HEDGE HOGS
Former Treasury Secretary Robert Rubin left
Washington to run Citigroup with one of the most squeaky clean reps
in many years, virtually untainted by the Clinton administrations
scandals. According to two staffers of the House Energy and
Commerce Committee, Democrats on the committee, including Rep.
Henry Waxman, now want Rubin to appear before the
committee whether by invitation or subpoena. “They don’t care
which, as long as they can appear to be attacking one of their
own,” says one of the staffers.
Of special interest to both Democrats and Republicans, say the
staffers, are the various Citigroup hedge investments that were
pegged to a collapse of Enron debt. Some on the Hill are wondering
who knew what, and when, in New York.
ANYONE FOR TENET?
Despite the intelligence failings in the months and weeks before
the September 11 tragedy, the George Tenet,
director of the Central Intelligence Agency, has not ordered a
review of the agency’s procedures and possible lapses when it came
to tracking the al Qaeda conspiracy.
Both the Senate and House are planning multiple-committee
investigations into the September 11 attacks, and senators on the
Intelligence Committee, who were recently briefed on the CIA’s
activities, were shocked to learn that Tenet had not ordered a full
review.
“The events of September, everyone agrees, were one of the
worst, if not the worst, intelligence failures in our
nation’s history,” says one senior Senate Intelligence committee
staffer. “That Tenet hasn’t bothered to order a review is
breathtakingly stunning.”
Another committee aide believes Tenet may not have felt the need
to order a review, which surely would have led to possible firings,
letters of rebuke and staffing overhauls, because of President
Bush’s strong endorsement of the CIA in the wake of 9/11.
“When Bush gave that speech at the CIA and stood by Tenet,
perhaps Tenet felt it was a message that they didn’t have to
revisit. Plus they were so busy catching up and evaluating new
intelligence. One can see where Bush’s message might be interpreted
as, ‘Let’s move on.’ Still …”
DNC ENRONITIS
The Democratic National Committee is examining the financial
backgrounds of several prospective Senate candidates for ties to
the growing Enron scandal, including at least one who is in the mix
in North Carolina. “[DNC Chairman] Terry McAuliffe
is absolutely spooked about Enron,” says a current DNC policy
analyst. “He’s now convinced this thing is going to hurt us as much
as Republicans, but it’s some of the former Clinton staffers who
are just wading into to their own campaigns that have him nervous
the most. He’s looking at Erskine Bowles’s
financials, Rahm Emanuel’s financials, just to be
sure Enron can’t hurt them, but especially the national party.”
Bill Clinton, by the way, is helping Emanuel
fundraise for his race to win a House seat in Chicago. Doesn’t look
like he needs much help. Thus far, the former policy adviser is
said to have raised almost $1 million, much of it from outside
Illinois.
