Tuesday morning headlines

Money and the mayor: During his first two years in office, Mayor Antonio raised $19.6 million for his favorite causes, largely by asking companies and individuals for five- and six-figure contributions. LAT story has lots of examples of the corruption (well, what else do you call it?).

When Los Angeles Mayor Antonio Villaraigosa arranged a reception celebrating trade with Mexico, two real estate developers stepped in to pay the $25,000 catering bill. One wants city approval for the 5,553-home subdivision known as Las Lomas. When Villaraigosa welcomed then-British Prime Minister Tony Blair to the mayor's mansion, four companies covered the $60,000 tab. One is building condominiums in Hollywood, and another wants the city's help in revitalizing a historic theater district. And when Villaraigosa was host for four days of festivities for the U.S. Conference of Mayors last summer, he took in $1.6 million from dozens of contributors, many of whom do business with City Hall.

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The mayor's willingness to tap so many companies for so many initiatives unnerves some neighborhood leaders, who contend that City Hall has become an uneven playing field, where big contributors have far more pull than the average citizen. "The money we're talking about, that is . . . just a lot of goodwill," said Laura Lake, a Westwood-based activist who also works as a land-use consultant. "It means that every call will be returned [by city officials] and every effort will be made to accommodate requests" from the people who gave the money. Villaraigosa declined to comment directly for this report. But spokesman Matt Szabo said the contributions do not in any way affect how the mayor or his appointees handle city projects.

Writers hold pep rally: Only a few dissenters showed up at the WGA West membership meeting last night, according to Nikki Finke's account. Guild officials took the occasion to turn down waiver requests by the Hollywood Foreign Press Association and the Academy of Motion Picture Arts & Sciences (if the strike keeps going, would they consider just cancelling their events?). Also at the meeting, plans were announced for STRIKETV.com, where clips of video material will be put up.

LAX drops baggage plan: Another bright idea bites the dust - but not before five years of study and $25 million in design costs. Airport commissioners said the baggage-screening system planned for five terminals had become too complicated and costly. The baggage system was part of a massive modernization program and was developed as part of overall security measures. (Daily News)

Another mortgage proposal: Now that we're in the middle of a housing crisis, there are no shortage of ideas on ways to improve the system. This time, it's the Federal Reserve proposing a plan that would curb the types of subprime products lenders can offer, prohibit certain misleading disclosures, and limit the compensation of mortgage brokers. It also would ban brokers or creditors from coercing or influencing home appraisers to misrepresent the value of a home. From the WSJ:

The staff's proposal is aimed at rooting out many of the lending practices that proliferated during the recent housing and credit boom. Many of these practices, such as certain prepayment penalties and low-documentation loans, are attributed with exacerbating the current mortgage crisis. The proposal would apply to all lenders -- state and federally licensed -- touching every corner of the mortgage market. The Fed has never used this authority this broadly before, and it has been under constant criticism this year for not acting more aggressively as lending standards deteriorated in recent years.

Long Beach approves port cargo fee: This is a big deal because it’ll help subsidize a fleet of newer, cleaner short-haul diesel trucks. The Port of Los Angeles is scheduled to consider a similar fee Thursday. The fee may increase the cost of goods shipped by container, but community and environmental groups have been pushing hard to reduce pollution in the area. (LAT)

Pellicano evidence is questioned: Lawyers for the jailed Hollywood gumshoe say that prosecutors seized evidence that had been improperly obtained and should be tossed out. But U.S. District Judge Dale S. Fischer didn’t seem convinced. Pellicano and his co-defendants — including prominent show biz attorney Terry Christensen - face charges of participating in a wiretapping ring on behalf of stars, industry moguls and others. Trial date is Feb. 27. (NYT)

Assembly approves health care bill: If the Senate approves the legislation - and voters agree to pay for it - it would extend coverage to nearly 70 percent of the state's permanently uninsured and require most Californians to buy health insurance. Of course, voters must agree to pay for it and that may be difficult (the plan relies on fees imposed on hospitals and employers and a tax hike of up to $2 on a pack of cigarettes). From the Sacramento Bee:

The governor's fellow party members, health insurance companies and groups representing small businesses criticized the proposal, saying it relies on overly optimistic funding sources. They also said it would penalize California employers and drive businesses out of the state. Assembly Minority Leader Mike Villines, R-Clovis, predicted voters would reject the proposed taxes. He also accused supporters of ignoring the state's fiscal crisis and engaging in a public relations blitz, rather than a policy discussion, to win plaudits from the media.

Calpers changes mix: California's big pension fund will shift billions of dollars from stocks and bonds into real estate, startup ventures and other private market investments. Over the next three years, the $250 billion fund also will pursue more investments overseas. Under the new strategy, overall stock holdings will be reduced from 60 percent to 56 percent. (Sacramento Bee)

Airlines challenge "Bill of Rights": Arguments will be heard today on the carriers' efforts to block the law, which is set to go into effect on an. 1. It would require airlines to supply food, working rest rooms and fresh air to travelers left sitting on aircraft that have been delayed for three hours or more. Airlines would be subject to fines of $1,000 per violation per passenger. From the NY Law Journal:

"At issue here is precisely the danger that Congress sought to prevent -- the prospect of overlapping and/or inconsistent regulation of air carriers by the federal government and each of the 50 states, with each state imposing its own requirements, prohibitions, and standards on air carriers," John Carter Rice of Rice & Justice in Albany wrote in the air carriers' memorandum of law. Efficient and reliable airplane service would be undermined, not improved, if carriers have to adhere to multiple forms of regulation in each state, the association argues. The plaintiffs also contend that the New York law violates the Supremacy and Commerce clauses of the U.S. Constitution.

Lacter on radio: This morning's business chat with KPCC's Steve Julian covers the last-minute shopping rush, a new agreement that will bring more visitors from China, and the value of NBA teams.