December 12, 2008 CONGRESSIONAL RECORD — SENATE S10971 

TARP SPECIAL INSPECTOR 

GENERAL 

∑ Mrs. MCCASKILL. Mr. President, 

this week, the Senate passed an important piece of legislation sponsored by 

Senator GRASSLEY and myself, that 

was needed to assure the new Special 

Inspector General for the $700 billion financial rescue program could staff up 

quickly and have the ability to do his 

job. S. 3731’s other cosponsors—Senators COLLINS, LIEBERMAN, SNOWE, 

DODD, BUNNING, SCHUMER, LEVIN, CARPER, COLEMAN and CANTWELL—were 

also key to securing unanimous support for this bill in the Senate. Finally, 

I want to give special thanks to Senators BAUCUS and SHELBY for working 

closely with us to craft a strong bipartisan bill. 

This legislation, the Special Inspector General for the Troubled Asset Relief Program, SIGTARP, would specifically grant the Special IG created 

under TARP earlier this fall to have 

full oversight over all activities under 

the TARP program. The bill would 

have also granted the IG the temporary 

hiring authority needed to quickly hire 

the dozens of auditors required to conduct this critical oversight. 

As the original Inspector General 

language is written under current law, 

Mr. Barofsky, who was confirmed as 

the Special Inspector General this 

week, must hire his entire staff using 

normal civil service channels. I am a 

big proponent of using the normal hiring process whenever possible. But that 

process is time consuming and can 

take weeks, sometimes months, to hire 

one person. Meanwhile, this money is 

flying out the door. TARP has given 

out nearly all of the first $350 billion, 

and they have already told us they 

want the second half soon. Yet, Mr. 

Barofsky has no staff, and he won’t 

have staff for some time. We need to 

fix this—right now. 

Our bill would also make clear that 

the Special Inspector General has oversight authority over the entire relief 

program. As written right now, 

SIGTARP has oversight authority over 

only two sections of the relief program. 

Why would we want to limit the Inspector General to only certain sections of this program? Our legislation 

would make clear that SIGTARP has 

oversight duties over all of TARP. This 

would include sections related specifically to assistance to homeowners and 

promulgation of conflict of interest 

rules by the Secretary of the Treasury. 

Senator SNOWE added some provisions to assure that the IG would provide Congress and the public a thorough analysis of TARP’s spending, as 

well as a requirement for Treasury officials to report to Congress an explanation if they did not implement the 

IG’s recommendations. 

As a former auditor, nothing is more 

frustrating than seeing your recommendations completely ignored. I 

would never claim that all audit recommendations can, or should, be immediately implemented. But we need 

to be able to assure ourselves that 

these recommendations are taken seriously and are being considered. We 

should know the reason if these recommendations are not implemented. 

Finally, Senator SNOWE suggested 

that we should make sure that the Special Inspector General has the resources he needs by imposing a time 

limit on providing him with the money 

allocated to his office in the original 

bill. The relationship between an agency and an office charged with overseeing them is a delicate one. Tensions 

sometimes arise due to the fact that 

IGs must rely on the agency they audit 

and investigate for their resources. 

While I have no reason to think that 

the Treasury Department would deny 

Mr. Barofsky the funds needed to perform his duties, this provision would 

eliminate that tension. 

Unfortunately, we were not able to 

secure passage of this legislation in the 

House before we adjourned this week. I 

will do everything I can to bring it 

back first thing in the 111th Congress 

to secure its quick passage in both 

chambers and signed into law to assure 

we have strong oversight on the $700 

billion financial rescue program.∑ 

∑ Mr. LEAHY. Mr. President, the election of Barack Obama and JOE BIDEN, 

and the President-elect’s selection of 

Eric Holder to be Attorney General of 

the United States, provide an historic 

opportunity for the country to move 

past the partisanship of the past decades, and work together to solve the 

Nation’s problems, protect against serious threats, and meet some of the 

greatest challenges of our time. We all 

know these men. They have long and 

distinguished records of service and accomplishments. They can make a real 

difference if we join with them, not as 

Democrats or Republicans, but as 

Americans. 

