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Documents released today reveal that Republican gubernatorial candidate Dino Rossi was not only aware of the Building Industry Association of Washington’s (BIAW) illegal fundraising activities, but that he actively solicited funds on their behalf from at least one organization, the Master Builder’s Association (MBA).  According to a summary of events posted by attorney Knoll Lowney:

The MBA was one of the groups solicited for a donation. On April 30, 2007, BIAW President Daimon Doyle attended the MBA’s Board meeting to solicit a donation to BIAW’s campaign fund, which was considered a “Fund for Rossi,” according to Sam Anderson, the MBA Executive Director. Based upon a formula, MBA was targeted for a donation of over $570,000! The Board decided to table the request until the next meeting three weeks later, expressing concern that most MBA members were democrats and may not appreciate the donation and also about other pressing MBA expenses including building repairs.

When MBA leadership met next on May 21, 2007 at a “Chair Officers Meeting,” the discussion turned to BIAW’s pending request for campaign funds. While discussing the request, all three of the MBA’s top officers reported that they had received calls from Dino Rossi. The one call for which additional detail is provided clearly confirms that Rossi called to support a MBA contribution to the BIAW’s governor’s race war chest. The minutes leave no question that Dino Rossi spoke to this officer about whether and when MBA would give to the BIAW’s governor campaign fund. The officers receiving calls from Rossi were then-MBA President Doug Barnes, First Vice President Joe Schwab, and Second Vice President John Day.

The PDC has already found the BIAW and MBA guilty of multiple “egregious” campaign finance violations, and the Attorney General has subsequently filed suit.  And now we learn that not only did Dino Rossi know about the illegal fundraising, he actively solicited money for it.

This is a major scandal… the kind of scandal that could change the entire dynamic of this election.

More coming….

Chris Mulick has written his last blog post for the Tri-City Herald… or anything else for that matter, announcing that he’s turning in his press credentials tomorrow to take a public information post with the state Senate Democratic caucus.

I can’t point to one single reason that fueled this decision. There are many factors involved in the complex equation.

But certainly, the financial troubles plaguing this industry have created considerable uncertainty. And while the Herald has given me every assurance my job is safe in this bureau it’s unsettling how quickly the unthinkable has become reality in this business. With a young family, I’ve no choice but to risk jumping too soon. I simply can’t risk jumping too late.

Pretty soon the press houses in Olympia will consist of little more than Rich Roesler and Brad Shannon chatting with each other via a couple tin cans and a taut length of string.

Yet another Washington political reporter leaving the business, and only six weeks before one of the most consequential elections in history.  This really sucks.

Rep. Jay Inslee was the only Democratic member of WA’s congressional delegation to vote against today’s Wall Street bailout bill.  Here is his statement:

WASHINGTON, DC — Today, U.S. Rep. Jay Inslee (D-Wash.) voted against the $700 billion bailout package for troubled American financial markets in what he called “a vote of conscience.”

“The initial plan by Secretary Paulson was completely unacceptable, but the revised package was not much better,” said Inslee.  “For all the talk of protecting the taxpayer, there were only limited promises that the taxpayers’ $700 billion investment would be paid back and there were no provisions to help struggling homeowners.”

“If we authorize $700 billion in a bailout for Wall Street, we must ensure – and not just hope – that all the money gets paid back to the American taxpayer.  The plan we were presented with did not do that.  Also, I saw no real provisions in the revised plan to help stem the real cause of the crisis, which is the collapse in our housing markets.  We needed a pro-growth bill to stimulate the economy, and that was not what we got.”

“But now is the time for Congress to come together again and vote on a real, comprehensive plan that will solve the crisis while still protecting the taxpayers and restarting our economic growth.  I am prepared to stay here and in session as long as it takes, and I know many of my colleagues in Congress feel the same.”

“The American people deserve better.  I could not, with good conscience, vote for the bill presented to me.”

While the country’s attention is understandably focused on the financial sector bailout, the Justice Department has released a report (300 plus page PDF) on the politically motivated firings of nine U.S. attorneys, including John McKay, who was the USA for Western Washington. From the AP via The Seattle Times:

Attorney General Michael Mukasey appointed a prosecutor Monday to pursue possible criminal charges against Republicans who were involved in the controversial firings of U.S. attorneys.

His move follows the leading recommendation of a Justice Department investigation that harshly criticized Bush administration officials, members of Congress and their aides for the ousters, which were seen by many as politically motivated.

