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Reports

Seven Years of Scandal

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Posted on Apr 8, 2008

By Marie Cocco

    WASHINGTON—The latest plot twists are stunners, even as they unfold against the scandalous backdrop of the Bush administration’s sorry regulatory record.

    On a single day last week, the House Transportation and Infrastructure Committee aired testimony from Federal Aviation Administration inspectors who discovered gross safety violations at Southwest Airlines—and were rebuffed by their superiors when they tried to force compliance with basic rules. Across the Capitol and at almost the same hour, the Senate Banking Committee was probing why neither the Treasury Department nor the Securities and Exchange Commission—or any other individual or agency in the government—could see the collapse of the investment bank Bear Stearns coming until it was hard and fast upon them and a $30-billion taxpayer-backed loan guaranty was needed to bail out the Wall Street giant. 

    A few days earlier, Labor Department investigators reported their findings on the role and performance of the Mine Safety and Health Administration in the Crandall Canyon Mine disasters in Utah that killed nine men last August. The mine safety agency was “negligent in carrying out its responsibility to protect the safety of miners,” the report said. It also failed to demonstrate that its approval of a risky method of coal extraction “was free from undue influence by the mine operator.”

    If all of this is insufficient cause for alarm, there is always more. The Environmental Protection Agency has stacked its expert review panels with scientists who have ties to the chemical industry, according to a preliminary inquiry by the House Energy and Commerce Committee. Meanwhile, the EPA removed a public health scientist from a review panel after she testified publicly about the hazards of a fire retardant that is suspected of causing cancer.

    There is little surprise left when someone—a whistle-blower, a member of Congress, a scientist who has been muzzled—reveals fresh insight into the evisceration of health and safety regulation or the retaliatory thrusts the Bush administration takes against those who dare complain. Seen in historical context, the meltdown of the credit markets, the unseemly Wall Street bailout and the shock that federal overseers seemed to display when it all cascaded upon them are merely a larger part of an ugly pattern. “Was someone asleep at the switch?” a puzzled Sen. Chuck Schumer, D-N.Y., asked of the financial wizards who came before the banking panel.

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    Not exactly. It is more accurate to say the switch has been turned off.

    It has remained in the off position through seven years of scandal, embarrassment and, now, incalculable economic hardship that would have shamed any other administration into using the regulatory apparatus of the federal government for its stated purpose of safeguarding the public and taxpayers.

    The switch that was turned off and helped to create the credit crisis is the same one that was flipped at the FAA, where the airlines—not travelers—are now known as “customers.” The specifics of this scandal are chilling: Southwest Airlines was allowed to continue flying and “potentially transporting as many as 200,000 passengers on at least 47 aircraft,” according to documents reviewed by the transportation panel, despite laws that require suspect planes to be grounded immediately. Beyond the Southwest case, the committee’s staff told lawmakers in a memo, “There is evidence that there may be a pattern of regulatory abuse and that these regulatory lapses may be more widespread.” FAA safety inspectors overseeing other airlines complained in private interviews with the committee staff that “they found it difficult to bring enforcement action against airlines” because FAA management is too close to airline management.

    The parameters are unchanged, regardless of whether the agency in question is supposed to be protecting the public from unsafe aircraft, or unscrupulous lenders, or deadly mines or lead-laced toys from China. Industry representatives are chosen to regulate the industries they once worked for—and to which they fully intend to return. Budgets are gutted, staff is cut, whistle-blowers are bullied.

    There is a long history of Republican presidents who staff government agencies with those who have ties to the industries they regulate. The idea of foxes guarding the henhouses is not new. What may be unprecedented—and take longer to undo once a new president takes office—is a culture of contempt for serving the public that spans so many departments, and likely has done deeper harm than we now know. 
   
    Marie Cocco’s e-mail address is mariecocco(at)washpost.com.
   
