Katie Britt and Senate colleagues introduce a bipartisan bill to cut compensations from failed bank executives
U.S. Senator Katie Britt on Friday joined Senator J.D. Vance (R-Ohio), Senator Elizabeth Warren (D-Massachusetts), and a bipartisan group of colleagues in introducing the Failed Bank Executives Clawback Act. This legislation would enable federal regulators to claw back compensation from bank executives who are responsible for the reckless decisions that resulted in their institution’s failures. “When executives drive financial institutions into failure with reckless business practices, they shouldn’t be allowed to use their golden parachutes to escape responsibility while their customers, their employees, and hardworking American families are left footing the bill for the failure of their bank,” said Sen. Britt. “This commonsense legislation will dissuade risky bank mismanagement and ensure that bad actors are held accountable.” “The executives responsible for running their banks into the ground are sitting on millions of dollars in compensation and bonuses. Meanwhile, the American people are bearing the financial burden for their excessive risk-taking and gross mismanagement,” said Sen. Vance. “This legislation would right that wrong and ensure that failed bank executives are held accountable for the collapse of their institutions – not the American taxpayer.” “Nearly three months after the collapse of Silicon Valley Bank, a bipartisan group of Senators is demonstrating a serious commitment to pass legislation requiring financial regulators to claw back pay from executives when they implode their bank,” said Sen. Warren. “Congress must answer the President’s call for stronger laws to hold failed bank executives accountable, and I’m determined to work with lawmakers on both sides of the aisle in the Senate Banking, Housing, and Urban Affairs Committee to deliver change.” The bill would expand the existing authority of the Federal Deposit Insurance Corporation (FDIC) to claw back the compensation of bank executives when they are found to have substantially contributed to the collapse of a financial institution by engaging in reckless business practices. Any funding that is clawed back will be directed to the FDIC’s Deposit Insurance Fund. This legislation was introduced in light of the recent collapses of Silicon Valley Bank (SVB) in California and Signature Bank in New York. Sponsors claim that considering the cost of the institutions’ collapse to the FDIC’s Deposit Insurance Fund and impact to the broader banking sector, this legislation is needed to deter future bad actors. Sen. Britt questioned former SVB CEO Greg Becker at a recent Banking Committee hearing, demanding answers about his responsibility in the bank’s collapse and his plans to give back the $1.5 million bonus he received. “If the team would have known it was going to be the fastest rate in history, I believe they would have considered different decisions,” Becker testified. “Senator, I was the CEO of Silicon Valley Bank. I take responsibility for what ultimately happened.” Co-sponsors of the bill also include U.S. Senators Bob Menendez (D-New Jersey), Mark Warner (D-Virginia), Kevin Cramer (R-North Dakota), Chris Van Hollen (D-Maryland), Tina Smith (D-Minnesota), Raphael Warnock (D-Georgia), John Fetterman (D-Pennsylvania.), Catherine Cortez Masto (D-Nevada), Josh Hawley (R-Missouri.), and Mike Braun (R-Indiana). To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Katie Britt and Tom Cotton lead bipartisan letter to Biden Administration about surge of Mexican steel
U.S. Senators Katie Britt and Tom Cotton, along with a bipartisan group of 11 of their Senate colleagues, sent a letter to Secretary of Commerce Gina Raimondo and U.S. Trade Representative Katherine Tai urging them to take action against the surge of Mexican steel imports, which they claim is unsustainable. The Sens. claim that the rising steel imports from Mexico raise grave concerns in America’s steel industry and steel communities such as those in Alabama. They also claim that this surge violates a 2019 agreement between the United States and Mexico negotiated by the Trump Administration. The letter contends that the United States deserves and should demand fair treatment from all trading partners, including its friends. “We urge the Biden administration to immediately begin consultations under the 2019 agreement to address this surge of Mexican steel and return imports to ‘historic volumes of trade,’ with quotas, if necessary,” the Senators wrote. “However, if the Mexican government refuses to remedy this breach, we regretfully urge the administration to consider other mechanisms to ensure compliance and protect American jobs, including the reapplication of Section 