HUFFPOST HILL - JUNE 21ST, 2010

As Congress counts down the days until the August recess, conferees attempted to piece together a final Wall Street reform bill. Barney Frank proposed that the auto deal carveout stay in, both chambers agreed to a watered down swipe fee measure and Gary Ackerman will try to keep his carnation clean as he eats his words. We'll keep you abreast of all the latest developments...assuming we're not too distracted by our New York Fed comic book (Look in the sky! It's a bird! It's a plane! It's a reduction in the federal lending rate!). This is HUFFPOST HILL for Monday, June 21st, 2010:

BREAKING

EXCLUSIVE: HOYER TO CALL FOR DEFENSE SPENDING CUTS AS PART OF DEFICIT REDUCTION - Steny Hoyer gives an address at the Columbus Room at Union Station tomorrow morning at 9 am. A main focus of the speech will be on the need to make defense spending a major part of any discussion about deficit reduction. "Any conversation about the deficit that leaves out defense spending is seriously flawed before it begins," he'll say, according to an excerpt provided to HuffPost Hill. "Our defense leaders, including Secretary Gates, have repeatedly pointed out that paying for programs we don't need only makes our country weaker in the long run. Our defense spending cannot be above careful scrutiny and analysis of alternatives. In an important speech last month, Secretary Gates drew from the legacy of President Eisenhower, who held that "the United States...could only be as militarily strong as it was economically dynamic and fiscally sound." He added: "the proverbial wall has been brought to our back"; as a result, all the parts of our defense establishment must "take a hard, unsparing look at how they operate.""

WALL STREET REFORM CONFERENCE CONTINUES - Jay Newton-Small with a preview: "The most controversial piece comes from Arkansas Senator Blanche Lincoln...that would require banks to spin off their derivatives desks. In the face of fierce bank opposition, and resistance from the White House and regulators, it looks like some scaled back version of Lincoln's provision will be included in the final bill. Also likely to be included: the tough so-called Volcker rule, named for former Chairman of the Federal Reserve Bank Paul Volcker, that would ban banks from trading their own holdings - essentially restricting banks from participating directly in the ultra-lucrative world of private equity and hedge funds. Finally, the fate of a House provision that would create a $150 billion fund to pay for the cost of dealing with bankrupt financial institutions, paid for with new fees on firms worth more than $50 billion, remains undecided." http://bit.ly/cQcydK

HOUSE OFFERS TO KEEP AUTO DEALER CARVEOUT - Barney Frank's offer to Senate conferees on consumer protection includes the House bill's language exempting auto dealers from the oversight of the new regulator. Big win for Richard Shelby and for auto dealership owner John Campbell, who inserted the carveout language and then voted against the bill. Big win also for Frank Luntz, who can continue to advise the GOP to bash the bill for its GOP-authored "lobbyist loophole" for car dealers. The head spins.

SWIPE FEE REFORM AGREEMENT REACHED - HuffPost's Laura Bassett: For the first time, banks and credit card companies will face restrictions on the fees they can charge merchants for the privilege of accepting credit and debit cards. The deal, struck between Sen. Dick Durbin (D-Ill.) and key House negotiators, leaves out some elements that consumer advocates had been battling for. It allows fees charged to reloadable, prepaid debit cards -- generally used by the poor -- to remain unregulated. And it allows an exemption for states who use debit cards to dole out benefits. But plenty of top foes of swipe fees are very happy with the compromise. http://huff.to/9ebtQv

A new survey from AP finds 64% of Americans aren't confident that the Wall Street reform will prevent future financial crises. Respondents blame a wide array of groups and individuals for the nation's economic malaise, ranging from the banks to the government to President Obama. http://nyti.ms/cLAjrP

The New York Fed has released a comic book to combat criticisms of the free market. It's...unfortunate. http://bit.ly/cAaIEl

Where's That New York Caucus, Ackerman? - A week ago, Rep. Gary Ackerman (D-N.Y.) warned that the 26 Democrats in the NY caucus would have a tough time voting for Wall Street reform if it were too tough on Wall Street. He said he was circulating a letter that would be sent in the next few days, but it hasn't gone out yet, leading reformers to suspect Ackerman was bluffing and that whatever complaints the New Yorkers have won't be enough to persuade them to vote no.

