Your morning jolt: Senate banking chairman says he won’t step down
A cross-ideological alliance of tea partyists, good government-types and traditional Republicans in pursuit of ethics reform in the state Capitol will unveil its demands this morning.
Bob Irvin, the former state GOP legislator and past chairman of Common Cause Georgia will have the mike. Other groups include the Georgia chapter of Tea Party Patriots, Georgia Watch, and Ray Boyd, the former candidate for governor.
Jack Murphy, R-Cumming, chairman of the Senate Banking Committee. Jason Getz,jgetz@ajc.com
Timing is everything in politics. Look for a federal lawsuit alleging that Jack Murphy, chairman of the state Senate banking committee, to be a major topic at the 11 a.m. presser.
Murphy told the AJC on Wednesday that he has no plans to resign his spot as a chief advocate for banking legislation in the Capitol. He issued this statement, which we reproduce in its entirety:
“First, I must point out that I am limited in what I can say regarding my involvement with Integrity Bank and the FDIC.
“Although I have not yet been served with the lawsuit, I have been advised by an attorney that a lawsuit does exist and I should limit my comments for the standard legal reasons.
“That said: it is important to note that I was one member of a larger board whose members were named in this civil lawsuit.
“I have served on Georgia’s House and Senate Banking and Financial Institutions Committees for eight years. I know Georgia banking laws and I know that I not only followed the letter of the law but the spirit of the law as well.
“This is a civil lawsuit. Portions of this FDIC lawsuit ignore specific aspects of the corporate status of several of the bank’s borrows, to the point where the facts have been twisted.
“What has been printed in the media regarding this lawsuit represents only one side of a complex business arrangement that evolved and grew successfully over the better part of seven years. The board members and I will file answers to this civil suit. As this case proceeds through the court, a clear understanding of the Integrity Bank Board of Directors’ protocol will come to light.
“I also believe it is important to point out that all of the board members lost considerable sums of money for their efforts with Integrity Bank – just as many, many people involved with banks across the state have.
“Again, because this is an ongoing lawsuit, I cannot comment further and I ask the media to respect that. This will be my last statement on this matter until the board’s attorneys recommend otherwise or the lawsuit is dismissed. Any further comment would be unfair to the other board members.”
This morning, the ruling body of the state Senate, the Committee on Assignments, issued the following statement:
“The banking industry has been troubled worldwide, and valuable lessons have been learned from these unfortunate experiences. It is important to remember, this is a civil lawsuit over business practices. Senator Murphy has denied the allegations. It would be improper for anyone to rush to judgment based on mere allegations and without a determination of fact.”
It is unclear whether this spirit of mercy is intended to extend to homeowners behind on their payments.
***
Up in Washington, the Republican-led House voted to repeal last year’s health care reform efforts by Congress. Democrat John Barrow of Savannah was one of the suprises.
Last year, he voted against the measure. On Wednesday, Barrow voted against its repeal. From the Savannah Morning News:
The law doesn’t solve “the most pressing health care issues this country faces,” he said after the vote, but he also insisted that repeal’s not the answer.
“We need to keep the parts that prohibit folks from getting denied coverage based on preexisting conditions, and extend health coverage to kids just out of college,” he said.
“There are a lot of good things in the bill,” he said Saturday at a meeting with constituents. “I don’t believe in voting against the parts that are good. … We need to amend it, not end it.”
***
In Atlanta, hours before the Republican action, Gov. Nathan Deal stood before the Georgia Healthcare Association and warned that the health care overhaul’s Medicaid mandates could cost Georgia $2.5 billion in state funds over the next decade.
On the other hand, a writer for the Democratic-oriented blog, Georgia Politico, makes this point about the new governor’s recent budget proposal:
Deal, a staunch opponent of Obamacare, will use the Pre-Existing Condition Insurance Plan to help balance his budget. He plans on moving hemophilia patients onto the federal government’s health care plan…, saving around $1 million throughout the budget.
For someone who is so opposed to “government run health care,” he is quick to utilize it when it is convenient for him.
***
Republican presidential presumptive Newt Gingrich will make himself available for commentary on the health care issue at his Atlanta offices at 3 p.m. today.
