We would like to announce the promotion of Geoff Pearson to Business Development Manager for Ryder Transportation.

Geoff is a graduate of Illinois State University with a Bachelor of Arts Degree. Geoff will be covering the eastern Iowa market. Geoff started his career at Ryder as a Rental Manager Trainee in 2006 and most recently held the position of Rental Account Manager. Geoff has been in the Iowa market since 2007, and will be selling Ryder Transportation solutions for business to business opportunities effective May 1st.

Ryder specializes in a wide range of fleet management services, including full service truck leasing; commercial truck lease financing combined with programmed maintenance, onsite and programmed fleet maintenance, truck rental and a comprehensive network of fuel services.

For more information, contact Geoff at the Ryder location in Davenport, Iowa at 563-386-8000.

In the wake of the West Virginia coal mining disaster that killed 29 miners, the blast on a Louisiana oil rig off the Gulf of Mexico that most likely killed 11 workers and so many other work related tragedies, we are painfully reminded that we must pay more attention to the safety of American workers.  Every day folks across Iowa go to work in factories and at facilities that are quite simply, dangerous workplaces. 

As the son of an Iowa coal miner, I feel for these workers and their families, on a very personal level.  My thoughts and prayers are with the families and coworkers of those killed, injured or missing because of these awful tragedies.  One of the best ways we can honor their memory is to renew our efforts to protect workers' lives and improve safety and health in our country's coal mines and other dangerous workplaces.

This past week in Washington, I held a hearing on the very subject of what Congress needs to do to improve worker safety and create a culture of compliance at mines and other dangerous workplaces.  Our Senate hearing was held on April 27, the eve of Worker's Memorial Day - a day that is set aside to remember the thousands of brave men and women who die on the job in our country each year. 

Certainly, the history of the American workplace suggests that when we focus our efforts, we have the ability to make great strides to improve safety and health.  Since passage of the Coal Mine Health and Safety Act and Occupational Safety and Health Act four decades ago, countless lives have been saved and the number of workplace accidents has been dramatically reduced.  Yet we still have a long way to go.

In addition to putting real teeth in our safety and health laws, we have to make sure that our federal agencies have the enforcement tools they need to identify mines and non-mine workplaces with the worst safety records in the country and hold these repeat offenders accountable.  We have provisions in our laws that are supposed to target repeat offenders, but these special rules are often rendered ineffective - either weakened through mistaken interpretation, or undermined by employers who will go to great lengths to game the system.  This broken system must be fixed.

As we move forward, I plan to do everything I can in Congress to ensure that Iowa's - and our nation's - sons and daughters, moms and dads, brothers and sisters all come home safe from a hard day's work.  We should not rest until these recent work related tragedies are a chapter in the history books, and we no longer have any need to observe a day of mourning for American workers killed on the job.

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WASHINGTON - April 28, 2010 - Senator Chuck Grassley today continued to peel back the layers of taxpayer obligations behind last week's claim and fanfare about General Motors repaying its multi-billion dollar loan from the Troubled Asset Relief Program, the $700 billion taxpayer-funded bailout.

Last week, Grassley asked the Treasury Secretary why the administration had allowed GM to use money from an escrow account at Treasury to repay this loan, allowing "an elaborate TARP money shuffle."

In a floor speech this afternoon, Grassley said the response he received today from the Treasury Department confirmed that taxpayers funded the loan repayment by way of cash that GM has because the federal government originally loaned that cash to GM, and then the federal government agreed to forgive some of GM's debt during bankruptcy in exchange for stock in the company, the value of which is uncertain.

"The bottom line is that the repayment was made on the dime of taxpayers across America, and it's misleading to say that GM repaid its TARP loans 'in full, with interest, ahead of schedule, because more customers are buying' GM cars," Grassley said.  "Taxpayers remain on the hook, thanks to the failed deal cut by the government to try to save GM from bankruptcy.  Now, GM has pulled an additional $6.6 billion out of the escrow account but has left unpaid a $2.5 billion, nine-percent loan to the union health benefit fund."

Here is the April 19, 2010, request from GM to the Treasury Department asking for the distribution to GM of the entire amount of the reserve funds. 