PRIMARIES TOMORROW - With Nikki Haley's runoff victory widely anticipated, Ed Kilgore previews tomorrow's other Carolina contests: "In GOP House runoffs in SC, local prosecutor and Tea Party favorite Trey Gowdy is expected to end the House career of upstate Republican Bob Inglis, who made the mistake of voting for TARP...Tim Scott, an African-American, ran first in the primary (with 32%), and is a narrow favorite to beat Charleston County Council Member Paul Thurmond (who won 16% in the primary), son of Strom. Scott has the momentum, the national support (most recently from Sarah Palin), and the "true conservative" mantle, while Thurmond's been endorsed by several lower-order primary candidates, including one with another famous name, Carroll Campbell III...In NC, the Democratic battle for the nomination to face Sen. Richard Burr is hard to call. Secretary of State Elaine Marshall led the first round 36-27 (the state's threshold for avoiding a runoff is 40%), with African-American legislator Ken Lewis, who has since endorsed Marshall, finishing a strong third with 17%. There's not much relevant precedent for how primary finishers do in primaries in this state (at least since establishment of the current 40% threshold); in two recent Democratic runoffs (2008 Labor Commissioner and 2004 Suprevisor of Public Instruction), the first-place finisher won one and lost one." http://bit.ly/bksaiD

TOMORROW'S PAPERS TODAY - The Hill: Molly K. Hooper and Shira Poliak on how congressional Republican leaders are using the nation's jobless rate as campaign ammunition while facing pressure from some in their ranks who want to stop extending unemployment benefits. Roll Call: David M. Drucker on how if Sen. Kay Bailey Hutchison has any regrets about her failed bid to be Texas' next governor, she's not showing it. Or, at least, she won't discuss it, preferring instead to talk about her new role in Republican leadership.

WHITE HOUSE MAKES NICE WITH LGBT GROUPS - Sam Stein: "The Obama administration is making a series of diplomatic and political gestures of good will this week to the gay rights community with which it has occasionally clashed. On Monday, Attorney General Eric Holder was cheered by a crowd of gay and lesbian employees at the Department of Justice after he pledged to use newly enacted laws to protect their presence in the workplace...The remarks were part of a broader outreach by the administration to LGBT employees. On Tuesday, the White House is set to host an event celebrating LBGT Pride Month. There was some confusion as to whether the president would show up at the ceremony. But an administration official tells the Huffington Post that he will give short remarks." http://huff.to/bFFwsz

Rahm Emanuel isn't leaving any time soon, Lynn Sweet reports. "Actually, Emanuel may well be staying in Washington longer than thought. Emanuel promised Obama to stay for two years (so did senior adviser David Axelrod) but now I'm told he has made family plans to remain in Washington next year, a signal he's not moving back to Chicago any time soon." http://bit.ly/c3dqzQ

The Rahm camp most definitely sees these leaks as an effort to weaken his hand. But, given the source of this latest report (the UK Telegraph), we think it's probably just another the latest shoddy, inaccurate "reporting" that has sadly become a hallmark of Britain's top newspapers.

The New York Times named former Post reporter Arthur Brisbane its new ombudsman today. http://politi.co/9iix5u

Don't be bashful: Send tips/stories/photos/events/fundraisers/job movement/juicy miscellanea to [e-mail]

TRENDING

HALEY BARBOUR: DRILLING FREEZE WORSE THAN OIL SPILL - 'Cause nothing lubes the gears of commerce quite like another half a million barrels of oil gushing into the Gulf. "Mississippi's Republican governor, Haley Barbour, said on Sunday that the temporary moratorium on offshore drilling imposed by the Obama administration is worse than the catastrophic oil spill caused by the explosion of the Deepwater Horizon rig. 'Governor, what's worse, the moratorium or the effects of this spill on the region?' asked Meet the Press host David Gregory on Sunday. Barbour responded, 'Well, the moratorium... the spill's a terrible thing, but the moratorium is a terrible thing that's not only bad for the region, it's bad for America.'" We're pretty sure the spill is bad for America, too. http://huff.to/dn8eKN

The drilling ban will probably not be lifted until next year, the co-chairman of President Obama's oil spill study panel says. NYT: http://nyti.ms/a0DaLg

ANALYST PREDICTS 1 MILLION JOB LOSSES FROM THE SPILL - Ryan McCarthy: "David Kotok, the co-founder and chief investment officer of Cumberland Advisors, a Sarasota, Florida-based investment advistory firm, has projected that the spill will cost 1 million permanent jobs in the next five years. (Hat tip to Politico's Morning Money.) The price of real estate properties around the Gulf of Mexico has been projected to fall up to 10 percent -- erasing some $4.3 billion in value -- Bloomberg noted recently. According to a recent USA Today/Gallup poll, 8 in 10 Americans think that the Gulf oil spill will damage the economy and push up commodity prices." http://huff.to/9I87gf

Ken Feinberg, the new administrator of BP's compensation fund, says $20 billion might not be enough. "The president made it clear he wants full compensation," Feinberg said this morning on CNN. "The $20 billion might not be enough, maybe it will. Whatever it takes, these individuals and businesses must get paid." Bloomberg: http://bit.ly/bqfhos

EPIC DSCC FUNDRAISING PITCH FAIL - Yesterday morning, the DSCC sent an e-mail fundraising message with the subject line "Status of your account." Said the DS to one outraged donor, who forwarded the message to HuffPost Hill: "We were reviewing supporter reports here at headquarters, and our records show that your last online gift was $25 on 06/30/2009. Your support is crucial to our success, and I want to thank you for your contribution this year. Would you consider matching it today?" A delinquint account? People apparently flipped. "Email sent in error," was the next subject line to go out. "Earlier today, you may have received an email asking you to renew your support of the DSCC. This message was sent in error. Your support is extremely important to our success in November, and the DSCC would like to apologize for any confusion this email might have caused."

