Janet Cowell says the treasurer's legal authority should be clarified.

The Democratic state treasurer-elect said she believes the office should have the authority to hire its own attorneys to lead class action lawsuits, such as one proposed by Treasurer Richard Moore against mortgage giant Freddie Mac.

North Carolina's attempt to play a lead role in that suit was rejected by a judge after Attorney General Roy Cooper objected, saying that his office should handle the lawsuit.

Cowell told Dome that was unfortunate. She hopes the legislature will clarify the legal role of the treasurer and she pledged to work with Cooper's office to come up with a list of outside law firms approved by both offices that could be hired for such suits.

"Clearly, as treasurer I would like to have that kind of authority and know I've got the full set of tools at my disposal to go after losses," she said. 

She added that she would still prefer the matter be resolved, even if the legislature stopped short of giving the treasurer the full legal authority she prefers.

"I think that's a question worthy of clarification," she said. 

State Treasurer Richard Moore and Attorney General Roy Cooper disagree over who should represent state workers in a class action lawsuit.

Moore has hired two law firms in a suit that argues that Freddie Mac, the federal government-backed mortgage company, concealed and misrepresented to investors its poor financial practices, leading to huge losses, and failed to have enough assets to protect itself against a downturn in housing prices.

The lawyers are seeking to convince a federal judge that the North Carolina retirement system, which invested in Freddie Mac, should be the lead plaintiff. One of the firms, SZD Wicker, includes former Lt. Gov. Dennis Wicker, a big backer of Moore's failed gubernatorial campaign.

Last week, Cooper's chief deputy attorney general wrote the treasurer's lead attorney saying Moore's office had "no legal authority" to hire lawyers to represent the state, citing a state law that requires agencies get approval from the governor.

Moore could not be reached for comment. (N&O)

A new ad from the Democratic Senatorial Campaign Committee criticizes U.S. Sen. Elizabeth Dole for not taking a more active role on banking issues.

What the ad says: The ad shows a U.S. Senate seat with a sign reading "Elizabeth Dole, Wall Street." Images of trading floors and a couple looking at their monthly bills. "Our economy in meltdown. Elizabeth Dole. Six years on the banking committee. Sixty hearings. Silence. Not one question. Not one statement. But she was busy, raising $850,000 from Wall Street. But for us, she voted against helping families keep their homes. Newspapers called her "ineffective," "with Bush ... not North Carolinians." Elizabeth Dole, fighting for Wall Street — but what about us? The Democratic Senatorial Campaign Committee is responsible for the content of this advertising."

The background: The ad makes several claims about Dole's record.

BANKING COMMITTEE: Dole has served on the U.S. Senate Committee on Banking, Housing and Urban Affairs since 2003.

According to transcripts of committee hearings collected by the Democratic Senatorial Campaign Committee, Dole did not ask any questions or make comments at 65 hearings held between Sept. 16, 2003, and July 29 of this year.

Dole spokesman Dan McLagan said the DSCC's list included some wrong committees and times when she was speaking on the Senate floor, but he would not give a detailed explanation.

"At first glance their list is riddled with errors," he said. "I am not going to devote staff time going through their list line-by-line."

According to campaign finance data collected by the Center for Responsive Politics, the Salisbury Republican has raised $906,905 from several different parts of the financial sector, including $270,985 from securities and investment firms, $247,377 from insurance companies, $242,075 from commercial banks and $146,468 from miscellaneous finance companies.

McLagan noted that those companies include North Carolina-based banks such as Wachovia, BB&T and Bank of America.

FORECLOSURES: Earlier this year, Congress considered a comprehensive bill reforming housing and mortgage regulations in order to address the rising number of foreclosures.

One version of the bill would have allowed bankruptcy judges to reduce the amount owed or changed the interest rate on a mortgage as part of a debt restructuring.

According to a Feb. 29 story in The New York Times, the Bush administration and Republican senators, including Dole, blocked the bill in a party-line vote to eliminate that and other provisions.

"That provision, supported by a wide range of consumer and civil rights groups, drew intense opposition from the mortgage industry, whose lobbyists argued that it would increase risks for lenders and drive up mortgage rates in the future," the Times wrote.

McLagan said the measure would have caused more problems than it solved.

"In a tight credit market, it would have tightened the market further," he said.

Dole voted against a measure in April to provide $100 million for foreclosure counseling, since the measure was not accompanied by an equivalent spending cut elsewhere in the budget.

NEWSPAPERS: Endorsing Democratic Senate candidate Kay Hagan, the Asheville Citizen-Times said Dole was not able to persuade her colleagues to tackle lending reforms.

"Though ... she was one of a handful of senators raising the alarm about the need for more oversight of Fannie Mae and Freddie Mac for the last five years, she was ineffective in persuading her fellow senators to take action," the paper's editorial board wrote.

In its endorsement of Hagan, The Charlotte Observer said Dole had been ineffective generally.

"Dole should be a terrific senator," the paper's editorial board wrote. "That's why her ineffectiveness in representing North Carolina is such a surprise and such a disappointment."

The Winston-Salem Journal said in its endorsement of Hagan that Dole spent too much time on partisan issues.

"No one questions Dole's work ethic," the paper's editorial board wrote. "She's a vibrant woman. But while in Washington, Dole has reserved her best efforts for issues of importance to the national Republican Party and the Bush administration, not North Carolinians."

Is it accurate? Mostly. The claims quotes from newspapers are accurate. Most observers agree the measures Dole voted against would have helped homeowners, though there is disagreement on their negative effects. It is hard to gauge the truth about the claim about her silence at committee hearings, although it is clear she did not talk as much as other senators.

A group of North Carolina supporters of John McCain argued today that his policies would help with the current problems in the financial industry.

On a conference call with reporters this morning, the Republican presidential candidate's senior policy advisor, Nancy Pfotenhauer, UNC-Wilmington professor J. Edward Graham and Charlotte businessman Mark Erwin said a combination of lower taxes, reduced spending and more free trade would help the economy recover.

Pfotenhauer attacked Democrat Barack Obama for not offering more specifics in his proposals for handling recent problems with Freddie Mac, Fannie Mae and AIG. She said he offered only "rhetorical pablum."

"It's like saying you're for puppies, kittens and sunshine," she said.

Erwin, a former supporter of Hillary Clinton who endorsed McCain in August, said Obama's plan for a tax hike on the highest income earners and a middle class tax cut would hurt the economy, since it would hurt taxpayers who are "creating the jobs and generating the wealth."

"As I try to understand Senator Obama's economic plan, it seems to be designed for those people who failed math in school," he said.

More after the jump.

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Sarah Palin rang up U.S. Sen. Elizabeth Dole today.

The Republican vice presidential nominee called up North Carolina's senior senator around 3 p.m. to thank her for the kind words Dole's had for her in recent days, according to a Dole spokesman.

Dole has called Palin a "spark plug" for the Republican ticket at recent campaign stops and her campaign has asked about a potential campaign visit to North Carolina.

During the call, the two women talked about Dole's re-election campaign and the recent problems with Fannie Mae and Freddie Mac. Dole also personally invited Palin to visit.

They spoke for about five minutes as Dole was in her car driving to the Gang of 20 meeting on alternative energy legislation.