232 tariffs.” “The Administration has a responsibility to strongly enforce trade agreements to ensure fairness for hardworking Americans,” said Sen. Britt. “This unprecedented, unacceptable surge in Mexican steel imports is endangering good-paying Alabama jobs and negatively impacting communities across our nation. Additionally, our domestic iron and steel industry is critical for our national security. I will continue to fight to grow opportunities for families in every corner of Alabama and America, while keeping our homeland safe and strong.” Alabama still has a significant iron and steel industry. The iron and steel industry is an original economic engine for the state and supports approximately 15,000 jobs and indirectly supports more than 76,000 jobs, including subcontractors and suppliers. The average annual Alabama wage in the industry is nearly $100,000. Every two Alabama iron and steel industry jobs also supports ten additional jobs throughout the supply chain. Co-signing the letter are Senators Sherrod Brown (D-Ohio), John Boozman (R-Arkansas), Bob Casey (D-Pennsylvania), Thom Tillis (R-North Carolina), Tammy Baldwin (D-Wisconsin), Ted Budd (R-North Carolina), Elizabeth Warren (D-Massachusetts), Tina Smith (D-Minnesota), Rick Scott (R-Florida), Marco Rubio (R-Florida), and J.D. Vance (R-Ohio). The American Iron and Steel Institute (AISI) says that imports of finished steel increased by more than 18 percent in January compared with December. Mexico was the second-largest supplier (behind Canada) of finished and semi-finished steel to the U.S. in January. Mexico shipped 456,000 tons of steel to the U.S. in January – an increase of 10 percent from December. Britt is also a member of the National Security and International Trade and Finance Subcommittee of the Senate Committee on Banking, Housing, and Urban Affairs. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Unexpected deal would boost Biden Administration pledge on climate change
An unexpected deal reached by Senate Democrats would be the most ambitious action ever taken by the United States to address global warming and could help President Joe Biden come close to meeting his pledge to cut greenhouse gas emissions in half by 2030, experts said Thursday, as they sifted through a massive bill that revives action on climate change weeks after the legislation appeared dead. The deal would spend nearly $370 billion over ten years to boost electric vehicles, jump-start renewable energy such as solar and wind power, and develop alternative energy sources like hydrogen. The deal stunned lawmakers and activists who had given up hope that legislation could be enacted after West Virginia Sen. Joe Manchin said he could not support the measure because of inflation concerns. While analysts were still studying the 725-page bill, the deal announced late Wednesday includes a long-term extension of clean energy tax credits that “could plausibly put the U.S. on track to reduce emissions by 40% in 2030,″ said Ben King, associate director of the Rhodium Group, an independent research firm. Additional action by the Biden administration and Democratic-controlled states could “help close the rest of the gap to the target of a 50-52% cut in emissions by 2030,″ King said. But approval of the bill is far from certain in a 50-50 Senate, where support from every Democrat will be needed to overcome unanimous Republican opposition. Sen. Kyrsten Sinema, D-Ariz., who forced changes in earlier versions of the plan, declined to reveal her stance Thursday. In the narrowly divided House, Democrats can lose no more than four votes and prevail on a possible party-line vote. Still, Biden called the bill “historic” and urged quick passage. “We will improve our energy security and tackle the climate crisis — by providing tax credits and investments for energy projects,″ he said in a statement, adding that the bill “will create thousands of new jobs and help lower energy costs in the future.″ Environmental groups and Democrats also hailed the legislation. “This is an 11th-hour reprieve for climate action and clean energy jobs, and America’s biggest legislative moment for climate and energy policy,″ said Heather Zichal, CEO of America’s Clean Power, a clean energy group. “Passing this bill sends a message to the world that America is leading on climate and sends a message at home that we will create more great jobs for Americans in this industry,″ added Zichal, a former energy adviser to President Barack Obama. Tiernan Sittenfeld, senior vice president of the League of Conservation Voters, summed up her reaction in a single word: “Wow!” Sen. Tina Smith, D-Minn., tweeted that she was “stunned, but in a good way.