BP has spent $2 billion on the spill thus far, the AP reports. http://huff.to/dcn5a5

JOE BARTON'S FATE RESTS WITH VOTERS - Republican leadership aides say that Barton's ability to remain the senior-ranking Republican on the Energy and Commerce Committee depends on what GOP members hear from constituents back in their districts about Barton's apology that he issued to BP on Thursday, according to House Republican leadership aides. Those members will report back Tuesday evening, when the House returns to business. At the end of the 2010 legislative session, Barton will have been ranking Republican on the committee for three terms. According to House GOP term limits, his time would be up, preventing him from becoming chairman. But Barton, said GOP aides, had planned on asking for an extension, arguing that years spent as ranking member and years spent as chairman aren't equal. http://huff.to/cOOaAk

The Democrats are doing everything they can to keep Rep. Barton's apology to BP on the front page. Sam Stein: "At the White House, the comment from Barton was viewed by aides as a crucial turning point -- an almost divine political gift that would allow the president to contrast his results-oriented response (the securing of a $20 billion escrow account) with the corporate apologists in the GOP. Chief of Staff Rahm Emanuel is said to be quite pleased with the interview he gave to ABC's 'This Week,' in which he hammered this contrast on multiple occasions. On Monday, the Democratic National Committee sent reporters clips of Emanuel, in addition to other editorials and write-ups of the Barton snafu. The committee also pushed around a second anecdote, culled from a three-day-old story, in which Rep. Darrell Issa (R-Cali.) talked about his personal ambition to be less tough on corporate America once the Republicans take back control of Congress." http://huff.to/9mgaF4

Steve King (R-idiculous) agrees with Joe Barton. "I think Joe Barton was spot-on when he called it a 'shakedown.' That's part of this administration's process," he said on the Laura Ingraham show this morning. http://bit.ly/bX0tqn

MORE ALVIN GREENE HILARITY - The anecdotes keep rolling in from politically challenged yet alphabetically gifted senate candidate Alvin Greene (D-Chaos, the primordial state of nothing from whose loins sprung Gaea, Tartarus, Eros, Nyx and Erebus). We'll cut to the chase from Michael Scherer's piece in Time: "None of this answers the central question of Greene's military service: Why did two branches of the military feel obliged to discharge him against his will? Greene will not say, though he says he expects the information to come out eventually, and he suggests that he will not be unhappy when it does." http://bit.ly/c9EfVt

Sharron Angle unveiled a new campaign ad this weekend. Notice the :50 mark where she makes eyes with some random construction worker. Also note that her campaign only seems to have two photos of her. http://bit.ly/a5t8qH

JD Hayworth is defending a 2007 infomercial he appeared in, selling strategies on how to obtain government grants. The staunch anti-government Republican, who is challenging John McCain in the Arizona Senate primary, REALLY wants you to read this piece from TPM: http://bit.ly/b3orFl

WHITE HOUSE BACKS DISCLOSE ACT - Sam Stein: "Hoping to re-ignite momentum behind besieged campaign finance reform, the White House on Monday offered another endorsement of legislation authored by Rep. Chris Van Hollen (D-Md.) In a statement of administration policy released on Monday afternoon, the White House called the bill less than 'perfect,' owing to a disclosure exemption that was added for the National Rifle Association. (That exemption was subsequently expanded to include other groups shortly after the uproar over the gun lobby's preferred status). Nevertheless, the administration insisted that the bill would provide 'unprecedented transparency' and was greatly needed to add order and disclosure to the campaign finance system.

SUPREME COURT UPHOLDS INSANE ANTI-TERROR LAW - AP: "The Supreme Court upheld the government's authority Monday to ban aid to designated terrorist groups, even when that support is intended to steer the groups toward peaceful and legal activities. The court left intact a federal law that the Obama administration considers an important tool against terrorism. But human rights organizations say the law's ban on providing training and advice to nearly four dozen organizations on a State Department list squanders a chance to persuade people to renounce extremism. The justices voted 6-3 to reject a free-speech challenge from humanitarian aid groups to the law that bars 'material support' - everything from money to technical know-how to legal advice - to foreign terrorist organizations." http://huff.to/bgtHr5

