December 12, 2008 CONGRESSIONAL RECORD — SENATE S10971 TARP SPECIAL INSPECTOR to be able to assure ourselves that delay restoring the Justice Department GENERAL these recommendations are taken seri- and the confidence the American peo- ∑ Mrs. MCCASKILL. Mr. President, ously and are being considered. We ple have in our justice system. We this week, the Senate passed an impor- should know the reason if these rec- must promptly consider and confirm tant piece of legislation sponsored by ommendations are not implemented. Eric H. Holder Jr., and other nominees Senator GRASSLEY and myself, that Finally, Senator SNOWE suggested of the new President. was needed to assure the new Special that we should make sure that the Spe- I was encouraged by the initial reac- Inspector General for the $700 billion fi- cial Inspector General has the re- tion in mid-November when Mr. Hold- nancial rescue program could staff up sources he needs by imposing a time er’s name was reported as the likely quickly and have the ability to do his limit on providing him with the money nominee, and when he was designated job. S. 3731’s other cosponsors—Sen- allocated to his office in the original by the President-elect on December 1. ators COLLINS, LIEBERMAN, SNOWE, bill. The relationship between an agen- Democrats and Republicans alike ac- DODD, BUNNING, SCHUMER, LEVIN, CAR- cy and an office charged with over- knowledged his qualifications and PER, COLEMAN and CANTWELL—were seeing them is a delicate one. Tensions praised the choice. I appreciate the also key to securing unanimous sup- sometimes arise due to the fact that willingness of Larry Thompson, who port for this bill in the Senate. Finally, IGs must rely on the agency they audit was confirmed early in 2001 as Presi- I want to give special thanks to Sen- and investigate for their resources. dent Bush’s first Deputy Attorney Gen- ators BAUCUS and SHELBY for working While I have no reason to think that eral; Louis Freeh, the former Director closely with us to craft a strong bipar- the Treasury Department would deny of the FBI; and Fran Townsend, Presi- tisan bill. Mr. Barofsky the funds needed to per- dent Bush’s former Homeland Security This legislation, the Special Inspec- form his duties, this provision would advisor, to speak out in support of Mr. tor General for the Troubled Asset Re- eliminate that tension. Holder’s designation. lief Program, SIGTARP, would specifi- Unfortunately, we were not able to As early as November 19, the ranking cally grant the Special IG created secure passage of this legislation in the Republican member of the Judiciary under TARP earlier this fall to have House before we adjourned this week. I Committee said that he would not hold full oversight over all activities under will do everything I can to bring it up the matter, but ‘‘would be prepared the TARP program. The bill would back first thing in the 111th Congress to move ahead very promptly with have also granted the IG the temporary to secure its quick passage in both hearings.’’ I appreciated and shared his hiring authority needed to quickly hire chambers and signed into law to assure desire to proceed ‘‘as fast as we can the dozens of auditors required to con- we have strong oversight on the $700 move’’ and his commitment that he duct this critical oversight. billion financial rescue program.∑ ‘‘wouldn’t hold it up.’’ He said that he As the original Inspector General ∑ Mr. LEAHY. Mr. President, the elec- hoped Mr. Holder would ‘‘re-profes- language is written under current law, tion of Barack Obama and JOE BIDEN, sionalize’’ the Justice Department. I Mr. Barofsky, who was confirmed as and the President-elect’s selection of hope so, too. the Special Inspector General this Eric Holder to be Attorney General of I agree with Senator SPECTER that week, must hire his entire staff using the United States, provide an historic we need to strengthen the Justice De- normal civil service channels. I am a opportunity for the country to move partment. He and I coauthored an arti- big proponent of using the normal hir- past the partisanship of the past dec- cle in the Politico before the election. ing process whenever possible. But that ades, and work together to solve the In a sentence Senator SPECTER quoted process is time consuming and can Nation’s problems, protect against se- recently on the Senate floor, we wrote: take weeks, sometimes months, to hire rious threats, and meet some of the ‘‘The Attorney General must be some- one person. Meanwhile, this money is greatest challenges of our time. We all one who deeply appreciates and re- flying out the door. TARP has given know these men. They have long and spects the work and commitment of out nearly all of the first $350 billion, distinguished records of service and ac- the thousands of men and women who and they have already told us they complishments. They can make a real work in the branches and divisions of want the second half soon. Yet, Mr. difference if we join with them, not as the Justice Department, day in and Barofsky has no staff, and he won’t Democrats or Republicans, but as day out, without regard to politics or have staff for some time. We need to Americans. ideology, doing their best to enforce fix this—right now. The need for new leadership at the the law and promote justice.’’ I have Our bill would also make clear that Department of Justice is as critical every confidence that Eric Holder is the Special Inspector General has over- today as it has ever been. The Judici- such a person, and I said so in this sight authority over the entire relief ary Committee, both Democrats and chamber on November 20. Indeed, in his program. As written right now, Republicans, spent a good deal of time brief remarks on the morning he was SIGTARP has oversight authority over and effort during this Congress uncov- designated, Mr. Holder expressed just only two sections of the relief program. ering scandals at the Department. such appreciation. Why would we want to limit the In- Former Attorney General Gonzales, I know that the professionals at the spector General to only certain sec- Karl Rove, Mr. Rove’s White House Department of Justice reacted with de- tions of this program? Our legislation deputies, and virtually the entire lead- light when he was named because they would make clear that SIGTARP has ership at the Department resigned in know him well. They know him from oversight duties over all of TARP. This the wake of congressional investiga- his 12 years at the Public Integrity would include sections related specifi- tion. Since then, the Inspector General Section, from his time as the U.S. At- cally to assistance to homeowners and at the Department has confirmed many torney for the District of Columbia, promulgation of conflict of interest of our findings and fears, and there are from his tenure on the bench, and from rules by the Secretary of the Treasury. still more reports to come. An ongoing his years as the Deputy Attorney Gen- Senator SNOWE added some provi- criminal investigation is being con- eral, the second-highest ranking offi- sions to assure that the IG would pro- ducted by a specially appointed pros- cial of the Department. His prompt vide Congress and the public a thor- ecutor. The crisis at the Department of confirmation will do a great deal to re- ough analysis of TARP’s spending, as Justice is not resolved, but ongoing. store morale throughout the Justice well as a requirement for Treasury offi- I want to continue the work we began Department. cials to report to Congress an expla- last year when I scheduled prompt I have called Mr. Holder a prosecu- nation if they did not implement the hearings and the Senate proceeded to tor’s prosecutor. He participated in a IG’s recommendations. confirm Michael Mukasey, Mark Filip number of prosecutions and appeals in- As a former auditor, nothing is more and Kevin O’Connor to serve as Attor- volving such defendants as the State frustrating than seeing your rec- ney General, Deputy Attorney General Treasurer of Florida, a former Ambas- ommendations completely ignored. I and Associate Attorney General after sador to the Dominican Republic, a would never claim that all audit rec- the Rove-Gonzales resignations, even local judge in Philadelphia, an Assist- ommendations can, or should, be im- though we were on the eve of the elec- ant United States Attorney in New mediately implemented. But we need tion of a new President. We cannot now York City, an FBI agent, a ‘‘capo’’ in

