him succeed,” a senior GOP aide told National Review Online in January, which was right around the time that Rubio joined the so-called Gang of Eight, which led the effort in the Senate to pass a comprehensive immigration-reform bill.

Rubio’s credibility with the conservative base proved critical to the legislation’s eventual passage. His status as a rising star within the GOP — and conventional wisdom about the GOP’s demoralizing defeat in the 2012 presidential race — earned the Gang of Eight a fair hearing from right-wing heavyweights such as Rush Limbaugh, Mark Levin, and Sean Hannity. Rubio’s “ideological pause,” in the words of one aide, helped the bill gather steam by blunting the early opposition from the right.

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Republicans Must Get Wise to Obama’s Hard-Line Fiscal Strategy

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Photo Credit: Getty ImagesJudging from the speech Obama gave following the deal to end the government shutdown, Republicans better get wise to the president’s next fiscal gambit when the three-month stop-gap budget and debt measures come due. As was the case with his hard-line defense of Obamacare, the president likely will be inflexible on ending sequestration budget caps, pushing for massive tax hikes, and permitting only the most inconsequential entitlement reforms.

Obama is interested in busting the GOP in 2014. He’s not interested in true budget restraint or other economic-growth measures.

Example: This week, instead of a conciliatory work-together message for the negotiations ahead, President Obama gave us another Republican scold speech: “All of us need to stop focusing on lobbyists and bloggers and talking heads on radio, and professional activists who profit from conflict.”

But of course, it was Obama who wouldn’t negotiate. And it was Obama and his followers who demonized the GOP with words like “hostage,” “ransom,” and “terrorists.”

Another example: Out of nowhere in his post-shutdown speech, the president pledged to “close these corporate-tax loopholes that don’t help create jobs, and freeze up resources for the things that do help us grow, like education and infrastructure and research.”

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