Andy Kroll

Andy Kroll

Senior Reporter

Andy Kroll is Mother Jones' Dark Money reporter. He is based in the DC bureau. His work has also appeared at the Wall Street Journal, the Detroit News, the Guardian, the American Prospect, and TomDispatch.com, where he's an associate editor. Email him at akroll (at) motherjones (dot) com. He tweets at @AndrewKroll.

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Dems, GOP Want DOJ Probe of Goldman

| Wed Apr. 28, 2010 10:32 AM PDT

A letter drafted by Rep. Marcy Kaptur (D-Ohio) calling for a criminal investigation of Goldman Sachs has garnered more than 140,000 petition signatures as well as the support of 61 members of the House, including Republican congressman Michael Burgess of Texas. Kaptur's letter, addressed to Attorney General Eric Holder, draws on the allegations cited in the Securities and Exchange Commission's securities fraud suit against Goldman, and says the DOJ should go one step further by pursuing criminal charges against Goldman. "If the DOJ is not currently looking into this particular case, we respectfully ask you to ensure that the US Department of Justice immediately open a case on this matter and investigate," Kaptur's letter says.

Kaptur and members of the Progressive Change Campaign Committee, the organization that drummed up the petition signatures and also made some 4,000 calls to Congress about a Goldman criminal suit, will meet outside the DOJ today at 2 pm to turn up the heat on Holder. The pressure from Kaptur and PCCC comes at a incredibly tough juncture for Goldman. In addition to the SEC's civil suit, Goldman's top executives, including CEO Lloyd Blankfein, face a shareholder suit in New York surrounding the firm's controversial collateralized debt obligations deal (the same at the center of the SEC suit). The firm is also the defendant in a class-action suit over mortgage securities. Blankfein has said he and the firm will fight the SEC's suit.

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Finance Reform Battle Delayed...Again

| Wed Apr. 28, 2010 10:02 AM PDT

The financial reform battle—that is, to even start the full debate in the Senate—continues on here on Capitol Hill. For the third time in as many days, Senate GOPers defeated a vote to start debating financial reform legislation, a bill that would try to end future taxpayer bailouts, create a new consumer protection agency to guard against predatory lenders and dangerous products, and shed light on the opaque, $450 trillion over-the-counter derivatives market. The vote was 56-42, with centrist Sen. Ben Nelson (D-Neb.) again voting with Republicans. Majority Leader Harry Reid ultimately voted against the bill, too, a maneuver that allows him to schedule another vote which could happen as early as Thursday morning.

The losing vote wasn't entirely surprising, as Sen. Chris Dodd (D-Conn.), a top Democratic negotiator on financial reform, said earlier Wednesday morning that his party still didn't have the votes to begin the debate. Remarks on Wednesday by Sen. Richard Shelby (R-Ala.) suggest the gulf between the two parties remains gaping and it could take several more days before an agreement is finally reached. "Are we close to wrapping up a comprehensive deal? No, we're not close to that," Shelby told MSNBC.

Scott Brown: Truck or Wall St. Limo?

| Wed Apr. 28, 2010 6:50 AM PDT

Americans for Financial Reform, a group putting the heat on Republicans for blocking the Senate's Wall St. overhaul, has a new ad out today in the Boston area targeting Scott Brown, the junior senator from Massachusetts who won the late Ted Kennedy's former seat and took away the Democrats' senate 60-vote supermajority. In the past two days, Brown has twice voted against beginning full debate on the Senate floor on the financial regulatory bill, joining GOPers in stalling an inevitable vote on reform. In the ad, AFR highlights the fact that the financial services industry was a major donor for Brown (the finance, insurance, and real estate, or FIRE, sector was the largest giver to Brown's campaign at $972,800, according to the Center for Responsive Politics), and says, "The Wall Street banks got their money's worth with Senator Brown and bonus checks are no doubt in the mail."

Here's the ad in its entirety:

GOP Blocks Finance Debate Again

| Tue Apr. 27, 2010 2:06 PM PDT

Senate Republicans blocked the second vote in less than 24 hours to begin debate on financial reform. The cloture vote lost 57-41, with centrist Sen. Ben Nelson (D-Neb.) again voting with Republicans to prevent the full debate on the Senate floor. That surely means Nelson still hasn't restored the derivatives provision to the bill that's backed by Warren Buffett, the business guru who heads Omaha-based Berkshire Hathaway. The provision would have exempted existing derivatives contracts, of which Berkshire has tens of billions, from posting additional cash or securities as collateral. 

The Senate is slated to vote again to begin debate as early as tomorrow, as Majority Leader Harry Reid (D-Nev.) ratchets up the political pressure to cast GOPers as in bed with Wall Street. However, it's unclear when any breakthroughs will occur, as Senate Republicans have said they want more concessions from Democrats on issues like a new consumer protection agency and new regulations on too-big-to-fail banks. For now, the talks continue to stay behind closed doors. That will continue to frustrate Democrats who want to drag the debate into the light of day, where they hope the ties between Republicans and Big Finance will be more apparent to the public and will give financial reform the momentum to reach the finish line.

Nelson's Top Donor? Buffett's Berkshire

| Tue Apr. 27, 2010 10:54 AM PDT

If there was any lingering doubt about why Sen. Ben Nelson (D-Neb.) voted against opening the debate on financial reform, the identity of Nelson's top donor—Omaha-based financial company Berkshire Hathaway, led by guru Warren Buffett—should provide some clue. According to the Center for Responsive Politics, the top givers to Nelson's campaigns are the political action committee and  employees of the highly profitable Berkshire Hathaway, who have given Nelson $75,550 throughout his Senate career. Nelson and his wife, the Omaha World-Herald reports, also own between $1.5 and $6 million in Berkshire stock, financial disclosure forms show. Only five members of Congress have more than $100,000 in Berkshire stock.

Nelson's "No" vote yesterday was attributed to his ties to Berkshire. Nelson had been a top backer in Congress of a provision in the bill that would've exempted the owners of existing derivatives contracts from offering up additional cash or collateral—a requirement that will be imposed on future deals if the finance bill, as it looks now, became law. Lobbying hard for that provision was Buffett, who opposed having to post collateral on Berkshire's existing derivatives deals, a condition he called unconstitutional. However, that Buffett-backed provision was killed yesterday, and soon afterwards Nelson cast his vote against beginning debate on financial reform.

Nelson told the World-Herald that he wanted the exemption in the bill mainly because it was good policy, and he was joined by Nebraska's junior senator, Mike Johanns, who also voted "No" on cloture yesterday. Nebraska's Republican chairman saw it differently, calling Nelson's vote "Yet another backroom deal being orchestrated by Sen. Ben Nelson." There's been no word yet whether that exemption has been put back into the bill. Nelson and his colleagues will return to the Senate floor today at 4:30 pm for another vote on whether to begin full debate on financial reform. 

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