Grassley said the American people deserve straightforward information about what's happening with TARP and the tax dollars being used by the Treasury Department to manage what the government has taken over from the private sector.  "The situation hasn't been described in a candid way, and that's added insult to injury after more than a year of bailouts and record-level deficit spending."

Grassley has conducted oversight of the Treasury Department's management of TARP and gone to bat for the Special Inspector General for TARP when the administration has put up barriers to the Inspector General determining where the money has gone.  The Iowa senator has criticized the lack of transparency with how TARP funds have been used and, last fall, he cosponsored legislation to end the program.

The Special Inspector General for TARP was created at the urging of Grassley and Senator Max Baucus of Montana, and when the Treasury Department changed the focus of the program less than a month after it began, Grassley worked with Senator Claire McCaskill of Missouri to retool the Inspector General's authority and empower the office to adequately scrutinize TARP spending and management.

Here is the text of Grassley's remarks today.

Floor Statement of U.S. Senator Chuck Grassley

GM and TARP

Wednesday, April 28, 2010

Mr. President.  Last Thursday, I wrote Secretary Geithner asking why the Treasury Department allowed General Motors to use TARP money from a Treasury escrow account to repay its multi-billion dollar TARP taxpayer loan.  This afternoon, I received a response from Treasury.  I'd like to say a few words about the reply and the questions that remain unanswered.  Last week, Treasury and GM announced with press releases and nationwide TV commercials that GM had repaid its TARP loans "in full, with interest, ahead of schedule, because more customers are buying [GM vehicles]."

However, the hype does not match the reality.  Taxpayers have not been repaid in full?far from it.  Many billions of TARP dollars remain invested by Treasury in GM, and much of it will never be repaid.  The Congressional Budget Office estimates that taxpayers will lose around $30 billion on GM.  In addition, the payment that occurred last week did not come from revenue GM earned by selling cars, despite what was claimed.  Instead, Treasury allowed GM to use funds in a separate escrow account to pay its TARP debt.  The Treasury Department's response to me today makes a point of saying that GM "owns" the money in the escrow account, as if that somehow justifies all the hoopla about GM's so-called "repayment."

Well, let's look at how GM came to "own" those escrow funds in the first place.  The escrow funds were part of the TARP money Treasury paid for GM stock coming out of the bankruptcy.  The money was supposed to be used by GM for expenses, as Treasury concedes.  Treasury had the power to approve or disapprove GM's use of the money to repay the TARP taxpayer loan.  Treasury approved, and GM pretended it was paying the loan back from revenue because business had improved.  Business may have improved, but that's not how they paid the loan.  Taking TARP money out of one account to pay back TARP loans in another account is not at all the same as paying off a loan with earnings, as GM's TV commercials imply they have done.  That is why I called it "an elaborate TARP money shuffle" and nothing in Treasury's reply today changes that.

The public would know nothing about the TARP escrow money being the source of the supposed repayment from simply watching GM's TV commercials or reading Treasury's press release.  Treasury's letter today says all these details are public knowledge and nothing new.  Well, that may be technically correct, but it wasn't clearly communicated that way to the average citizen.  Most Americans don't pore through SEC filings and Special Inspector General's reports.

The GM commercial also did not mention that GM could have used the TARP escrow funds to repay a $2.5 billion, nine-percent loan it received from its union health plan as part of the bankruptcy process.  The union loan runs until 2017.  The TARP loan was at seven percent and ran until 2015.  What sort of money manager would advise you to pay off a lower interest loan before a higher interest loan?  GM and Treasury have still not explained that, and I have asked the TARP watchdog, Special Inspector Neil Barofsky, to get to the bottom of it.  And to make matters worse, Treasury has admitted that it let GM take an additional $6.6 billion of TARP dollars out of the escrow fund last week with no strings attached.  That money, too, could have been used to repay the high interest union loan.

There are reports that GM also applied to the Department of Energy for a $10 billion, five-percent loan to retool its plants to meet fuel economy standards.  GM seems to be using government money to pay back government money, and then asking for more government money at a lower interest rate.  It sounds like a plan to refinance GM's government debt with more taxpayer money--not pay it back.

