Tag: rahm emanuel

Was Obama candid when he said, "I had no contact" with Blago?

Blogs and news sites are giddy with the news that Obama cleared his incoming Chief of Staff, Rahm Emanuel, of any wrongdoing secondary to Emanuel’s contacts with Gov. Rod Blagojevich, who said he did no wrong in his contacts with Team Obama or with anyone else for that matter.
So everybody is in the clear?
On December 9, Pres-elect Obama said this about the Blagojevich matter:

“I had no contact with the governor or his office and so we were not, I was not aware of what was happening.”

Today, George Stephanopoulos reports that he has been briefed on the report and that some contacts occured, writing on his blog:

The sources add that the report will show Emanuel also had four phone calls with Blagojevich Chief of Staff John Harris. During those conversations, the Senate seat was discussed. The pros and cons of various candidates were reviewed, and the sources say that Emanuel repeatedly reminded Harris that Blagojevich should focus on the message the pick would send about the governor and his administration.
Sources also confirm that Emanuel made the case for picking Obama confidante Valerie Jarrett during at least one of the conversations. In the course of that conversation, Harris asked if in return for picking Jarrett, “all we get is appreciation, right?” “Right,” Emanuel responded.

Reader time – Was Obama being candid in the first statement?
He did have contact with Blago’s office through Rahm Emanuel and they pushed for Valerie Jarrett to become Senator. Ms. Jarrett said later she wasn’t interested. Are we to assume that she was never interested but that Obama and Emanuel were pushing for her anyway? Or did her lack of interest develop as the result of knowledge of the investigation and/or the demands for a deal from Blago?
And what does contact mean?

Emanuel: Hey can you hold my place while I go to the White House?

It is always nice when you are in line somewhere and you have to leave the line to do something else and the person behind you says, ‘go ahead, I’ll hold your spot.’
Chicago Alderman Pat O’Connor is that kind of guy.
From today’s Sun-Times:

Emanuel was on track to become U.S. House speaker someday before accepting Obama’s offer. He has told Democratic ward bosses that he would like to reclaim the seat after a few years as chief of staff.
He was believed to be leaning toward O’Connor, in part, because the alderman might be amenable to giving up the seat at some point.

But in light of the Blagojevich scandal, probably not. Emanuel, according to a Dem operative and quoted in the Sun-Times article, has “gone underground.”
I saw this story first on Progress Illinois (I read all of those progressive sites, you know). The author there, Josh Kalven, seemed surprised Emanuel would angle for his spot back.

When rumors surfaced in mid-November that Rahm Emanuel was hoping to find a placeholder to sit on his House seat until he finished up a stint as White House chief of staff, it left a lot of folks — including myself — scratching their head. The idea that Emanuel would attempt to pull off such a maneuver amid all the intense media scrutiny on Illinois seemed a bit far-fetched.

Today’s Sun-Times article, quoted above, seems to indicate the story was more than a rumor.
Kalven says the Blago mess may have a positive effect on the 5th District race.

CQ’s Emma Dumain called me on the day of Blagojevich’s arrest to gauge the impact on the 5th Congressional District race. I hinted at the time that I thought the governor’s scandal would prevent any of the rumored manuevering from advancing and allow for a relatively clean race. Spielman’s report seems to indicate things are moving that direction. We’ll see if it lasts.

Here is what Kalven said to the Congressional Quarterly writer:

“This could actually be good news for the people of the district,” said Josh Kalven, editor of the news and commentary Web site Progress Illinois. “It creates an opportunity for a candidate who’s squeaky clean — who’s an outsider in terms of machine politics in the city and state — to have a shot at the seat.”

Dribs and drabs – Emanuel did talk directly to Blago. When the headlines say Emanuel pressed for Jarrett, read Obama pressed for Jarrett. Rahm doesn’t roll without Obama saying go. How it looks to me is that Obama wanted this to look like Blago was running the selection but was putting some pressure on behind the scenes. Nothing illegal if no quid pro quo is revealed but the reality is at odds with the portrayal. Now the seat is radioactive and will probably come to a special election — unless IL Dems can find some other way to fill the seat without putting it to a vote.