The need for new leadership at the 

Department of Justice is as critical 

today as it has ever been. The Judiciary Committee, both Democrats and 

Republicans, spent a good deal of time 

and effort during this Congress uncovering scandals at the Department. 

Former Attorney General Gonzales, 

Karl Rove, Mr. Rove’s White House 

deputies, and virtually the entire leadership at the Department resigned in 

the wake of congressional investigation. Since then, the Inspector General 

at the Department has confirmed many 

of our findings and fears, and there are 

still more reports to come. An ongoing 

criminal investigation is being conducted by a specially appointed prosecutor. The crisis at the Department of 

Justice is not resolved, but ongoing. 

I want to continue the work we began 

last year when I scheduled prompt 

hearings and the Senate proceeded to 

confirm Michael Mukasey, Mark Filip 

and Kevin O’Connor to serve as Attorney General, Deputy Attorney General 

and Associate Attorney General after 

the Rove-Gonzales resignations, even 

though we were on the eve of the election of a new President. We cannot now 

delay restoring the Justice Department 

and the confidence the American people have in our justice system. We 

must promptly consider and confirm 

Eric H. Holder Jr., and other nominees 

of the new President. 

I was encouraged by the initial reaction in mid-November when Mr. Holder’s name was reported as the likely 

nominee, and when he was designated 

by the President-elect on December 1. 

Democrats and Republicans alike acknowledged his qualifications and 

praised the choice. I appreciate the 

willingness of Larry Thompson, who 

was confirmed early in 2001 as President Bush’s first Deputy Attorney General; Louis Freeh, the former Director 

of the FBI; and Fran Townsend, President Bush’s former Homeland Security 

advisor, to speak out in support of Mr. 

Holder’s designation. 

As early as November 19, the ranking 

Republican member of the Judiciary 

Committee said that he would not hold 

up the matter, but ‘‘would be prepared 

to move ahead very promptly with 

hearings.’’ I appreciated and shared his 

desire to proceed ‘‘as fast as we can 

move’’ and his commitment that he 

‘‘wouldn’t hold it up.’’ He said that he 

hoped Mr. Holder would ‘‘re-professionalize’’ the Justice Department. I 

hope so, too. 

I agree with Senator SPECTER that 

we need to strengthen the Justice Department. He and I coauthored an article in the Politico before the election. 

In a sentence Senator SPECTER quoted 

recently on the Senate floor, we wrote: 

‘‘The Attorney General must be someone who deeply appreciates and respects the work and commitment of 

the thousands of men and women who 

work in the branches and divisions of 

the Justice Department, day in and 

day out, without regard to politics or 

ideology, doing their best to enforce 

the law and promote justice.’’ I have 

every confidence that Eric Holder is 

such a person, and I said so in this 

chamber on November 20. Indeed, in his 

brief remarks on the morning he was 

designated, Mr. Holder expressed just 

such appreciation. 

I know that the professionals at the 

Department of Justice reacted with delight when he was named because they 

know him well. They know him from 

his 12 years at the Public Integrity 

Section, from his time as the U.S. Attorney for the District of Columbia, 

from his tenure on the bench, and from 

his years as the Deputy Attorney General, the second-highest ranking official of the Department. His prompt 

confirmation will do a great deal to restore morale throughout the Justice 

Department. 

I have called Mr. Holder a prosecutor’s prosecutor. He participated in a 

number of prosecutions and appeals involving such defendants as the State 

Treasurer of Florida, a former Ambassador to the Dominican Republic, a 

local judge in Philadelphia, an Assistant United States Attorney in New 

York City, an FBI agent, a ‘‘capo’’ in 


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S10972 CONGRESSIONAL RECORD — SENATE December 12, 2008 

an organized crime family, and a powerful Democratic chairman of the 

House Ways and Means Committee. 

After he served for a dozen years as a 

prosecutor, President Reagan nominated Mr. Holder to be a judge, and he 

served with distinction on the Superior 

Court of the District of Columbia. He 

left the bench to become the first African American U.S. Attorney for the 

District of Columbia, heading the largest U.S. Attorney’s office in the country. 

