McCain Adviser Phil Gramm in the News Again: Did His Bank Help Wealthy Clients Evade Taxes?

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For someone who wants to change Washington, John McCain has surrounded himself with plenty of guys who game the system. His campaign in recent weeks had to boot out a bunch of lobbyists, though his two top campaign aides—Rick Davis and Charles Black—remain in their posts, despite the fact they recently were high-powered lobbyists. Then there’s Phil Gramm, a campaign cochairman and economic adviser to McCain. After leaving the US Senate, he became an executive and lobbyist for UBS, the Swiss mega-bank. And as I noted recently, eight years ago, when he chaired the Senate banking committee, he helped create the current subprime meltdown by slyly slipping into a must-pass appropriations measure a bill that completely deregulated certain financial instruments. Isn’t that the sort of person you want advising a president and in line to be Treasury secretary?

Gramm is back in the news today. The New York Times reports that federal authorities are investigating UBS to determine whether the bank helped thousands of wealthy Americans hide their assets from the IRS in UBS offshore accounts. Without mentioning that Gramm is a top McCain ally, the paper notes:

The case could turn into an embarrassment for Marcel Rohner, the chief executive of UBS and the former head of its private bank, as well as for Phil Gramm, the former Republican senator from Texas who is now the vice chairman of UBS Securities, the Swiss bank’s investment banking arm. It also comes at a difficult time for UBS, which is reeling from $37 billion in bad investments, many of them linked to risky American mortgages.

So it’s not too early to ask, What did Phil Gramm know about UBS’ offshore practices, and when did he know it? And reporters ought to ask McCain if he has asked Gramm about this investigation. Another query: how long can Gramm remain on McCain’s campaign?

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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