CA-38: She's Her Own Predatory Lender

Grace Napolitano is a fairly unassuming back-bencher Congresswoman from the Los Angeles area, who generally votes well on most issues. Being in a heavily Democratic district, she hasn't faced much competition from Republicans in election cycles during her decade in Congress, so she's had to find somewhere for campaign contributions to go. Like her pocket:

During a decade in Congress, California Representative Grace Napolitano has pocketed more than $200,000 of political contributions by charging as much as 18 percent interest on money she loaned to her own campaign.

The suburban Los Angeles Democrat made the $150,000 loan in 1998, when she was first elected to the U.S. House of Representatives. Through Dec. 31, her campaign committee has used donations to pay Napolitano $221,780 of interest while reducing the principal by just $64,727, a review of her Federal Election Commission filings shows.

As recently as June 2008, Napolitano held a fundraiser asking supporters and political action committees for money to pay down the 1998 debt. Napolitano, her spokesman and her campaign’s lawyers didn’t respond to requests for comment [...]

For Napolitano, a 72-year-old grandmother of 14, the campaign IOU has been a profitable asset, far outperforming stocks since the loan started accruing interest in May 1998. Over the same period, an investment in the Standard & Poor’s 500 stocks, with reinvested dividends, would have lost more than 7 percent, according to Bloomberg data.

A case could be made that if you're silly enough to contribute to Grace Napolitano in a D+20 district, you deserve to be fleeced. But of course, the great majority of her contributors are corporate clients that are funneling personal contributions to her through interest payments on her initial loan. It's really shocking, particularly considering that she represents a district with a 16% poverty rate.

Napolitano is a solid vote but we can expect much better than this from our public officials. Politics should never be an avenue for self-aggrandizement.

Sanity Breaking Out All Over

This is encouraging:

House and Senate negotiators working on an intelligence bill have agreed to limit CIA interrogators to techniques approved by the military, which would effectively bar them from using such harsh methods as waterboarding, congressional aides said Wednesday.

Members of the House and Senate intelligence committees decided to include the ban while working out differences in their respective bills authorizing 2008 spending for intelligence programs, according to the aides, who spoke anonymously because the negotiations were private. Details of the bill are to be made public Thursday.

That will set the stage for another veto fight with President Bush, who last summer issued an executive ordered allowing the CIA to use "enhanced interrogation techniques" that go beyond what's allowed in the 2006 Army Field Manual.

Fight Bush. Make the Republicans cast a vote for torture. Expose them.

Why I say that sanity is breaking out all over is that I'm including this deal on freezing mortgage rates that actually might (gasp!) help some people.

The Bush administration has hammered out an agreement to freeze interest rates on certain subprime mortgages for five years to combat an escalating number of home foreclosures, congressional aides said Wednesday.

The aides, who spoke on condition of anonymity because the details have not been released, said the five-year moratorium was a compromise between desires by banking regulators for a time frame of up to seven years and mortgage-industry arguments that the freeze should last only one or two years.

Another person familiar with the matter said the rate freeze would apply to borrowers with loans made from Jan. 1, 2005, through July 30 of this year with rates that are scheduled to rise between Jan. 1, 2008, and July 31, 2010.

"Fixing the reset period is an important action, and it's good that everyone now seems to be pushing in the same direction," said Michael Barr, a professor at the University of Michigan Law School.

It's a stopgap, but anything that allows some homeowners a little relief from predatory lending is a positive step.

And...

A new agreement between the Pentagon and the State Department gives the military in Iraq more control over Blackwater Worldwide and other private security contractors.

The agreement was signed Wednesday at the Pentagon by Deputy Defense Secretary Gordon England and Deputy Secretary of State John Negroponte, whose department uses Blackwater to guard its diplomats. It spells out rules, standards and guidelines for the use of private security contractors.

The agreement also says contractors will be accountable for criminal acts under U.S. law. That partly clarifies what happens if a contractor breaks the law, but leaves the details to be worked out with Congress.

If I didn't know any better, I'd say we had a functioning government that responds to challenges.

UPDATE: It should be noted that the deal to freeze subprime rates should only effect about 12 precent of all borrowers in distress. That's better than 0%, but is insufficient to deal with the crisis. Atrios thinks it won't do a damn thing. I maybe jumped the gun.