WASHINGTON --- Thursday, February 10, 2011 --- Senator Chuck Grassley is asking for an explanation of the "big divide" between the stated policy of the Securities and Exchange Commission and the Wall Street watchdog's actual practice in communicating and cooperating with the Justice Department on securities fraud cases.

Grassley said that recent comments by the SEC Director of Enforcement at a securities industry conference, "sound the alarm for anyone concerned about the SEC being overly cozy with those it should be investigating, to the point of not only committing to its own cooperation, but also providing information about the intentions of the Justice Department.

Grassley said the public deserves to know "what kind of arrangement there is between the SEC and the Justice Department on behalf of the securities industry."

In November, the SEC Director of Enforcement, Robert Khuzami, said "there is going to be earlier and more frequent collaboration between us and Justice" about whether there's criminal interest, "so defense counsel can have as much information as possible."

However, a new SEC enforcement manual says that "it is the general policy of the Commission not to comment on investigations conducted by law enforcement authorities responsible with enforcing criminal law."  The manual even instructs SEC staff to decline to identify which criminal authorities should be contacted to learn about a possible parallel criminal investigation.

"All the promises of financial regulatory reform ring hollow if the administration is allowing the top enforcement official at the SEC to relay to potential targets of an investigation exactly what the Justice Department has in store for them," Grassley said.

In letters to SEC Chairman Mary L. Schapiro and Attorney General Eric H. Holder, Jr., Grassley asked for copies of written guidance on collaboration and communication between the SEC and the Justice Department, a detailed description of the nature and extent of communications between the agencies in the Goldman Sachs and Pequot matters, and written responses to additional questions.

In 2007, Grassley and Senator Arlen Specter spelled out in a comprehensive report the SEC Inspector General's failure to investigate credible allegations by former SEC attorney Gary Aguirre that his supervisor pulled punches in the investigation because of one witness' political clout.  The former SEC Inspector General left his position the same day the Grassley-Specter report was released.  Last year, the SEC finally obtained a $28 million dollar settlement from Pequot and paid Aguirre years of back pay in a settlement related to his termination.

The SEC drafted its enforcement manual response to the recommendations in the August 2007 Grassley-Specter report.

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Thursdays at the Figge returns to the Figge on Thursday, February 17, 2011 with the special lecture "The World's Most Perfect Servant: The Pullman Porter Company and the African-American Experience," presented by Peter A. Hansen in conjunction with the current exhibition "Tracks: The Railroad in Photographs from the George Eastman House Collection" and Black History Month.  Mr. Hansen is the editor of the scholarly journal Railroad History and will travel from his home in Kansas City to Davenport by train for this lecture.  This lecture will be held at 7:00 PM in the Figge Auditorium.

The porters of the Pullman Company served as bellmen, concierges, housekeepers and more in the railroads' sleeping cars, yet their role in the American consciousness is even harder to define.  Were porters "the world's most perfect servants," as Pullman's advertising boasted, or a symbol of racial oppression? Icons of gracious travel or underpaid victims? More than 40 years after the Pullman Company went out of business attitudes about its frontline employees reflect our continued ambivalence.  This lecture will offer insights on the Pullman porters, their work, and their role in the modern civil rights movement.

Thursdays at the Figge on February 24th will feature a performance of Railroad Songs and Stories by Roald Tweet, professor emeritus of English at Augustana College and host of WVIK's Rock Island Lines, and musician Chris Dunn.

Thursdays at the Figge in March will feature "Artists and Writers," a series of talks by English professors from area colleges and universities on the unique relationship between literature and art.

Thursdays at the Figge programming in February also include a guided gallery tour at 6 PM and live music by Buddy Olson. The café and bar open at 5 PM for dinner and drinks and the museum is open until 9 PM. All programs are included with admission to the museum and all college students and faculty receive free admission after 5 PM every Thursday night.

Tracks and its educational programming are funded in part by the Riverboat Development Authority, Humanities Iowa and the National Endowment for the Humanities.

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The United States trade representative today said the administration would submit the United States-Korea free trade agreement to Congress "in the next few weeks." The submission would trigger a mandatory schedule for congressional action.  Sen. Chuck Grassley of Iowa made the following comment on this development.  Grassley is former chairman and ranking member of the Committee on Finance, with jurisdiction over international trade.  He is a senior member of the committee.

