Sharyl experts estimate the nfls nonprofit status cost taxpayers over 15 million in lost tax revenue its most recent tax filing year, 100 million in the past decade. Chaffetz raised the issue of dour away the testimony chaffetz raised the issue of exorbitant nonprofit salaries last september at a fiery hearing into controversies over planned parenthood a nonprofit Womens Health and abortion provider. Cecile richards is the groups president. In 2013, your compensation went up some 240,000. Compensation baseline were showing based on tax returns is 590,000. Correct . Cecile richards thats not my annual compensation. Actually my annual compensation is 520,000 a year sharyl its not just planned parenthood and the nfl. There are eyebrowraising salaries in nearly every sector of the nonprofit universe. The humane societys ceo wayne with income upwards of 400,000 in 2013. American Civil Liberties union ceo Anthony Romero earned a very civilized 497,000. Franklin graham, ceo of f the Christian Aid Group samaritans purse and son of evangelist preacher billy graham received a divine 880,000 for his wallet. In 2012, goodwills thenpresident john miller pulled in a bountiful 3. 5 million, counting his deferred compensation. And in higher education, u. S. Public College President s averaged salaries of 428,000 last year. What about public universities and colleges . Are there similar concerns with those . Rep. Chaffetz when the american taxpayers are having to subsidize and fund these organizations, at the same time parents are struggling, myself included, ive got two in college, to pay these high tuition rates, why should the of dollars . Sharyl in a class of his own Ohio State University outgoing president gordon gee, who chalked up 6 million in compensation in 2013, the year he departed. When it comes to Health Care Nonprofits Kaiser Health plan has 20 executives who make over a million dollars. Chairman George Halvorson took in a healthy 10 million in 2013. And half the obamacare nonprofit coop insurers, including the Louisiana Health cooperative, are going belly up, but their executive salaries are far from anemic. The louisiana coop managed to find 1. 3 million for interim ceo terry shilling in 2013. Various nonprofits have argued they must pay big salaries to attract topnotch talent to stay profitable and preserve management stability nonprofit quarterly says salaries less than average might leave an organization concerned about attracting and retaining the highly skilled and motivated the goals. But chaffetz argues theres no bigger job than managing the country. So he has a bold new idea nonprofit executives shouldnt have a bigger salary than the president of the United States 400,000 a year. What if they say were gonna get far less talent if we start limiting our salaries . Rep. Chaffetz if you can be the president of the United States, managing a 3. 9 trillion dollar budget and all the headaches that goes with it, for 400,000 a year, so can the not for profit organizations. Sharyl at that planned parenthood hearing, democrat Elijah Cummings said for Profit Companies also get tax break, even those convicted of crimes, and called republican criticism of nonprofits hypocritical. Rep cummings these are Huge Companies that are actually guilty of breaking the law and their ceos make millions of dollars. Republicans never criticize the republicans targeted planned parenthood which provides essential high quality care to millions of american women more aggressively than all these companies combined sharyl but theres at least one case of outrageous pay where Many Democrats and republicans see eye to eye the Mortgage Loan firms fannie mae and freddie mac. In july, mel watt, who heads the federal agency overseeing them, approved a scandalous hike for ceos Timothy Mayopoulos and donald layton. They were making 600,000 apiece. Their raise . 650 to 4 million each. Congress moved quickly to block the increase. Rep. Chaffetz if you want to change your structure and be a for profit organization, make all you want. Im not trying to dictate this. Im just saying if youre taking the advantage of the subsidy that comes from being a not for profit, then youre not a seven figure paycheck. Sharyl tired of all the criticism, the nfl gave up its nonprofit status last april after 73 years. Theyll lose millions in tax benefits. But they wont have to publicly disclose goodells big salary, anymore. The week of thanksgiving, president obama signed the bill into law suspending the controversial compensation packages for nonprofits fannie mae and freddie mac. Those ceos are rolled back from millions to 600,000 a year. Thats still 200,000 a year more than the president makes. Still ahead on full measure, billions of dollars have been released to iran. Some fear it will be spent to both support terrorism and fuel a growing fight among arab states. And, well visit the only state capital in the u. S. To file for bankruptcy. Across america. Sharyl in the last few weeks a head spinning rush of headlines involving the u. S. And iran. U. S. Sailors captured and released. U. S. Hostages,ome held for years, also released. Nuclear guidelines met and sanctions ended. Iran has emerged as a new entity free to engage in world trade and with around a hundred billion dollars released by the u. S. The question is, does giving that kind of money to the Worlds Largest state sponsor of terrorism make the u. S. And world safer or more we spo with juan zarate, a Terror Financing expert and senior aisor at the center for Strategic International studies. He was Deputy National security advisor during the george w. Bush administration and is author of treasurys war the unleashing of a new erera of financial warfare. I looked on the state Department Website and iran is still listed as the largest state sponsor of terrorism in the world. In the u. S. View. Isnt there some concern that some of that money were releasing can go saight into e terrorism funnel . Mr. Zarata its a huge concern. The fact that iran, the regime itself, which is unrepentant in its policies, and c certainly continues to support terrorist groups around the world, as