VerDate Aug 31 2005 01:41 Dec 13, 2008 Jkt 079060 PO 00000 Frm 00013 Fmt 4637 Sfmt 0634 E:\CR\FM\A12DE6.022 S12DEPT1 jbell on PROD1PC69 with SENATE S10972 CONGRESSIONAL RECORD — SENATE December 12, 2008 an organized crime family, and a pow- nomination in 30 days. I did not curb everyone and that we are working with erful Democratic chairman of the the rights of Committee members to local and state as well as Federal offi- House Ways and Means Committee. pose questions to then-nominee cials constantly to improve our crimi- After he served for a dozen years as a Mukasey during his confirmation proc- nal justice system. Public confidence prosecutor, President Reagan nomi- ess; I do not intend to do so with Eric and faith in that system has been shak- nated Mr. Holder to be a judge, and he Holder. en during the last several years, and served with distinction on the Superior I want to be as fair to President-elect Mr. Holder can help restore it. Court of the District of Columbia. He Obama and to Mr. Holder as we have We need the new Attorney General to left the bench to become the first Afri- been to others. I have noticed the hear- be a person of integrity and experience, can American U.S. Attorney for the ing for the next Attorney General to who can inspire the thousands of hard- District of Columbia, heading the larg- begin 39 days after he was officially working prosecutors, agents and em- est U.S. Attorney’s office in the coun- designated and 52 days after we all ployees who do their best every day to try. began reviewing his record following enforce the law and promote justice Four years later, Mr. Holder was press reports on November 18. without regard to partisan politics. We nominated to the important post of In my statement to the Senate on need an Attorney General, as Attorney Deputy Attorney General. I worked November 20, I commended Senators General Robert H. Jackson said 68 with Senator HATCH, who was then HATCH, SESSIONS, COBURN, and GRASS- years ago about the Federal pros- Chairman of the Judiciary Committee, LEY for their nonpartisanship when ecutor, ‘‘who serves the law and not to report his nomination favorably to they praised his selection. Senator factional purposes, and who approaches the Senate. I was disturbed that an HATCH spoke of his support for Mr. his task with humility.’’ anonymous Republican hold delayed Holder, his experience and reputation. That is the kind of man Eric Holder consideration of his nomination for Senator SESSIONS, a former prosecutor, is, the kind of prosecutor Eric Holder three weeks, but when the Senate fi- U.S. Attorney, and State Attorney always was and the kind of Attorney nally voted, the vote was unanimous. General who is well aware of the prob- General he would be. The next Attor- All 100 Senators voted to confirm Eric lems at the Justice Department, said ney General will understand our moral H. Holder Jr. to be the Deputy Attor- he was disposed to support him. Sen- and legal obligation to protect the fun- ney General of the United States. He ator COBURN called it ‘‘a good choice.’’ damental rights of all Americans and became the first African-American in In addition, Senator GRASSLEY has ac- to respect the human rights of all peo- the history of the Department to knowledged Mr. Holder’s impeccable ple. Eric Holder will ensure that the achieve that high position. credentials while reserving judgment. Department of Justice is working to Eric Holder has prosecuted high-level But of course since then, Karl Rove uphold the Constitution and the rule of public officials and organized crime, has appeared on the Today Show and law, not working to circumvent them. developed comprehensive programs to signaled that Republicans ought to go I was struck by the contrast between combat domestic violence, child abuse, after Mr. Holder. Right-wing talk radio what President Bush and Alberto and violent crime, and revitalized pro- took up the drum beat. Gonzales said at that announcement grams to assist crime victims. He I think the responsibilities of the At- and how President-elect Obama and helped guide the Department’s efforts torney General of the United States Mr. Holder spoke at his. This is part of on the criminal prosecution of corpora- are too important to have that ap- the change we need, the change the tions, health care fraud, computer pointment delayed by partisan bick- American people voted for and hunger crimes, software piracy, and helped de- ering, by some tit-for-tat drawn out for. President-elect Obama said: ‘‘Let velop the community prosecution process. This is a public servant we me be clear. The Attorney General model. He has served at nearly every have known and worked with for more serves the American people. And I have level of the Department of Justice he than 20 years, and the Senate has pre- every expectation that Eric will pro- would lead. viously confirmed him three times to tect our people, uphold the public He is a public servant who will have important positions. His record of pub- trust, and adhere to our Constitution.’’ broad support within the law enforce- lic service, his integrity, his experience The next President understands the ment community. He has already re- and the commitment to the rule of law role of the Attorney General of the ceived the support of the 7,000 member that he will bring to the office of the United States and that it is not as National District Attorneys Associa- Attorney General of the United States counselor to the President. I have no tion, NDAA. It was when I was the vice deserve better. He should not be made doubt that Mr. Holder understands the president of that association and a pawn in some partisan political independence required of the Attorney ARLEN SPECTER was the District Attor- game. General and that his experience and ney in Philadelphia that the ranking I began the week meeting with Mr. lessons he has learned will serve him member and I first met. The NDAA in- Holder. He did not defend the Rich par- and the American people well. dicates that it feels a special relation- don. That is hardly a new matter. It No one should have to remind us how ship with Mr. Holder because he was a was the subject of House hearings and decimated the Department of Justice street crime prosecutor. a Senate Judiciary Committee hearing was during recent years, or how impor- Having a prompt confirmation hear- chaired by Senator SPECTER in 2001, al- tant it is that it be restored. I think it ing for the new Attorney General is in most 8 years ago. That is not a reason was Senator SPECTER who called it dys- keeping with how we have treated all to delay his confirmation hearing. In functional and said that morale was in the men and women nominated to be fact, the confirmation hearing will give disarray. We understand that it is all Attorney General in the 34 years I have those who have doubts and need reas- too important that the Department served in the Senate, in particular at surance the chance to ask Mr. Holder have its senior leadership in place the beginning of a newly-elected Presi- about that matter and hear about it di- without delay. We must act on this dent’s term. That is how the Senate rectly from him. nomination; the Attorney General is acted on President Carter’s appoint- I thought the President-elect had it the top law enforcement officer in the ment of Attorney General Griffin Bell. right when he said recently that Mr. country and a key member of the na- That is how we acted on President Rea- Holder has acknowledged that the Rich tional security team. gan’s appointment of Attorney General pardon was a mistake. President-elect When President Bush nominated Mi- William French Smith. When I chaired Obama agrees. I agree. President-elect chael Mukasey last year, Senator KYL the Judiciary Committee as President Obama said: ‘‘But when you look at the said: ‘‘Since the Carter administration, Bush was preparing to take office, I totality of his experience, there is no attorney general nominees have been began the hearing on his selection for doubt that he is going to be an out- confirmed, on average, in approxi- Attorney General just 25 days after his standing Attorney General.’’ That is mately three weeks, with some being designation. Likewise, last year I re- the essential point. confirmed even more quickly. The Sen- jected the efforts by some on my side Like the President-elect, I want the ate should immediately move to con- of the aisle to delay hearings on Mi- American people to have confidence sider Judge Mukasey’s nomination and chael Mukasey and proceeded on that that laws are being evenly applied to ensure he is confirmed before Congress