GM had to ask permission from Treasury to use the taxpayers' stock investment to pay off the taxpayers' loan. Treasury's response to my letter says that "Treasury retained approval rights over GMs use of funds from the escrow account in order to protect the taxpayer."  Well, why didn't they protect the taxpayer then?  Why would Treasury allow GM to use its equity investment to pay off the loan when it means giving up the legal right to a seven percent rate of return for the taxpayers in exchange for essentially nothing?  Since the taxpayer has an equity stake in the company, it's true that future growth of GM could theoretically make taxpayers whole, but taxpayers already had that equity interest before this latest transaction and didn't get any more equity as a result of the transaction.

Another key question is why would GM orchestrate a major media campaign to make the public think this all represents some big accomplishment by GM when the truth is that the taxpayers are still on the hook for billions that we may never recover?  Using the taxpayers' stock investment in GM to reduce its debt to the taxpayers is not the same as repaying that debt from money actually earned by selling cars.  Treasury's reply today does not explain why it approved this transaction.  Maybe it's a step in the right direction, maybe not.  But, instead of misleading the American people, we should be clear and up front about what happened here.

April 28, 2010

WASHINGTON, D.C. - Senator Tom Harkin (D-IA) spoke on the Senate floor today before the third scheduled procedural vote to bring financial reform legislation up for consideration.  The previous two attempts Monday and Tuesday failed due to Republican obstructionism.  Harkin's full remarks follow. 

"Mr. President, yesterday in the Permanent Subcommittee on Investigations, we learned more about the reckless actions of traders and executives at Goldman Sachs. Goldman Sachs was hardly the only bad actor in bringing our financial system to the brink of collapse in 2008.  Traders and executives at many other financial institutions got fabulously wealthy by gaming the unregulated casinos on Wall Street.  They walked away with fortunes, even as millions of Americans lost their jobs, their savings, and/or their homes. 

"Yet, as we witnessed in yesterday's hearing, Wall Street remains arrogant and unrepentant.  And it has the gall to believe that it should remain free to continue business as usual.  To that end, it has mobilized a legion of lobbyists - an estimated 1,500 of them . . . 15 lobbyists for every Senator - to try to kill or water down financial reform legislation. 

"It is deeply unfortunate that every one of our colleagues on the other side of the aisle have joined with Wall Street in obstructing this legislation - every one of them is not just filibustering the bill, but even preventing it from coming to the floor for debate. 

"I say to my Republican colleagues:  Senator Dodd and Senator Lincoln have bent over backward to consult with Republicans and invite bipartisan cooperation.  Their good-faith efforts have produced solid, common-sense legislation.  Can it be improved?  Of course.  But we can only amend and improve this legislation if the Republican filibuster ends and the bill is brought to the floor.

"Mr. President, it is a bitter irony that, even as we spent a fortune in taxpayer dollars to rescue the global financial system, the self-appointed masters of the universe on Wall Street rewarded themselves with billions in bonuses and geared up to fight efforts by Congress to prevent a replay of the 2008 meltdown.

"Wall Street is all too used to living a different life - and playing by different rules - from Main Street.  And nowhere is this disconnect between Wall Street and Main Street more stark than in the area of compensation.  Over the last decades, compensation in the financial sector has skyrocketed, with some executives walking away with annual compensation of hundreds of millions of dollars, even as the inflation-adjusted incomes of ordinary working Americans have failed to rise. 

"Mr. President, I am dwelling on this matter of compensation because it points to a larger issue.  In my view, a big reason for the financial collapse of 2008 is that things got seriously out of balance and out of whack.  As Glass-Steagall was repealed, as special interests attacked the very idea of government regulation, and as the SEC and other watchdog agencies turned into permissive poodles, bad actors on Wall Street stepped into the void. 

"Pursuing fabulous riches, they drove our economy off a cliff.  And it is ordinary Americans, the ones who work hard and play by the rules, who have paid such a terrible price for Wall Street's recklessness.

"And that is exactly why we need financial reform legislation.  As others have noted, financial crises should not be things that happen every five to seven, much like periodic floods.  Just as we can build dikes to prevent floods, we can take common-sense steps to prevent future financial meltdowns.