Results of the investigation were made public Monday. The report singled out the removal of U.S. Attorney David Iglesias of New Mexico – among 9 prosecutors who were fired – as the most troubling.

Republican political figures in New Mexico, including Sen. Pete Domenici and Rep. Heather Wilson, had complained about Iglesias’ handling of voter fraud and public corruption cases, and that led to his firing, the report said.

That initial AP article doesn’t mention McKay, so a quick look at the report itself is in order. The voluminous report examines the McKay firing in extensive detail, including the demands made by a certain “association” and “an outside group,” in Washington state about the 2004 gubernatorial recount, doubtless referring to the BIAW and the Evergreen Freedom Foundation, who were very public in their demands for McKay’s scalp.

Bottom line is that the key administration officials involved (Rove, Miers, Goodling, et al.) have managed to thwart the investigation to this point. From page 267 of today’s DOJ report: (bold added)

In sum, we could not determine whether complaints to the White House about McKay’s handling of the voter fraud allegations stemming from the 2004 Washington State gubernatorial election contributed to his placement on the removal list, particularly without interviews of relevant White House officials.

The report castigates the administration in other conclusions regarding McKay’s firing. On page 268 it concludes that alleged concerns about sentencing statistics were not convincing:

In sum, this purported reason appears to be another after-the-fact rationalization for why McKay was included on the removal list. We believe that raising this claim in the briefing to Congress was misleading and cast further doubt on the Department’s credibility in providing the real reasons for the removals of the U.S. Attorneys.

And finally, the section about McKay’s firing reads like a finely-tuned legal document when it comes to whether McKay’s concerns about an information sharing system called LInX played a role. From page 269:

In sum, we believe the evidence suggests that Sampson placed McKay on the list for removal because of his actions in the LInX matter. However, the Department’s various descriptions of why McKay was removed severely undermined its credibility when it tried to explain its actions.

This thing isn’t over from what I can tell.

As Josh reported from Thursday’s gubernatorial debate, Dino Rossi voiced support for repealing Washington’s highest in the nation minimum wage (currently $8.05 an hour), tied to inflation by a citizen’s initiative.  Rossi told the Association of Washington Businesses:

”The minimum wage was not meant to be a family wage. It’s meant to be an entry level wage.”

Rarely during this campaign has Rossi made the mistake of publicly stating his position on an issue on which he is so out of step with voters.  Don’t get me wrong, Rossi is way out of step on a number of issues, he just refuses to talk about them, and so far our press has been mostly complicit in his silence.  But this time he spoke loud and clear, and one would think that reporters might follow up.

It’s encouraging to see the Gregoire campaign quickly respond with an ad; I just hope they continue to hit him on the minimum wage.  And harder.

Josh Marshall at Talking Points Memo notes a Times of London article speculating that we Yanks could be treated to the ultimate hail-mary pass by the McCain campaign, in the form of televised nuptials between Sarah Palin’s daughter and her fiance.

Marshall is correct in warning us to take the British press with a grain of salt, but the televised wedding idea somehow seems so, well, Republican. In other words, cheap, cynical and designed to distract. From the Times of London:

In an election campaign notable for its surprises, Sarah Palin, the Republican vice- presidential candidate, may be about to spring a new one — the wedding of her pregnant teenage daughter to her ice-hockey-playing fiancé before the November 4 election.

Inside John McCain’s campaign the expectation is growing that there will be a popularity boosting pre-election wedding in Alaska between Bristol Palin, 17, and Levi Johnston, 18, her schoolmate and father of her baby. “It would be fantastic,” said a McCain insider. “You would have every TV camera there. The entire country would be watching. It would shut down the race for a week.”

If nothing else, such a stunt would seem to be the penultimate test of what might be called the Maher Axiom, a reference to comedian Bill Maher, who has repeatedly expressed his fear that Americans are too stupid to be governed.

The NY Times highlights John McCain’s gambling problem.  And it’s a problem on two levels.

As a two-time chairman of the Indian Affairs Committee, Mr. McCain has done more than any other member of Congress to shape the laws governing America’s casinos, helping to transform the once-sleepy Indian gambling business into a $26-billion-a-year behemoth with 423 casinos across the country….

“One of the founding fathers of Indian gaming” is what Steven Light, a University of North Dakota professor and a leading Indian gambling expert, called Mr. McCain.

The Times describes McCain as a “lifelong gambler, Mr. McCain takes risks, both on and off the craps table.”  No shit, Sherlock.

