Understanding Government

Washington Post

Obama’s effort to aid home owners, boost housing market fall short of goals [President Obama, Treasury Secretary Geithner, Housing and Urban Development Secretary Donovan, economy, housing market] – Zachary A. Goldfarb interviews scores of former and current administration officials and housing experts to find out why the administration’s initiatives aimed at rescuing the housing market have not worked; he finds some consensus that they were not bold enough and underestimated the mortgage crisis and its long-term effect on the economy

Clinton warns Iran not to ‘miscalculate’ U.S. resolve as troops leave Iraq [Secretary of State, Iran, Iraq] – N.C. Aizenman reports on Secretary of State Clinton’s efforts to tamp down concerns about Iran’s influence in Iraq after the U.S. withdraws troops from Iraq, saying that the U.S. will remain engaged in the region

Bidding wars heat up at VA under new chief buyer’s centralized strategy [Dept. of Veterans Affairs, government contracts] – Kathleen Miller of Bloomberg Government reports how Retired Army Col. Jan Frye — the new Veterans Affairs official responsible for acquisitions described as a “change agent” — is streamlining and cutting costs in the department’s acquisition process

SBA proposes tougher penalties for companies that misrepresent their size [Small Business Administration] – Marjorie Censer reports that the Small Business Administration has proposed rules requiring contractors that are later found ineligible for small business set-asides based on their size to forfeit payment even if they already provided services; in the past, contractors have successfully argued that they should be compensated for work performed

FDA inspectors not keeping pace with food imports [Food and Drug Administration, food safety] – Brad Racino reports that the Food and Drug Administration doesn’t have nearly enough food inspectors to monitor imported food, which increases yearly

State Department’s police training program in Iraq lacks planning, report says [State Dept., Iraq] – Ed O’Keefe previews a report by the Special Inspector General for Iraq Reconstruction that questions the spending – $8 billion since 2003 – to train the Iraqi police force; its audit found that the State Dept., which is now responsible for the training, is spending only 12% of funds on advising the police force, with the remainder going toward security

New York Times

Panetta’s Pentagon, without the blank check [Defense Secretary Panetta, federal budget] – Peter Baker reports on the challenges for the Secretary of Defense in transforming the military into a lean operation while maintaining military readiness and limiting the economic impact of the budget cuts; the author examines Panetta’s successful role in Congress and as head of government agencies, which will come in handy in making $450 billion in Pentagon cuts over 10 years ordered by Congress

Jobs plan stalled, Obama to try new economic drive [President Obama, jobs] – Jackie Calmes reports that on the heels of Republicans’ refusal to bring President Obama’s jobs bill to a vote, and instead of waiting for Congress to act on any of his initiatives, Obama will use executive tools such as modifying federal regulations to address issues such as housing, education, healthcare, and aid to small businesses

Nuclear talks with North Korea begin in Geneva [State Dept., Pentagon, North Korea, nuclear weapons] – Nick Cumming-Bruce reports that the U.S. and North Korea met for the first round of talks on nuclear arms reduction since 2008

Wall Street Journal

Home lending revamp planned [Federal Housing Finance Agency, home mortgages] – Nick Timiraos previews the administration’s plan to loosen refinancing restrictions for homeowners whose mortgages are “underwater,” or  greater than the value of their home

U.S. withdraws ambassador to Syria [State Dept., Syria] – Nour Malas reports that the U.S. has recalled its ambassador to Syria, Robert Ford, because of concerns about his personal safety; Ford had clashed with the Assad government for traveling within Syria to monitor the ongoing rebellion against Assad’s rule and meeting with opposition leaders

Panetta assures on U.S. in Asia [Defense Secretary Panetta] – Adam Entous reports that Secretary of Defense Panetta told the Association of Southeast Asian Nations meeting in Indonesia that with the U.S. reducing its military presence in Iraq, it will expand its diplomatic and military presence in the Pacific; he took a notably conciliatory tone toward China

So much for the Volcker rule – The Journal mocks the 298 page draft of the Volcker Rule – a part of the Dodd-Frank financial reform law which was intended to “limit risk-taking at financial firms backed by taxpayers” that the paper says contains more questions than answers

Washington Post

Clinton chides Pakistan on insurgent havens [Secretary of State, Pakistan] – Joby Warrick reports that en route to Pakistan following her meeting with President Karzai in Afghanistan, Secretary of State Clinton previewed the tough talk she was about to give to Pakistani leaders demanding that they stop tolerating, and some say supporting, terrorist organizations and instead go after them

In Egypt, corruption cases had an American root [U.S. Agency for International Development, Egypt] – James V. Grimaldi and Robert O’Harrow Jr. report that the U.S. Agency for International Development funded an Egyptian think tank in order to promote a capitalist economy in Egypt but was used by the think tank — whose members were Mubarak cronies — to enrich themselves and squander Egyptian resources; they report that the matter raises questions about the “transparency and effectiveness of the more than $70 billion in military and economic assistance” to Egypt during the decades-long Mubarak regime