    © 2008, Washington Post Writers Group


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By samosamo, April 11, 2008 at 2:05 am #

This is pure insight as to how the neocons work. They have done more studying and research in how to handle and munipulate this country than most people can imagine. Want more of the same, elect mccain. Then flip a coin for the 2 demos. The iron grip of corporations on our government will be extremely hard to cast off because that is where the neocons had inserted themselves and their ideologies, if it can be cast off. That is why this country will really go to rock bottom before it comes back and then there will still be the elites to deal with. They really seemed to have hidden themselves behind an inpenatrable curtain to ensure their control over any future world that comes along. They are the real enemy.
Perhaps the saddest thing that I DO NOT hear especially from the democrat side is any way to break up the illegal monopoly being held in our MSM. It that is not addressed, then the prospects for any upturn for this country will fade even more.

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By nomorebombs, April 10, 2008 at 1:49 pm #

surround the house in droves!!

fat chance….........

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By Tom Doff, April 10, 2008 at 1:11 pm #
(Unregistered commenter)

And we’re not through yet! Eight more months to go.

I’m betting that the revelation that Bush/BinLaden are one and the same, alter egos, will be delayed until just before the coup, when the 2009 inauguration is indefinitely postponed.

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By ocjim, April 10, 2008 at 12:16 pm #

Everything the Bush administration touches is in ruins. It is like a reverse “Midas touch,” instead of turning into gold, all turns into the equivalent of a nuclear winter (which Bush couldn’t pronounce anyway).

Rather than Steinbeck’s Winter of Discontent, Bush’s tenure is an 8 year-long winter of our disgust while he continues his reign of tyranny.

It’s like we stand around and wait for spring when it is within our power to remove the cause of “winter.”

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By Anatole France, April 10, 2008 at 5:18 am #
(Unregistered commenter)

Unregulated and unchecked, Adam Smith’s “Invisible Hand” will inevitably extend its middle finger to the masses.

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By Shenonymous, April 9, 2008 at 7:26 pm #

While not abandoning it entirely, it is time to diminish the sharp focus on the failed Bush 8 years, and hit the nerve center to eliminate Republican McCain for his Bush alliances and kiss ass to the Republican party factions.

That is unless you want four to eight more years of the same.

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By nomorebombs, April 9, 2008 at 1:50 pm #

mccain and who everelse is above the hunger the people face daily…..


go away


  food water shelter
    nothing more

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By nomorebombs, April 9, 2008 at 1:43 pm #

spot on jleman…

lets hope someone has his hand on the rope for all of the liars

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By nomorebombs, April 9, 2008 at 1:23 pm #
(Unregistered commenter)

spot on….keep posting the truth

we need a revolution in the congress now!!

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By John King, April 9, 2008 at 10:24 am #
(Unregistered commenter)

Which ADs were audited makes a differnce.

Two ADs have been mentioned, for SW’s 737 rudders and for the fuselage. 

Also another for ‘wiring checks in MD-80 series aircraft. 

No small potatoes here,  All can bring a airplane down.  Breifs and Quotes below / see Link for full texts

2007-03-07 .  737 Rudder Control Rods, Inspection.  This AD becomes effective February 16, 2007. 
to prevent failure of any combination of two input control rods of the main rudder PCU and/or standby rudder PCU, which could cause an uncommanded rudder hard over event and result in loss of control of the airplane.  Issued on January 25, 2007

2004-18-06.  737-200, -200C, -300, -400, and -500 series airplanes.  Fuselage Inspections. Effective Date;  October 13, 2004.  To find and fix fatigue cracking of certain upper and lower skin panels of the fuselage, which could result in sudden fracture and failure of the skin panels and consequent rapid decompression of the airplane,

AD 2006-15-15. DC-9-81 (MD- 81), DC-9-82 (MD-82), DC-9-83 (MD-83), DC-9-87 (MD-87), and MD-88 Airplanes.  Within 18 months after the effective date of this AD, To prevent shorted wires or arcing at the auxiliary hydraulic pump, which could result in loss of auxiliary hydraulic power, or a fire in the wheel well of the airplane; and to reduce the potential of an ignition source adjacent to the fuel tanks, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane.

