Press Release | Iowa CCI Stands by Position on Miller Campaign Contributions

May 5, 2011

Contact:   Chris Neubert or David Goodner

Iowa Citizens for Community Improvement, 605.929.3828 (Chris) 515.991.6357 (David), [email protected]. [email protected]

Des Moines, Iowa – Hugh Espey, Iowa CCI’s Executive Director and the author of an April 29 op-ed titled “Iowa’s Miller should return big banks’ donations” released the following statement Thursday in response to Iowa Attorney General Tom Miller’s May 4 op-ed, “I’m committed to consumers, not big banks”:

On May 4, Iowa Attorney General Tom Miller published an op-ed in the Des Moines Register defending his decision to take hundreds of thousands of dollars in campaign contributions from big-moneyed special interests in 2010 – nearly half of which he received after his October 13 announcement that he would lead a 50-state investigation into big bank foreclosure fraud. In his op-ed, Miller claimed that I presented the public with “false” and “misleading” statements in my own op-ed calling on Miller to return these campaign contributions.

We’ve had a very close working relationship with Miller for more than 20 years, and his service to Iowa is not in question.  But Iowa CCI members’ allegiance is to a set of values and principles, not to any political party, candidate, or elected official.  What makes our organization so unique and very relevant is that our members are willing to hold public officials accountable to these values and principles.

The lede of my April 29 op-ed should have read “out of state” lawyers and lobbyists, not “big bank” lawyers and lobbyists. I’ll give Miller that. What I won’t do is give any ground on the verifiable fact that Miller received $261,445 from out of state lawyers and lobbyists, including at least $153,000 from those who have either a direct or indirect interest in the outcome of Miller’s settlement with the big banks. Big-moneyed special interests, regardless of which side they’re on, should not determine the outcome of this investigation.  Miller should return the money and deliver the strongest possible settlement with the big banks to reset the housing market, stabilize the economy, and bring justice to millions of American homeowners who were defrauded of their property.

If Miller refuses to return these contributions and then delivers anything less than a settlement that includes mandatory principal reductions, big bank fines and penalties exceeding several hundred billion dollars, and criminal prosecutions for big bank CEOs that broke the law, questions about his financial ties to big-moneyed special interests that defend big banks like Goldman Sachs and Bank of America in court from allegations of mortgage fraud will continue.

This investigation is so big, with the potential to affect so many people, that we would not be doing our job if we failed to raise questions and hold Miller accountable.  This is about more than dollars and cents.  This is about the lives of millions of hardworking American families and whether or not they get to stay in the place that they and their children call home.

What we’ve seen in this investigation so far has been a lot of tough talk with very little follow-through. On December 14, a crowd of Iowa CCI members met with Miller and when we directly asked him if his investigation will include criminal prosecutions, Miller responded, “we will put people in jail.” But on March 3, Bank of America, Wells Fargo, Citigroup, and other big banks received Miller’s initial settlement offer, an offer that Iowa CCI members at the time criticized as “not nearly good enough” because it did not mention criminal prosecutions; it gave the big banks too much leeway to decide if, when, and how homeowners will receive loan modifications; and because the proposed settlement amount of $20 billion is too low to truly reset the housing market and stabilize the economy.

A $20 billion settlement is woefully inadequate and insignificant compared to trillions of dollars in underwater mortgages. The rampant mortgage fraud and financial speculation by the big banks that crashed the global economy and led to the largest taxpayer bailout in American history is the crime of the century and one that will continue with impunity if Miller fails to stand up for everyday people and crack down on corporate greed.

My op-ed was based on an April 21 report by the National Institute on Money In State Politics that heavily criticized Miller for accepting $261,445 in campaign contributions from out of state lawyers and lobbyists. Both Rolling Stone and Time magazine have reported on these ties. Even the Dubuque Telegraph Herald, Miller’s hometown newspaper, raised questions last Sunday asking why Miller has backed away from his tough talk about throwing banksters in jail in an editorial titled “Iowa AG owes explanation”.

There’s actually more to this story than what’s been reported so far.  One thing that hasn’t been reported in the press yet is the fact that Bank of America, JP Morgan Chase and Citigroup – three of the big banks being investigated by Miller – gave more than $200,000 to the Democratic Attorneys General Association in 2010. Miller received $50,000 from the association in 2010. This is even more evidence that the big banks are actively trying to undermine the investigation by attempting to buy a favorable outcome.

Another campaign contribution to Miller that has also to date gone unreported in the media is a $10,000 donation on October 19 from Linda Killinger, the wife of Kerry Killinger, a former CEO of Washington Mutual.  Kerry Killinger is currently being sued by the FDIC after the collapse of Washington Mutual, the largest bank failure in history.  Linda is also named in the lawsuit.  Kerry aggressively peddled toxic subprime mortgages during his tenure as CEO. Washington Mutual was later bought out by JP Morgan Chase, one of the big banks under investigation by Miller’s team. Kerry is formerly of Des Moines, Iowa.

This settlement should not hinge on campaign contributions from big-moneyed special interests. Although we appreciate and respect Attorney General Tom Miller’s history of service to the people of Iowa, CCI members don’t think Iowans should have to wonder if the national attorneys general settlement with the big banks is being unduly influenced by big-moneyed campaign contributions. The voices, stories, and needs of everyday people, not big money, should be what determines the final outcome.

That this is even in doubt raises more questions about our country’s electoral system and the need for public financing and campaign contribution limits to reduce and eliminate the corrosive influence of big money in politics.  Attorney General Tom Miller should return his big-moneyed financial donations and deliver the strongest settlement possible – a fair and just settlement that puts people first.

Iowa Citizens for Community Improvement is a group of everyday people who talk, act and get things done on issues that matter most. With thousands of members from all walks of life — urban and rural, black and white, immigrants and lifelong Iowans — CCI has been tackling tough issues and getting things done for more than 35 years.

For more information about Iowa Citizens for Community Improvement, visit www.iowacci.org

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