***
Gov. Nathan Deal has scheduled something of a do-over today. Last week, during his second day on the job, the governor invited reporters to witness his meeting with those leading the state’s snow-recovery efforts.
Participants were Vance Smith, commissioner of the Department of Transportation, Col. Bill Hitchens of the Georgia State Patrol, Gen. Terry Nesbitt, commander of the National Guard; and Charley English, director of the Georgia Emergency Management Agency.
But the governor prohibited the reporters attending from asking any questions. In the midst of a massive weather shutdown, this struck many of the journalists as odd. They ignored the ban, the governor declined to answer shouted questions, and the whole thing came off badly.
Journalists have been invited to speak to Deal and the same five major disaster players at 2:30 p.m. today. Questions will be answered.
***
How badly have state agencies been hit by the economic downturn? The Georgia Supreme Court has been reduced to begging for pencils, according to testimony at this week’s budget hearings. From Walter Jones and the Morris News Service:
Chief Justice Carol Hunstein explained how the Supreme Court rounds out its staff with unpaid law students and returned a needed copying machine.
“We also take every precaution possible to minimize waste, from recycling old paper to recycling bindings that come in on pleadings and to soliciting pens and pencil donations from Westlaw and Lexis,” Hunstein said.
***
My AJC colleague Steve Visser captured this bit of weirdness involving a former Libertarian candidate for president from Cobb County:
Ed Marger is leading a team of metro Atlanta lawyers to Haiti this weekend to meet with Jean-Claude “Baby Doc” Duvalier, the former president accused of looting the national treasury.
Marger, whose practice is in Jasper, said he got to know Duvalier when he became an acquaintance of Francois “Papa Doc” Duvalier, the younger Duvalier’s infamous father, who ruled the poverty-stricken country from his election as president in 1957 to his death in 1971….
The legal team includes former Georgia congressman Bob Barr, who is associated with Marger’s law firm, and Mike Puglise, a Gwinnett County lawyer who has worked with Marger before on high-profile cases.
- By Jim Galloway, Political Insider
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40 comments Add your comment
Just Wait
January 20th, 2011
9:34 am
If Jack Murphy had any integrity, he would resign his Chairmanship. But his refusal answers that question.
....
January 20th, 2011
9:36 am
We should he step down? As long as there is an “R” behind his name he can do no wrong in this state
There's Plenty More Where He Came from
January 20th, 2011
9:37 am
Don’t forget Casey Cagil and his empire, or the Tifton bank that lent Purdue his mother lode. And don’t forget Gov. Deal and his 3 or 4 bank loans, none of which are good. The Leader of the Board of Regents was run throught the courts to explain two of his bank loans. Someone needs to check that banker out. Georgia leads the USA with busted banks. I hope Chair Baird sues everyone of them.
Aquagirl
January 20th, 2011
9:43 am
“It is unclear whether this spirit of mercy is intended to extend to homeowners behind on their payments.”
Jim busts the sarcasm meter again, lol.
SpaceyG on Twitter
January 20th, 2011
9:46 am
It is inexcusable that Deal has twice now NOT allowed press into critical meetings/situations. What does he think this is, some Latin American potentate? And in times of crisis? To not allow press to question those state government clowns? As if they knew what they were doing anyway. They clearly did not. Hit them HARD today at 2:30pm. They’ve got some serious explaining to do. And as for not allowing press in yesterday when Deal met with Atlanta legislators over APS’ new probationary status, that’s just because they know Sen. Fort never met a fight he didn’t want to start! Now if he could just finish one. But that’ll never happen.
light on policy
January 20th, 2011
9:56 am
Rep.Jack Murphy
How this azzhat still the Chairman of the Banking Committee and facing indictment because of his involvement in a failed bank? This is clearly the fox guarding the hen house.
I’m interested to see if any meaningful reforms will arise that will stem the tide of failed banks in our state. I doubt it though if the very people that are breaking the regulations are writing them
tom mitchell
January 20th, 2011
10:28 am
Georgia is the new Mississippi. But I suppose that’s what the voters wanted.
Bobby
January 20th, 2011
10:31 am
Most bankers, especially Republicans who benefitted from the Bush Wall Street bailout, feel above the law. Only the little people should have to be honest in their dealings with bankers. We get what we voted for people.
