WASHINGTON -- Sen. Chuck Grassley and Rep. Tom Latham of Iowa today asked the Federal Deposit Insurance Corporation (FDIC) for details of the federal regulations that are meant to protect consumers from financial fraud but might be penalizing bank employees for old, minor infractions that are not a threat to current financial customers.

"Indications so far are that the FDIC's guidance to banks might be problematic," Grassley said. "We're asking for the guidance directly to try to determine whether that's the case.  The rules have to make sense and have their intended effect of protecting the public from bank fraud.  They can't be so rigid that they result in the firing of workers for petty crimes that are decades-old and have nothing to do with financial fraud.  And they can't be applied unfairly so they result in a double standard for executives and rank-and-file workers."

"Good citizens are more than willing to follow the rules.  But in typical Washington fashion, the FDIC isn't sharing what those rules are," Latham said.  "This creates uncertainty, frustration, and costs everyone involved time and resources.  America's citizens and businesses deserve better than that from Washington."

In addition to seeking the regulatory guidance the FDIC has given to banks, Grassley and Latham also are seeking the details of the process by which individuals seek waivers from the criminal background regulations.  Grassley and Latham asked for information including the guidance given to FDIC employees on processing waivers; the number of waivers sought, granted and denied; the number of FDIC employees assigned to process waivers; and a list of the documents prospective applicants are asked to provide.

Grassley and Latham began reviewing the effects of the banking regulations meant to weed out employees with criminal histories presenting risk of financial fraud after the Des Moines Register reported that Wells Fargo has fired workers including a 68-year-old customer service representative in Des Moines for putting a cardboard dime in a washing machine 49 years ago.  Other constituents have written with similar stories.

The text of the Grassley-Latham letter is available here.

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(DES  MOINES) - Lt. Gov. Kim Reynolds will promote economic opportunities in Germany during a mission beginning September 23, 2012.  She will meet with the German Vice Chancellor and other economic affairs leaders to discuss trade, transportation, energy, health care and education.

"Germany is the largest economy in Europe and the world's fifth largest national economy," said Reynolds.  "With a population of 82-million, many consider Germany the largest and most important market in Europe.  This mission will result in valuable contacts and visibility across Germany for the state and its business opportunities."  Time magazine writes Germany has forged the most competitive industrial sector of any advanced economy.  And, the New York Times writes, "The German economy has been one of the wonders of the world over the last couple of years."

Reynolds will meet with German Vice Chancellor Dr. Philipp Rosler, U.S. Ambassador to Germany Philip Murphy, a federal minister to the Chancellor, a leader of the Saxon state legislature, the Saxon Minister of Economic Affairs and Transportation, and with energy researchers, university and high school teachers and administrators, business owners, and a hospital medical director.  Meetings take place in Dresden, Lommatzsch, Leipzig, and Berlin.

"We will have several discussions with business owners regarding business conditions and the German apprenticeship program," said Reynolds.  "At one of Germany's largest universities, we will be briefed on renewable energy projects and hear about how German universities and elected officials are working to address education funding gaps."

Reynolds will tour the largest hospital in Dresden and have opportunities to discuss comparative health care and financing with the medical chair of that hospital and with the German Deputy Minister for Health.  She will be introduced to German approaches to immigration and other urban affairs and then visit a village of 5,000 people to hear about rural challenges and opportunities.

"I will get an underground tour of the "Big Dig" rail tunnel project in Leipzig, currently one of Europe's largest transportation infrastructure projects," said Reynolds. The project is considered one of the most challenging geotechnical construction projects of its time and, when complete in 2013, will create a long awaited connection to Europe's largest rail terminal (Leipzig) resulting in greatly enhanced transportation and rail efficiency across that region of Europe.

"Lieutenant governors will also be featured at a public forum discussing the U.S. Presidential elections," said National Lieutenant Governors Association Director Julia Hurst.  "The electoral event will be moderated by an editor of Germany's largest business daily newspaper."

Organized by the National Lieutenant Governors Association (NLGA), the 7-day mission includes five U.S. lieutenant governors and is hosted by the Friedrich Naumann Foundation.

