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Posts Tagged ‘scandal’



Jerry, eMeg and the Goldman Sachs Connection

Tuesday, April 20th, 2010

Moments after Jerry Brown finished a press conference at the California Democratic Convention, where he had just challenged his Republican rivals to join him in a set of pre-primary debates, Calbuzz accosted him as he strode down the hall to his next event, trying to squeeze in one extra question.

“How about Goldman Sachs?” we asked him. “How important to the campaign is Meg Whitman’s connection?”

Brown’s eyes flashed red, smoke blew from his nostrils and fire flew off his tongue, but before he could answer, campaign manager Steve Glazer rushed up to protest: “We’re not giving not any walking interviews!”

And just like that, the presumptive Democratic nominee for governor thought better of his impulse, smiled slightly and said, “If I answer that, you won’t write about the debates.”

Brown, with Glazer keeping tabs

The hallway scene at the J.W. Marriott Hotel on Saturday morning spoke volumes about two important elements of Brown’s campaign for governor:

On one level it was a tribute to the indefatigable efforts of Glazer to work the impossible: keeping the famously undisciplined Brown from flapping his gums and straying from his appointed message.

It was also testament to Brown’s obvious desire to open a line of full-throated populist attack on GOP front-runner Whitman — portraying her as a tribune of corporate excess and Wall Street greed and using her multiple links to Goldman Sachs as Exhibit A in making the case.

With the Securities and Exchange Commission formally charging the huge investment bank with fraud last Friday, Brown’s campaign has been handed a fresh opportunity, not only to disrupt the Whitman campaign narrative that her executive business experience splendidly qualifies her for governor, but also to perform political jujitsu on the exorbitant campaign spending eMeg is fronting with her personal fortune.

At a time when public resentment runs high against Wall Street banks, and the obscene taxpayer bailouts they’ve received, the SEC’s fraud case against Goldman Sachs is a clear and high-visibility symbol of the avarice and recklessness that fed the recession-triggering sub-prime mortgage/credit default swap/collateralized debt obligation scandal (for those still trying to cut through the complexities of this, Michael Lewis’s “The Big Short” is a must-read).

No less a source than the Wall Street Journal, which included a sidebar on the governor’s race (subscription required) in its page one, double-truck Monday coverage of the SEC-Goldman case, forecast “the furor…could become a sticky issue” in the California campaign.

“Over the course of this campaign, I think the voters are going to be fully aware of Meg Whitman’s financial dealings at Goldman Sachs and they’ll hold her accountable for them,” Brown spokseman Sterling Clifford, told the Journal.

The esteemed Christian Science Monitor also weighed in with a piece on how the Goldman Sachs case could “roil” the governor’s race.

“Whitman has to demonstrate how she was not one of the black hats at Goldman Sachs. In other words, she’ll have to explain herself – not an enviable position for a candidate,”  Steven Schier, a political scientist at Carleton College in Northfield, Minn., told the Monitor.

Calbuzz has previously published a leading expert’s analysis of eMeg’s involvement in the stock “spinning” scandal, perhaps the most problematic aspect of her Goldman Sachs connection, while Lance Williams and Carla Marinucci have reported on others, in a fully detailed primer on the issue  published jointly by California Watch and the Chronicle.

Candidate Meg Whitman touts her experience at eBay, the online auction hous

e that made her rich, but her career and personal fortune are entwined with another company: the Goldman Sachs investment bank, a major player in public finance in the state she wants to lead.

Whitman’s relationship with the giant Wall Street firm — as investor, corporate director and recipient of both insider stock deals and campaign donations — could pose conflicts of interest if the Republican front-runner is elected governor of California, critics say.

Some Whitman boosters, led by Republican blogger Bill Whalen, have been whistling past the graveyard, arguing that because Brown’s sister, former state Treasurer Kathleen Brown, is a former Goldman Sachs executive, Jerry Brown will be loathe to gamble on going after Her Megness on the issue.

Putting aside the total false equivalency of the comparison, Calbuzz will be more than happy to take that bet.

Meanwhile, Over in Clovis: KTVU-TV got  eMeg to respond to Brown’s call for three-way debates:  “I think it’s a political stunt to avoid giving specifics. You know,  I have a very specific policy agenda that has been outlined and Jerry has not given a single specific plan on virtually any of the crises that face California.”

Whitman, of course, is right that the debate gambit was a political stunt. But a clever one that gave  the aforementioned Glazer license to reply:

“Perhaps because she has failed to vote for most of her adult life, Ms. Whitman doesn’t understand the voters need for straight talk and honest discussion in an election. Calling an unscripted debate about the serious challenges facing California a ‘political stunt’ shows total disregard for the voters.”

Furthermore, Glazer said,  “From the fake town hall she filmed for her infomercial (coming soon to a station near you) to the 48-page photo album she calls a ‘plan’ and using a business group as a front for attack ads, Meg Whitman has run a campaign wholly based on stunts.”

