Federal Bar Association Capitol Hill Chapter CAPITOL ASSETS Summer, 2009 INSIDE THIS ISSUE: J USTICE SOUTER SHARES A President’s Letter 2 S TORIED CAREER Greenberger Recap With warmth and humor Justice O’Connor has a very 3 that belied so much of the welcoming voice, teased Justice Letter to New Members 4 popular image of him as re- Souter, “when she is not chas- served and aloof, Justice David tising you about something.” of Congress (reprinted) Souter charmed and engaged He also told his listeners how DeWitt Recap 5 the guests at the chapter’s an- Justice Blackmun unexpectedly nual Supreme Court luncheon came to his chambers a couple Notable Notes 5 on May 12th. Saying he had of months into Justice Souter’s no speech but instead “just first term. “We didn’t have some stories” to tell, Justice time to visit each other, the Facebook Page 6 Paul Vamvas and Justice Souter Souter led his audience behind workload didn’t allow it.” But Ethics Symposium 6 the formal façade of the Court Justice Blackmun put his hand ference (between Felix Frank- and showed a bit of the humor on Justice Souter’s shoulder furter and William O. Doug- Donaldson Recap 7 and heart of both the institu- and said, “This is your first las). “That’s once in the fifty tion and its people. term. I remember my first years between Bill Brennan’s Upcoming Events 8 He told of being “tracked term. I know what you are time on the court and mine. down” by Justice O’Connor no going through. I just wanted That’s not bad.” more than 30 minutes after his to come in here and put my Perhaps the most moving confirmation by the Senate hand on your shoulder.” And story Justice Souter told was became official so she could then he left. That was one of about the day that Justice welcome him to the court. many such gestures and kind- Thurgood Marshall announced nesses during his first term, to his colleagues, at the end of said Justice Souter. their last conference of the Story followed story, with term, that he was retiring. some he had been told and Many of his colleagues urged some in which he took part. him to stay on the Court. But All of them illustrated how, for Marshall said, “The machine is all the disagreement and pas- running down.” No one knew sion that might appear in the what to say. But Justice Souter decisions and dissents the said he realized that Justice Court published, the relations Marshall had waited to retire between the justices were al- until he was too old to pursue most never rancorous. Justice other interests or start another Souter said he was told by chapter in his life. “And I Justice William Brennan of promised myself I wouldn’t let only one uncivil exchange that that happen. And so far I’ve Photos by Regina Brzozowski took place in the justice’s con- stuck to it.” L AWYERS HAVE HEART 10K RACE & FUN WALK The Capitol Hill Chapter There is a long history of http://www.runlhh.org/race/ has registered Team FBA as a FBA involvement with this index.htm. team in the upcoming Lawyers race, and all chapter members, Contact President-Elect T.J. Have Heart race. The race and as well as all FBA mem- Halstead at (202) 707-7981 or fun walk will be on Saturday, bers, friends, and family are [email protected] for June 13, 2009, in Georgetown encouraged to partici- more information about this (Washington Harbor). pate. More info on the race great community service event. can be found at: Page 2 Summer, 2009 M ESSAGE FROM CHAPTER PRESIDENT P AUL VAMVAS The last several months ently older and younger federal government found have been busy for the people saw that struggle the extremely qualified Capitol Hill Chapter, as and how the civil rights panel both timely and fas- you will see from the arti- movement might be cinating. Special thanks cles and features in this trapped in the past and in again to Peg Perl and newsletter. The chapter need of updating its mes- Chuck Arberg for their was lucky to have three sage. Finally, in April, outstanding work in mak- terrific luncheon speakers ABC News correspondent ing the event a success. talking about some of the Sam Donaldson talked Of course, thanks as most interesting and im- about his near half century always to executive coun- portant issues of the days. spent covering Washing- cil members William In February Professor Mi- ton, D.C., and national Souter and Cynthia Rapp, chael Greenberger of the politics, how both have our most prestigious an- Please join us in University of Maryland changed, and where he nual event, our lunch at Law School, whose career sees politics and journal- the Supreme Court, was welcoming our newest in the federal government ism going. held on May 