How the Power of Influence Influences Power

07/05/07 | Rick Vassar

[Rick Vassar]

"...No Member, officer, or employee shall knowingly use his official position to introduce or aid the progress or passage of legislation, a principal purpose of which is to further only his pecuniary interest, only the pecuniary interest of his immediate family, or only the pecuniary interest of a limited class of persons or enterprises, when he, or his immediate family, or enterprises controlled by them, are members of the affected class."
-Standing Rules of the Senate - Rule XXXVII (4) Conflict of Interest


"...As I travel across Indiana, one of the biggest concerns raised by my fellow Hoosiers is the rising cost of health care. Seniors are concerned about the spiraling cost of prescription drugs, families are struggling to meet increasing premiums and businesses – especially small businesses - are worried about their ability to continue providing health insurance to their employees and their families. Everyone should have access to quality, affordable health insurance, and I will continue fighting to make this goal a reality.”
-Senator Evan Bayh (D-Indiana)


Much has been written this week on Hillary Clinton and Bill Clinton divesting their portfolios so that no potential conflict of interest charges can be leveled at Mrs. Clinton in her chase for the presidency. Although this is noble in nature, the Clintons should have kept the money where it was. This seems to be just business as usual in Washington and throughout the halls of Congress.

When the Dubai ports controversy came to light, it was found that former President Bill Clinton was a paid advisor to the Dubai government. In true Clintonesque style, the Clintons were able to make political hay out of the situation, showing that she was willing to oppose her husband’s professional interests by introducing legislation that would prohibit the transactions. Mr. Clinton may have made a little extra on the deal trying to smooth things over, although the deal was eventually abandoned by Dubai.

Democrat Evan Bayh is the junior senator from Indiana. Elected in 1998, he is the son of the former Senator Birch Bayh. In 1995, he married former Eli Lilly corporate attorney Susan Breashears. Since that time, according to Forbes, Susan Bayh has served on the board of directors of health industry related corporations, including Wellpoint, the largest US health insurer, and Esperion Therapeutics Inc., a unit of Pfizer Inc.

Wellpoint merged with Indianapolis-based Anthem in 2004, making the newly formed Wellpoint the country’s largest health insurer. Susan Bayh served as a director of Anthem from 1998 through May, 2003 and has served as a director at Wellpoint since 2001.

In the case of the Clintons, it is difficult to determine the level of influence a spouse has on public policy, although conflict of interests charges seem to follow them wherever they go. It’s the same with the Bayh family, although the potential for conflict of interest is quite apparent.

Susan Bayh is well compensated for her work: In fact, it is estimated that the Bayhs’ net worth is somewhere in the range of $2.9 million and $6.4 million. It is also estimated that 57% of their holdings are from investments in the health services industry, and 7% from the pharmaceutical/health products industry.

On January 31, 2006, Senator Bayh and Senator Jeff Bingaman (D-NM) announced plans to introduce the Medicare Prescription Emergency Guarantee Act to guarantee prescriptions to seniors who may or may not qualify for the prescription drug plan.

On February 2, 2006, Congress passed the Senator Bayh-sponsored long-term care legislation that would make long-term medical care insurance available to more patients.

On February 3, 2006, Susan Bayh exercised options on 20,001 shares of Wellpoint.

On May 17, 2007, two weeks before it was announced that Wellpoint’s mega-CFO was stepping down for unspecified non work-related issues, Mrs. Bayh exercised options on 3,334 shares of Wellpoint.

According to SEC records, the pre-tax profit on the sale of Wellpoint stock from February 2006 to the present was approximately $1.045 million.

Mrs. Bayh also served on the boards of directors of Cubist Pharmaceuticals, Inc., a pharmaceutical company from 2000 to 2004. She left just before Cubist senior management, family members and a neighbor were all implicated in an SEC insider trading lawsuit in January, 2005.

Evan Bayh sits on the Senate Banking and Housing Committee, which has oversight over the SEC.