But I’m curious if our local press, who has silently sat back (when not actively collaborating) and allowed Dino Rossi to slander Gov. Gregoire as “Casino Chris” for rejecting a tribal gaming compact that would have led to a tenfold increase in WA’s gambling industry… I wonder if they’ll ask the Republicans that ironic question about how they feel about the man at the top of their ticket, the “founding father of Indian gaming”…?

Probably not.

The Matt Millen era came to an end in Detroit this week, as the Lions’ General Manager was finally canned after a reign of ineptness that made Lions fans feel like the Bush Administration was running their team. Here’s how some of the fans celebrated:

A Detroit radio station gave the Matt Millen era a proper burial Friday, complete with a motorcycle-drawn carriage lugging a “Fire Millen!” sign in a custom-painted Lions casket.

“This is a special moment for us as we say good-bye to a legacy, to a reign of a general manager that brought us frustrations, brought us tears, brought us everything but a trophy,” DJ Spike, from the “Mojo in the Morning” program on WKQI-FM (95.5), said as the funeral lined up at 8 a.m. at Eastern Market.

An $85,000 Harley-Davidson hearse led the procession south on Gratiot Avenue to Ford Field. Inside the gleaming Honolulu blue-and-silver casket was a photograph of Millen’s face on a white, padded, silk pillow.

As about 30 people standing around the casket snickered, Spike invited fans to put mementos in the casket “to be buried forever along with the bad memories of seven years of Matt Millen’s reign.”

Like the Lions, the Seahawks have their bye this week. And also like the Lions, the Seahawks have their own fans who go a little too far (ok, in that case, a lot too far).

Watching last night’s presidential debate at the jam-packed Montlake Ale House (a horde of DFAer’s pushing us DL regulars into the nooks and crannies), there was little question about who won the contest.  Both the boisterous crowd and the CNN dial test audience agreed: it was no ass whooping, but Barack Obama came off as knowledgable, likeable and more in touch with average Americans than the often angry and ornery John McCain. And with this being the debate that focused on McCain’s alleged strong suit, foreign policy, that constitutes a win for Obama.

But afterwards, I stopped off at house filled with angry Irishmen, and the reaction was quite different.  Strong Democrats all, they were drowning their sorrow in whiskey at what they saw as a pathetically weak performance by Obama, who failed to fight back against McCain’s frequent attacks.  Almost as a chorus they complained that if Obama had said “I agree with Sen. McCain” one more time, they would have thrown a bottle at the TV set (and the Irish don’t waste the contents of bottle lightly).

They went into the debate smelling blood after McCain/Palin’s week of disastrous missteps, and they expected Obama to go in for the kill.  He didn’t.  And their initial and unanimous post-debate reaction was that this was big win for McCain.

Huh.  Had we watched the same debate?  So I went online to catch the spin and was fascinated to watch the consensus evolve over the next few hours.  The early threads on the liberal blogs more closely matched the angry Irishmen than the cheerful DFAers, with many commenters lamenting the same lack of backbone and aggression, a sentiment echoed by a handful of CW pundits who quickly jumped to set the frame by calling the debate for McCain.  But it wasn’t long before this spin got spun around, with McCain’s ornery demeanor, his refusal to even look at Obama, let alone make eye contact, and his failure to mention “the middle class” even once beginning to dominate the conversation.

Then the instant polls and focus group results came in, and the notion of an Obama win quickly took hold amongst a majority of the media commentators.  By pretty convincing margins both independent and undecided voters consistently gave the edge to Obama, both in his performance and in his positives.  Obama talked about issues and connected with voters, whereas McCain appeared “antagonistic”, even “contemptuous,” and while the latter may play well with McCain’s antagonistic and contemptuous Republican base, the folks in the middle… um… not so much.

I don’t know if Obama’s cool and collected debate demeanor is a strategy or simply who he is, but as much as I would personally like to see our candidate punch back as good as he gets—and better—I think last night’s approach ultimately serves him well.  Not because voters don’t want to see their presidents appear strong—they most emphatically do—but Obama, perhaps uniquely, must carefully avoid appearing too strong.  If you know what I mean….

Ahem… um… as McCain might phrase it, “the point is“… while we may have come a long way toward fulfulling Martin Luther King Jr.’s dream, white America doesn’t much like its big, black men to appear aggressive or threatening… and in case you hadn’t noticed, Barack Obama is a big, black man.