Four years later, Mr. Holder was 

nominated to the important post of 

Deputy Attorney General. I worked 

with Senator HATCH, who was then 

Chairman of the Judiciary Committee, 

to report his nomination favorably to 

the Senate. I was disturbed that an 

anonymous Republican hold delayed 

consideration of his nomination for 

three weeks, but when the Senate finally voted, the vote was unanimous. 

All 100 Senators voted to confirm Eric 

H. Holder Jr. to be the Deputy Attorney General of the United States. He 

became the first African-American in 

the history of the Department to 

achieve that high position. 

Eric Holder has prosecuted high-level 

public officials and organized crime, 

developed comprehensive programs to 

combat domestic violence, child abuse, 

and violent crime, and revitalized programs to assist crime victims. He 

helped guide the Department’s efforts 

on the criminal prosecution of corporations, health care fraud, computer 

crimes, software piracy, and helped develop the community prosecution 

model. He has served at nearly every 

level of the Department of Justice he 

would lead. 

He is a public servant who will have 

broad support within the law enforcement community. He has already received the support of the 7,000 member 

National District Attorneys Association, NDAA. It was when I was the vice 

president of that association and 

ARLEN SPECTER was the District Attorney in Philadelphia that the ranking 

member and I first met. The NDAA indicates that it feels a special relationship with Mr. Holder because he was a 

street crime prosecutor. 

Having a prompt confirmation hearing for the new Attorney General is in 

keeping with how we have treated all 

the men and women nominated to be 

Attorney General in the 34 years I have 

served in the Senate, in particular at 

the beginning of a newly-elected President’s term. That is how the Senate 

acted on President Carter’s appointment of Attorney General Griffin Bell. 

That is how we acted on President Reagan’s appointment of Attorney General 

William French Smith. When I chaired 

the Judiciary Committee as President 

Bush was preparing to take office, I 

began the hearing on his selection for 

Attorney General just 25 days after his 

designation. Likewise, last year I rejected the efforts by some on my side 

of the aisle to delay hearings on Michael Mukasey and proceeded on that 

nomination in 30 days. I did not curb 

the rights of Committee members to 

pose questions to then-nominee 

Mukasey during his confirmation process; I do not intend to do so with Eric 

Holder. 

I want to be as fair to President-elect 

Obama and to Mr. Holder as we have 

been to others. I have noticed the hearing for the next Attorney General to 

begin 39 days after he was officially 

designated and 52 days after we all 

began reviewing his record following 

press reports on November 18. 

In my statement to the Senate on 

November 20, I commended Senators 

HATCH, SESSIONS, COBURN, and GRASSLEY for their nonpartisanship when 

they praised his selection. Senator 

HATCH spoke of his support for Mr. 

Holder, his experience and reputation. 

Senator SESSIONS, a former prosecutor, 

U.S. Attorney, and State Attorney 

General who is well aware of the problems at the Justice Department, said 

he was disposed to support him. Senator COBURN called it ‘‘a good choice.’’ 

In addition, Senator GRASSLEY has acknowledged Mr. Holder’s impeccable 

credentials while reserving judgment. 

But of course since then, Karl Rove 

has appeared on the Today Show and 

signaled that Republicans ought to go 

after Mr. Holder. Right-wing talk radio 

took up the drum beat. 

I think the responsibilities of the Attorney General of the United States 

are too important to have that appointment delayed by partisan bickering, by some tit-for-tat drawn out 

process. This is a public servant we 

have known and worked with for more 

than 20 years, and the Senate has previously confirmed him three times to 

important positions. His record of public service, his integrity, his experience 

and the commitment to the rule of law 

that he will bring to the office of the 

Attorney General of the United States 

deserve better. He should not be made 

a pawn in some partisan political 

game. 

I began the week meeting with Mr. 

Holder. He did not defend the Rich pardon. That is hardly a new matter. It 

was the subject of House hearings and 

a Senate Judiciary Committee hearing 

chaired by Senator SPECTER in 2001, almost 8 years ago. That is not a reason 

to delay his confirmation hearing. In 

fact, the confirmation hearing will give 

those who have doubts and need reassurance the chance to ask Mr. Holder 

about that matter and hear about it directly from him. 