Meiotic Drive
January 20th, 2011
11:01 am
What would Murphy have to do to actually step down from his position? Will he step down if he loses the case?
RetiredSoldier
January 20th, 2011
11:13 am
It should be headlines that Barrow voted not to repeal Obamacare after he voted against it last year. It just goes to show there are almost zero conservative democrats in Congress. Nine of the 12 democrats left in the House after the 2010 election that voted against Obamacare in 2010 this voted to retain it yesterday. Unreal! How stupid do these self serving politicans think we are?
In the long run it doesn’t matter. Barrow will find himself in a vastly different district in 2012 and he’ll join the millions of other Americans in the unemployment line. It’s time to start job hunting Mr. Barrow.
Alfred Berry, Jr.
January 20th, 2011
11:14 am
This is right out of the Republican Playbook!! We are letting the “Fox” guard the hen house. With the state of Georgia being one of the leading states with bank closures/failures shouldn’t we appoint someone with some integrity that will fix the problem and not be the problem. This is a JOKE!!!!!!!!!!!!!!!!!
GUILTY PLEA
January 20th, 2011
11:28 am
http://www.bloomberg.com/news/2010-07-06/ex-integrity-bank-executives-plead-guilty-in-connection-with-loan-fraud.html
Laurie
January 20th, 2011
11:35 am
And politicians wonder why voters don’t trust them… I don’t think the FDIC goes around arbitrarily filing lawsuits, so there must be some merit to the case. Jack Murphy needs to step aside so someone competent can take his place.
GaBlue
January 20th, 2011
11:46 am
Laurie,
Actually, the voters in Georgia DO trust their crooked politicians! As long as they run with an (R) by their names and claim to be “Christians,” it doesn’t matter what manner of dishonest, get-rich-quick, pocket-lining scams they commit. The important thing is that they don’t have a (D) by their name, not whether they actually do the job with which they are entrusted, or conduct themselves with integrity.
yuzeyurbrain
January 20th, 2011
11:56 am
Murphy looks like a nice respectable banker. But it seems like all of these stockbroker-banker types do…and more so when they get sued or arrested. A nice suit of clothes and conservative haircut should not make one immune from the consequences of their actions. Yet Republicans seem to have the highest empathy for these guys and their personal financial malfeasance whether they be a State Senate banking committee chairman or a Governor. Here Murphy was on the board of a bank which primarily served as a piggybank for real estate speculators. That alone takes him out of the common cop-out of “I was a victim, too!” He was close to the action on the state level of what caused our speculative real estate bubble to burst and perhaps he deserves to pay for his misconduct, if any. Do Republican legislators have empathy because they were too close to the fire, too? Certainly, Murphy should at least step down from his committee post while his legal problems sort themselves out.
yuzeyurbrain
January 20th, 2011
12:11 pm
Health care hypocrisy—-I have no problem with Deal’s willingness to have Ga. get Federal help from the Healthcare Reform Bill although I regret he is being such a hypocrit about it. I would respect him and other conservative legislators more if they just said: “Hey, Ga. is a poor state anyway and it is even more cash strapped this year so we need to get every Federal dollar we can.” We don’t hesitate to do that to get military bases and farm subsidies. At least, here we would be getting health insurance coverage for over 1 million Georgians. Not to mention the help hospitals would get for their rapidly deteriorating financial situation caused by rising unpaid medical bills. For example, most people don’t know that Emory put its plans for a $1 billion new hospital on hold after the recession hit. And other hospitals are tottering near the financial brink. What reality event will it take to kick some of these guys out of their ideological rants and into the pragmatic real world. So, bless Deal if he is a pragmatist.
CobbGOPer
January 20th, 2011
12:35 pm
And yet everybody said Karen Handel was crazy for calling them all corrupt. Now that it’s playing out that way, she must be having a great laugh at these inept criminals.
Travis McGee
January 20th, 2011
12:39 pm
The Big Question is — now that you’ve got what you wanted are you sure you’re gonna want what you’ve got?
Ignorance knows no bounds. And, so it goes in the land o’ cotton. . . .
