Get Ready for Chicago Style Politics

Barack Obama has yet to be inaugurated as the new President of the United States and his Administration is already mired in controversy. First, there were the concerns over how his campaign was financed at a sum well over $600 million (the most ever in any US Campaign) with extremely weak accounting on the part of the campaign and concerns that he received monies from foreign countries. Then there were questions regarding whether Barack Obama was a naturally born US Citizen, which remains unanswered. Next there was Illinois Governor Rod Blagojevich allegedly trying to sell a US Senate seat and Barack Obama denying there were any communications between the governor and the President-Elect's office, followed by the then jaw dropping discovery that Obama's Chief of Staff did, in fact, have conversations and they were on FBI recordings. Finally, the President's choice for Commerce Secretary, New Mexico Governor Bill Richardson, has had to withdraw his name from consideration because of on going corruption charges.

Richardson shocked the political world by endorsing then Senator Obama during the Presidential race, while slighting the Clintons who gave him much of his impressive resume. Obama rewarded Richardson with the very high level Commerce position. Unfortunately, scandal has followed Richardson and MSNBC reports that a "federal grand jury is investigating how a California company that contributed to Richardson's political activities won a New Mexico state contract worth more than $1 billion. Richardson said in a statement issued by the Obama transition office that the investigation could take weeks or months but expressed confidence it will show he and his administration acted properly." The story goes on to point out the extent of the alleged link between the California company (CDR Financial Products) and Richardson: "The largest donation, $75,000, was made by CDR in June 2004 — a couple of months after the transportation financing arrangement won state approval — to a political committee that Richardson established before the Democratic National Convention that year. "

The media has yet to mention the fact that this Obama Administrated has already faced more concerns of corruption than many Presidents face in four or more years. Americans can expect to see much more of this in the next several years. Obama cut his political teeth in Chicago and that city is the most politically corrupt city, in the most politically corrupt state, in the Union. Eventually I am afraid we will all be in awe of what we witness from the Obama Administration. I eventually believe that Obama will bombard us with so many examples of corruption that we will become desensitized to it.

The state of Illinois has become notorious for its political corruption. The FBI in charge of the Blagojevich case has said that if Illinois is not the nation's "most corrupt state," it certainly is a major contender for the title. Three former Illinois governors since the 1960s have gone to prison, including the governor before Blagojevich, George Ryan. It is not uncommon for dead people to vote in Chicago elections and charges of "pay to play" for contracts are common place. Again, this is where Obama learned politics. Washington politics are corrupt enough without the hardball style that is known in Chicago. Because of the media and its love of a good scandal, I believe Obama's effectiveness will be continuously plagued and weakened with charges of corruption.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Obama and Emmanuel: What Did You Know and When Did You Know It?

For some, discussions about Rahm Emmanuel -- President Elect Obama's choice for White House Chief of Staff -- resigning seems a tad premature. I'm surprised it hasn't already happened.

Rahm Emmanuel, who is one of the most fierce partisans in American politics today has long been a lightning rod of controversy. When word broke of the political scandals that have rocked Illinois Governor Rod Blagojevich, Obama was quick to declare that he and his team had nothing to do with any of the alleged criminal activities being raised. It was similar to walking into a kitchen and the cookie jar being broke on the floor and some declaring "I didn't do it." Those quick to declare their innocence without questioning are the ones I find suspect most. The biggest concern was the apparent effort by the Governor to sale Barack Obama's Senate seat.

At first, most in the media seemed willing to take Obama at face value. Closer scrutiny from FBI investigators and the media indicate that some in Blagojevich's office had in fact been visiting with Obama's people, or at least a person. The person in question was Emmanuel, who was captured on tape discussing the replacement with the Governor's staff after Obama decalred no such discussions took place with his people. When questioned about his involvement, Emmanuel did nothing to help his cause by stating to reporters "I'm not going to say a word to you," ... "I'm going to do this with my children (go to a school play). Don't do that. I'm a father. I have two kids. I'm not going to do it" I understand the sentiment. Every father wants to protect his children. But the lack of denial of involvement is being interpreted in the worse possible way.

