Erika Eichelberger

Erika Eichelberger

Reporter

Erika Eichelberger is a reporter in Mother Jones' Washington bureau. She has also written for The NationThe Brooklyn Rail, and TomDispatch. Email her at eeichelberger [at] motherjones [dot] com. 

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Black Lawmakers Turn Up the Heat On Obama Over Judicial Nominees Who Backed Voter ID Law, Confederate Flag

| Mon Jan. 27, 2014 11:44 AM EST

Members of the Congressional Black Caucus (CBC)—a group of African-American lawmakers in the House that defends the interests of minorities and people with low incomes—are planning to publicly chastise President Barack Obama this week over two of his judicial nominees who have backed racially offensive and discriminatory policies, and what they see as a lack of diversity amongst his judicial picks, The Hill reported Sunday.

Obama has confirmed more African-Americans to the federal bench than any other president, but CBC lawmakers see an "appalling lack of African-American representation" amongst Obama's judicial nominees in Southern states such as Georgia, Delegate Eleanor Holmes Norton (D-D.C.) told The Hill. If Obama's nominees to the federal bench in Georgia are confirmed, there will only be one African-American district court judge in a state where 31 percent of the population is black.

And some of Obama's nominees have "views… that reflect the regressive policies of the past," Rep. David Scott (D-Ga.) pointed out in a letter to Senate judiciary chair Patrick Leahy (D-Vt.) earlier this month. Georgia Court of Appeals Judge Michael Boggs, who Obama nominated to the US district court for the Northern district of Georgia in December, voted to keep the Confederate battle emblem as a central part of Georgia's state flag when he was a Georgia legislator in the early 2000s. Atlanta attorney Mark Howard Cohen, who Obama nominated to the same court last month, helped defend Georgia's voter ID law, which voting rights advocates say makes it harder for poor people and minorities to vote.

CBC lawmakers and civil rights leaders have been pressuring Obama for months to rethink these nominations, but to no avail. So CBC members are trying another tack. They will hold a press conference this week to bring attention to the issue, and they're mulling an opposition strategy to block the nominees.

"We have very grave concerns [with certain nominees] given disparities that are particularly common in the South," Norton told The Hill. As my colleague Nick Baumann reported last summer, research has shown that the South remains more racist than the North.

So why did the president pick these nominees, especially now that Republicans can no longer filibuster judicial nominees? It has to do with a procedural hurdle called the blue-slip process that functions as a de facto filibuster. Here's how the process works: When the president is floating a potential judicial nomination, the senators from the state where the judge would serve are given a blue slip of paper. If both senators do not return their blue slips, the nominee will not be able to move forward to a vote in the Senate judiciary committee. This allows the GOP to exert significant control over nominees. Georgia's Republican Sens. John Isakson and Saxby Chambliss have used the blue-slip process to delay some of Obama's nominees to their state's northern district court for years. To fill those spots, Obama worked out a deal with the GOP senators that resulted in the nominations of Boggs and Cohen.

In an interview with MSNBC's Adam Serwer earlier this month, a White House official said Obama was not to blame for these nominations, as Republican senators are taking advantage of the blue-slip process. The White House has also pointed out that eighteen percent of confirmed judges under Obama have been black. That number was eight percent under President George W. Bush.  

CBC lawmakers are not impressed. As Scott told The Hill: “Do you think a white president, a George W. Bush, a Republican president—any white president—would appoint these kinds of nominees with the confederate flag background? With the voter suppression background? That White House would have been maimed by people crying out."

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Nevada Dems Slam Boehner for Fundraising off Nevadans Rather Than Extending Their Unemployment Benefits

| Wed Jan. 22, 2014 7:00 AM EST

Last week, 100 House Dems asked House Speaker John Boehner to cancel this week's legislative recess and keep the House in session to hash out legislation that would renew expired unemployment benefits for the long-term unemployed. Instead, Boehner traveled to unemployment-plagued Nevada for a fundraiser.

The state's Democratic lawmakers were quick to pile on. "Speaker Boehner skipped town to fundraise in Nevada instead of scheduling a vote to extend unemployment insurance benefits that thousands of Nevadans rely on," says Rep. Steven Horsford (D-Nev.). As long as Boehner was in town, Horsford says, he should have "take[n] the time to explain to unemployed Nevadans why he continues to ignore them."

"Once again, Speaker Boehner has chosen politics over the people," adds Rep. Dina Titus (D-Nev.). He "would do well to take time from his fundraising schedule to meet with families in District One and hear their struggles to put food on the table, pay their mortgage, and put gas in the car."

Boehner attended a Las Vegas Country Club luncheon last Friday to help raise cash for the re-election of Nevada GOP Rep. Joe Heck. The cost was $2,600 a head for a roundtable plus lunch—$1,000 for lunch only.

The Obama Administration Wants to End Racial Discrimination by Car Dealers. Why Are 35 Dems Getting in the Way?

| Tue Jan. 21, 2014 4:34 PM EST

Dozens of Democrats are pushing back against an Obama administration effort to curb racial discrimination by car dealerships.

