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For Immediate Release
April, 27 2009, 12:37pm EDT
Contact:
Naomi Seligman 202.408.5565
CREW Urges Investigation Into FDIC Contract Awarded to CB Richard Ellis
WASHINGTON
Citizens for Responsibility and Ethics in Washington (CREW) urged the Inspector General (IG) of the Federal Deposit Insurance Corporation (FDIC) today to investigate a suspect contract the agency awarded to a company run by the husband of Sen. Dianne Feinstein (D-CA).
The CB Richard Ellis Group (CBRE), chaired by Sen. Feinstein's husband Richard Blum, won the contract with the FDIC last November to sell foreclosed properties inherited from failed banks. The company won the contract in an allegedly competitive bidding process although CBRE is a commercial real estate firm with relatively little experience selling foreclosed properties.
One month earlier, Sen. Feinstein had written a letter in support of the FDIC's desire to expand its loan modification program. After the contract was awarded, she introduced legislation that would use $25 billion in Troubled Asset Relief Program funds to bankroll the FDIC's plan.
The contract with CBRE reportedly contains highly favorable terms including set-up, administrative management and commission fees not typically awarded in comparable contracts. According to the Washington Times, many of the fees either exceed industry norms or would not usually be paid before a sale has gone through.
Based on CBRE's lack of relevant experience, the unusually favorable terms, and the possible intervention of Sen. Feinstein, CREW asked FDIC's IG to investigate whether there was any impropriety in the award process.
Melanie Sloan, executive director of CREW, said today, "In these times of great economic turmoil, we must be able to trust that the government is getting the best value for our taxpayer dollars. The Inspector General should investigate the terms and genesis of this contract and let the American people know if this is a fair deal or not."
Read CREW's letter and exhibits in the Related Documents section on the right.
Citizens for Responsibility and Ethics in Washington (CREW) is a nonprofit 501(c)(3) organization dedicated to promoting ethics and accountability in government and public life by targeting government officials -- regardless of party affiliation -- who sacrifice the common good to special interests. CREW advances its mission using a combination of research, litigation and media outreach.
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Instead of strategically imposing tariffs, Trump has chosen to "give the country the most massive tax increase in its history, possibly exceeding $1 trillion on an annual basis."
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As stocks "nosedived" on Thursday, economists, policymakers, and campaigners around the world continued to warn about the impacts of U.S. President Donald Trump's trade war, which includes a 10% universal tariff for imports and steeper duties—that he claims are "reciprocal"—for dozens of countries, set to take effect over the next week.
"This is how you sabotage the world's economic engine while claiming to supercharge it," wrote Nigel Green, CEO of the international financial consultancy deVere Group. "Trump is blowing up the post-war system that made the U.S. and the world more prosperous, and he's doing it with reckless confidence."
As Bloombergdetailed after the president's "Liberation Day" remarks from the White House Rose Garden:
China's cumulative tariff rate of 54% includes both the 20% duty already charged earlier this year, added to the 34% levy calculated as part of Trump's so-called reciprocal plan, according to people familiar with the matter. The European Union's rate is 20% and Vietnam's is 46%, White House documents showed. Other nations slapped with larger tariffs include Japan with 24%, South Korea with 25%, India with 26%, Cambodia with 49%, and Taiwan with 32%.
In Europe on Thursday, "the regional Stoxx 600 index provisionally ended down around 2.7%," while "the U.K.'s FTSE 100 was down 1.6%, with France's CAC 40 and Germany's DAX posting deeper losses of 3.3% and 3.1%, respectively," according toCNBC.
In the United States, CNBCreported, "the broad market index dropped 4%, putting it on track for its worst day since September 2022. The Dow Jones Industrial Average tumbled 1,200 points, or 3%, while the Nasdaq Composite fell 5%. The slide across equities was broad, with decliners at the New York Stock Exchange outnumbering advancers by 6-to-1."
American exceptionalism.
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— Justin Wolfers ( @justinwolfers.bsky.social) April 3, 2025 at 12:14 PM
However, as Economic Policy Institute (EPI) chief economist Josh Bivens noted last week, "because most households depend overwhelmingly on wages from work as their primary source of income and not returns from wealth-holding, the stock market tells us nothing about these households' economic situations."