Base
January 20th, 2011
1:04 pm
Murphy should resign!
light on policy
January 20th, 2011
1:07 pm
Amazingly, there are only 18 comments on this blog compared to the 300+ on any “opinion” that Cynthia Tucker posts.
Of course it’s always much easier to argue over political ideology and regurgitate the Faux News talking points without having to actually give insightful comments on the actual political happenings in our own State.
RetiredSoldier
January 20th, 2011
1:15 pm
light on policy-
Is that like reguriating MSNBC talking ponts? Just askin….
Freedom lover
January 20th, 2011
1:24 pm
End the Fed. The Federal Reserve and the illegal and immoral practice of fractional reserve banking (fraud) is at the root of all of our banking problems. As Henry Ford once said “It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” And from Lord Acton (the “power corrupts and absolute power corrupts absolutely” guy) “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”
Linda Schrenko #56443-019
January 20th, 2011
1:39 pm
I hate to say it, but our financial regulators should be given “shoot to kill” orders for anyone convicted of bank fraud that happened during our country’s economic disaster. Those people are no better than terrorists.
Aquagirl
January 20th, 2011
2:03 pm
RS, yet you counter with the Faux news talking point “vote for Obamacare = we’ll un-elect your socialist @$$” vs. “take Obamacare money while whining = U R A Great ‘Merican!!!”
You want Windex with that glass house?
SusanB
January 20th, 2011
2:27 pm
Don’t forget about Senator Murphy’s bill last year to only give driver’s license test in English! And he backed the bill to outlaw stem cell research! And he voted to gut the GA Fair Lending Act that was one of the strongest lending regulation bills in the nation until Perdue and the Republicans gutted it! Murphy also chairs the “Special Joint Committee on Immigration” that is threatening to bring Arizona bill to Georgia, potentially costing our state hundreds of millions in lost revenue from conventions cancelling. And the beat goes on! Wake up Georgia before it’s too late to right the ship of state!
Last Man Standing
January 20th, 2011
2:49 pm
GaBlue:
“The important thing is that they don’t have a (D) by their name, not whether they actually do the job with which they are entrusted, or conduct themselves with integrity.”
As the important thing to you would be that they don’t have an (R) by their name? If they fit that requirement for you, I doubt that you would care whether they did their job, much less if they even understood the definition of the word “integrity”.
RetiredSoldier
January 20th, 2011
3:16 pm
AQ-
Long time no talk and the first thing you do is bust my chops. Be careful I just might take my computer and go home!
I never said anything about taking money for Obamacare, you must have me confused with Daily, Obama’s new Chief of Staff.
Are you really defending Barrow? How can he possibly defend his switch in votes other than saying last year Big Mama (you know her as Nancy P.) said he could vote against Obamacare. What a congressman.
Aquagirl
January 20th, 2011
3:38 pm
RS, I’m always lurking, like one of those hockey-masked dudes in a horror flick.
i was referring to your observation (and possible agreement) that voters will punish Barrow for not foaming at the mouth like one of Pavlov’s dogs when Obamacare is mentioned. That’s what happened in the last election, right? Democrats were voted out in large numbers, and when Obama was in town, Roy Barnes was suddenly too busy to appear with him. Yet Nathan Deal—-who received support for being on the opposing side—-is promptly using Obamacare in his budget plans, dumping those practicing the godless hemophiliac lifestyle onto the evil and illegal Federal program so he can brag about cutting Georgia’s costs.
Hope that helps. If it’s still confusing, try MSNBC or CNN. Hearing different talking points might make you realize voters are complete tools when they allow themselves to be manipulated by Republicans, who get elected by claiming they oppose socialized medicine.
RetiredSoldier
January 20th, 2011
3:49 pm
AQ-
No comment on the mask, nothing good could come from it. Now listening to other points of view let me tell you as far as TV is concerned my news viewing habits for the last 24 hrs. Last night 6-7 Evening Report on Fox. 7-7:30 ABC Evening news. This A.M. about 20 minutes of Fox, 20 minutes of Morning Joe and 20 minutes of Headline News. Is that diverse enough for you? Are you as diverse? Thought not.
I see you don’t comment on Barrow and Mama Pelosi. It’s so obvious that regardless of party a person that has no convictions should be kicked out. Barrow has the backbone of a jellyfish. Redistricting will grant my wish for Barrow’s departure.