What makes matters worse, in my opinion, is that ABC is reporting that "it is unknown who on the Obama transition team had communicated to the governor's office that they wouldn’t engage in any 'pay to play' scheme to pick the Senate replacement." Why does this make matters worse? No where has it been reported that the Obama campaign exposed the Governor's actions to authorities. For not taking the knowledge of such to authorities could be interpreted as "aiding and abetting" a crime. It goes back to the question that besieged those stuck in the Watergate scandal: "What did you know and when did you know it?" The last thing a President who has marketed himself as an agent of change, but has cut his teeth in the most politically corrupt city in the country, wants is this type of cloud to follow him to his inauguration.

I am almost certain that the series of events that have happen will lead to a resignation and maybe more (even criminal charges) in the Obama team. But will they choose a low or mid level staffer as a scapegoat? If Emmanuel was forced to go it would send a message that Obama is serious about providing a truly different Administration.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Blagojevich Epitomizes Obama's Plight

Barack Obama is making it clear when it comes to Rod Blagojevich and his efforts to sell a Senate seat: "I was as appalled and disappointed as anybody by the revelations earlier this week," Obama said. "I have never spoken with the governor on this subject. I am confident that no representative of mine would have any part in any deals related to this seat." However, we have video from a senior Obama staffer that indicated that the President Elect and his staff had been communicating with the Governor. Before Obama even takes the oath of office he is in the middle of a huge scandal in which people have no idea how far reaching the investigation might be.

When Bill Clinton was elected President he declared that he was going to have the most ethical Administration ever. That wasn't the case and is laughable in retrospect. In spite of promises of conducting government differently, Obama knows that both the culture of Washington and of the Chicago political machine he comes from mandates that he should stay away from outrageous claims of excellence in ethics. This Administration will be continuously dogged by ethics issues because he rose to power in one of the least ethical political environments in the country.

The state of Illinois has become notorious in producing criminal politicians. The FBI in charge of the Blagojevich case has said that if Illinois isn't the nation's "most corrupt state," it certainly is a major competitor for the title. Three former Illinois governors since the early 1960s have gone to prison. Who knows, maybe Blagojevich can become roommates to the governor who proceeded him, George Ryan.

I am afraid that the Chicago political machine is going to continuously haunt Obama. The media may currently love him, but they love a good scandal even more. Individuals often become known for the people that surrounds them. That does not bode well for the President Elect from Chicago.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Christopher Dodd Has to Go

I am not at all sympathetic of the plight of the automobile industry. The Big Three of Detroit have largely brought their terrible situation upon themselves through decades of bad decision making. In spite of this reality, I was offended when Senate Banking Committee Chairman Christopher Dodd (D-CT) informed the CEOs of Ford, Chrysler, and GM that if they wanted money for their companies, they needed to go. This is the same Christopher Dodd who has been on the Senate Banking Committee for years and oversaw the financial debacle of Wall Street that led to an $800 billion bailout at taxpayers expense. This is the same Dodd who has fueled record government spending for years that has led to our debt of trillions of dollars.

As chairman of the Senate Banking Committee, Dodd proposed a housing bailout on the Senate floor in June 2008 that would assist troubled mortgage lenders such as Countrywide Financial. Condé Nast Portfolio reported that in 2003 Dodd had refinanced the mortgages on his homes in Washington, D.C. and Connecticut through Countrywide and had received favorable terms due to being placed in what was later called the "Friends of Angelo" (Countrywide's CEO) program. Dodd received mortgages from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes. Dodd has not disclosed the below-market mortgages in any of six financial disclosure statements he filed with the Senate or Office of Government Ethics since obtaining the mortgages in 2003. The Senator's home state Hartford Courant reported Dodd had taken "a major credibility hit" from the scandal.

If direct payment has influence, the problem is even more widespread. Countrywide has also contributed a $21,000 total to Dodd’s campaigns since 1997. Dodd has also received $70,000 in campaign contributions from Bank of America, which is buying Countrywide, in the last year-and-a-half before the Countrywide Financial loan scandal surfaced. Senators Barack Obama and Hillary Clinton are the only other Senators who have received more money from Bank of America than Dodd. However, no politician has received more contributions from Fannie Mae and Freddie Mac than Dodd's combined $133,900.

Marcus Cicero, when discussing the Roman Empire, said "the arrogance of officialdom should be tempered and controlled..." Dodd's throwing stones in a glass house and maintaining a straight face in the process, is arrogance at its height. Senator Dodd needs to go and should be a part of a serious "house cleaning" that should be seen in both the US House and Senate. It is true that, in the end, many familiar faces like Dodd would disappear. That would be a face lift the US could afford.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.