Speaking of civilizaiton's slow rot, Iraq will execute one million stray dogs and a prominent Iranian cleric says dogs are man's best frien....ticket to hell. From MoJo: http://bit.ly/9hMn4T

JEREMY THE INTERN'S WEATHER REPORT - At 11:28, it officially became summer. I'm going to celebrate by going swimming somewhere. Tonight: It's going to feel like... well, summer. It's going to get hotter and more humid. The only refuge will be some passing clouds here and there. Tomorrow: Sadly, for everyone who thinks I can actually do something about the weather, this is a dose of reality. It's going to get worse. And by worse, I mean a few degrees warmer, but a few percentage points more humid. And remember, it's the humidity that makes a day miserable. A good chance of rain tomorrow night, but to be sure, you want to check out tomorrow's edition of HuffPost Hill! Thanks, JB!

And finally, another tornado video. This one comes from Montana, where a sports arena got ripped off. Despite the fact the filmer obviously turned his or her camera phone sideways, you can make out a startling view of the funnel of the rope tornado at the top: http://bit.ly/aSqQA0 Fascinating, JB!

COMFORT FOOD

- The 25 most epic ads ever. http://bit.ly/9658TA (our favorite: http://bit.ly/aYzswY )

- The "Rubik Cubism" movements make sculptures out of the famed 3D puzzle. 17 selections. http://huff.to/b3O76G

- The 21 greatest celebrity mullets ever. http://bit.ly/dzahgo

- California is considering an electronic license plate that can display advertisements. http://bit.ly/cunbWA

- The ultimate timed photo FAIL. http://bit.ly/dAl1iG

- Word to yo mother: Ice (cube), ice (cube), baby. http://bit.ly/9rPleK

TWITTERAMA

@pourmecoffee: SC GOP Gov runoff tomorrow. Haley has big lead over Barrett. I don't know how, but somehow I think Alvin Greene will win. http://bit.ly/c1FvSY

@mattyglesias: Angela Merkel again lucky that the bar for "worst German leader" is really high: http://bit.ly/9cVgbh

@daveweigel: EXCLUSIVE: Barack Obama to leave White House "within next seven years," says source. DEVELOPING... http://bit.ly/aGfdl9

@mattbesser: Why is everyone talking about Lady Gaga at the Yankees game, yet no one is talking about Enya at the Brewers game? http://bit.ly/aykoIc

THE TUBE

Chellie Pingree spoke to Ratigan about clean energy research. Chris Matthews discussed oil with Ed Markey and Michele Bachmann with her challenger Tarryl Clark. Ed Schultz queries Frank Pallone about New Jersey's budget battles. Keith Olbermann discusses energy with that fine wine Robert Redford.

ON TAP

TONIGHT

8:30 pm - 10:30 pm: The Crystal City outdoor Star Trek film festival continues its sci-fi cinema with "Star Trek III: The Search for Spock " [18th and South Bell Streets, Arlington].

6:00 pm: If you're going to shell out $1,000 at a campaign function, there better be some finger food. Mark Warner (D-Va.) hosts an "Evening of Discussion" about growth and competitiveness. No mention of chips and dip. Step it up, Mark [Hotel Monaco Washington DC, 700 F Street NW].

TOMORROW

9:00 am: Steny Hoyer (D-Md.) joins Third Way for a discussion of federal spending and the deficit [Union Station, The Columbus Room, 50 Massachusetts Ave NE].

8:30 am: John Tanner (D-Tenn.) tees up at his "Send-Off Championship" [Lake Presidential Golf Club, 3151 Presidential Golf Drive, Upper Marlboro, MD].

8:30 am: Another week of oil leakage, another week of conservative lawmakers casting aside irony and hosting seafood-themed fundraisers. This time, John Thune (R-S.D.) holds a $1,000-per-plate event at Johnny's Half Shell (and you thought oysters were expensive already) [Johnny's Half Shell, 400 North Capitol Street NW #175].

9:30 am - 1:00 pm: Help Glenn Thompson (R-Pa.) do the people's work by shooting crap out of the sky at his skeet-shooting event [Prince George's County Trap & Skeet Center, 10400 Good Luck Road, Glen Dale].

11:45 am: Max Baucus (D-Mont.) doesn't discriminate. His lunch is listed as being "non-industry specific" [The Monocle Restaurant, 107 D Street NE].

12:00 pm - 1:30 pm: Brad Miller (D-Calif.) applies some irony cream with a boring campaign event at the National Democratic Club Townhouse [National Democratic Club Townhouse, 40 Ivy Street SE].

Got something to add? Send tips/quotes/stories/photos/events/fundraisers/job movement/juicy miscellanea to Eliot Nelson ([e-mail]), Ryan Grim ([e-mail]) or Nico Pitney ([e-mail]). Follow us on Twitter @HuffPostHill (twitter.com/HuffPostHill). Sign up here: http://huff.to/an2k2e