And Trump's tariffs are expected to hit U.S. households hard, as the cost of his taxes on imports are passed on to consumers.
"Tariffs can be a legitimate and useful tool in industrial policy for well-defined strategic goals, but broad-based tariffs that significantly raise the average effective tariff rate in the United States are unwise," Bivens and EPI senior economist Adam Hersh stressed in a Thursday statement—which also called out Trump for mischaracterizing one of the think tank's 2022 analyses.
"Further, the second Trump administration's rationale, parameters, and timeline for tariffs have been ever-shifting," Bivens and Hersh continued. "As the original post cited by the administration argues, tariffs should not be a goal unto themselves, but a strategic tool to pair with other efforts to restore American competitiveness in narrowly targeted industrial sectors."
Instead of strategically imposing tariffs, Trump has chosen to "give the country the most massive tax increase in its history, possibly exceeding $1 trillion on an annual basis, which comes to $7,000 per household," warned Center for Economic and Policy Research co-founder and senior economist Dean Baker. "And this tax hike will primarily hit moderate and middle-income families. Trump's taxes go easy on the rich, who spend a smaller share of their income on imported goods."
Baker—like various other economists and journalists—also took aim at Trump's claims that the tariffs are reciprocal, explaining:
Trump's team calculated our trade deficit with each country and divided it by their exports to the United States. Trump decided that this figure was equal to that country's tariff on goods imported from the U.S.
Trump's method of calculating tariffs is comparable to the doctor who assesses your proper weight by dividing your height by your birthday. Any doctor who did this is clearly batshit crazy, and unfortunately so is our president. And apparently none of his economic advisers has the courage and integrity to set him straight or to resign.
However, outside Trump's administration, the intense criticism continued to mount, including from groups focused on combating the fossil fuel-driven climate emergency, which also endangers the global economy.
Andreas Sieber, associate director of policy and Campaigns at 350.org, said Thursday that "Trump's tariffs won't slow the global energy transition—they'll only hurt ordinary people, particularly Americans."
"Despite his claims he 'gets' economic policy, his record tells a different story: Tariffs are tanking U.S. stocks and fueling inflation," Sieber added. "The transition to renewables is unstoppable, with or without him. His latest move does little to impact the booming clean energy market but will isolate the U.S. and drive up costs for American consumers."
Allie Rosenbluth, U.S. campaign manager at Oil Change International, similarly emphasized that "Trump's tariffs will hurt working families first and foremost, raising costs for essentials we depend on and threatening to plunge the U.S. economy into a recession. Though Trump pretends to care about the cost of living for ordinary people, his real loyalties lie with his fossil fuel industry donors."
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The impact of Trump's new levies won't be limited to working-class people in the United States. Nick Dearden, director of U.K.-based Global Justice Now, pointed out that "Trump has set light to the global economy and unleashed a world of pain, not least on a group of developing countries that will suffer tremendous impoverishment as a result of his punitive tariffs."
"All those affected must come together and stand up to this bully by building a very different international economy that promotes the interests of ordinary people rather than the oligarchs standing behind Trump," he argued. "For all its scraping and crawling, the U.K. got no special treatment here, and the government should learn this lesson fast: They need to stop giving away our rights and protections in a futile effort to appease Donald Trump."
Leaders in the United States are also encouraging resistance to Trump. U.S. Sen. Chris Murphy (D-Conn.) said Wednesday that "this week you will read many confused economists and political pundits who won't understand how the tariffs make economic sense. That's because they don't. They aren't designed as economic policy. The tariffs are simply a new, super dangerous political tool."
Murphy made the case that "the tariffs are DESIGNED to create economic hardship. Why? So that Trump has a straight face rationale for releasing them, business by business or industry by industry. As he adjusts or grants relief, it's a win-win: the economy improves and dissent disappears."
"But as long as we see this clearly, we can stop him. Public mobilization is working. Today, a few Republicans joined Democrats to vote against one set of tariffs," he added, referring to a
resolution that would undo levies on Canadian imports. "The people still have the power."