"This legislation will protect consumers in their everyday transactions involving everything from mortgages to credit cards to payday loans.  It will safeguard families whose life savings and pensions can be devastated when a financial system collapses.  And it will guard against future massive meltdowns in the financial system that almost always cause collateral damage to millions of innocent bystanders and to the broader economy.

"By all means, strong financial reform must include regulation of the derivatives market.  I am very pleased that the basis for this regulation is the provision passed out of the Agriculture Committee under the leadership of Chairman Lincoln.

"Derivatives contracts have been at the heart of Wall Street's financial manipulation. From December 2000 to June 2008, the height of Wall Street's boom, the face-value of over-the-counter derivatives grew from $95 billion to $683 trillion.

"Now, I have no objection to derivatives as financial instruments. Many manufacturing companies use these financial instruments legitimately to hedge their risks.  But, we also know that many parts of this market amount to nothing more than pure-and-simple gambling. So, despite derivatives' usefulness in many circumstances, we also know that the current structure of the market is in dire need of fundamental reform.

"The derivatives legislation reported out of the Agriculture Committee, last week, is now a component of the larger reform bill that we hope will soon be before the Senate. This proposal would bring these transactions into the light of day by requiring that all transactions be reported to regulators in real-time. It would also bring the vast majorities of these contracts into clearinghouses and exchanges. These market mechanisms help to reduce the concentration of risk in the system and bolster public transparency.  This legislation also gets to the heart of the 'too big to fail' problem by prohibiting swaps entities from also being commercial banks. Commercial banks that are backed by the government should not be able to use that government backing to support their high-stakes gambling.  That only magnifies the level of risk in the banking system. It is unfair to taxpayers, and also to bank customers and community banks. 

"Mr. President, in addition to regulating derivatives, we also need a strong, truly independent financial consumer protection agency to guard against rip-offs and abuses in mortgages, credit cards, payday loans, and other financial products.

"We also need to slam the door on any future taxpayer bailouts of so-called 'too big to fail' financial institutions.  No more AIGs or Citigroups.  When companies make huge bets and lose, we need an orderly process for liquidating those companies.  Period.

"To further improve the bill, I am a cosponsor of legislation offered by Senator Cantwell that would re-create the Great Depression-era regulation that prohibited the mixing of commercial banks, investment banks, and insurance companies. I am also a cosponsor of the SAFE Banking Act offered by Senators Brown and Kaufman that would limit the size of the largest institutions.

"In addition, I am supportive of legislation by Senators Merkley and Levin that blocks institutions that are insured by the FDIC from proprietary trading with their own funds.  We can't have high-risk gambling with the government standing as the backstop if there are large losses.  

"Mr. President, America has been through financial collapses and deep economic downturns before. In charting the way forward, we can learn important lessons from the financial crash of 1929 that led to the Great Depression.  FDR answered that crisis by implementing tough new regulations to stabilize the financial system, to rein in risk-taking and recklessness on Wall Street, and to make the economy work for ordinary Americans.  This led to decades of shared economic prosperity unprecedented in our nation's history. 

"That needs to be our model as we shape today's financial reform legislation.  Our aim should be a Wall Street that serves the interests of Main Street.  Our aim should be a financial system that makes possible a new era of economic stability and shared prosperity."

(QUAD CITIES) - The Network: Young Professionals of the Quad Cities, a program of the Illinois and Iowa QC Chambers of Commerce, will be hosting the i.network program in the Quad Cities for the second summer.

i.network is a program developed by young professionals for young professionals to showcase all the Quad Cities region has to offer beyond the four walls of the workplace. i.network targets young professional interns from all over the United States whom are interning in the Quad Cities during the summer months. The overall goal of the program is to retain young talent in the Quad Cities upon their graduation from college.

The i.network program has teamed up with the Illinois and Iowa QC Chambers and www.quadcitycareers.com to provide a newly enhanced summer program.  The program now includes information on how local companies can start an internship program, opportunities to recruit young talent from the Quad Cities and outside regions as well as affordable housing options for the interns during the summer.

For more information on the i.network program, starting an internship program, recruiting interns or housing options; visit www.quadcitycareers.com.