Oh sure, on the football field or the basketball court such aggression is accepted and even celebrated, but in the political arena the standards are quite different.  Yes, in politics, we still like our big, black men to be orderly and loyal, like Colin Powell, or quiet like Justice Thomas… or even a sweet, dumb, gentle giant like that character in The Long Green Mile.

But threatening?  No, Obama can’t afford to come off as threatening, let alone contemptuous of an elderly white man like McCain.  So as much as I’m with the brawling Irishmen on what I’d personally like to see from our candidate, I understand I’m not the typical swing voter, and nowhere near the mindset of an undecided independent.  No, as much as it may pain me, Obama needs to show McCain respect, even when it is totally unreciprocated, if he is to win the hearts, minds and votes of the uncommitted.

He may not have stirred any passions in his base, but I’m guessing more voters than not came away from the debate with a greater sense of comfort in the notion of Obama as commander in chief, and that’s all he needed to achieve last night.

So I’ve scored this one for Obama.  And now I’m going sit back and watch to see if my post-debate analysis is supported by the daily tracking polls.

UPDATE:
John Cole at Balloon Juice aptly sums up the dilemma facing McCain over the emerging too contemptuous to make eye contact narrative:

SNL will probably drive the point home in a skit that will become the dominant narrative tonight, and McCain will become boxed in regarding his behavior in the second debate, much as Gore was unable to be as aggressive as he wanted in the second debate (I remember the running joke was that Gore had been medicated for the second debate). And if McCain does not tone down the contempt, it will simply feed the narrative. Or, if we are really lucky, as someone suggested in another thread, McCain will overcompensate and spend the entire time comically and creepily attempting to make eye contact with Obama (think Al Gore walking across the stage to stand next to Bush, and Bush looking at him as if to think “WTF are you doing?”).

This should be terrifying for the McCain campaign for two reasons. First, the base will not understand it. To them, a sneering, contemptuous jerk is a feature, not a bug. When they try to tone down McCain, it will turn off the diehards. Look at the reaction of the base to Palin’s RNC speech- they LOVED that she was, for all intents and purposes, nothing but an asshole the entire speech. They loved the “zingers” that were written for her. The rest of the country recoiled in horror, and Obama raised ten million the next 48 hours.

UPDATE, UPDATE:
I feel like I’m in pretty good company when James Fallows posts a pretty similar analysis:

Obama would have pleased his base better if he had fought back more harshly in those 90 minutes — cutting McCain off, delivering a similarly harsh closing judgment, using comparably hostile body language, and in general acting more like a combative House of Commons debater. Those would have been effective tactics minute by minute.

But Obama either figured out, or instinctively understood, that the real battle was to make himself seem comfortable, reasonable, responsible, well-versed, and in all ways “safe” and non-outsiderish to the audience just making up its mind about him. (And yes, of course, his being a young black man challenging an older white man complicated everything he did and said, which is why his most wittily aggressive debate performance was against another black man, Alan Keyes, in his 2004 Senate race.) The evidence of the polls suggests that he achieved exactly this strategic goal. He was the more “likeable,” the more knowledgeable, the more temperate, etc. Update: though he doesn’t have to say “John is right…” ever again during this campaign.

Writing in the National Review Online, conservative columnist Kathleen Parker calls for Sarah Palin to bow out:

Palin’s recent interviews with Charles Gibson, Sean Hannity, and now Katie Couric have all revealed an attractive, earnest, confident candidate. Who Is Clearly Out Of Her League.

No one hates saying that more than I do. Like so many women, I’ve been pulling for Palin, wishing her the best, hoping she will perform brilliantly. I’ve also noticed that I watch her interviews with the held breath of an anxious parent, my finger poised over the mute button in case it gets too painful. Unfortunately, it often does. My cringe reflex is exhausted.

[…] When Couric pointed to polls showing that the financial crisis had boosted Obama’s numbers, Palin blustered wordily: “I’m not looking at poll numbers. What I think Americans at the end of the day are going to be able to go back and look at track records and see who’s more apt to be talking about solutions and wishing for and hoping for solutions for some opportunity to change, and who’s actually done it?”

If BS were currency, Palin could bail out Wall Street herself.

And Parker’s conclusion?

Only Palin can save McCain, her party, and the country she loves. She can bow out for personal reasons, perhaps because she wants to spend more time with her newborn. No one would criticize a mother who puts her family first.

Do it for your country.

Ouch.

JP Morgan Chase to acquire struggling Washington Mutual. I suppose that means I shouldn’t continue to expect 3.75 percent interest on my savings account, should I?