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In what could be a U.S. first, President Donald Trump last week pardoned a criminal corporation, a move that largely flew under the proverbial radar amid his pardon spree for white-collar criminals including at least one of his supporters.
On March 28, Trump pardoned HDR Global Trading, the owner and operator of the cryptocurrency exchange BitMEX; company co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed; and former business development chief Gregory Dwyer.
The company and the four men hads each pleaded guilty to one count of violating the Bank Secrecy Act "by willfully failing to establish, implement, and maintain an adequate" anti-money laundering program, as required by law. In January, the U.S. Department of Justice sentenced BitMEX to a fine of $100 million, while the executives were sentenced to criminal probation and ordered to pay civil fines.
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Trump's corporate pardon sends a clear message: “If you’re a corporation in a favored industry, you can break the law. You can get caught. You can be prosecuted and sentenced with a $100 million fine, and it doesn’t matter”
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— Rick Claypool (@rickclaypool.bsky.social) April 2, 2025 at 7:18 AM
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Kimberly Wehle, a professor at the University of Baltimore School of Law and preeminent pardons expert, wrote for The Hill on Tuesday that the BitMEX pardons send the message that "companies involved in financial crimes don't have to worry about accountability under this president, as least when it comes to crypto, for reasons that he has no incentive to ever make known."
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"The biggest losers in this deal are, once again, the American people."
Brandon Garrett, a Duke University law professor specializing in corporate crime and punishment, told The Intercept that the BitMEX pardons are part of a wider pattern of impunity under Trump, who "now seems to be systematically pardoning corporate malefactors left and right without respect, really, to any real serious consideration about the merits of the cases [or] the larger policy implications of issuing these pardons."
As the consumer advocacy watchdog Public Citizen recently noted, "The Trump administration has dropped, withdrawn, or halted investigations and enforcement actions against over 100 corporations in its first two months in office."
Beneficiaries include companies owned or led by Trump donors or allies, including private prison giant GEO Group; Zelle network banks JPMorgan and Bank of America; crypto firms Coinbase, Gemini, Kraken, OpenSea, Ripple, and Robinhood; and Elon Musk's SpaceX.
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Observers are also condemning Republicans' plans to skirt the Senate parliamentarian and use a controversial gimmick to make an extension of provisions from Trump's 2017 Tax Cuts and Jobs Act look "free"—even the cost of extending those cuts would be nearly $4 trillion over 10 years, and the Senate proposal includes a total of $5.3 trillion in tax cuts.
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Lisa Gilbert, co-president of the watchdog group Public Citizen, referenced Trump's billionaire adviser Elon Musk when declaring that "Republicans have chosen to prioritize the Trump-Musk agenda of picking the pockets of everyday people to shower billionaires with tax giveaways."
The Senate budget blueprint would increase the country's debt limit by $5 trillion and permanently extend tax cuts passed through Trump's 2017 Tax Cuts and Jobs Act, according to NPR.
Extending those tax cuts would primarily benefit the wealthy. According to a 2024 analysis from the Tax Policy Center, households making about $450,000 or more a year would receive nearly half of the benefits of extending key provisions of Trump's 2017 tax cuts.
According to a February report from ATF, the wealthiest Republicans on tax writing panels could save themselves millions through extending these cuts, particularly by keeping in place a higher estate tax exemption.
The Senate budget blueprint includes the $4.5 trillion tax plan passed by the House of Representatives in February, according to NPR. The House plan is crafted so the only way to achieve the requirements of the budget resolution is to enact steep cuts to Medicaid. The budget resolution also makes cuts to the Supplemental Nutrition Assistance Program (SNAP) all but certain.
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By asserting that Sen. Lindsey Graham (R-S.C.), chairman of the Senate Budget Committee, can decide the cost of legislation Republicans are angling not to get the parliamentarian's sign-off on their claim that extending the tax cuts will be free, per the Times.
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A trio of experts writing for the Center for American Progress wrote that the approach is unprecedented in the past five decades since the Congressional Budget Office was formed and lawmakers acted within the current budget framework.
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