In late March, the Consumer Financial Protection Bureau—the consumer watchdog agency dreamt up by Sen. Elizabeth Warren (D-Mass.)—issued new, voluntary guidelines aimed at ensuring car dealerships are not illegally ripping off minorities. Since then, 13 Senate Democrats, including Sens. Heidi Heitkamp (D-N.D.) and Mary Landrieu (D-La.); and 22 House Dems, including Reps. Debbie Wasserman-Schultz (D-Florida) and Terri Sewell (D-Ala.), have joined 19 House and Senate Republicans in signing letters to the agency objecting to the anti-discrimination measure. Consumer advocates and congressional aides say the lawmakers' backlash against the anti-discrimination rules is unjustified, and that Dems have backtracked on civil rights in this instance because of the colossal power of the car dealership lobby, which has spent millions lobbying Congress in the months since the CFPB issued these new guidelines.

Auto dealers "wield enormous amounts of power," one Democratic aide explains. "There's one in every district. They give a lot of money to charity. They're on a bunch of boards. They sponsor Little Leagues."

When a dealership makes a car loan, it often sells the loan to a bank or credit union, which, in return, allows the dealership to mark up the interest rate. Here's the problem: Some dealerships have been accused of charging higher rates to black and Hispanic customers, potentially costing consumers millions of dollars in overcharges. The CFPB's anti-discrimination guidance reminds lenders that they are liable under federal law if car dealerships they work with charge higher interest rates to minority borrowers. The guidance suggests that lenders help prevent discrimination by educating dealers, increasing oversight, and either capping dealership interest rates or requiring dealers to charge a flat fee.

Auto dealers are up in arms. If lenders follow the CFPB's advice, dealership profits could fall by hundreds of dollars per car sold, according to the Department of Justice. Car dealer trade groups claim that the CFPB has not adequately proved that discrimination is a problem in the industry. Dealerships have spent millions lobbying Congress over the past year, including on this very issue. Many Democrats have the auto dealers' back. In their letters to the CFPB, Dems claim that they appreciate the CFPB's goal of curbing discrimination by car dealerships. But they echo the dealers' arguments, and demand that the CFPB provide the detailed methodology it uses to determine that some dealers may be discriminating.

The CFPB maintains that the way it detects discrimination in the auto industry should be no mystery to Congress. These methods, which are similar to those used by the DOJ and other federal banking regulators, have been used in voting rights cases, discrimination cases, and jury selection cases for decades, a CFPB spokeswoman notes. Here's how it works: Because customer race and ethnicity data is not available for auto loans, the CFPB uses proxies, including geography and surname, to see if lenders are allowing dealerships to charge higher interest rates to minorities. The CFPB has responded to lawmakers' requests for this methodology in letters, at a public forum on the issue, and on its website.

If lawmakers don't trust the feds' definition of discrimination, they can also look to the courts. In December, the DOJ and the CFPB reached a $98 million settlement with Ally Financial and Ally Bank over claims that Ally's markup policies resulted in illegal discrimination against over 235,000 minority borrowers. At least seven class-action lawsuits have been filed over the past 14 years that allege auto-dealers unfairly overcharged minorities. And "nothing has really changed in the marketplace" to force auto lenders and dealerships to change their practices, says Chris Kukla, the senior counsel for government affairs at the Center for Responsible Lending, a nonprofit consumer rights group.

Car dealers have also complained that regulating the interest rates dealerships can charge will increase costs for consumers. Consumer advocates disagree: "I don't believe…[dealers'] ability to mark up prices…in any way benefits consumers," says Stuart Rossman, director of litigation the National Consumer Law Center, an advocacy group. Jeff Sovern, a law professor and expert in consumer law at St. John's University in New York, adds that the low prices some customers have been paying may have been subsidized by the higher prices paid by minorities. "It's not usually considered a defense that the beneficiaries of racism should keep the lower prices that other groups pay for," he says.

So why the outcry amongst Democrats? Congressional aides and consumer advocates say that the auto dealer industry's lobbying efforts are intense. "Dealers are a powerful lobby," Kukla says. "These people sell things for a living. They're good at advocating."

"I'm not surprised that any politician" would cave to the dealerships, Rossman adds. The National Automobile Dealers Association (NADA), an industry trade group, has spent $3.1 million on lobbying in 2013, according to lobbying disclosure forms. "The dealerships made a very concerted push to get [members of Congress] to sign those letters" criticizing the guidance, Kukla says.

None of the 35 Democrats responded to requests for comment for this story, nor did the National Association of Minority Automobile Dealers, another industry trade group. NADA declined to comment.

The oddest aspect of Democrats' push back on the CFPB anti-discrimination measures, advocates say, is that in issuing the guidance, the CFPB didn't actually create any new regulation or law. "The funny thing is that… [the CFPB] is getting hit…because someone is actually enforcing rules already on the books," says the Dem aide.

"It's not that controversial," Rossman adds.

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