″ Manchin, who chairs the Senate energy panel, insisted that he had not changed his mind after he told Senate Majority Leader Chuck Schumer two weeks ago that he could not support the bill because of inflation concerns. “There should be no surprises. I’ve never walked away from anything in my life,″ he told reporters on a Zoom call from West Virginia, where he is recovering from COVID-19. Manchin called the bill an opportunity “to really give us an energy policy with security that we need for our nation” while also driving down inflation and high gasoline prices. The bill, which Manchin dubbed the “Inflation Reduction Act of 2022,” includes $300 billion for deficit reduction, as well as measures to lower prescription drug prices and extend subsidies to help Americans who buy health insurance on their own. Besides investments in renewable energy like wind and solar power, the bill includes incentives for consumers to buy energy-efficient appliances such as heat pumps and water heaters, electric vehicles, and rooftop solar panels. The bill creates a $4,000 tax credit for purchases of used electric vehicles and up to $7,500 for new EVs. The tax credit includes income limits for buyers and caps on sticker prices of new EVs — $80,000 for pickups, SUVs, and vans and $55,000 for smaller vehicles. A $25,000 limit would be set on used vehicles. Even with the restrictions, the credits should help stimulate already rising electric vehicle sales, said Jessica Caldwell, senior analyst for Edmunds.com. Electric vehicles accounted for about 5% of new vehicle sales in the U.S. in the first half of the year and are projected to reach up to 37% by 2030. The bill also invests over $60 billion in environmental justice priorities, including block grants to address disproportionate environmental and public health harms related to pollution and climate change in poor and disadvantaged communities. Beverly Wright, executive director of the Deep South Center for Environmental Justice, called the bill a step forward but said she was concerned about tax credits for “polluting industries” such as coal, oil, and gas. “We need bolder action to achieve environmental and climate justice for ourselves and future generations,″ she said. The bill would set a fee on excess methane emissions by oil and gas producers while offering up to $850 million in grants to industry to monitor and reduce methane. The bill’s mixture of tax incentives, grants, and other investments in clean energy, transportation, energy storage, home electrification, agriculture, and manufacturing “makes this a real climate bill,″ said Sen. Brian Schatz, D-Hawaii. “The planet is on fire. This is enormous progress. Let’s get it done.” But not all environmental groups were celebrating. The deal includes promises by Schumer and other Democratic leaders to pursue permitting reforms that Manchin called “essential to unlocking domestic energy and transmission projects,″ including a controversial natural gas pipeline planned in his home state and Virginia. More than 90% of the proposed Mountain Valley Pipeline has been completed, but the project has been delayed by court battles and other issues. The pipeline should be “at the top of the heap” for federal approval, Manchin said and is a good example of why permitting reform is needed to speed energy project approvals. Manchin, a longtime supporter of coal and other fossil fuels, said environmental reviews of such major projects should be concluded within two years instead of lasting up
Joe Biden calls former VP Walter Mondale ‘giant’ of political history
President Joe Biden saluted his “friend of five decades” Walter Mondale on Sunday, traveling to the University of Minnesota to remember the former vice president and Democratic Party elder whose memorial service was delayed for a year due to the pandemic. Mondale died in April 2021 at age 93. He is credited with transforming the office of the vice presidency — which Biden himself held for eight years under President Barack Obama — expanding its responsibilities and making himself a key adviser to President Jimmy Carter. Mondale “was a giant in American political history,” Biden said of Mondale, known to friends as “Fritz.” He added that Mondale was one of the “toughest, smartest men I’ve ever worked with” both as Senate colleagues and as a mentor when Biden was Obama’s No. 2 and then later as president. Biden emphasized Mondale’s empathy, recalling his own promise during the 2020 presidential campaign to unite the country. That’s something the president has strayed from a bit in recent weeks as he seeks to draw a starker contrast between his administration and congressional Republicans who have opposed it on nearly every major issue. “It was Fritz who lit the way,” Biden said. “Everybody is to be treated with dignity. Everybody.” Biden added of