FAA Source; Link > http://rgl.faa.gov/Regulatory_and_Guidance_Library/rgAD.nsf/MainFrame?OpenFrameSet  And search by AD number

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By jleman, April 9, 2008 at 10:00 am #

This same bunch came to power with Reagan and they basically formed the “Gestopo” which went around and made government employees take lie-detector tests. This was because of “Deep Throat” and Daniel Ellsberg with the Pentagon Papers. You’ll remember Cheney and Rumsfeld being part of the Nixon WH? Well, they came back in spades. Long term Pentagon employees and other branch employees were getting out in droves. So much so that a former Air Force Officer I knew went out and set up a business placing highly educated government employees with high security clearances into the private sector. Wonder if the employee’s political leanings had anything to do with it? Much like the U.S. Attorney General’s office?

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By jleman, April 9, 2008 at 9:17 am #

While I can appreciate your comment, let me point out a bit of history which relates directly to your thoughts(questions). When the telephone companies started up there were lots of room to set standards and engineering goals(rules). Individual companies started designing standards which would suit their individual profit lines. In the U.S., it started to become a problem to place a call state-to-state and across the country. AT&T;was set up as a monopoly(conglomerate) to counter this with regulatory oversight. This succeeded. In France, things were allowed to seek their own level which resulted for many years in terrible phone service.
While we maybe have had ten years of less accidents, that is not to say things in the system will be reaching a critical point of massive breakdown. Changes in technology may have played a large part but things are engineered with finite life expectencies and the individual parts reach them dependent upon many factors and variances. When profit is the standard and safety takes a back seat to CEO’s and management’s pocketbooks you have the potential for disaster to strike and the fall back plan of “let the lawyers deal with it” springs into action along with the familiar synopsis of “pilot error”, blame the victim. CEO’s and others have their “golden parachutes” but none of the passengers or crew are allowed to have them? And, just to pound the point home, does the President and the Vice-President fly on the same airlines as regular people do? It’s pretty much the same as; has Bush and Cheny sent their daughters to Iraq to be raped by contractors or killed by roadside bombs, snipers and so forth?
The premise of this administration springs from the “class issue”. Rather, they act like they are a different class of society which is a separation issue. Furthermore, the extension of this into the “Imperial Presidency”, and their feelings of being above the Law of the Land(Constitution) just begs a pinpick to their balloon. Such a pin is impeachment and jail time without a pardon.

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By Purple Girl, April 9, 2008 at 7:48 am #

As much as the ‘Trickle Down’ facade of Economics ahs proven to be more approriately referred to as “Sh*t rolls Down Hill” . so goes the charade of ‘small Gov’t’ credo’s by ‘fiscal Conservatives’ . this doctrine should be called this should be referred to as ‘Profiteering Privitization’ . Add to that the ‘Democratization of the ME’ is really the “Land Grab of the UAE”.Same goes for those Unnecessary Hearing yesterday- they should have been advertised as ‘Employees trying to justify their continued Employment’ I’m not just talking about the Gen & the Amb- I’m talking about the 99% of the ‘Senators’ asking the questions. they have been given their Orders and have Chosen to disregard them. A democracy is not governed by the Employees- but by THE PEOPLE. Whether of not it woudl be a mistake to ‘cut & run’ is irrelevant- those are theri Marching Orders. WE’VE already decided this Action in Iraq is NOT WORTH IT. WE need no Stinking hearing,We are the DECIDERS _right or wrong, good or Bad…Do Your Damn Jobs!!!

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By cyrena, April 9, 2008 at 2:36 am #

This might be part of it Pedro, but I suspect that the bush gangsters are using the playbook from all other fascist and totalitarian regimes.

The point is to set up a shadow government that acts behind the scenes of the ostensible government, and eventually overtakes it.

That much is a brilliant strategy as well, but it’s not new.

And, the regulators that are allowed to be made to ‘look bad’ are really just part of the shadow government. They ARE in bed with the corporations, (the shadow government) and that has been the case since Regan did his deregulation.

Industries like the airline industry have fought hard against any sort of regulation, because at the bottom line, safety cuts into their profits as much as labor does. So, they cut deals with corrupt regulators, (and it doesn’t take many). They have their own ‘people’ in the FAA, the Environmental Agencies, the labor regulators, (EEOC is basically manned by the corporate entity now) and on and on.

So, I’m not so sure that they wanna make it ‘look like’ regulation doesn’t work. They wanna make sure that it DOESN’T work, because of the greed.

Again, regulation cuts into the corporate bottom line, and the Government and the Corporations are now one and the same.