VerDate Aug 31 2005 00:11 Dec 13, 2008 Jkt 079060 PO 00000 Frm 00014 Fmt 4637 Sfmt 0634 E:\CR\FM\A12DE6.023 S12DEPT1 jbell on PROD1PC69 with SENATE December 12, 2008 CONGRESSIONAL RECORD — SENATE S10973 recesses for Columbus Day.’’ I held ades of building businesses, he has learned For Magic Hat that philosophy is: ‘‘to be a that hearing within 30 days. We should where he excels—and when he has reached good neighbor in our community,’’ he said. not change the standards now that a his limit. Magic Hat, he said, assists a series of non- ‘‘My skill appears to be starting and grow- Democrat is making the selection. profits including Vermont Cares, Committee ing businesses,’’ including building a brand on Temporary Shelter and The Women’s During my time in the Senate, serv- and a culture for the company, Newman said. Rape Crisis Center. ‘‘That’s the part I get ad- ing during 8 presidential terms, there When businesses hit about $7.5 million in an- dicted to,’’ he said. has been an average of 29 days between nual revenue and reach about 50 employees, ‘‘I make things more complicated’’ by con- announcement of an Attorney General Newman says he has arrived at his ‘‘level of necting events with charities, he said. The designation and the start of hearings, incompetence.’’ Women’s Rape Crisis Center, for example, and 37 days on average from the an- Newman said he reached that modified gets about $20,000 from the annual Mardi nouncement of the nominee to the Peter Principle with Magic Hat about six Gras parade, which Magic Hat created in the years ago. Newman said if he remains at the Committee vote. The Holder hearing mid-1990s. helm after a company has hit that threshold, Not all of Newman’s ventures have been a was set for 39 days after announce- ‘‘the organization starts to fall apart.’’ success. ment, with the hope that he can be ‘‘We started having trouble shipping things But he said he learns lessons—the best les- considered by the Committee within 50 that people had ordered. Communication sons—from the failures. days. That does not seem unreasonable. within staff starts to falter. Planning doesn’t He and a friend created a yacht time-shar- I do appreciate that we and our staffs happen properly,’’ he said. ‘‘As you hit a cer- ing company, Highland International in will be working over the holidays, but tain size, you need a little more discipline. Hanksville, in the late 1970s. Highland Inter- You need a little more management. That’s national never generated any revenue. New- we have been called upon many times where I start not performing well.’’ to do so during the last several tumul- man and his partner burned through $300,000 ‘‘I’m really an opportunity junkie,’’ New- of seed money in about 18 months. Reflecting tuous years. man said. ‘‘I’m very good at seeing opportu- on the business misfire, Newman said he This is not the occasion to convert nities and going for them . . . but at some should have purchased one boat with the our consideration of an executive point you need to stop chasing every possi- funds, instead of trying to leverage it into branch nomination into the kind of bility and focus on a plan.’’ millions. Lesson learned: proceed slowly. That’s where Martin Kelly comes in. Kelly searching scrutiny we rightly provide Another one of Newman’s business mis- served as CEO of Magic Hat and is now CEO takes was Magic Hat’s Ale of the Living for lifetime appointments to the Su- of Magic Hat’s parent company, Independent Dead, a garlic beer. preme Court, which is apparently what Brewers United Inc., which was formed when One of the bottles sits on Newman’s desk. the Republican side is intent upon Magic Hat bought Seattle-based Pyramid The beer, he said, was often returned as doing. Breweries Inc. last spring for $35 million. ‘‘undrinkable.’’ The lesson with the garlic This is no ordinary time. Over the Newman said Kelly has been a crucial part of the operation during the past few years. ‘‘I beer: ‘‘Don’t let me drive recipe creation.’’ last 8 years, political manipulation and The acquisition of Pyramid gives Magic influence from partisan political create chaos and he tries to control it,’’ he said. Hat the potential to place its bottles of brew operatives in the White FIouse have Newman is president of Magic Hat, but pre- on shelves in many more states. Magic Hat is undercut the Department of Justice in fers his informal title, ‘‘conductor of cosmic sold in 18 states now, mostly on the East its mission, severely undermined the symphonies.’’ ‘‘ Coast. Pyramid’s beers are sold in 28 states. morale of its career professionals, and That’s really my title,’’ he said. Newman said they had no choice but to ex- shaken public confidence in our Fed- Newman, who had a hand in the creation of pand Magic Hat because the company ‘‘had already passed through the overhead level eral justice system. During those 8 Gardeners Supply Co., Seventh Generation and Magic Hat, says he has no secret to where small could work.’’ years, we experienced the attacks of starting successful ventures. Newman said the idea for Magic Hat September 11 and have retooled the ‘‘I really don’t. It really started by acci- emerged in 1993 with co-founder Bob John- Justice Department and the FBI to dent,’’ Newman said in an interview in his son. The next year the pair were making work closely with the intelligence office located in a modestly appointed trail- beer on Flynn Avenue in Burlington. After community in our efforts to prevent er, named Sweet Lillian, next to the South three years, Magic Hat moved to a larger op- terrorism. Never has it been more im- Burlington brewery. eration in South Burlington. When Magic ‘‘I was sick and tired of getting fired,’’ he portant to have an experienced hand as Hat left Flynn Avenue, 6,000 barrels were said, recalling his time in Vermont in the being brewed a year. This year, Magic Hat Attorney General. mid-1970s. ‘‘I just figured I better figure out will brew about 130,000 barrels at the South I hope our Republican Members will how to support myself if I wanted to stay in Burlington location, Newman said. A barrel resist the temptation toward partisan- Vermont. I just kind of followed my nose. is 31 gallons. ship and join with us to consider this ‘‘I irritate people. I’m really not a good Not including brew pubs, there are 300 to appointment fairly and promptly.∑ employee. I’m highly insubordinate,’’ he 400 microbreweries in the U.S. fighting for a said, explaining that starting a business was f 5 percent share of the beer market, Newman a better option than working for someone said. ALAN NEWMAN: CONDUCTOR OF else. ‘‘It’s been a constant theme in my life ‘‘In order to be a survivor, we think you COSMIC SYMPHONIES and career.’’ Newman insists he is in an un- have to get bigger. You can’t stay small,’’ he likely executive. ∑ Mr. LEAHY. Mr. President, the Bur- said. ‘‘Honestly,’’ he said, wearing bright-yellow Perhaps, recalling the lessons learned from lington Free Press recently published a glasses and a tie-dye shirt. ‘‘There is nothing his failed yacht time-share company decades profile of Alan Newman, a habitual en- in my background. I never had any interest ago, when he learned to ‘‘start small and trepreneur who has be the genius and in business. I never had any interest in start- grow,’’ Newman said Magic Hat’s expansion force behind a number of companies es- ing businesses. ‘‘will be slow and methodical.’’∑ tablished in and around Burlington, ‘‘I’ve never taken a business course in my life,’’ he said, downplaying the importance of f VT. Anyone who has met Alan is im- an MBA. ‘‘I’m not an education-driven guy. I HONORING LAWRENCE MCHUGH mediately embraced by his creative believe in experience.’’ exuberance. That creativity combined Newman, 62, was born in Brooklyn and ∑ Mr. DODD. Mr. President, in these with his unique vision and style create grew up on Long Island. He attended Long Is- times of financial uncertainty, today I a special brew that has resulted in an land University with a major in psychology would like to take the time to com- incredible run of establishing success- and minors in sociology and English. ‘‘I have mend Mr. Lawrence McHugh of my ful companies. always been interested in culture. I grew up State, and to recognize his 25 years of in the ’60s.’’ I wish to recognize Alan for his ac- Newman said his strengths are creating leadership at the Middlesex County complishments and I ask that a copy of culture, branding and a vision for the compa- Chamber of Commerce. the entire Burlington Free Press arti- nies. In Larry’s quarter century as the cle be printed in the RECORD. ‘‘The business, to me, is secondary. I’m president of the organization, member- [Burlington Free Press, Dec. 8, 2008] more interested in painting pictures,’’ he ship has grown from 282 to a total of said. A crucial part of forming a company’s ALAN NEWMAN OPENS UP 2,400 members who employ over 50,000 ‘‘painting’’ is culture and philosophy. ‘‘It’s individuals in central Connecticut. (By Dan McLean) never been about making money.’’ SOUTH BURLINGTON.—Alan Newman, co- ‘‘It’s about trying to create a picture, try- The Chamber itself now employs 22 founder and president of Magic Hat Brewing ing to create a culture and trying to marry people and increased its annual budget Co., has helped create about a half-dozen them. This is kind of what I do know,’’ he from $109,000 in 1983 to over $2 million Vermont-based companies. During his dec- said. in 2007.

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