"The trade representative's comment today about action on pending trade agreements is very good news, if it's not more lip service.  The rest of the world has been moving forward with trade expansion, while this administration has put the United States on the sidelines, and it's been at the expense of America's workforce.  Employers and entrepreneurs in manufacturing, agriculture and the service sector need new market opportunities to grow businesses and create jobs.  The President's made a commitment to doubling U.S. exports.  That's impossible to achieve on the margins, without trade agreements.  The trade representative said the President intends to submit the U.S.-Korea trade agreement to Congress 'in the next few weeks.'  This is the most specific timeframe the White House has offered on the agreement since reworking it last year.  The White House should hold to this timeframe.  A big, new export market is exactly what U.S. producers need right now.  If and when the agreement comes to Congress, I'll do everything I can to help get it approved."

Grassley Keeps Pressure on EPA to Focus on Job Creation Instead of Over Burdensome Regulations

WASHINGTON - Senator Chuck Grassley is continuing to highlight the senseless regulations placed on family farmers and small businesses by the Environmental Protection Agency.  Today, Grassley sent a letter to Chairman of the House Committee on Oversight and Government Reform, Darrell Issa, to bring to his attention the EPA's attempt to regulate dust.

The EPA has released several policy assessments that would lower the particulate matter standards for dust to levels which would be extremely burdensome for farmers and livestock producers. Whether its livestock kicking up dust, soybeans being combined on a dry day in the fall, or driving a car down the gravel road, dust happens. Producers could potentially be fined for not meeting the particulate matter standards while still practicing good management practices on their soils.

"The EPA's attempt to regulate dust is just another example of how out of touch the agency is with the grassroots," Grassley said.  "The continued disregard for agriculture hurts the economic viability of rural America and hinders job creation."

Grassley said he wanted Issa, who is bringing to light hundreds of federal regulations that hurt job creation, to be aware of yet another nonsensical regulation that would slow economic development and cause significant costs on the nation's family farmers.

Here is a copy of the text of Grassley's letter to Issa.

February 8, 2011

The Honorable Darrell Issa

Chairman

House Committee on Oversight and Government Reform

2157 Rayburn House Office Building

Washington, DC 20515

 

Dear Chairman Issa,

As you know, on January 18, 2011, President Obama signed an Executive Order which required federal agencies to review all regulations, taking into account the costs and excessive burdens they might put on businesses.  A recent Wall Street Journal editorial reported that the U.S. Environmental Protection Agency (EPA), less than a week after the President signed this Order, stated "that it was 'confident' it wouldn't need to alter a single current or pending rule."  This statement appears pre-emptive of the President's order.

I commend you for scheduling a full committee hearing on Thursday, February 10, 2011 on "Regulatory Impediments to Job Creation."  It is my belief that EPA has long over stretched its bounds, resulting in detrimental impacts to farmers and ranchers across the country.

Last July, I and twenty of my Senate colleagues on both sides of the aisle wrote to Administrator Lisa Jackson with our continued concerns regarding EPA's actions in its review of the National Ambient Air Quality Standards (NAAQS).  If approved, the Second Draft Policy Assessment (PA) for Particulate Matter (PM) released on July 8, 2010 would establish the most stringent and unparalleled regulation of dust in our nation's history revising current levels of 150ug/m3 down to 65-85 ug/m3.  Our letter encouraged EPA to consider maintaining the primary and secondary standards, or in the alternative, consider different PM indicators.  We also asked that the Clean Air Scientific Advisory Committee focus attention on EPA's choice to not adopt a PM10-2.5 standard.  I have enclosed a copy of that letter for your information.

I am concerned that EPA has pre-judged its review of existing and pending rules.  The President has now required that cost considerations on businesses, including farmers and ranchers, be taken into account.  I respectfully ask that when your committee meets on February 10, 2011, that the PA for Particulate Matter be discussed.  This would be an opportune time to further highlight and expose this potential rule which could wreck havoc, particularly in the Western part of the United States.

As I have continually advocated over the years, lowering these PM standards could have devastating and burdensome effects on farmers and ranchers across the country. Excessive dust control measures could be imposed on agricultural operations which would only slow economic development and impose significant costs on our nation's family farmers and ranchers.

As I've often said, only God can determine when the wind blows.  Exposing EPA's potential rulemaking in this area of dust control is critically important to the future profitability of our nation's producers. Thank you for scheduling this important hearing and for consideration of my request.

Sincerely,

Charles E. Grassley

United States Senator