On March 8, 2007, Judicial Watch filed a complaint against Senator Bayh with the Senate Ethics Committee for failing to properly disclose his directorship of the Evan and Susan Bayh Foundation, a foundation upon which he is named as a director on Form 990s but failed to disclose on his Senate Financial Disclosure Form for the years 2003, 2004, and 2005.

While there is no conclusive evidence to show that Susan Bayh in any way influences the decisions of her the senator on policy matters, there is compelling evidence to show that the Bayh family has profited greatly from its relationship with Wellpoint.

There is always the argument of the spirit of the law versus the letter of the law.

Which do you follow as an elected official?

In the case of elected officials, the answer is clear:

Follow the spirit of the law until you get caught. Then follow the letter of the law

[Diogenesis]

"...No Member, officer, or employee shall knowingly use his official position
to introduce or aid the progress or passage of legislation, a principal purpose
of which is to further only his pecuniary interest, only the pecuniary interest of his immediate family,
or only the pecuniary interest of a limited class of persons or enterprises,
when he, or his immediate family, or enterprises controlled by them, are members of the affected class."
-Standing Rules of the Senate - Rule XXXVII (4) Conflict of Interest

[Dick Bachert]

The periodic Congressional recesses should afford us the opportunity to get some valuable “face time” with our respective congress critters. Some of these folks will be holding Town Hall Meetings around their states/districts. A call to one of their local offices or a visit to their web sites ought to give you the schedule.

Actually, the LOCAL TOWN HALL MEETING is the best – and least costly — way to get to these folks. Many well-intentioned advocacy groups who urge their members to GO TO WASHINGTON are more interested in putting on a show than actually impacting legislation. The simple fact is that unless they can put a few million folks on the Mall, the political ruling elites simply IGNORE these sorts of events.

The OTHER problem with seeking an “audience” with these critters – ostensibly OUR EMPLOYEES (or, FORMER EMPLOYEES) — in their offices in D.C or even in the district is that you are at the psychological and emotional disadvantage of BEING ON THEIR TURF in the undesirable role of an “inferior” pleading with a “superior.”

These TOWN HALL MEETING take place on the closest thing to NEUTRAL TERRITORY as can be found. And, unlike those office meetings, they will be filled with OTHER citizens whom your public questions/comments can sensitize to issues other than the one that brought them there. (NOTE: IF YOUR CRITTER FORCES YOU TO SEND THOSE QUESTION CARDS UP TO HIS THRONE – WHERE HIS DISTRICT FLUNKIE WILL CULL ALL BUT THOSE HIS LIEGE WISHES TO ANSWER – GET A NEW CRITTER AT THE NEXT ELECTION BECAUSE THIS ONE IS TOO FAR GONE TO BE SALVAGED.)

The recent immigration dust-up brought a lot of new folks into the fray over who runs the country. Because the forces of darkness never rest, IT IS VITAL THAT THESE NEW FOLKS NOT GO BACK TO SLEEP. Sadly, most of them will.

I predicted that illegal immigration would be a hot-button issue over 10 years ago when more than 70% of those at Newt’s meetings – where I regularly went to gin up support for the Fair Tax (then called the National Retail Sales Tax) — were mad as hell and beating him up on the illegal situation. While he never has come out directly for the Fair Tax, more than once, Newt coupled the two issues by suggesting that the over 100,000 IRS agents be given a weapon and training and sent to guard the border with Mexico. Newt KNOWS how to couple.

If YOUR critters ARE having meetings – and if not during THIS recess, unless their names are Reid, Pelosi, Graham or Schumer, they will almost certainly have them in the run-up to the election – please think about attending, taking the mike and telling them what YOU think. Even if THEY fail to heed your words, you just may educate the audience to some new problem. Heck, you may even get a heart-warming round of applause.

If nothing else, it’s excellent THEATER to watch some of these folks artfully dodge questions, shuck and jive around a tough issue about which they have absolutely NO knowledge, have their overflowing drool-cups changed by one of their flunkies, etc. so TAKE A CARLOAD with you.

See you there???

[JimRed]

TERM LIMITS, NOW AND FOREVER!