Response to the Naysayers: Del. Corporation Laws Lax? What’s wrong with that?

Posted: August 25, 2010 in Delaware Politics, Democrat, Naysayers, Smears, Tea Party, Uncategorized

My fellow blogger Tennessee Walker from Delaware Politics claims that Ms. O’Donnell opposes Delaware’s Lax Corporation Laws based off an email blast sent from the O’Donnell campaign.  He makes the assumption that Christine O’Donnell is attacking Del. Corporation laws itself for being “lax”.  TW remarks, “This position is shared by Chuck Shumer of New York and other Liberal Politicians”.

I have read this email blast in its entirety, and TW only highlights ONE quote (originating from the American Spectator)  that was captured in the email blast.

Because of its lax regulations and corporate governance laws, more than 50 percent of all publicly traded companies in the United States, including 63 percent of Fortune 500 companies have made Delaware their “legal” home,according to the state’s website. The same is true with the banking industry.

First, looking at this quote alone, it simply is a matter of fact. The regulations ARE lax so that 63% of Fortune 500 companies CAN call Delaware home.   Honestly, I don’t see what’s wrong with calling the regulations “lax”? The term “lax” here is not derogatory. Obviously it is assumed by TW to be negative.

I doubt that Christine is opposed to the lax regulation. She doesn’t say one way or the other by quoting this quote. It’s a State issue.

BUT THE MAJOR STORYLINE HERE:

TW is taking this blast out of context and cherry picking. Any educated person can get the gist of the main idea in just the email blast heading itself:  “Reid to push for climate change in lame duck session. Castle could vote for Cap & Trade again!” Of course no one would know what the nature of the email blast was about with just using ONE quote – a quote that had nothing to do with the key point. Never once did TW bring up Cap and Tax or what Cap and Tax had to do with the banking industry.

The point was that Castle is likely to vote for Cap & Trade not only because of his prior vote for it, but be because he is being courted by the banking industry, whom he treats very favourably with due respect to making Delaware their home.

“Why is this a problem?”  the blast says:

According to the National Center for Public Policy Research’s Tom Borelli says, [this legislation] would lead to “the creation of the largest commodity market in the world.”  The Commodities Futures TradingCommission estimates a $2-trillion futures market would be created. This would be larger than the futures market for oil and gas.

There is nothing wrong with making Deleware home for the banking industry especially since 20% of the revenue does come from these corporations. However, there is obviously a vested interest here for Castle to vote on Cap and Trade to benefit the pocket of the banking industry, and Castle’s own campaign pocket at the expense of Delawareans themselves.

I quote from the email blast:

“Three of Castle’s top five contributors have been from the banking industry — MBNA Corp (acquired by Bank of America in 2006), Bank of America and Morgan Stanley. And 10 of his top 20 contributors were banking firms.”

It’s a no brainer for those who are competent in reading comprehension.

The Conservative Tea Party Paper even quotes the American Spectator article because, unlike TW, they got the gist of O’donnell’s email blast and they go further to explain the dangers…

The American Spectator reports: “One of the key storylines…would be the swearing in of the winner of the special election.” The winner will be sworn in immediately. “… And if cap-and-trade comes up during the session, there’s a historical precedent showing how Castle would vote.”

His continued support for this job-stripping cap and tax energy bill would dangerously burden the standard of living for all Delawareans and Americans.  His vote for cap-and-trade would raise the costs of energy by an estimated $2,000 per family.

By 2030, low-income families in Delaware (with an average income of $12,945) will spend up to 19.2% of their income on energy under Cap and Trade.  By 2035 Delaware residents will see their electricity prices rise by $1,064.41 per household.  Estimates are that cap-and-tax would cost thousands of jobs in Delaware by 2012.

So there folks, you have it….another twisted stunt to misrepresent the case for Christine O’Donnell for US Senate.

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