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LeadershipCEO Daily

CEO Daily: Saturday, May 30th

By
Tory Newmyer
Tory Newmyer
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By
Tory Newmyer
Tory Newmyer
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May 29, 2015, 11:24 PM ET

Saturday Morning Post: The Weekly View from Washington

Unknowns are still swirling around the bombshell indictment of former House Speaker Dennis Hastert. The low-key Illinois Republican was eight years removed from public life and comfortably established in a K Street sinecure when the news first landed Thursday. The 73-year-old is alleged to have lied to federal investigators about $3.5 million in hush money he paid to a long-time acquaintance. What, precisely, the longest-serving GOP speaker in history was trying to conceal remains part of the mystery, though several outlets are now reporting what many in Washington immediately suspected — that it involves sexual wrongdoing with a student during his days as a high school teacher and wrestling coach. The specter of the ugliness lurking behind the charging document has already cost Hastert his lobbying gig at Dickstein Shapiro and his CME Group directorship.

It also puts a (delayed) capstone on what must rank as the dirtiest Congress in modern history. Hastert rose through Republican ranks because he presented as a squeaky-clean foil to the rest of Texan Tom DeLay’s viperous crew. Officially Hastert’s lieutenant, DeLay in fact pulled the strings, institutionalizing a mode of corruption with major sweep. It reached full flower in the 109th Congress, from 2005 to 2006. Most will remember that era for the Jack Abramoff lobbying scandal, the sprawling pay-to-play scheme that sent former Rep. Bob Ney (R-Ohio) to prison, along with a handful former top DeLay aides and Bush administration officials, and implicated many others.

But that was only the center ring in a circus of misconduct. There was also the illegal land-swap deal then-Rep. Rick Renzi (R-Ariz.) engineered for a business partner that later landed him a three-year prison stay; the raid of then-Rep. Bill Jefferson’s (D-La.) home that turned up $90,000 worth of cash bribes hidden among pie crusts in his freezer, earning him to a thirteen-year sentence; and the $2.4 million in bribes then-Rep. Duke Cunningham (R-Calif.) pocketed from defense contractors, good for an eight-year sentence. And there were many more federal investigations, including a probe of the official actions then-Rep. John Sweeney (R-N.Y.) traded for favors from lobbyists; the look into whether then-Rep. Curt Weldon (R-Pa.) used his office to help his daughter win lobbying work from Russian and Serbian firms; and another into whether Rep. Don Young (R-Alaska) took bribes and illegal gifts from an oil pipeline company back home. Then-Rep. Mark Foley (R-Fla.) supplied the rotted cherry on top weeks before the 2006 midterms when he was outed for sending sexually explicit messages to teenaged House pages. Outrage over Foley’s behavior and the Republican leadership team’s bumbling response helped seal an electoral route that drove Hastert from power — and, in retrospect, darkly previewed this week’s allegations.

Democrats swept in as the clean-up squad, instituting strict new lobbying and ethics rules. Republicans later added to those reforms by banning earmarks. The results are evident in this Congress. The closest it’s featured to a replay of the 109th’s antics: The overspending that recently forced Rep. Aaron Schock (R-Ill.) to resign a seat nearby Hastert’s old one. Schock looks like a Cub Scout by comparison. There are those who argue cleaner government yielded the sclerosis that’s earned this Congress its rock-bottom approval ratings. But as Hastert’s humiliation unfolds, it’s worth considering whether the mess he presided over is really preferable.

Tory Newmyer
@torynewmyer
tory_newmyer@fortune.com

Top News

• Amazon Is bringing $1 billion and 1,000 jobs to Ohio

Ohio Gov. John Kasich is looking increasingly likely to jump into the Republican presidential race. And while that contest is as crowded as it’s ever been, Kasich brings some distinguishing features to it. Among them: A solid job-creation record that’s brought the unemployment rate in the Buckeye State down to 5.1 percent. Kasich will be making an aggressive case that his economic stewardship deserves credit, and the Friday announcement by Amazon only bolsters the argument. The deal, secured with $81 million in tax credits, will include the construction of cloud facilities and fulfillment centers.  Fortune

• Key Patriot Act provisions expire on Sunday

Lawmakers have balked at extending the federal government’s surveillance regime over objections to bulk collection of Americans’ phone and Internet records. President Obama on Friday made an appeal from the Oval Office, warning national security will be imperiled by a lapse. But the path to a resolution remains murky.  TIME

• Sepp Blatter wins a fifth FIFA term amid scandal

Soccer fans, despair. The man controlling the world’s most popular sport on Friday reaffirmed his grip on its governing body despite earth-rattling corruption charges — including bribery and money laundering — lodged against some of his top lieutenants earlier this week. The result renews questions for sponsors of the multi-billion dollar enterprise about whether they’ll cut ties.  New York Times

Around the Water Cooler

• Bill Clinton requires $500,000 to appear at charity events

That, anyway, is the clear implication from this report about what it took for a small charity, dedicated to building schools for impoverished children, to entice the former president to show up and retrieve an award at its fundraising gala. The details of this extended anecdote are, as you might guess, off-putting. But it also reaffirms a larger challenge to Hillary Clinton’s candidacy: The Clinton Foundation seems to offer an inexhaustible well of unflattering material on the former first family’s recent history. At some point, she’ll need to answer for it.  New York Times

• Yikes: This robot cheetah just learned to leap over obstacles

If you’re a robot enthusiast, you’ll cheer this technological breakthrough. Everyone else should start looking into survivalist cabins in remote areas, because this is not going to end well.  Fortune

About the Author
By Tory Newmyer
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