Deal and the money, well you libs like to say what a bad businessman Deal is. Deal has taken to heart your comments and will take money from Obama or anyone eles that is irresponsible enough to give it away. If he didn’t ya’ll would be screaming about that too!
light on policy
January 20th, 2011
4:04 pm
@ Retired Soldier…
What part of my statement was a MSNBC talking point, but one can only assume that you are card-toting member of the anti-healthcare crowd referring to the Affordable Health Care for America Act as “Obamacare,” as I’m sure that’s an original term you made up all on your own
RetiredSoldier
January 20th, 2011
4:44 pm
Light-
You missed my point entirely. Liberals use MSNBC for their talking points just like conservatives use Fox. Card toting, no but opposed to Obama’s health care plan, absolutely. No I didn’t make up the term Obamacare any more than it is affordable.
henry county mom
January 20th, 2011
6:49 pm
He can be removed when in jail.
True Lies
January 20th, 2011
7:37 pm
Georgia voters ran to the polls to vote for anyone with the (R) after his/her name. Now it’s time to live with the consequences of that foolish move. Deal, Murphy and company are going to take Georgia politics to new all-time scandalous lows.
RealDeal
January 20th, 2011
8:11 pm
I don’t like the smell of Murphy sitting on this committee. Although he may not be
guilty he was part of a huge banking failure. So by nature of that, he should have some
manhood about him and get assigned to something that he hasn’t already helped
muck up. And I say this as a strong republican leaning voter.
ga female
January 20th, 2011
8:38 pm
Republican’s need to wake up the tide turned in the December session of Congress in favor of Obama. Now over 60% of the country is in favor of Obamacare. People don’t want it repealed, especially with the “No” plan. Barrow is just getting out in front of the pack.
What is going to happen when the whole Georgia Republican party is in Federal Prison on Bank Fraud.
Thomas
January 20th, 2011
9:30 pm
Ethics Reform is a common word for “How much can I personally get out of my position while shafting the taxpayer?”
Keep Digging That Hole
January 21st, 2011
12:33 pm
Integrity is not one of mottos GA can use in it business public relations.
When the Georgia State Senate Chair of the Banking and Financial Institutions Committee, Senator Jack Murphy, is named in a federal FDIC lawsuit … for dealing in his own bank for ‘gross negligence and and various breaches of fiduciary duty’ … and yet refuses to step down (Ever heard of avoiding conflict of interest or recusing yourself, Jack? But you are no judge.)
… and then is even supported his Senate buddies of the majority Republican ruling party
… what can one say about integrity at the highest levels?
( See: http://blogs.ajc.com/political-insider-jim-galloway/2011/01/20/your-morning-jolt-senate-banking-chairman-says-he-wont-step-down/ )
The Republican led ‘Good ole boy’s business club’ and still effectively shutting GA out of a lot of potential international business with the rest of that ‘big world out beyond our state borders.’
Will Nathan Deal as governor make the same poor mistake of letting a rabid ’shoot to kill’ (quote Jack Murphy, again) good ole boys posse run amok with bigoted, anti-immigrant banter (Jack Murphy, again) to make our state suffer more national and international abhorrence.
It can’t be and isn’t good for business.
Oh … and same Senator Jack Murphy is coincidentally also Vice-Chair of the poorly performing GA State Senate Economic Development Committee.
With old clowns like this, no wonder GA can’t but loose and not do better business with the rest of the world.
pete
January 21st, 2011
4:04 pm
georgia crooks dont step down!
Susan Stanton
January 21st, 2011
5:39 pm
Read your Constitution. Senator Murphy is innocent until proven guilty. Many, many banks have failed in Georgia in the last few years. Many of which were due to being pressured into lending money to those that could not afford to repay. Let the FDIC finish its investigation before getting out the tar and feathers.
As Susan B. You are worried about 100s of millions being lost to conventions? Did you realize that Georgia is spending $1.9 billion for social services for illegal aliens? If they would all leave, we would not have our current budget shortfall. We need to get tough on illegal immigrants.
Thomas
January 22nd, 2011
3:25 pm
“Greed has changed our will to be honest!”