UPDATE:
Okay, now the NY Times is saying that WaMu has been “seized” by the FDIC, and its retail banking and “other pieces” sold off to JP Morgan Chase.  But…

The Federal Deposit Insurance Corporation issued a statement on Thursday evening promising a seamless transition. “For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks,” said the F.D.I.C. chairman, Sheila C. Bair, adding that for Washington Mutual’s customers, it would be “business as usual come Friday morning.”

I just checked, and I still have access to my account.  Not so sure about that sweet interest rate though.

UPDATE, UPDATE:
Largest.  Bank failure.  Ever.  (We’re number one!)

The Public Disclosure Commission voted to concur with a staff report today, finding the Washington State Republican Party guilty of numerous egregious violations of our state’s campaign finance and public disclosure laws, including at least $150,000 of illegal expenditures on behalf of Dino Rossi in the weeks leading up to the August primary.  Lacking the authority to impose a large enough penalty proportionate to the violations, the PDC has referred the case to Attorney General Rob McKenna for further prosecution.

This is the second time in as many weeks that McKenna has been handed an investigation of close political allies, following the PDC ruling that found the Building Industry Association of Washington guilty of failing to report at least $1.2 million in campaign contributions.  There is no word from McKenna as to when he might take action on either of these cases.  But don’t hold your breath.

As first reported here on HA, the WSRP flagrantly used “exempt” soft money contributions to illegally finance direct advocacy, specifically a pro-Rossi/anti-Gregoire direct mail smear campaign.  And as I wrote at the time, the case against Rossi and the WSRP was pretty cut and dry:

This isn’t rocket science.  It’s Campaign Finance 101.  All the political candidates, consultants, committees and parties know damn well what is or is not allowed.  And yet the WSRP chose to blatantly violate campaign expenditure laws that have been in place for the past 16 years.

[…] Let’s be clear, this is no mistake or accidental oversight; WSRP chair Luke Esser, allegedly a lawyer, deliberately and knowingly violated the law, feebly attempting to disguise these illegal expenditures by mislabeling them as “member communications” (a label that would not make these expenditures exempt, even if true.)  The WSRP could have run the mailing past the PDC ahead of time—campaigns do this all the time—but they knew the answer they would get.  Which of course is why they never asked.

The distinction between “exempt” and “non-exempt” funds is clear.  The former are “exempt” from normal campaign contribution limits, and may be used for party building, organizing and get out the vote efforts, but not for direct advocacy for or against a candidate.  The latter may be used for any purpose, but are subject to strict contribution limits.  Buy using exempt funds for non-exempt purposes the WSRP has intentionally violated the law, using large lump sum contributions from GOP fat cats like Rufus Lumry ($80,000) and Eastside developer Skip Rowley ($30,000), and from powerful special interests like the National Electrical Contractors Association ($50,000) and Walmart ($25,000) to illegally finance Rossi’s campaign.

But, well, I guess Esser just figures that breaking the law, and the inevitable fines, are just part of the cost of running an effective campaign.

No doubt the WSRP fully understands that it faces a substantial penalty for such a flagrant and deliberate PDC violation, but that won’t come until after the election, so no harm done.  No, if there’s a penalty to be paid ahead of this election it will have to come at the hands of the local media, but whether they’ll give this story the scrutiny it deserves, or merely brush it off as another “he said, she said” between two feuding camps, remains to be seen.

Personally, I don’t have much faith in our local media to express the outrage such deliberate flouting of our campaign finance laws rightly deserves, and I’m afraid that McKenna, now with two major cases on his plate, against his two biggest financial backers, won’t substantively move on either case until well after the November election.

And if my fears are proven correct, that means the WSRP and the BIAW will well learn the lesson that crime does indeed pay.  Voters will never know about the extent of these violations because our amen editorialists can’t be bothered to muster up the outrage, and the fines, however large, will simply be paid with more lump sum contributions from the same wealthy Republican benefactors.

What they hope to buy with all their illegal money is the governor’s mansion.  And you can be sure that they’ve already made the calculation that even a hefty post-election fine would be money well spent.

Founded in 1877, the nonpartisan Humane Society has never endorsed anybody for president it its entire 141 year history.  Until now.

I’m proud to announce today that the HSLF board of directors—which is comprised of both Democrats and Republicans—has voted unanimously to endorse Barack Obama for President. The Obama-Biden ticket is the better choice on animal protection, and we urge all voters who care about the humane treatment of animals, no matter what their party affiliation, to vote for them.

And yes, this did have something to do with the endorsement: