More Spitzer mischief

Spitzer34.jpgWhen one door for a misguided investigation closes for Aspiring Governor Eliot Spitzer, he just opens another one. Although misdirected, no one can say that Mr. Spitzer is not persistent.
On Thursday, U.S. District Judge Sidney Stein of the Southern District of New York denied Mr. Spitzer’s request for more information from the Office of the Comptroller of the Currency as a deadline approaches for Mr. Spitzer to respond to the OCC’s recent lawsuit against him. The OCC is seeking an injunction against the Lord of Regulation from using his subpoena power to obtain nonpublic credit score and loan information from national banks that are involved in the sub-prime mortgage market.

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Lakewood and Houston’s other big churches

LakewoodInternonalCenter.jpgThis Church Report articleThe 50 Most Influential Churches — examines the fifty largest churches in the United States based on a survey that was sent to 2,000 church leaders with the goal of ranking the nation’s fastest growing churches and churches with more than 2,000 weekend attendance.
Houston is well-represented on the list, with Lakewood Church ranking fifth (are there really four churches that are larger than one that holds its services in a renovated basketball arena?), Fellowship of The Woodlands at no. 17, Second Baptist Church at no. 33, and Windsor Village United Methodist at no. 43. The common thread through all of these mega-churches is that each of them is closely associated with a charismatic leader, and that is certainly true of the Houston contingent — Joel Osteen at Lakewood, Kerry Shook at Fellowship, Ed Young at Second Baptist, and Kirbyjon Caldwell at Windsor Village.

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Trouble in Nuevo Laredo

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Following on earlier posts on the same topic here and here, this article reports on an ominous development that flies under radar screen of most Texans and Americans — the increasing violence in the Mexican border towns along the Texas-Mexico border.
Tony Garza, the U.S. ambassador to Mexico, ordered the closure of the U.S. Consulate in Nuevo Laredo for a week Friday night to assess the security situation just hours after rival drug cartels engaged in a gunfight with machine guns, grenades and rocket launchers in an upscale Nuevo Laredo neighborhood. The battle was fought Thursday night at a single-story house near a country club, which is about five blocks from the Nuevo Laredo’s main drag.
The Texas-Mexico border area of Texas — called the Rio Grande Valley or simply “the Valley” — has always been a fascinating and troubling part of Texan culture. The area is among the lowest in terms of per capita income in the United States, yet even the chronically depressed economy of the Texas side of the border is a fantasy of riches for many of those living in the poverty of the teeming Mexican border towns. The following is the way I characterized the area’s problems in this earlier post:

The region’s problems are complex and difficult, which makes the area prone to being ignored. The increased violence of late is the natural result of such neglect, and the usual response to such spikes in violence along the border — i.e., heightened law enforcement — is only a short term solution that often contributes to the animus that many of the Hispanic citizens of the area have toward the state. The area is desperate for leadership and a vision for solving its problems, yet those intractable problems tend to repel those in government who are in a position to do something about them. In short, the Valley needs statesmen, which are in short supply in the polarized American political landscape of the early 21st century.

With some politicians calling for the creation of state militia units to combat the increasing problems on the border, it’s high time for federal and state leaders to address the problems facing the Valley and devise short and long-term plans to address them. For if they do not, expect to see what happened in Nuevo Laredo on Thursday night to spill over to the Texas side of the border soon.

Eric Andell gets probation

andell2.jpgFormer Houston district and appeallte judge Eric Andell — who formerly served as deputy undersecretary under fellow Houstonian Rod Paige at the U.S. Education Department — was sentenced to one year of probation and fined $5,000 Friday after pleading guilty to charges that he intentionally had the federal government pay about $9,000 for travel in which he conducted personal business and worked as a visiting judge while still employed at the Department of Education. Here is a previous post on the matter and here is the Chronicle story on the sentencing.
One of the most popular local Democratic politicians, Mr. Andell is a genuinely good man who made a mistake and owned up to it in a responsible manner. That he avoided any prison time is a just result.

Stros 2005 Review: The Stros are streaking again

Astros-Logo6.jpgLast season, after falling to a season-worst 56-60 record on August 14th, the Stros won 36 out of their next 46 games, a run that included 12 and seven game winning streaks, the latter of which ended the regular season and clinched the National League Wild Card playoff spot. That club went on to get within a few outs of the World Series.
With another win in last night’s game, this Stros club — after falling to a season-worst 15-30 record on May 24th — has gone 41-17, won six games in a row and won 12 of their last 13. The Stros now lead in the National League Wild Card race by one game and are in second place in the NL Central, 8.5 games behind the Cards. Given the way the NL Central race has gone the past couple of seasons, that equates to a pennant race.
Given this club’s weak hitting, the Stros will not be able to sustain this level of play for the remainder of the season. But make no mistake about it, this has been an incredible run, even more remarkable than last season’s.

More on the gas trader cases

traders.jpgThis Southern District U.S. Attorney Office press release announces that two former gas traders — former Dynegy trader Michelle Valencia and former El Paso trader Greg Singleton — had counts added to their pending indictments in connection with a series of criminal cases in which the government alleges that the traders reported bogus trades to industry newsletters to affect the price of natural gas. Here is a previous post on Ms. Valencia’s case and other posts on the gas trader prosecutions may be reviewed here, here, here, here, here and here.
These particular trader cases involve alleged efforts to manipulate the trading indexes, which are used to value billions of dollars in gas contracts and derivatives. Industry publications, such as Inside FERC Gas Market Report, use data from traders to calculate the index price of natural gas. Accordingly, movement in index prices often affects the level of profits that traders can generate. In these particular cases, it remains unclear in what context the allegedly false information was provided or whether the publication actually used any such false information. However, the government is contending that it needs only to prove that fake trades were reported to the publications and not that the trades were actually published or affected the markets.
Ms. Valencia and Mr. Singleton were originally charged with “conspiracy, false reporting, and wire fraud related to the transmission of allegedly inaccurate trade reports to industry newsletters which used the reported trades to calculate the ‘index’ price of natural gas in August 2000,” and the superseding indictment adds “additional counts of false reporting and wire fraud relating to inaccurate trade reports used to calculate the ‘index’ price of natural gas in July 2000.”
As noted in this previous post, it would appear that this is a fairly transparent effort by the government to increase the alleged market loss attributable to the alleged false reporting for purposes of seeking longer jail terms against Ms. Valencia and Mr. Singleton. Justice Department lawyers have been making some fairly preposterous positions on that particular issue in other cases recently.

Conglomerate forum on the corporate case of the decade

disney2.JPGGordon Wood over at the Conglomerate blog has put together an impressive list of expert contributors for an upcoming forum on the widely-anticipated decision of the Delaware Chancellory Court in the corporate case of the decade — i.e., the civil lawsuit over The Walt Disney Co. board’s decision to pay Michael Ovitz a rather generous severance package for essentially doing nothing during his short stay at Disney (earlier posts on the case are here, here, and here).
As Professor Wood notes, now all we need is a decision, which was expected before the end of July, but has now apparently been pushed back. My speculation is that the decision was close to completion when Professor Ribstein posted his recent prediction on the decision, which sent Chancellor Chandler and his clerks scampering back to the drawing board. ;^)
Seriously, though, the Conglomerate forum is yet another example of the way in which the blogosphere is redefining the way in which information is delivered to the public. Prior to the blogosphere, the only way that one could obtain the type of expert analysis that such a forum delivers would be to luck upon an op-ed in a newspaper or dig through stodgy law review articles. Now, that analysis is delivered in an efficient and effective manner for the world to peruse. That’s a remarkable development, and one that all of us should be careful not to take for granted.

Judge Roberts and Rome

John_roberts4.jpgOver time, politicians will manage to stand just about any issue in American politics on its head.
Houston played host to one of the most important speeches of John F. Kennedy‘s 1960 Presidential campaign. Conventional political wisdom at the time was that a Catholic could not be elected President of the United States because of Protestants’ perception that a Catholic would have to obey the Pope’s commands over those of the U.S. Constitution. Mr. Kennedy finally decided to address the issue head-on, and on September 12, 1960, he delivered this statement to the Greater Houston Ministerial Association, in which Theodore White observed that “he knocked religion out of the campaign as an intellectually respectable issue.”

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The IRA’s announcement

ira.jpgIn a potentially significant step that could end over three decades of violence in Northern Ireland and on the British mainland, the Irish Republican Army has ordered its members to discard their weapons. As noted in this earlier post, the I.R.A.’s continued use of terrorism in attempting to achieve its political goals — and some United States politicians’ often ambivalent stance toward it — represented one of the more troubling hypocrocies of the U.S.’s current War on Terror.

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“It’s nowhere near as bad as the one a few months ago”

Texas City disaster2.JPGThe comment that serves as the title of this post qualifies as genuinely good news these days at BP p.l.c. However, as noted in this post from just the other day, it is getting a bit difficult to keep up with BP’s various problems these days.
Another fire erupted at BP’s Texas City plant Thursday evening, just four months after the one in March this year that caused 15 deaths and dozens of injuries. No injuries were reported in Thursday’s fire that took place in BP’s Texas City 1,200-acre complex, but not close within the complex to the unit that exploded in March. BP released a statement saying that “there is no connection between the two incidents.”
Meanwhile, crude-oil futures settled up nearly a dollar to push prices above $60 a barrel for the first time in more than two weeks.