Costco Carla & Lady Gaga Meet PiWi & The Flash

Friday, February 12th, 2010

Knockdown of the Week: A big alleged story in the governor’s race bounding across the blogosphere this week had Meg Whitman pulling  behind-the-scenes strings that supposedly yanked Tom Campbell out of the governor’s race and into the Republican Senate primary campaign.

But while certain members of the pajama-clad, tin-foil hat brigade spun dark conspiracy theories, Chronicler Carla Marinucci did a bit of what you might call your old-fashioned shoe leather reporting: yes, she actually called Campbell on the telephone and asked him about it.

At which point, not only did Dudley Do Right categorically deny the purported story, but also his campaign put out a statement from super-Sacto consultant Bob White, a key, unindicted co-conspirator in the alleged Whitman plot, which dumped several hundred more gallons of ice water on the paranoiac yarn.

Costco Carla’s knockdown left Julie Soderlund, campaign manager for Carly Fiorina, Campbell’s leading GOP rival, looking silly. Soderlund earlier sent out a heavy breathing e-blast trying to advance the uncorroborated blog report that portrayed Campbell as doing everything but lurking around Dealey Plaza with an open umbrella:

What did Tom Campbell know and when did he know it?
What conversations did he have with the Whitman campaign/Whitman’s supporters?
Was there some sort of quid pro quo in this situation?
And, last but certainly not least, what was he promised for jumping out of the Governor’s race?

Puh-leeze. Putting aside the fact that California voters have zero interest in this  inside baseball narrative, rushing out with a bunch of unsubstantiated, stop-the-presses innuendo simply reinforces the widening perception of Demon Sheep Carly as a flake, especially coming on the same day she dug herself a nice big hole on the issue of California declaring bankruptcy, which required emergency clarification spin from the campaign.

Steve Poizner’s campaign looked only slightly less foolish, in also rushing to judgment on the Col. Mustard-with-the-candlestick-in-the-conservatory story line.  Memo to Commish: You got your 15 minutes attacking eMeg over the now-infamous Mike Murphy email so give this line of attack a rest, man.

He calls ‘em as he seez ‘em and he always call ‘em Right: This week’s Nestor Chylak Award for first-rate umpiring goes to Jon “The Flash” Fleischman for his on-the-money essay calling on all the candidates for governor and Senate — he names no names, Meg Whitman — to debate at the upcoming Republican state convention:

This election cycle we have candidates running for major statewide offices that have no history in politics – and therefore no specific way to judge exactly what they will do…

If you are a major candidate for the GOP nomination for Governor, and you’ve not yet agreed to participate in a debate at the Republican convention, the time to do so is now.  Show your support of, and respect for hard-working GOP volunteers (not to mention the other 39 million people in California -ed.) by appearing before them with your sleeves rolled up, ready to take whatever questions should be posited [at] the event.

All this, and he used the word “posited” in a sentence, too. Calbuzz sez check it out.

Virtual Steve vs. Virtual Meg: Just can’t wait to see eMeg and The Commish go nose-to-nose over who hates the Delta smelt more? Calbuzz Online Video Political Cartoon Consultant Don Ringe previews the GOP smackdown here. Spoiler alert: Watch for eMeg’s sucker punch at the end.

If he agrees with Calbuzz, he must be right: Former state controller and Democratic big stick Steve Westly, an eMeg eBay colleague in a past life, argues at Green Tech Media that the Great Woman’s rabid opposition to the AB32 greenhouse gas legislation is not only bad policy but bad politics as well. Whitman’s promise to suspend AB32 on her first day in office, according to the erstwhile Democratic contender for governor:

…would be a stunning step in the wrong direction. Most of the people I know throughout Silicon Valley realize that to be a colossal mistake. This is the highest growth job segment. This state’s job engine for the future is in clean technology. It is one of the key reasons you will see a Democratic governor in 2010.

As we’ve noted previously, her Smokestack Meg play may play well in a Republican primary, but it’s a loser as a general election strategy.

Oh, wait, we’re already in the general election campaign, according to Whitman campaign chairman Pete “PiWi” Wilson, who claims in a this-just-in eMeg eblast:

Jerry Brown and his allies are beginning the General Election today. We must respond…It is now very clear that the entire Republican Party must unite behind Meg’s campaign. We have an outstanding party standard bearer. Since last summer, Meg has led among GOP voters in every independent poll by enormous margins, and those same polls show that she is the strongest Republican candidate against Jerry Brown.

We must unite. Meg and our campaign team are beginning the General Election today, and we are not wasting time.

Geez, who’s gonna tell Poizner? I know, let’s get Murphy to do it!

Life in imitation of art: Loyal Calbuzzers will recall that not long ago, we offered a learned discourse on the theory of political reporting known as Dull But Important, with a glimpse at the fictional magazine of the genre known as “DBI.” Imagine our surprise to learn that the eggheads and chrome domes at UC Bezerkely have broken the frame and are actually producing DBI for real.

Today’s sign the end of civilization is near: Lady Gaga – she’s just like you and me.