I thought the President-elect had it 

right when he said recently that Mr. 

Holder has acknowledged that the Rich 

pardon was a mistake. President-elect 

Obama agrees. I agree. President-elect 

Obama said: ‘‘But when you look at the 

totality of his experience, there is no 

doubt that he is going to be an outstanding Attorney General.’’ That is 

the essential point. 

Like the President-elect, I want the 

American people to have confidence 

that laws are being evenly applied to 

everyone and that we are working with 

local and state as well as Federal officials constantly to improve our criminal justice system. Public confidence 

and faith in that system has been shaken during the last several years, and 

Mr. Holder can help restore it. 

We need the new Attorney General to 

be a person of integrity and experience, 

who can inspire the thousands of hardworking prosecutors, agents and employees who do their best every day to 

enforce the law and promote justice 

without regard to partisan politics. We 

need an Attorney General, as Attorney 

General Robert H. Jackson said 68 

years ago about the Federal prosecutor, ‘‘who serves the law and not 

factional purposes, and who approaches 

his task with humility.’’ 

That is the kind of man Eric Holder 

is, the kind of prosecutor Eric Holder 

always was and the kind of Attorney 

General he would be. The next Attorney General will understand our moral 

and legal obligation to protect the fundamental rights of all Americans and 

to respect the human rights of all people. Eric Holder will ensure that the 

Department of Justice is working to 

uphold the Constitution and the rule of 

law, not working to circumvent them. 

I was struck by the contrast between 

what President Bush and Alberto 

Gonzales said at that announcement 

and how President-elect Obama and 

Mr. Holder spoke at his. This is part of 

the change we need, the change the 

American people voted for and hunger 

for. President-elect Obama said: ‘‘Let 

me be clear. The Attorney General 

serves the American people. And I have 

every expectation that Eric will protect our people, uphold the public 

trust, and adhere to our Constitution.’’ 

The next President understands the 

role of the Attorney General of the 

United States and that it is not as 

counselor to the President. I have no 

doubt that Mr. Holder understands the 

independence required of the Attorney 

General and that his experience and 

lessons he has learned will serve him 

and the American people well. 

No one should have to remind us how 

decimated the Department of Justice 

was during recent years, or how important it is that it be restored. I think it 

was Senator SPECTER who called it dysfunctional and said that morale was in 

disarray. We understand that it is all 

too important that the Department 

have its senior leadership in place 

without delay. We must act on this 

nomination; the Attorney General is 

the top law enforcement officer in the 

country and a key member of the national security team. 

When President Bush nominated Michael Mukasey last year, Senator KYL

said: ‘‘Since the Carter administration, 

attorney general nominees have been 

confirmed, on average, in approximately three weeks, with some being 

confirmed even more quickly. The Senate should immediately move to consider Judge Mukasey’s nomination and 

ensure he is confirmed before Congress 


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December 12, 2008 CONGRESSIONAL RECORD — SENATE S10973 

recesses for Columbus Day.’’ I held 

that hearing within 30 days. We should 

not change the standards now that a 

Democrat is making the selection. 

During my time in the Senate, serving during 8 presidential terms, there 

has been an average of 29 days between 

announcement of an Attorney General 

designation and the start of hearings, 

and 37 days on average from the announcement of the nominee to the 

Committee vote. The Holder hearing 

was set for 39 days after announcement, with the hope that he can be 

considered by the Committee within 50 

days. That does not seem unreasonable. 

I do appreciate that we and our staffs 

will be working over the holidays, but 

we have been called upon many times 

to do so during the last several tumultuous years. 

This is not the occasion to convert 

our consideration of an executive 

branch nomination into the kind of 

searching scrutiny we rightly provide 

for lifetime appointments to the Supreme Court, which is apparently what 

the Republican side is intent upon 

doing. 