well as regimes like t the assad regime in syria, will now have a windfall. This is an economic windfall. The world bank has said so. The iranians have said so. And theyre going to use that money to support their proxies. To support their allies. And weve already heard from hasan nisrala, hezbollah assad of syria, that they expect capital. They expect funding. They expect support from iran at this point. Sharyl in your personal viewpoint, what does that mean for us . Mr. Zarata that means not only have we taken the military option off the table, weve taken on our most if i have economic pressure and Financial Measures off the table as well. We may designate certain individuals or entities here or there for other sanctions but we have now in this agreement committed to reinject being the reinjenthing the iranians into the financial system. Sharyl is there a downside to the hostages release and in the regional for all this happening . Mr. Zarata i think everyone is incredibly happy. And certainly pleased for the families of hostages that were returned. I think the problem, though, is the perception that the administration has now made it a practice of prisoner swaps or things that the hostage takers want. And though it seems to be an isolated case, its now become a bit of a practice. Youve had the bergdahl case and the cuban negotiations. Youve youve had other instances with iran where the hostage takers are in essence rewarded and given something in return for what theyre doing. And that has enormous policy implications and certainly creates incentives for regimes like iran or Even North Korea or terrorist groups to take americans, if in fact they think they can get something valuable in return. And its not a surprise that the day that that prisoner swap happened, you had three americans taken hostage in baghdad. From what appears to be iranianbacked militias in that country. Sharyl the administration believes its made a great deal and helped make the u. S. And world safer. And the analysis you give is a different picture. How could they be so opposite from one another . Everyone hopes that the deal is a positive step. And not only constraining the Iranian Nuclear program. But perhaps a window into a new relationship between the u. S. And iran. Thats the great hope that this administration has had with this deal. That its a cornerstone for the are a approachment raprochment or new relationship with iran. I dont see evidence that that is going to happen and i worry at what weve done to front load these benefits of this negotiation for the iranians by giving thengm so much of the capital back early, giving them so much say as to how this then progresses, given them a say as to how the regime actually unfolds on the ground doesnt do much to ensure our leverage long term. And at the end of the day, best case scenario, iran can simply have a patient path to a nuclear progogram thats more legitimate, thats better hasnt really changed but is more emboldened and enriched and able to disrupt u. S. Interests around the world. Thats where i have trouble with where were headed with this deal. Especially a time when iran seems more aggressive, more blagojevich rant and certainly more blagojevich rent and more willing to attack u. S. More belligerant and more willing to attack u. S. Interests. Sharyl has the iranian deal made the u. S. Safer . Mr. Zarata this is not a moment where the Iranian Regime will transform itself and become a good citizen of the world. This is a moment where the regime is seen as an openingg to the world to take advantage and enforce reinforce and strengthen the power of the regime. Sharyl who advised george w. Bush says bush did not oppose making a deal with iran. The question is, will this particular deal succeed in making iran change its behavior . Still to come on full measure well visit one citth may be a canary in a coal mine. Sharyl some say the wolves of wall street are circling americas cities. They convince city leaders to use bonds to borrow what looks like easy money for projects. But the cities can end up in such deep debt they go bankrupt. Some of those cities claim theye the victims and blame the wall street middlemen who make money on the whole deal. Chris pabst of our affiliate wjla has our story. Chris you believe wall street took advantage of the city . Mayor papenfuse i think there was no question wall street took advantage of the city. Chris Eric Papenfuse is the current mayor of harrisburg, pennsylvania. In 2011, he watched his city become the first and still only state capital in American History to file for bankruptcy. Mayor papenfuse nobody wanted to stop the gravy train because everyone was profiting off the borrowing. Began with, of all things, a broken down incinerator. In 2003 longtime mayor stephen reed decided to borrow money to fix it, by issuing bonds. One way a city can borrow money is by selling bonds. So called munibonds are tax free and aractive to some investors. Just like a mortgage, the city promises to pay the money back on a certain date, with interest. But harrisburgs incinerator burned far more money than trash as the city borrowed, and kept borrowing. In eight years, the incinerator racked up nearly 400 million in debt, eight times the citys annual budget of 50 million. In 2011, harrisburg went belly up. Attorney Mark Schwartz is a former bond attorney who represented harrisburg during its bankruptcy. Mark schwartz wall street is more liable than h harrisburg. That mayor didnt put a gun to anybodys head. Chris wall street banks make a lot of money on commissions when brokering bond deals between 2003 and 2007, the harrisburg incinerator bonds paid out 16 million in fees, with a big chunk going to wall street bankers, lawyers and consultants. For them harrisburg was a cash cow even as it was going bankrupt. Mark schwartz the motivation is you make a lot of money as an underwriter. I was in the Municipal Bond business as a bond lawyer and second a as an underwriter. You dont get paid to not do deals. Chris the art of the deal was illurated in the biographical film, the wolf of wall street, where unscrupulous wall street