12, 2009. put him at the heart of Capitol Hill Chapter But the lunches, as in- With Justice David major financial regulation teresting as they were, Souter’s recent announce- members: issues, was our speaker. A were only part of the story ment of his retirement, regular commentator on of what the chapter is do- our event was especially these issues, as well as Miguel Acosta ing. Reaching out to new poignant as he related per- someone often called on and current members who sonal stories about his Marianne Cufone to testify before Congress regularly use social net- years on the Court and Joseph Giblin on such matters, Green- working sites in their jobs what his future holds. berger explained, in terms and personal lives, the The rest of the year Thomas Louthan that even the uninitiated chapter set up its own also promises interesting could understand, the Denise Neary Facebook page. Jeff speakers and events. On shocking story of how the Melissa Reisman McDermott, who designed June 13th, our chapter will national economy finds and maintains the page for join with other local FBA Panthaky Shiraz itself in its current mess. us, has a piece in the chapters to participate in Then, in March, long time Sarah Smith newsletter about how he the Lawyers Have Heart journalist, columnist, and Kimberly Whitaker did it and what it does. 10K race and fun walk. civil rights activist Karen We also sent a letter, re- Our June luncheon DeWitt talked about the printed on page 4 of the speaker, author David O. civil rights movement, newsletter, to welcome Stewart, will talk about his past and present. She new members of Congress new book on the impeach- pointed out how differ- to Washington and to en- ment trial of President courage them to be part of Andrew Johnson. Also, our community. watch your e-mail for in- We also revived the formation about a happy chapter’s ethics sympo- hour soon as well as other sium on May 29, 2009, social events. We hope with a morning program at you can be there for these the Library of Congress great events, and please on the new rules dealing encourage your attorney with conflicts of interest, friends to join us and join gifts, and lobbying. Gov- the chapter. Paul Vamvas presenting a token of our appreciation to speaker Karen DeWitt ernment attorneys and —Paul Vamvas Photo by Richard Litsey attorneys dealing with the Capitol Assets Page 3 G REENBERGER EXPLAINS ROOTS OF F INANCIAL CRISIS If the First Rule of underlying problem, he bad loans. But that didn’t Holes is stop digging explained, was the histori- keep them from later di- when you are in one, the cally unfounded but pas- viding the loans at the bot- second rule must be to sionately held belief that tom of this group and giv- figure out how you got housing prices would ing the best of those a tri- there so you don’t fall in never go down. This be- ple-A rating. Synthetic again. On February 24th, lief led banks and mort- CDOs and credit default Professor Michael Green- gage companies to loan swaps, insurance policies berger of the University of money to people who had that weren’t allowed to be Maryland School of Law almost no probability of called insurance policies explained to members and repaying it, then bundle (lest the insurance regula- guests of the Capitol Hill these loans together and tors look too closely at Chapter how the world securitize them (that is, them), soon followed found itself in its financial sell pieces of them to in- along with a lot of other hole. vestors). That, in itself, financial instruments that In an amazingly clear Greenberger told his audi- basically traded on the tour through the bizarre ence, was not the prob- same irrational belief in Greenberger’s audience just world of subprime mort- lem. The problem was the the never deflating hous- sat there shaking their gages, collateralized debt banks and mortgage com- ing market. obligations, credit default panies got the rating agen- Greenberger’s audience heads in silence, incredulous swaps, and all the rest of cies that the financial sys- just sat there shaking their at the financial house of tem had relied on for so the financial instruments heads in silence, incredu- cards that was allowed to that lie at the bottom of many years to rate the best lous at the financial house this current economic cri- of these bad loans as tri- be built and then inevitably ple-A, or high quality, of cards that was allowed sis, Professor Greenberger collapse when housing helped his listeners under- which they were compared to be built and then inevi- stand what they meant and to the worst of the worst tably collapse when hous- prices began to drop.