Los Angeles: The City of Fees and Conflicts of Interest

Making News

City Housing Commissioner Faces Scrutiny for Alleged Conflicts ()

District Attorney Steve Cooley is investigating possible conflicts of interest on the part of the chairwoman of LA Mayor Villaraigosa's housing commission, which grants roughly a billion dollars in federal rent subsidies to needy families. Beatriz Stotzer also works for developers of low income housing, which receive the subsidies in the form of Section 8 vouchers. She is the president of one such developer, which manages apartments where two of her sons live. The story was first uncovered by CBS2 News, where David Goldstein is an investigative reporter.

Note: We contacted Ms. Stotzer's office, but she did not respond to requests for an interview.)

Guests:

• David Goldstein: KCBS/KCAL Television

Main Topic

Los Angeles: The City of Fees ()

The City of Los Angeles has furloughed some workers, laid off others and cut services to get rid of a deficit once set at $450 million. At the same time, it's failed to collect some $541 million in unpaid debt. Billing problems have turned up in audits by the elected City Controller, Wendy Greuel, and now the City Council has created a new job, Inspector General of Collections. We hear from Greuel and from the only council member to vote against the new position, Dennis Zine from the San Fernando Valley.

Guests:

• Wendy Greuel: Los Angeles City Controller, @Wendy_Greuel
• Dennis Zine: Los Angeles City Councilman, @dennispzine

Links:

• Greuel on insufficient policies, poor oversight on parking citation process (Gold Card)

Reporter's Notebook

Defense Department Eyes SoCal for Big Bomber Contract ()

Defense contractors used to dominate the economy in Southern California, but in recent years they've moved operations to other states. Now, as Congress and the Obama Administration talk of reducing Pentagon spending, another big project may be in store for the Mojave Desert.  W.J. Hennigan reports for the Los Angeles Times.

Guests:

• Bill Hennigan: Los Angeles Times, @wjhenn

Main Topic

Three Years Later, the Housing Crisis Continues ()

Three years after the housing market began to collapse banks own more than a million homes due to foreclosures, with another million on the verge of repossession this year and millions more in years to come. Economists call it a "glut" that's extending the housing crisis and pushing down prices. In several states, attorneys general say they're trying to rebuild public confidence in the home loan industry by going after banks and lenders for fraud. Could criminal convictions restore public confidence or is it already too late?

Guests:

• Michael Troncoso: California Attorney General's Mortgage Fraud Strike Force
• Mark Calabria: Cato Institute
• Joshua Rosner: 'Reckless Endangerment'
• Matt Taibbi: Rolling Stone, @mtaibbi

Links:

• Dodd-Frank Wall Street Reform and Consumer Protection Act
• Rosner's 'Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon'
• Taibbi's 'Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America'