brokers got filthy rich off the backs of investors. Move the money from your kwlinets pocket to your pocket. But make clients money at the same time it is advantageous to everyone, correct . Mark schwartz my clients were parttime councilmen and fulltime grandmothers. What kind of financial sophistication is there . Theyre lucky if they can understand how their Home Mortgage works let alone the stuff. To make matters worse bonds issued by cities are not subject to strict federal oversight. Making the industry according selfpoliced. Wall street gets to keep its millions and the people of yeah. Absolutely. Same as detroit. Same as puerto rico. Chris puerto rico rang in the new year by defaulting on its debt payments. The u. S. Territory is struggling with more than 72 billion in debt. Largely in the form of Municipal Bonds. Jefferson county, alabama, also built up over 4 billion in debt. To cover sewer repairs. And thrared bankruptcy in 2011. And the city of detroit shattered all records. Wi its 18 billion bankruptcy in 2013. The largest in u. S. Municipal history. Do you believe the people of harrisburg were victimized by wall street . I do. Chris so now harrisburg is former mayor steven reed was recently indicted by a state grand jury on 499 counts of corruption. He allegedly diverted public funds. Something he denies. Was anything you did criminal . Not that i know of. Chris the state is also pursuing civil and criminal investigation into the firms that made money on the bond deals. Charges have yet to be filed. But mayor papenfuse believes they are coming and harrisburg may just be the beginning. Paul burton is a financial reporter who covers the Municipal Bond market. The muni bond industry was a very sleepy operation. And now thanks to the harrisburg case, you see a little bit of a groundswell of pushback that you didnt see before. Chris pushback against wall street . Yes, exactly. Chris for long these bonds that bankrupted the city . Yes. And theyre looking at deals that didnt seem so kosher. Theyre worried and concerned and theyre paying attention. I think a day of reckoning for sharyl so chris, is the state doing anything about it . Chris the state is pursuing civil and criminal investigations into the firms that loaned the money. Specifically how those bonds were structured and also what advice they gave the city when the city was trying to lend this debt. And of course we did reach out to many of the firms. The largest firms involved in harrisburgs bankruptcy was citing potential litigation. They wouldnt comment to us and that includes the big ones. Royal bank of canada assured guarantee and public financial management. Sharyl fascinating story. Thank you very much. Chris pabst. Ahead on full measure when authorities arrestnd the infamous escaped Mexican Cartel leader, el chapo, they made a well tell you what they found. Sharyl this week officials revealed that a. 50 caliber rifle und at the stronghold of Mexican Cartel leader El Chapo Guzman came from fast and furious. That was the covert Justice Department operation that let thousands of weapons fall into the hands of mexican drug cartels. In a related development, a federal judge has rejected idpresident obamas use of executive privilege to withhold documents in fast and furious and ordered them handed over to congress. I and other reporters have sought the records for five years. They include internal emails showing whos behind the Justice Departments false claim to congress that there was no gunwalking the agency later admitted it was true. In 2012, the house held thenattorney general eric holder in contempt for the president kept them secret through his one and only use of executive privilege. The Obama Administration reportedly plans to appeal. In this weeks follow the money, democrats and republicans blasted a military task force that spent over 600 million of your tax dollars in afghanistan to spur economic development. The Inspector General testified much of that money was wasted. The task force is called the task force for business and Stability Operations or tfbso. John sopko tfbso, scattershot approach, goats unlimited approach, lets just do it. Nobody can say with any credibility that the programs were effective. Sharyl Inspector General john sopko said the task force spent without cost estimates upfront or benefit analyses later on we have almost 1 billion. No cost benefit analysis and no sustainability analysis. A program thats dumb on its face. What did d. O. D. Spend and should d. O. D. Have spent money to develop carpet, jewelry and ice cream businesses in afghanistan . Why is it that after operating for years and spending millions of dollars that most of tfsbo fully failed to meet objectives. A spokesman for the military saidhe task force produced a mixed bag. Time will tell whether the task force succeeded in its objective. Independent assessments tell us that it had mixed results. With some successes and some failures. Sharyl the task force was shut down last year. The Inspector General says the military has in some cases been uncooperative in its probes of the task forces spending. Afghanistan is marred by unfinished, poorlyly planned and ill conceived projects. Thats all for this week. Thanks nor watching. Next week well report on the eve of the iowa caucus and in the weeks ahead our scott filman will be back from europe with report from cologne, germany and the socalled rape game thats changing the discussion on the open door immigration policy in europe. Hell also offer a report from paris about how the french are adjusting after the terrorist attack and if theres a new normal in paris. He sent us this letter video postcard of the famous arc tromp. The blizzard of 2016 has thankfully come to a close, but it certainly has left a mark. Record snowfalls on the east coast, up and down the i95 corridor. More than two feet of snow hitting our nations capital. As a result, the nhl showdown we had hoped to bring you, the Pittsburgh Penguins and washington capitals, will have to wait for another day. Good afternoon. Certainly hope that all of you
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