MSNBC asking questions about Obama and Blagojevich

UPDATE: Illinois high court will not remove Blagojevich.
Surprising to me to see MSNBC report the possibility of 21 calls between Rahm Emanuel and Team Blago. Even MSNBC reporters think Obama could be more transparent and still honor the Federal prosecutor’s request to hold information.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Obama news conference at 11:45am.
UPDATE: First question from CBS News is about Blagogate. Paraphrased: You ran on a platform of transparency, how difficult is it for you to wait until next week to reveal results of your investigation? Obama replied that next week is not that far away and you’ll have answers to all your questions at that time.
He took 3 questions total.
UPDATE 2: Blago might break his silence today or tomorrow. Here is the video:

Sun-Times: Emanuel on 21 calls about the Senate seat

Michael Sneed reports:

Sneed hears rumbles President-elect Barack Obama’s chief of staff, Rahm Emanuel, is reportedly on 21 different taped conversations by the feds — dealing with his boss’ vacant Senate seat!

According to the Blago criminal complaint, Blago’s staff leaked several items about the Senate seat to Sneed. It seems entirely possible that she is correct given the contacts she has. It could also be misinformation based on the contacts she has.
If Obama’s account is to be believed, all those calls were conveying appreciation for any consideration Blago might give to Obama’s wishes.
However, Obama still has not addressed important questions in this matter. Politico.com lists 7 questions and this US News & World blog runs down thoughts on where this goes from here.

Is there pressure on Rahm Emanuel to resign?

Conservative blogs are reporting that there is pressure on Obama’s Chief of Staff selection, Rahm Emanuel to resign. However, a look at the links to the foreign papers finds mixed reporting with one paper taking a more cautious stance.
Patriot Room quotes an Aussie paper saying there is pressure on Emanuel to resign his post. However, clicking the link goes to a story describing vague pressure without mention of resignation.

BARACK Obama’s chief of staff is under pressure over reported contacts with Illinois’s corruption-tainted governor, who faces impeachment proceedings this week.
Rahm Emanuel, a combative congressman from Illinois who will serve as Obama’s political gatekeeper in the White House, was reported to have been in touch with Governor Rod Blagojevich about Mr Obama’s Senate seat.

An (apparently) earlier version of the paper said this:

BARACK Obama’s chief of staff, Rahm Emanuel, was under pressure to resign last night after it was revealed he had been captured on wire taps discussing candidates for the US president-elect’s Illinios Senate seat.
Mr Emanuel’s presence at the heart of the scandal threatens to roil Mr Obama’s administration as a Chicago prosecutor builds his corruption case against Illinois Governor Rod Blagojevich, The Australian reports.

The UK Times reports the pressure is to resign.

THE bullish, foul-mouthed but effective Chicago arm-twister Rahm Emanuel has come under pressure to resign as Barack Obama’s chief of staff after it was revealed that he had been captured on court-approved wire-taps discussing the names of candidates for Obama’s Senate seat.
Emanuel’s presence at the heart of the scandal threatens to roil the president-elect’s administration as a Chicago prosecutor builds his corruption case against Rod Blagojevich, the Illinois governor.

The UK Guardian says the pressure is to disclose his conversations:

Barack Obama’s choice to be his White House chief of staff, Rahm Emanuel, is coming under mounting pressure to make a full disclosure about his contacts with the disgraced governor of Illinois over the billowing Senate “seat for sale” scandal.

On the other hand, the Wall Street Journal is reporting that Emanuel may not even have talked directly to Blago.
Obama supporters are correct that no direct deal making has been reported involving Obama, Emanuel and Blagojevich. However, the deal making is not the point given the information available to the public. One issue now is why has Obama taken days to respond to this. Almost a week after the Blago criminal complaint surfaced, Obama has not disclosed a clear picture of what he did. This should be easy. Either he gave Emanuel some names and authorized contact or he didn’t. What is so hard about disclosing which it was? Perhaps one problem is figuring out how to reconcile his initial statements regarding no contact if indeed he directed Emanuel to float some names.

Chicago Tribune: List of Senate candidates delivered to Blagojevich by Emanuel

The Chicago Tribune is reporting that Obama’s Chief of Staff Rahm Emanuel had more than one conversation with Blago about the soon-to-be-vacant Senate seat. According to the article, Emanuel delivered a list a candidates Obama would accept.
Did Emanuel do this without Obama’s direction? Does anyone reading here believe Obama did not construct this list and direct Emanuel to talk to Blago? If Emanuel did this on his own, Obama should fire him. If Obama directed the contacts, then his words about not being in contact with Blago seem hollow and legalistic.

Rendell tries to right the ship; criticizes Obama's handling of Blagojevich

Ed Rendell is an outspoken PA Governor who is not shy about his views. He follows his pattern in a report this morning from Politico.com.