GAO: Executives’ seats on Fed boards as firms benefit give appearance of conflict [Government Accountability Office, Federal Reserve] – Zachary A. Goldfarb reports that a Government Accountability Office found that at least 18 members of the Federal Reserve Board’s regional banks held those posts while serving on boards of companies that benefitted from the Fed’s policies; while GAO found no improper action by any board member, it recommended that their dual roles be explained and urged greater transparency in general by the Fed; GAO also recommended the Fed “do more to diversify its boards racially and include more people from labor and community”

Citigroup has agreed to pay $285M to investors in negligence suit, SEC says [Securities and Exchange Commission] – David S. Hilzenrath reports that Citigroup is the latest large investment firm to settle with the government in connection with the housing/financial collapse in 2007; the SEC charged that Citigroup misled investors when it sold a $1 billion investment tied to subprime mortgages and then profited by $160 million from betting against the investment; only one Citigroup employee was charged with negligence, but not fraud

Unsanitary packing probably led to cantaloupe outbreak [Food and Drug Administration, food safety] – Dina ElBoghdady reports that the Food and Drug Administration zeroed in on the Jensen Farms’ packing facility in Colorado as the source of the Listeria bacteria that made its way into cantaloupe that killed over two dozen people, the deadliest food-borne outbreak in 25 years; the FDA is demanding the farm present a plan for preventing a future outbreak before it is allowed to reopen

New York Times

U.S. benefits to retirees to rise 3.6% next year [Social Security Administration, benefits] – Robert Pear reports that retires will see an increase in their benefits beginning in 2012; there have been no cost-of living payments in the last two years

Obama unveils business partnership to boost military hiring [Obama, military veterans] — Mark Lander reports that President Obama has partnered with 270 private companies in order to employ 25,000 veterans of Iraq and Afghanistan and military spouses within two years

Wall Street Journal

Fed official discusses securities purchases [Federal Reserve Bank] – Luca DiLeo and Jon Hilsenrath report that the president of the Federal Reserve Bank in Boston is urging the Fed to purchase more securities if the economy gets any weaker; an internal Fed report showed the economy picking up in recent weeks

Consumer Bureau adds to its roster [Consumer Financial Protection Bureau] – Maya Jackson Randall reports that Hubert H. “Skip” Humphrey III, former Governor of Minnesota and the son of former vice-president Humphrey, will head the Consumer Financial Protection Bureau’s Office of Older Americans, which will focus on seniors, who are often the target of deceptive financial practices, and that Holly Petraeus, wife of CIA Director David Petraeus, will head a Bureau office looking out for military families

Prices rise 0.3%, prompting boost in government benefits [government assistance, cost of living] — Damian Paletta and Sara Murray explain that Americans receiving government assistance will get a raise this year because consume prices rose by 3.9% in the last 12 months

Obama nominates official to lead Federal Housing Administration [FHA] — Alan Zibel reports that President Obama will nominate Carol Galante to head the Federal Housing Administration

Washington Post

Obama’s allies’ interests collide over Keystone pipeline [State Dept., Environmental Protection Agency NASA, environment, Keystone pipeline] – Juliet Eilperin and Steven Mufson report that President Obama’s constituency – environmentalists and unions, as well as Democrats – are split on whether the administration should approve the Keystone transcontinental pipeline from Canada to the Gulf Coast

Veterans’ unemployment outpaces civilian rate [Bureau of Labor Statistics, unemployment, veterans] – Michael A. Fletcher reports that according to the Bureau of Labor Statistics, veterans returning from the wars in Iraq and Afghanistan in the last decade have an unemployment rate of 11.7 % as compared to 9.1% for civilians, despite government programs to help them – like financial incentives to businesses that hire veterans – because there is a disconnect in translating military skills to the private sector

Some states seek flexibility to push health-care overhaul further [Centers for Medicare and Medicaid Services, Affordable Care Act] – Sarah Kliff reports that states are seeking waivers from the Affordable Care Act to implement more aggressive health care systems but are finding roadblocks in the law

A memorial for Iran-Contra figure Clair George, CIA’s colleagues’ loyalty endures [CIA, Cold War] – Ian Shapiro reports on the memorial service for a CIA official still admired by his colleagues despite his lying to Congress to protect the agency’s clandestine operations; the colleagues’ reflections offer a window into the mindset of the spy agency during the Cold War

New York Times

A dedication to King, and the work yet to do [Interior Dept. MLK Memorial] – Sabrina Tavernise and Helene Cooper cover the dedication of the Martin Luther King, Jr. memorial and national park on the Washington Mall, including President Obama’s address to thousands in attendance