Mondale: “He united people sharing the light, the same hopes — even when we disagreed, he thought that was important.” “It’s up to each of us to reflect that light that Fritz was all about.” The invitation-only, 90-minute service Sunday inside a stately campus auditorium featured plentiful organ music. Biden, who received a standing ovation, said he spoke with Mondale’s family beforehand and “got emotional” himself. Democratic Sen. Tina Smith called Mondale a “bona fide political celebrity” who still dedicated time to races large and small back in their home state. Minnesota civil rights icon Josie Johnson spoke of what a good listener Mondale was and how he championed inclusiveness. Democratic Sen. Amy Klobuchar described once being an intern who climbed under chairs and a table to carry out a furniture inventory when Mondale was vice president. “That was my first job in Washington. And, thanks to Walter Mondale, this was my second,” Klobuchar said of being a senator, noting that Mondale encouraged her to run and taught “the pundits in Washington how to say my name.” Democratic Gov. Tim Walz said Minnesota may be better known as Mondale’s home state than its moniker “The Land of 10,000 Lakes” and praised Mondale’s intellect, humility, humor, and optimism. “He embodied a sense of joy. He lived his life every single day,” Walz said. “At 91, he was still fishing for walleye. Unlike me, he was catching some.” A booklet given to attendees for the “afternoon of remembrance and reflection” quoted from Mondale’s 2010 book, “The Good Fight”: “I believe that the values of the American people — our fundamental decency, our sense of justice and fairness, our love of freedom — are the country’s greatest assets and that steering by their lodestar is the only true course forward.” Its back cover showed Mondale’s face next to the slogan, “We told the truth. We obeyed the law. We kept the peace,” which Klobuchar described as being memorialized after the then-vice president said them at the end of the Carter administration. Mondale was a graduate of the University of Minnesota and its law school, which has a building named after him. During Sunday’s remembrance, Biden wiped his eyes as a performance of “Tomorrow” from the musical “Annie” played, and the service closed with the university’s marching band, which sent people away with the “Minnesota Rouser” fight song. Mondale followed a trail blazed by his political mentor, Hubert H. Humphrey, serving as Minnesota attorney general before replacing Humphrey in the Senate. He was Carter’s vice president from 1977 to 1981. Mondale also lost one of the most lopsided presidential elections ever to Ronald Reagan in 1984. He carried only Minnesota and the District of Columbia after bluntly telling voters to expect a tax increase if he won. But he made history in that race by picking Rep. Geraldine Ferraro, of New York, as his running mate, becoming the first major-party nominee to put a woman on the ticket. Mondale remained an important Democratic voice for decades afterward and went on to serve as ambassador to Japan under President Bill Clinton. In 2002, at 74, he was drafted to run for the Senate again after Sen. Paul Wellstone was killed in a plane crash shortly before the election. Mondale lost the abbreviated race to Republican Norm Coleman. Republished with the permission of the Associated Press.
Tommy Tuberville joins other leaders to change sexual assault investigations in the military
U.S. Senator Tommy Tuberville has joined a bipartisan group of senators to support a bill that will change the way the military conducts sexual assault investigations and prosecutions. Tuberville, a member of the Senate Armed Services Committee Subcommittee on Personnel, joined U.S. Senators Kirsten Gillibrand (D-NY), Chuck Grassley (R-IA), Joni Ernst (R-IA), Richard Blumenthal (D-CT), Ted Cruz (R-TX), Jeanne Shaheen (D-NH), Mark Kelly (D-AZ), and 28 other Senators to introduce the Military Justice Improvement and Increasing Prevention Act. According to the press release, the legislation “keeps the prosecution of sexual assault crimes within the military but moves the decision to prosecute to independent, trained, professional military prosecutors, and provides for several new prevention provisions such as better training for commanders and increased physical security measures, while ensuring that commanders still have the ability to provide strong leadership and ensure a successful command climate.” Tuberville stated, “Our men and women in uniform sacrifice every day to keep us safe, often working in some pretty unsafe places around the world. The last thing they should be worrying about is whether they’re unsafe within their ranks, and they certainly shouldn’t have to fear retaliation if