Political Outlook: RI Pols Need to Crack Down on Fraudsters in 2012
Monday, February 20, 2012
As middle- and lower-income families continue to struggle, the economy will trump all other issues politically in 2012. However, greed and corruption are also atop voters’ minds, and will require attention from those looking to garner favor amongst voters.
Whether it’s cracking down on big banks for abusive mortgage practices, or taking action to ensure politicians are upholding the public trust, there is immense political gain in fighting against fraudsters.
An example in Rhode Islandof a political leader who has done this recently is Attorney General Peter Kilmartin.
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AG Kilmartin Takes on Big Banks for Mortgage Abuses
A new survey from CBS News shows that 55 percent of Americans think the government should do more to help the housing market. And, several Attorneys General took action this month.
Attorney General Kilmartin, as part of an effort to crack down on big banks for abusive mortgage practices, took a strong step towards doing so – along with his colleagues from across the nation – by signing a $26 billion settlement last week.
This outcome will help 1 million households across the nation reduce the size of their home loan, and 750,000 families who lost their homes will each receive $2,000 checks. Also, individuals who either have their loans reduced – or receive a $2,000 check – will still have the right to participate in future lawsuits.
By taking this measure, the Ocean State will receive $172 million. And, Attorney General Kilmartin retains the right to pursue further legal action against big banks for their fraudulent mortgage activities.
Taking action against big banks, and receivingsubstantial benefits for your constituents, is one way to garner political favor. On the other hand, politicians who have made political choices that fall on the side of fraudsters will pay a steep political price.
A case in point of this involves former Massachusetts Governor Mitt Romney.
Santorum: “Romney’s with Wall Street not Detroit”
Romney’s anti-populist stances persistently plague his campaign, and he continues to be viewed as a Wall Street candidate by voters. The latest example resides in Romney’s home-state, Michigan.
According to a new poll from American Research Group, former Pennsylvania Senator Rick Santorum has successfully opened up a 5 point lead amongst likely Republican primary voters by waging aggressive attacks against Romney for his 2008 op-ed titled “Let Detroit Go Bankrupt.”
Adding fodder for Santorum’s attack, Romney not only argued against bailouts for the auto industry – a staple of industry and jobs in the Wolverine State – but supported Wall Street bailouts. And, as big banks are getting slapped as fraudsters for mortgage lending practices, Romney’s record on siding with Wall Street – and against the needs of Main Street – are likely to cause his electoral woes to persist.
Romney is perceived to be someone who sides with fraudsters. This isn’t just to his detriment politically in Michigan, but across the country. According to a recent Washington Post/ABC News poll, 52 percent of Americans state that the more they hear about Romney the less they like him.
While Romney fends off attacks about Wall Street support, President Barack Obama is taking strong political action against corruption by pushing a bill aimed at curbing illegal activity by members of an unpopular Congress.
STOCK Act: President Obama’s Push to Ban Insider Trading in Congress
President Obama continues to show his political astuteness by successfully pushingthrough the passage of the Stop Trading on Congressional Knowledge Act (STOCK Act).
Politically, this couldn’t come at a better time. One of the STOCK Act’s key measures is aimed at prohibiting members of Congress and their staff from committing insider trading. And, with a recent Gallup poll showing Congress polling at a record-low 10 percent approval rating, members are in no position to oppose passage of the bill.
The incumbent’s STOCK Act push is making an impact with voters and enhancing his popularity.Since noting this initiative during his State of the Union address in late January, his poll numbers have climbed. In fact, multiple national polls released last week had President Obama beating each leading Republican – Romney and Santorum – in a head-to-head match-up, with him netting more than 50 percent of voters.
This year, voters are looking for their elected leaders to fight for their interests and crack down on fraudsters who violate the public trust. Whether it’s Attorney General Kilmartin winning a big battle for Rhode Islanders in the war against mortgage fraud, or President Obama taking actions to restore the public trust, the political benefit is evident.
Conversely, politicianslike Romney – who are perceived as siding with fraudsters – will pay a severe political price for it in 2012.
Brett Broesder is the former Policy and Legislative Director for the Rhode Island Office of Attorney General. He also served as the campaign manager for Peter F. Kilmartin’s successful Attorney General run in 2010, and is currently a public relations consultant in New York, NY. He can be reached at [email protected].
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