Pleas unheeded as students’ U.S. jobs soured [State Dept., student cultural exchange] – Julia Preston looks at the decades-old State Dept.’s student cultural exchange program, which came under fire this summer when students working arduous jobs for the Hershey company for little money walked off their jobs in protest; she reports that the program’s contractors, in particular the Council for Educational Travel, USA, have a history of exploiting exchange students

Safety regulators don’t add costs.  They decide who pays them. [Consumer Product Safety Commission] – Robert S. Adler, an official on the Consumer Product Safety Commission, pushes back against legislators’ calls for curtailing safety regulations based on their claim that regulations increase the cost of doing business and kill jobs

Wall Street Journal

U.S. will inspect Cuban rig [Cuba, oil exploration] – Russell Gold reports on the challenges for the administration to ensure that oil exploration by Cuba in the Gulf of Mexico 60 miles off the Florida coast will not jeopardize coastal waters like the Deepwater Horizon spill; U.S. regulators will be able to inspect the drilling rig before it enters Cuban waters because it is manufactured by a Chinese company that does business with the U.S.

U.S. widens rocket field [Pentagon, NASA, space satellites] – Andy Pazstor reports the Pentagon and the National Aeronautics and Space Administration have agreed to a plan for assessing risks of small commercial companies bidding for government contracts to launch space satellites, including spy satellites; the administration’s move to include smaller private firms is intended to lower government costs and would end the monopolies of Boeing and Lockheed Martin

Plan for high-speed rail just inching along [Transportation Dept.] – Josh Mitchell reports that the administration’s plans for high-speed rail systems, which was backed by $10.5 billion in stimulus funds is facing setbacks due to state budget constraints, reflected in California’s scaled back plan

Washington Post

SEC reviews proposal regulating derivatives called ‘swaps’ [Securities and Exchange Commission, financial regulatory reform, derivatives] – David S. Hilzenrath reports that the SEC’s proposed plan for regulating derivative swaps – which contributed to the 2008 financial collapse – requires security-based swap dealers to register with the SEC and requires officers of the firms to self-certify that they have the “operational, financial and compliance capabilities” to conduct such transactions

‘Super PAC’ American Crossroads seeks permission to feature candidates in ads [Federal Election Commission, campaign finance] – T.W. Farnam reports that a “super” political action committee which is allowed to use unlimited funds for issue advertisements is asking the Federal Election Commission to allow it to include photos of federal candidates and incumbents in ads, citing a loophole that allowed Democrats to use an incumbent Senator’s photo in a prior election ad

The Postal Service isn’t owed a big refund, GAO says [U.S. Postal Service, Government Accountability Office] – Ed O’Keefe previews a report by the Government Accountability Office that disagrees with the Postal Service and Democratic legislators who claim that incorrect pension calculations resulted in up to $75 billion in over-payments to federal retirement accounts since the 1970s when the Postal Service became a semi-independent federal agency and started paying into the Civil Service Retirement System

Tax preparers brace for new IRS fees, rules [IRS, taxes] – Patrick Temple West of Reuters reports on the impact of new certification requirements and fees in the works for tax preparers aimed at weeding out fraud, but which some worry may squeeze out small firms and benefit behemoths like H&R Block; the IRS is working to limit the impact of the new regulatory requirements on small businesses before it finalizes the rules

New York Times

U.S. acts to fine BP and top contractors for Gulf Oil spill [Interior Dept., Gulf oil spill] – John M. Broder reports that the Interior Dept. issued citations for violating safety and environmental regulations against the oil company and oil rig operator Transocean and contractor Halliburton in connection with the massive oil spill by the Deepwater Horizon well into the Gulf last spring; the citations, which the companies may appeal, could amount to millions of dollars in fines

House panel issues subpoena for records on gun program [Justice Dept., Bureau of Alcohol, Tobacco, Firearms and Explosives, “Fast and Furious” ] – Bloomberg News reports that in the wake of questions about what the Attorney General knew about Bureau of Alcohol, Tobacco, Firearms and Explosives program known as “Fast and Furious,” which allowed guns to cross into Mexico in order to track drug smugglers, the House Oversight and Government Reform Committee is demanding documents related to the program

Denied veterans benefits over same-sex marriage, ex-sailor challenges law [Veterans Administration, Defense of Marriage Act, veterans benefits] – James Dao reports that a disabled sailor is appealing the Veterans Administration’s denial of increased benefits due to her after her after marriage because she married a woman; her appeal to the Court of Appeals for Veterans Claims will challenge the constitutionality of the Defense of Marriage Act “that prohibits the federal government from recognizing same-sex marriage”

Congress ends 5-year standoff on trade deals in rare accord [free-trade, foreign policy] – Binyamin Applebaum and Jennifer Steinhauer report on Congress’s passage of three trade agreements – with South Korea, Colombia and Panama – in a rare moment of cooperation between the White House and Congress

Wall Street Journal

Accusation against Iran fleshed out [State Department, Treasury Dept., Drug Enforcement Agency, Iran, assassination plot] – Siobhan Gorman, Devlin Barrett, and Stephanie Simon cover the back story of how the U.S. uncovered a plot by Iran to assassinate the Saudi Arabian ambassador to the U.S.