Marie suggests that they airline industry has become their ‘customers’ but it’s really more about them being ‘partners’.

The ‘small fry’ working in these agencies, (like those who perform their work on the principles of regulatory standards) have long since been run out,(like these whistleblowers or potential whistleblowers) or are otherwise uninformed that the corruption even exists.

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By mike112769, April 9, 2008 at 2:23 am #

Doesn’t this whole mess seem reminiscent of the times that gave us the term “robber baron”? Politicians were being bought for their votes to help keep the corporations profitable. The Public finally had enough, and oversight commitees were instigated. The corporations then just started buying off their watchers. This has happened so many times that the Public is used to it. Nobody really expects anything to change, because nobody is willing to stand up for the Public. Until such time as the Public remembers that America belongs to Us, not the government, this country will continue to be ran into the ground by Big Business for pure profit.
  People of America, you NEED to wake up and DO SOMETHING for the future of our government and, most importantly, our country!

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By cyrena, April 9, 2008 at 2:22 am #

BRAVO! This just puts it all right there for us.

I ditto KISS in the excellence of your commentary.

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By cyrena, April 9, 2008 at 2:18 am #

So many that we will probably never know, because it spans the entire government. That’s one of the reasons that the VA and other public health care agencies have lost all of their professionals.

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By HopeSpringsATurtle, April 8, 2008 at 5:39 pm #
(Unregistered commenter)

Great piece marie, thanks. Here’s a good listen.

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By JimM72, April 8, 2008 at 3:39 pm #
(Unregistered commenter)

When the Moron in the White House puts his incompetent drinking buddy in charge of a national agency, people who have years of experience and dedication quit.
HOW MANY DEDICATED AND HIGHLY QUALIFIED PEOPLE HAVE QUIT THESE AGENCIES DUE TO THIS UNABASHED CRONYISM??

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By jleman, April 8, 2008 at 12:23 pm #

Remember the oil “embargo” from the Carter years?
Working in the oil fields at the time, I knew all about that baloney. The pipelines weren’t pumping because the tanks were full. We were capping wells as they were discovered because they were “marginal” at the going rate but the logs said otherwise.
The usual 24HR shifts of refineries were cut back to skeletal 8HR because the tanks were full. New field finds were capped and sworn to secrecy(normal but, under the circumstances, one wondered). Then came the collapse of the oil industry in the U.S. At least, the exploration part. What does that tell you? Carter did nothing and nothing was done under Reagan. No investigation.
Meanwhile, the Old West was recreated in South America in Venezuela, Equador, Colombia and so forth. The whole operations shifted overseas for exploration and the “profits” off of the “embargo” paid for it.
I’m with KISS on this. What? Does the mention of a solution just scare the beejeezus out of the media? Time to reverse the “Drug War” and start filling up the jails with the corrupt politicians and corrupt corporate management. Impeachment is not something to be “taken off of the table” by one of their own. It is a tool for the people. Yes, it gets messy! It’s called democracy in “action”. Strip corporations of their legal standing! No one “needs” then unless they plan on breaking the law!? Use impeachment against their paid, unregistered lobbyists in all branches of government, federal and state.

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By KISS, April 8, 2008 at 12:10 pm #

Excellent commentary. I avoided saying Nixon because he was only one that justice was partially being served. All the others escaped with impunity, and in all likeliness so will Bush.

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By jleman, April 8, 2008 at 10:49 am #