This is no ordinary time. Over the 

last 8 years, political manipulation and 

influence from partisan political 

operatives in the White FIouse have 

undercut the Department of Justice in 

its mission, severely undermined the 

morale of its career professionals, and 

shaken public confidence in our Federal justice system. During those 8 

years, we experienced the attacks of 

September 11 and have retooled the 

Justice Department and the FBI to 

work closely with the intelligence 

community in our efforts to prevent 

terrorism. Never has it been more important to have an experienced hand as 

Attorney General. 

I hope our Republican Members will 

resist the temptation toward partisanship and join with us to consider this 

appointment fairly and promptly.

f 

∑ 

ALAN NEWMAN: CONDUCTOR OF 

COSMIC SYMPHONIES 

∑ Mr. LEAHY. Mr. President, the Burlington Free Press recently published a 

profile of Alan Newman, a habitual entrepreneur who has be the genius and 

force behind a number of companies established in and around Burlington, 

VT. Anyone who has met Alan is immediately embraced by his creative 

exuberance. That creativity combined 

with his unique vision and style create 

a special brew that has resulted in an 

incredible run of establishing successful companies. 

I wish to recognize Alan for his accomplishments and I ask that a copy of 

the entire Burlington Free Press article be printed in the RECORD. 

[Burlington Free Press, Dec. 8, 2008] 

ALAN NEWMAN OPENS UP

(By Dan McLean) 

SOUTH BURLINGTON.—Alan Newman, cofounder and president of Magic Hat Brewing 

Co., has helped create about a half-dozen 

Vermont-based companies. During his decades of building businesses, he has learned 

where he excels—and when he has reached 

his limit. 

‘‘My skill appears to be starting and growing businesses,’’ including building a brand 

and a culture for the company, Newman said. 

When businesses hit about $7.5 million in annual revenue and reach about 50 employees, 

Newman says he has arrived at his ‘‘level of 

incompetence.’’ 

Newman said he reached that modified 

Peter Principle with Magic Hat about six 

years ago. Newman said if he remains at the 

helm after a company has hit that threshold, 

‘‘the organization starts to fall apart.’’ 

‘‘We started having trouble shipping things 

that people had ordered. Communication 

within staff starts to falter. Planning doesn’t 

happen properly,’’ he said. ‘‘As you hit a certain size, you need a little more discipline. 

You need a little more management. That’s 

where I start not performing well.’’ 

‘‘I’m really an opportunity junkie,’’ Newman said. ‘‘I’m very good at seeing opportunities and going for them . . . but at some 

point you need to stop chasing every possibility and focus on a plan.’’ 

That’s where Martin Kelly comes in. Kelly 

served as CEO of Magic Hat and is now CEO 

of Magic Hat’s parent company, Independent 

Brewers United Inc., which was formed when 

Magic Hat bought Seattle-based Pyramid 

Breweries Inc. last spring for $35 million. 

Newman said Kelly has been a crucial part 

of the operation during the past few years. ‘‘I 

create chaos and he tries to control it,’’ he 

said. 

Newman is president of Magic Hat, but prefers his informal title, ‘‘conductor of cosmic 

symphonies.’’ ‘‘ 

That’s really my title,’’ he said. 

Newman, who had a hand in the creation of 

Gardeners Supply Co., Seventh Generation 

and Magic Hat, says he has no secret to 

starting successful ventures. 

‘‘I really don’t. It really started by accident,’’ Newman said in an interview in his 

office located in a modestly appointed trailer, named Sweet Lillian, next to the South 

Burlington brewery. 

‘‘I was sick and tired of getting fired,’’ he 

said, recalling his time in Vermont in the 

mid-1970s. ‘‘I just figured I better figure out 

how to support myself if I wanted to stay in 

Vermont. I just kind of followed my nose. 

‘‘I irritate people. I’m really not a good 

employee. I’m highly insubordinate,’’ he 

said, explaining that starting a business was 

a better option than working for someone 

else. ‘‘It’s been a constant theme in my life 

and career.’’ Newman insists he is in an unlikely executive. 

‘‘Honestly,’’ he said, wearing bright-yellow 

glasses and a tie-dye shirt. ‘‘There is nothing 

in my background. I never had any interest 

in business. I never had any interest in starting businesses. 