“They have never been in an executive position before,” Rendell said on MSNBC’s “Morning Joe.” “The rule of thumb is whatever you did, say it and get it over with and make it a one-day story as opposed to a three-day story. Politicians are always misjudging the intelligence of the American people.”
Known for his blunt critiques of fellow Democrats, Rendell did not hold back during the interview.
The public, said Rendell, understands Obama and his aides would have an interest in who fills the Senate seat, and some contact with the governor’s office — and that Obama should have said as much at the outset.
“Did Rahm Emanuel who took Rod Blagojevich’s seat in Congress have contact with Rod Blagojevich? Of course he did,” Rendell said. “They may have thought he was the craziest S.O.B. in the world. But you still have to have contact with him.”

I wonder if there is any room under that bus for Ed. At least he is saying what many are thinking. I have written here from day one that it seems strange that Obama would not talk to Blagojevich about the Senate seat. No harm in that. So why imply that such talks would be out of bounds?
UPDATE: Emanuel won’t go to work due to death threats. Who would be doing that? Blago’s cronies? I really don’t get that though. Emanuel doesn’t have the secret service nearby? I don’t care if you are an Obama partisan or not, this has to look troubling. We haven’t even had a real crisis yet and Obama’s chief of staff is hiding from the media and won’t go to the office.
UPDATE 2: Blago’s Chief of Staff John Harris resigned today.
UPDATE 3: IL AG Lisa Madigan wants to move Blago from the Governor’s mansion.
Quattro – Jesse Jackson Jr., is defending himself against charges he got the fundraising thing going early.
More confirmation Obama had input via Emanuel.

In an interview, Schakowsky said she spoke to Emanuel on Thursday and he seemed unfazed by the controversy.
Schakowsky also spoke of a conversation she had with Emanuel shortly after he was named chief of staff. She said she called Emanuel “to get some intelligence” on whether Obama might approve of her selection as senator.
“He indicated that the president-elect would be fine with certain people and I was one of them,” Schakowsky said, adding that he did not share the identities of others on the list.
Schakowsky said it was natural for Obama to take an interest in the selection process for his Senate seat. “It makes perfect sense for the president-elect or his people to have some interaction about filling the seat he was vacating,” she said.

Fox News reports on Blagojevich efforts to bribe Obama advisors – Focus on Emanuel

Lots of focus today on the two-hour conference call between Blago’s Illinois team and some unnamed advisors and consultants in Washington DC. Although I do not understand Obama’s legalistic denials of contact with Blago, it appears that he did not authorize any deals over the Senate seat. His first choice of for the White House, Rahm Emanuel may have been involved and has not addressed the claims that he might be one of the advisors in touch with Blago.
In the criminal complaint, Blagojevich becomes especially angry at one point when it becomes clear that Obama would not deal at this time. Here is the excerpt from pages 63-64:

ROD BLAGOJEVICH said that the consultants (Advisor B and another consultant are believed to be on the call at that time) are telling him that he has to “suck it up” for two years and do nothing and give this “motherfucker [the President-elect] his senator. Fuck him. For nothing? Fuck him.” ROD BLAGOJEVICH states that he will put “[Senate Candidate 4]” in the Senate “before I just give fucking [Senate Candidate 1] a fucking Senate seat and I don’t get anything.” (Senate Candidate 4 is a Deputy Governor of the State of Illinois).

Obama supporters will see in this a commendable unwillingness to deal. Those who are suspicious of Obama may see something else. Blago is informed he must “‘suck it up’ for two years and do nothing.” Why is the sucking for only two years? Obviously angry, Blago anticipated something more from Obama. What in their relationship would give Blago any idea that he could make a quid pro quo with Obama?
Blago’s advisors do not the like the two year span. They say on pages 64-65,

One of ROD BLAGOJEVICH’s advisors said he likes the idea, it sounds like a good idea, but advised ROD BLAGOJEVICH to be leery of promises for something two years from now. ROD BLAGOJEVICH’s wife said they would take the job now. Thereafter, ROD BLAGOJEVICH and others on the phone call discussed various ways ROD BLAGOJEVICH can “monetize” the relationships he is making as Governor to make money after ROD BLAGOJEVICH is no longer Governor. Later on November 10, 2008, ROD BLAGOJEVICH and Advisor A discussed the open Senate seat. Among other things, ROD BLAGOJEVICH raised the issue of whether the President-elect could help get ROD BLAGOJEVICH’s wife on “paid corporate boards right now.” Advisor A responded that he “think[s] they could” and that a “President-elect. . . can do almost anything he sets his mind to.” ROD BLAGOJEVICH states that he will appoint “[Senate Candidate 1] . . . but if they feel like they can do this and not fucking give me anything . . . then I’ll fucking go [Senate Candidate 5].” (Senate Candidate 5 is publicly reported to be interested in the open Senate seat). ROD BLAGOJEVICH stated that if his wife could get on some corporate boards and “picks up another 150 grand a year or whatever” it would help ROD BLAGOJEVICH get through the next several years as Governor.