Let’s see? Beginning with the cabal of Reagan, which were leftovers from Nixon(those not in prison), we have the proclamation that they will dismantle government by running up the debt and thereby forcing the cutting of the budget(social programs and business regulation) while stocking the regulatory agencies with cronies(or incompetents) to prove to the public that government doesn’t work. This has now been expanded to include the Presidency and the(adding another dimension to the word) Vice-Presidency. Borrowing from the book, “1984”(doublespeak and the unending war), and from the history book(Hitler’s burning of the Reischstag and the Nazi’s use of propaganda) we are now faced with a shadow government consisting of treasonable corporations in league with extrajudiciary mercenary armies. The invention of the modern instrument of a “Corporation” began at the behest of businesses to cut their losses to sailors families through illegal trade wars(Opium Wars) with foreign companies, in Britain by the monarchy. No democratic action there. It was about evading responsibility and being profitable. If the hands off approach to business matters had been followed, the wars would have proven themselves too costly to everyone involved. And now? We have the “corporate” entities with “contract security personnel” unleashed over the globe along with military(ops) and black ops(CIA, State Dept., NSA, military, and the unending list) with backup from hundreds of military bases on foreign soils. We use “foreign aid” to train “foreign militaries” to use and purchase U.S. military hardware. Taxpayers pay for our military to train other militaries in subduing civilian populations(illegal in our country) through the use of torture and other means. And, does anyone wonder where all of these operatives got their training and from whom? Did they one day wake up and say, “I think I’ll go and pay for training to become a killer or torturer?” A doctor requires hundreds of thousands of dollars to pay for their education, and living expenses. What does the highly paid “contractor” pay for in education expenses?
Why do we have socialized killing and not socialized medicine?
How many veterans go out and commit criminal acts with all of the associated costs to our society? How many veterans commit suicide? According to stats released some years ago, the Vietnam vets suicides surpassed the direct death number of 55,000.
Political planners knew about demographics, and economics pre-Vietnam. They saw a massive number of young males coming of age in static economic times. Young, unemployed, politically active males would upset the apple cart of the status quo.
The only people who prospered from Vietnam were the investors, the arms factories and the surrounding support industries for the military; in other words, corporations. Reported fraud of defense corporations fell on deaf ears.
Surprised? Oh, and all of that nasty business going on over in Vietnam? We’ll blame it on the vets. Not the military/industrial complex and the investors/politicians who promoted official policy of death, torture, rape and whatever towards the population.
Surprised? Some of the neophyte politicians(draft evaders) from those days have all grown up! Same play, different page of the same book.

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By Jim Yell, April 8, 2008 at 10:35 am #
(Unregistered commenter)

If the Republican Party had set out to prove how wrong their basic Mantra is, then they would be the most successful group in the country. Privatizing prisons, war, oversight—- The bogus claim of this being better than a pro-active government that sets rules and oversight, could not be clearer.

But, why did America fall for these self-serving lying scondrels in the first place. Some greed was all they needed to throw common sense out the window. The real ham handedness of some government regulations or enforcement. Lots of reasons, but none of them so great as to excuse allowing a group of people with thousands of years of excess and distructive behavior to be allowed to ignore or over turn the rules, in favor of outrageous profits and increased proverty for working people. The same social class that brought us slavery, indentured servitude and gangsterism in government. Has anyone had enough of this selfishness yet?

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By Pedro, April 8, 2008 at 10:05 am #
(Unregistered commenter)

Bush etal. are not asleep at the switch. It is a semi-conscious attempt to let the government flounder so that it looks ugly and people can stop trusting regulaters. Now they can say, “look, regulation does not work.” It’s a brilliant strategy. Very similar to the “starve the beast” strategy where they cut taxes to the point that we have to cut spending or crash the dollar. Republicans are creating the conditions for us to HAVE to cut back on government spending and services. Making our regulaters look bad or at least allowing them to do so seems a bit deliberate.

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By KISS, April 8, 2008 at 9:35 am #

Granted all of this abuse has come home under the the Bush administration, but remember that Carter, Reagan, Bush senor and the Clinton administration all had the mantle” We don’t need no stinkin regulation”. And the lame brain, addled minded Bush has absolutely no idea how to fix this mess. But what kind of fix do you think these 3 blind mice will have to fix these gigantic problems. Not one of these incompetents has the mustard to promote regulation and to give us our Bill of Rights. But than the media is not concerned with history or rights…just money like all good corporations.
Marie, you showed us the problems, but you are a little shy on the solutions.

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By Steve Erickson, April 8, 2008 at 9:09 am #
(Unregistered commenter)

Although I know that many would like to lay the FAA’s woes at the feet of the current administration the issues expand back further than that.  CMO’s (certificate management offices) often tend to work in their own world.  In the past there have been differences in what the CMOs at separate airlines will approve.  Is this a widespread problem?  probably.  Has is reduced safety?  While what has happened is not acceptable its hard to argue with the fact that we’ve just experience the safest 10 year period in the entire history of the airlines.

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