‘‘I’ve never taken a business course in my 

life,’’ he said, downplaying the importance of 

an MBA. ‘‘I’m not an education-driven guy. I 

believe in experience.’’ 

Newman, 62, was born in Brooklyn and 

grew up on Long Island. He attended Long Island University with a major in psychology 

and minors in sociology and English. ‘‘I have 

always been interested in culture. I grew up 

in the ’60s.’’ 

Newman said his strengths are creating 

culture, branding and a vision for the companies. 

‘‘The business, to me, is secondary. I’m 

more interested in painting pictures,’’ he 

said. A crucial part of forming a company’s 

‘‘painting’’ is culture and philosophy. ‘‘It’s 

never been about making money.’’ 

‘‘It’s about trying to create a picture, trying to create a culture and trying to marry 

them. This is kind of what I do know,’’ he 

said. 

For Magic Hat that philosophy is: ‘‘to be a 

good neighbor in our community,’’ he said. 

Magic Hat, he said, assists a series of nonprofits including Vermont Cares, Committee 

on Temporary Shelter and The Women’s 

Rape Crisis Center. ‘‘That’s the part I get addicted to,’’ he said. 

‘‘I make things more complicated’’ by connecting events with charities, he said. The 

Women’s Rape Crisis Center, for example, 

gets about $20,000 from the annual Mardi 

Gras parade, which Magic Hat created in the 

mid-1990s. 

Not all of Newman’s ventures have been a 

success. 

But he said he learns lessons—the best lessons—from the failures. 

He and a friend created a yacht time-sharing company, Highland International in 

Hanksville, in the late 1970s. Highland International never generated any revenue. Newman and his partner burned through $300,000 

of seed money in about 18 months. Reflecting 

on the business misfire, Newman said he 

should have purchased one boat with the 

funds, instead of trying to leverage it into 

millions. Lesson learned: proceed slowly. 

Another one of Newman’s business mistakes was Magic Hat’s Ale of the Living 

Dead, a garlic beer. 

One of the bottles sits on Newman’s desk. 

The beer, he said, was often returned as 

‘‘undrinkable.’’ The lesson with the garlic 

beer: ‘‘Don’t let me drive recipe creation.’’ 

The acquisition of Pyramid gives Magic 

Hat the potential to place its bottles of brew 

on shelves in many more states. Magic Hat is 

sold in 18 states now, mostly on the East 

Coast. Pyramid’s beers are sold in 28 states. 

Newman said they had no choice but to expand Magic Hat because the company ‘‘had 

already passed through the overhead level 

where small could work.’’ 

Newman said the idea for Magic Hat 

emerged in 1993 with co-founder Bob Johnson. The next year the pair were making 

beer on Flynn Avenue in Burlington. After 

three years, Magic Hat moved to a larger operation in South Burlington. When Magic 

Hat left Flynn Avenue, 6,000 barrels were 

being brewed a year. This year, Magic Hat 

will brew about 130,000 barrels at the South 

Burlington location, Newman said. A barrel 

is 31 gallons. 

Not including brew pubs, there are 300 to 

400 microbreweries in the U.S. fighting for a 

5 percent share of the beer market, Newman 

said. 

‘‘In order to be a survivor, we think you 

have to get bigger. You can’t stay small,’’ he 

said. 

Perhaps, recalling the lessons learned from 

his failed yacht time-share company decades 

ago, when he learned to ‘‘start small and 

grow,’’ Newman said Magic Hat’s expansion 

‘‘will be slow and methodical.’’

f 

∑ 

HONORING LAWRENCE MCHUGH 

∑ Mr. DODD. Mr. President, in these 

times of financial uncertainty, today I 

would like to take the time to commend Mr. Lawrence McHugh of my 

State, and to recognize his 25 years of 

leadership at the Middlesex County 

Chamber of Commerce. 

In Larry’s quarter century as the 

president of the organization, membership has grown from 282 to a total of 

2,400 members who employ over 50,000 

individuals in central Connecticut. 

The Chamber itself now employs 22 

people and increased its annual budget 

from $109,000 in 1983 to over $2 million 

in 2007. 


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