they report a sexual assault. This bill is what happens when a bipartisan group of senators come together to get something done. I’m thankful that Senator Gillibrand and Senator Ernst have led the charge, and I’m glad to join my colleagues in support of this bill that will help improve the way the military handles sexual assaults so survivors can get the justice they deserve.” The bill was introduced in 2019, but did not receive a vote. Specifically, the legislation would: Move the decision on whether to prosecute serious crimes to independent, trained, and professional military prosecutors, while leaving misdemeanors and uniquely military crimes within the chain of command. Ensure the Department of Defense supports criminal investigators and military prosecutors through the development of unique skills needed to properly handle investigations and cases related to sexual assault and domestic violence. Require the Secretary of Defense to survey and improve the physical security of military installations– including locks, security cameras, and other passive security measures – to increase safety in lodging and living spaces for service members. Increase, and improve training and education on military sexual assault throughout our armed services. Kirsten Gillibrand stated on Twitter, “Here’s a bipartisan mission we can all support: Survivors of military sexual assault deserve justice. I’m proud to have @JoniErnst join me this week to introduce our new, improved bill to reform the military justice system and invest in prevention.” Here’s a bipartisan mission we can all support: Survivors of military sexual assault deserve justice. I’m proud to have @joniernst join me this week to introduce our new, improved bill to reform the military justice system and invest in prevention. https://t.co/pYYUL6IRyA — Kirsten Gillibrand (@SenGillibrand) April 27, 2021 The legislation is cosponsored by U.S. Senators Kirsten Gillibrand (D-NY), Chuck Grassley (R-IA), Joni Ernst (R-IA), Richard Blumenthal (D-CT), Ted Cruz (R-TX), Jeanne Shaheen (D-NH), Tammy Baldwin (D-WI), Chris Van Hollen (D-MD), Angus King (I-ME), Michael Braun (R-IN), Dick Durbin (D-IL), Tammy Duckworth (D-IL), Michael Bennet (D-CO), Rand Paul (R-KY), Chris Coons (D-DE), Mark Kelly (D-AZ), Sherrod Brown (D-OH), Bob Casey Jr. (D-PA), Maggie Hassan (D-NH), Mazie K. Hirono (D-HI), Amy Klobuchar (D-MN), Patrick Leahy (D-VT),Elizabeth Warren (D-MA), Ron Wyden (D-OR), Cynthia Lummis (R-WY), Dianne Feinstein (D-CA), Catherine Cortez Masto (D-NV), Raphael Warnock (D-GA), Alex Padilla (D-CA), Shelley Moore Capito (R-WV), Gary C. Peters (D-MI), Tim Kaine (D-VA), Tina Smith (D-MN), Bob Menendez (D-NJ), and Martin Heinrich (D-NM).
Lockdowns are fading, but GOP outrage isn’t in campaigns
Nearly $500,000 poured into a donation fund set up by conservative activists.
Doug Jones proposes Paycheck Protection Program fix for rural hospitals
Alabama U.S. Senator Doug Jones, on Wednesday, introduced a bipartisan bill to allow rural hospitals to access relief funds through the Paycheck Protection Program (PPP). The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) established the PPP in March to provide relief to small business owners with fewer than 500 employees. Many small hospitals operate as part of a larger health system that exceeds the 500-employee limit under the Small Business Association’s rules, making these smaller hospitals ineligible for PPP. This legislation would waive the SBA rule for non-profit critical access hospitals and hospitals that serve rural areas so that they are eligible for PPP loans. “We need to do everything we can to make sure that Alabamians can access the health care they need no matter where they live,” said Jones, a member of the Senate Health Committee. “Many of our rural hospitals were struggling even before this pandemic, and are now being stretched to a breaking point by the spread of COVID-19. It’s crucial that they can access the support they need to continue to provide care to their communities, and PPP funds will be another tool in the toolbox to help them stay afloat.” In addition to dealing with increased costs for staff, personal protective equipment, and other safety measures as a result of the COVID-19 outbreak, many hospitals and medical facilities have lost significant revenue because of reductions in elective procedures. Before the COVID-19 pandemic, the Alabama Hospital Association had estimated that 88-percent of Alabama hospitals were operating in the red. Many rural hospitals in Alabama were already operating on thin margins, and the pandemic has placed them under even greater financial stress. The legislation is also sponsored by U.S. Senators Roger Wicker (R-Miss.), Cindy Hyde-Smith (R-Miss.), and Tina Smith (D-Minn.).