 

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Foreign language beginning in Kindergarten.  Highest availability of Advanced Placement classes in the state of Iowa.  100% graduate acceptance to four-year colleges and universities.  Extraordinary things happen at Rivermont Collegiate!  Explore our school during our open house this week!  On Thursday, April 29th from 6:00-8:00 p.m., families are invited to drop in for tours of campus, one-on-one discussion, and answers to their questions about Rivermont.  This casual event is designed to introduce local families to the Quad Cities' only private, nonsectarian, independent college prep school.  Rivermont Collegiate, located in Bettendorf, provides students with a comprehensive education in a safe, family-like learning environment.

From PreSchool through twelfth grade, Rivermont students develop a joy for learning, lead peers in community involvement, and take intellectual and artistic risks.  Drop in to learn more about our philosophy, values, and programs!  Cindy Murray, Director of Admissions, will be on hand to answer questions.  The Rivermont campus is located directly off 18th street in Bettendorf behind K&K Hardware.  Visit us online at www.rivermontcollegiate.org!  This event is free and open to the public.

For additional information on Rivermont Collegiate or Thursday's Open House, contact Cindy Murray at (563) 359-1366 ext. 302 or murray@rvmt.org.

 

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Washington, DC - In light of recent revelations about Goldman Sachs' actions leading up to the financial collapse of 2008, Congressman Bruce Braley (D-Iowa) signed on to two letters urging the Securities and Exchange Commission and Attorney General Eric Holder to hold Goldman Sachs accountable for its role in creating the worst economic crisis since the Great Depression.

"For too long, reckless speculators on Wall Street gambled away the savings of America's middle class families," Braley said. "To ensure this never happens again, I'm joining my colleagues in asking the SEC and Attorney General Eric Holder to hold all responsible parties accountable and make sure they are prosecuted to the fullest extent of the law. While we can't get every dime of every retirement, college or savings account back, we can certainly make sure that greedy Wall Street speculators understand the full consequence of their actions."

On Friday, Braley joined Rep. Marcy Kaptur (OH-09) and 60 other Members of Congress in urging Holder to pursue all appropriate criminal charges against those involved in fraudulent activity at Goldman Sachs and other institutions. Today, Braley joined Reps. Peter DeFazio (OR-04), Elijah Cummings (MD-07), Dennis Cardoza (CA-18) and Stephanie Herseth Sandlin (SD-AL), along with 56 other Members of Congress, in sending a letter to SEC Chairwoman Mary Schapiro. The letter asks her to pursue investigations into the remaining 24 ABACUS transactions for securities fraud, evaluate the extent of any receipt, by Goldman Sachs, of fraudulently-generated AIG-issued credit default swap payments, and vigorously pursue the recovery of such payments on behalf of the U.S. taxpayer.

The full text of both letters are attached.

 

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State, Federal Plan Seeks to Create More Than 15,000 Jobs

CHICAGO - April 26, 2010. Governor Pat Quinn today unveiled the Put Illinois to Work (PIW) program, an anti-poverty program aimed at building a healthy workforce by putting unemployed and underemployed Illinois residents back to work. The new program is expected to create more than 15,000 jobs.

"Put Illinois to Work will provide good-paying jobs that will help support families and strengthen communities," said Governor Pat Quinn. "The program will also assist in building a workforce that possesses the skills, abilities and experiences that Illinois employers need to remain competitive in the U.S. and global marketplace."

Put Illinois to Work is a collaborative effort of the Illinois Department of Human Services (IDHS), the Illinois Department of Commerce and Economic Opportunity (DCEO) and Heartland Human Care Services (HHCS). Funding is provided through the Temporary Assistance for Needy Families (TANF) Emergency Contingency Fund (ECF), which was created by the American Recovery and Reinvestment Act of 2009 (ARRA).

Through Put Illinois to Work, eligible Illinois residents will be placed in subsidized employment positions with participating worksites for up to six months, learning valuable skills and supporting their families. The program will help stimulate Illinois' ailing economy and develop a healthy workforce by providing meaningful work experience for participants.

"Put Illinois to Work is an exciting opportunity to employ thousands of Illinoisans during a time of economic downturn and high unemployment," said IDHS Secretary Michelle R. B. Saddler. "The program will draw down federal funds that will stimulate the Illinois economy and even more importantly, will help the citizens we serve to gain critical skills in the workforce."