U.S. military probe: no command error before copter crash [Defense Dept.] – Julian E. Barnes reports that an internal investigation into the downing of a U.S. Chinook helicopter in Afghanistan that killed 30, including 22 Navy SEALs concluded that it was just a bad-luck rocket-propelled grenade strike against the helicopter that caused the crash, not faulty equipment or pilot error

Washington Post

White House order to establish new cybersecurity policies [Pentagon, national security, cybersecurity] – Ellen Nakashima reports that following the embarrassing release of classified information by WikiLeaks and after months of study, the White House announced revised cybersecurity policies to protect federal government computer networks, including the establishment of an interagency task force overseen by the attorney general and the director of national intelligence to detect and prevent leaks by government employees

Healthy men don’t need PSA testing for prostate cancer, panel says [HHS, cancer-screening] – Rob Stein reports that the U.S. Preventive Services Task Force – an independent panel commissioned by the Dept. of Health and Human Services whose recommendations form the basis of what preventative care Medicare and private insurers will pay for – recommends that men should not routinely get the PSA blood test for prostate cancer because it causes unnecessary anxiety and leads to unnecessary procedures; the panel caused considerable anger when in 2009 it recommended against routine mammograms for women

TSA investing in new ID scanners [Transportation Security Administration, airport screening] – Ashley Halsey III reports that the Transportation Security Administration is purchasing Credential Authentication Technology-Boarding Pass Scanning Systems (CAT-BSS) – scanning equipment designed to detect fraudulent boarding passes and identification cards

New air traffic control system at risk of costly delays, feds say [Transportation Dept., Federal Aviation Administration, Government Accountability Office, air-traffic control] – Ashley Halsey III reports that even though there is rare bipartisan agreement on the need for the Next Generation Air Transportation System, a GPS-based air traffic control method, Congress is debating the feasibility of moving forward given current budget constraints; NextGen will cost the government between $20 billion and $27 billion and cost airlines about $40 billion

Amid Solyndra controversy, head of federal loan program resigns [Dept. of Energy, green technologies, Solyndra] – Carol D. Leonnig and Juliet Eilperin report that the head of the Energy Dept.’s loan program that awarded $535 million in loan guarantees to the now-bankrupt solar panel manufacturer is stepping down; meanwhile, the president defends the program that grants loans to green technology companies

Earlier ATF gun operation ‘Wide Receiver’ used same tactics as ‘Fast and Furious’ [Justice Dept., Bureau of Alcohol, Tobacco, Firearms and Explosives, “Fast and Furious”]  – Sari Horwitz reports that an ATF program operating during the Bush administration allowed guns to cross the border into Mexico in a similar fashion as the now-vilified “Fast and Furious” ATF program

New York Times

U.S. adds 103,000 jobs; rate holds steady at 9.1% [Labor Dept. unemployment] – Mototko Rich reports on the employment figures for September just released by the Labor Dept.; the number is slightly better than expected and tamps down, at least for now, concerns about the country slipping into another recession

Some unemployed find fault in extension of jobless benefits [Department of Labor, Census Bureau, unemployment benefits] – Shaila Dewan reports on the debate over extending unemployment benefits as more people are unemployed for long periods of time

Treasury Secretary urges quick action on jobs plan [Treasury Secretary, American Jobs Act] – Binyamin Appelbaum reports that Treasury Secretary Timothy F. Geithner told Congress that quick legislative action was needed to buttress the economy

Wall Street Journal

The multibillion-dollar leak [Federal Deposit Insurance Corp., Federal Reserve Board,  Government Accountability Office financial regulatory reform, Volcker Rule ] – Scott Patterson and Victoria McGrane report that Wall Street is abuzz and studying a leaked, 205-page draft of regulations implementing the “Volker rule,” a controversial provision of the Dodd-Frank financial reform law that would prohibit banks from using customers’ money to engage in trading to benefit themselves, so-called proprietary trading, which supporters of the rule argue led the banks to take undue risks; the Federal Deposit Insurance Corp. is scheduled to consider the draft proposal next week

Obama pushes for jobs bill [President Obama, jobs] – Carol E. Lee and Janet Hook cover the president’s press conference during which he urged Congress to pass his $447 billion jobs bill