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Grassley sent the White House a letter on April 23, 2012 asking questions about the review conducted by the Office of the White House Counsel into allegations of involvement of White House staffers in the prostitution scandal.  Grassley has yet to receive a response from the President.

In a new letter sent to the White House late yesterday, Grassley renewed his original request and posed several more questions, including inquiries about contacts that White House personnel has had with the Department of Homeland Security Inspector General conducting a review of the Secret Service's involvement in the scandal.

Here is a copy of the text of Grassley's letter.  A signed copy can be found here. The April 23, 2012 letter can be found here.

September 20, 2012

Via Electronic Transmission

Kathryn H. Ruemmler

Assistant to the President and White House Counsel

Office of the White House Counsel

Executive Office of the President

The White House

1600 Pennsylvania Avenue, N.W.

Washington D.C., 20500

Dear Ms. Ruemmler:

I write to follow up on a letter dated April 23, 2012 (attached), that I sent to you regarding the
"review" conducted by the Office of the White House Counsel into allegations of the involvement of White House staffers in the prostitution scandal that occurred in Colombia in April 2012.  In my letter, I sought information in response to statements by the White House press secretary, Jay Carney, that your office had reviewed these allegations and concluded that there was "no indication of any misconduct" by White House staffers.[1] Mr. Carney failed to elaborate further about the "review" conducted by your office.

In my letter, I asked you detailed questions regarding how you conducted this "review" and what specific conclusions you drew about White House staff involvement in this scandal.  I have yet to receive a response.  However, the White House spokesman quickly told the public, without further explanation, that he was confident that there was no such involvement.

Now more allegations have arisen regarding White House personnel procuring prostitutes during the President's trip to Colombia.  Yesterday, an article on Foxnews.com quoted an unnamed "high-ranking Secret Service official" as stating, "Three U.S. delegation members that stayed at the Hilton brought prostitutes back as overnight guests.  One of them was ours [Secret Service] and the other two were White House staffers."[2] Furthermore, according to the article, multiple law enforcement sources speculate that the forthcoming report to be issued by the Department of Homeland Security Office of Inspector General (DHS/OIG) has been delayed in order to cover up this involvement by White House staff.

Accordingly, I request you respond to my questions in the April 23 letter, and also respond to the following additional questions:

1.      Has the White House been in contact with the DHS/OIG? If so, what has been the nature of that contact?

2.      Has the White House seen a copy of the draft DHS/OIG report?  Whether or not the White House has seen a copy of the report, is the White House aware of the findings of the report, specifically regarding the allegations of involvement of White House staffers?

3.      Has the White House had any input into the drafting of the report, including providing edits to the final version? If so, provide information regarding the nature of the edits.

4.      Was any contact between the White House and the DHS/OIG, including review and editing of the report, responsible for the delay in the DHS/OIG's meeting his target date of July 2, 2012 for release of the report?

5.      Has your office or any other office in the White House conducted a new review of the allegations in response to any findings by the DHS/OIG? If so, what did that new review consist of? What were its findings?

6.      Was the U.S. Secret Service aware of the alleged involvement of the White House staffers?  Have you been in contact with the U.S. Secret Service regarding these allegations? Has the U.S. Secret Service provided the DHS/OIG any information regarding these allegations?

7.      What will happen to these staffers if they are in fact found to have procured prostitutes while on official travel?

8.      If the report includes the findings that are being reported, how did your initial review fail to uncover the involvement of these staffers?  Do you concede that your initial review was performed in haste and without sufficient care?

9.      If the report includes the findings that are being reported, will Spokesman Carney issue a retraction or correction to his public comments denying any White House staff involvement?

Thank you for your prompt attention to this request. I would appreciate your response by September 27, 2012.

Sincerely,

Charles E. Grassley

Ranking Member

Attachment

[1] Steven T. Dennis. "WH Finds No Staff Involved in Secret Service Scandal." Roll Call.   April 23, 2012.

2 Jana Winter, "Probe of Secret Service Prostitution Scandal May Cite White House Advance Staff Involvement," Fox News.com, Sept. 19, 2012, available at http://www.foxnews.com/politics/2012/09/19/probe-may-cite-white-house-advance-team-involvement-in-prostitution-scandal/?test=latestnews.