Private, public and non-profit businesses are encouraged to sign on with Put Illinois to Work. Eligible participants will be matched to subsidized employment opportunities with these worksites in hopes that they might transition into an unsubsidized position at the program's conclusion.

Eligible worksites and participants must meet program criteria and agree to adhere to specific programmatic requirements. Participants must be age 18-21, or 18 and over and the parent (custodial or non-custodial) of a minor child. All participants must have a household income below 200 percent of the Federal Poverty Level ($2,428 per month for a family of two) and be legally present and authorized to work.

For eligibility criteria and additional information on Put Illinois to Work, visit www.PutIllinoistoWork.Illinois.gov.

 

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Housing Wage is $17.44 for Two-Bedroom Apartment in Illinois
According to a report released today, the Housing Wage for Illinois is $17.44 for a two-bedroom apartment. The Housing Wage is the hourly wage a family must earn?working 40 hours a week, 52 weeks a year?to afford a modest two-bedroom apartment renting for $907. The Housing Wage has increased 34.6% since 2000.
The report, Out of Reach 2010, was jointly released by the National Low Income Housing Coalition (NLIHC), a Washington, DC-based housing advocacy group, and Housing Action Illinois.
Federal guidelines state that no one should spend more than 30% of their income on housing, including rent or mortgage payments, utilities, property taxes and insurance.
In Illinois, among metropolitan and non-metropolitan areas, the lowest Housing Wage for a two-bedroom apartment is $10.83 in the metro-east Bond County metropolitan area. The highest housing wage for a two-bedroom apartment is $19.52 in the Chicago metropolitan area.
In 2010, the estimated average wage for renters in Illinois is only $15.05, a decline from $15.33 in 2009.  In Illinois, a minimum wage worker earns an hourly wage of $8.00. In order to afford market-rate rents for a two-bedroom apartment, a minimum wage earner must work 87 hours per week, 52 weeks per year. (On July 1, 2010 the minimum wage will increase to $8.25 per hour).
"The statistics in Out of Reach 2010 show that the rents low-income people pay continue to go up at the same time as the wages of renters are decreasing.  Therefore, it is increasingly difficult for low-wage workers to find decent, stable housing," said Bob Palmer, Policy Director for Housing Action Illinois.
Housing Action Illinois' mission is to increase and preserve the supply of decent, affordable, accessible housing in Illinois for low-and moderate-income households through advocacy, public education, and technical assistance to nonprofits.
Data for every state, metropolitan area and county in the country is available online, at www.nlihc.org/oor2010/.

Thursday, April 22, 2010

Grassley asks about GM repaying TARP loans with other TARP funds

WASHINGTON --- Senator Chuck Grassley is asking the Treasury Secretary to justify claims that General Motors has repaid its TARP loans when GM is using other TARP funds to repay the loans.

"It looks like the announcement is really just an elaborate TARP money shuffle," Grassley said.  "The repayment dollars haven't come from GM selling cars but, instead, from a TARP escrow account at the Treasury Department."

Grassley said his concern is based upon the most recently quarterly report from the Special Inspector General for TARP.  Mr. Neil Barofsky testified before the Finance Committee this week and stated that the funds GM is using to repay its TARP debt are not coming from GM earnings.

Grassley said it's a matter of the Treasury Department being straightforward with taxpayers about its management of the $700 billion taxpayer funded TARP program.  Click here to read Grassley's letter of inquiry to Secretary Timothy Geithner.

The Special Inspector General for TARP was created at the urging of Grassley and Senator Max Baucus of Montana, and when the Treasury Department changed the focus of the program less than a month after it began, Grassley worked with Senator Claire McCaskill of Missouri to retool the Inspector General's authority and empower the office to adequately scrutinize TARP spending and management.

Grassley has gone to bat for the Inspector General throughout the year, when the White House and Treasury Department put up barriers to the Inspector General asking questions and collecting information about where the money has gone.  Grassley has been an outspoken critic about the lack of transparency with how TARP funds have been used.  Last fall, he cosponsored legislation to end the program.

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