Blago’s advisors and someone on the call begin talking about how something positive could happen for Blago within the two year period. Blago says essentially if I get something monetary now then Valerie Jarrett (Candidate #1) will be appointed; if not then I will send up Jesse Jackson, Jr. (#5).
FoxNews looked at this earlier tonight with special attention to the timing of Valerie Jarrett’s interest then lack of interest.

PS – Mr. Emanuel, how hard is it to just say no?
Is this Emanuel?

On November 13, 2008, ROD BLAGOJEVICH talked with JOHN HARRIS. ROD BLAGOJEVICH said he wanted to be able to call “[President-elect Advisor]” and tell President-elect Advisor that “this has nothing to do with anything else we’re working on but the Governor wants to put together a 501(c)(4)” and “can you guys help him. . . raise 10, 15 million.” ROD BLAGOJEVICH said he wanted “[President-elect Advisor] to get the word today,” and that when “he asks me for the Fifth CD thing I want it to be in his head.” (The reference to the “Fifth CD thing” is believed to relate to a seat in the United States House of Representatives from Illinois’ Fifth Congressional District. Prior intercepted phone conversations indicate that ROD BLAGOJEVICH and others were determining whether ROD BLAGOJEVICH has the power to appoint an interim replacement until a special election for the seat can be held.).

UPDATE: 12/12/08 – Looks like Emanuel is indeed the focus. As this report points out, one would expect conversations and they are not illegal. The issue will be for the Obama administration what Emanuel said on those taped calls.

Bringing Clinton Back – Holder on hold for Attorney General

Barack Obama is floating Eric Holder (Bill Clinton’s Deputy AG) as his Atty General pick. Add this name to John Podesta (co-chair transition team), Rahm Emanuel (Chief of Staff) and Hillary (if the Secretary of State story turns out to be true) and you have a Clinton reunion. Surely Obama could find something for Bill to do.
I can hear justin timberlake now…”I’m bringing Clinton back. Them other pols don’t know how to act…”

Obama's new chief of staff Rahm Emanuel on Freddie Mac board during scandal

Well, (some of) the media remembered how to investigate. RE: Rahm Emanuel’s time on the Freddie Mac board, ABC reports:

President-elect Barack Obama’s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot “red flags,” according to government reports reviewed by ABCNews.com.
President-elect Barack Obama’s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot “red flags,” according to government reports reviewed by ABCNews.com. According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.
Emanuel was not named in the SEC complaint but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) of having “failed in its duty to follow up on matters brought to its attention.”

When (if) the MSM report this story in depth, it will report that some in the GOP saw the problems early on but were blocked by the Democrats in leadership. I am looking for primary sources on this but a number of bloggers report that Emanuel blocked efforts to reform Freddie and Fannie. In 2006, Dems (who had won control of the Congress) were identified as standing in the way of reform:

Democrats are likely to block a Republican proposal to cut the $1.4 trillion combined mortgage assets of Fannie Mae and Freddie Mac. Republicans have pushed to scale back the investments of the government-chartered mortgage companies, arguing the holdings are so large they threaten to destabilize financial markets.
Frank’s View
Massachusetts Representative Barney Frank, who is in line to chair the House Financial Services Committee, said discussions with Treasury Secretary Hank Paulson may still produce a deal.
Any measure would have to include an increase in the share of profits the two mortgage giants must donate to a fund to help low-income people buy housing, Frank said in an Oct. 31 interview. “I am going to get as much as I can,” he said.
Frank also says he plans to push legislation to give company shareholders more power to review stock options and other bonuses for corporate executives.

The irony is that the recent banking/credit crisis derailed the McCain campaign and played a large role in the election outcome. The roots of the current bailout apparently go back at least to the Congressional transition in 2006 when Barney Frank held off a deal on Freddie and Fannie in order to give money to finance low income housing purchases (read: ACORN Housing, and other ways to finance home purchases, many of which were risky loans). And recall, that the first bailout package offered up by the Frank-Dodd-Paulson group included the same kind of mechanism, funneling money to support risky deals. Barney Frank said, “I’m going to get all I can.” And now the Dems have done a very skillful job of convincing many that the credit crisis was none of their doing.