Governor Paterson Announces Details of Agreement with NYC on Immediate State Takeover of New York City OTB

1,500 OTB Workers Will Report To Work Monday Morning;

Legislative Action to be Taken up by Legislature Tomorrow

Governor David A. Paterson today announced the details of the City and State agreement on an immediate State takeover of New York City Off-Track Betting (OTB).

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“The finalization of this agreement is a win for the state, a win for the city of New York and a win for the people whose livelihoods depend on a well-run OTB,” said Governor David A. Paterson. "I thank the Mayor and his staff for their hard work this weekend, Speaker Silver and Majority Leader Bruno for their leadership, and welcome 1,500 OTB employees back to work on Monday.”

Per the agreement between the City and the State there will be an immediate takeover of OTB by a newly formed state public benefit corporation. The legislation will be taken up Monday by the Legislature. In addition, the City will temporarily postpone its layoff notices, pending completion of the takeover, at which point they will be rescinded. As part of this agreement, the City will continue to receive the portion of the surcharge that is related to bets placed on races at tracks within the city limits. In 2007, this amounted to $4.25 million.

In addition, the City will agree to continue to broadcast races on behalf of NYC OTB for a period of three years over the city's channels 71 and 73 on Time Warner Cable. NYC OTB will pay the City $3.25 million per year during the term of this agreement. After three years, the parties will negotiate in good faith to see if a mutually acceptable agreement can be made to continue NYC OTB's access to Channel 71 and Channel 73.

Senate Majority Leader Joe Bruno said: “I am very pleased that we have reached a final agreement that assures that 1500 OTB workers will have a job tomorrow morning and that we can begin discussions on a long term resolution of off track betting that compliments the investments we have made at our thoroughbred and harness tracks. I congratulate Governor Paterson and Mayor Bloomberg for their efforts to resolve their differences and look forward to concluding other outstanding issues involving NYRA and Aqueduct before we conclude the session on June 23.”

Assembly Speaker Sheldon Silver said: “We are pleased to have been able to help work out an agreement for an immediate state takeover of NYC OTB. OTB is an important part of the thoroughbred racing industry, and racing is important part of the state economy. There is much that has to change to make the thoroughbred racing industry in general and OTB in particular more profitable, and this agreement helps move us toward that goal. I want to express my thanks to Assembly Racing and Wagering Committee Chair Gary Pretlow and to Governor Paterson, Senator Bruno and DC 37 Executive Director Lillian Roberts.”

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Countrywide gave special treatment to US lawmakers: reports

Sat Jun 14, 4:06 PM ET

Countrywide Financial, the largest mortgage lender at the center of the US housing crisis, regularly gave loans on favorable terms to prominent lawmakers and former cabinet members, according to US media.

The preferential treatment for senators including Democrat Chris Dodd, chairman of the Senate Banking Committee and a recent presidential candidate, was approved by Angelo Mozilo, chief executive of Countrywide Financial, the Washington Post reported on Saturday.

CondeNast Portfolio magazine first broke the story on Wednesday, saying the recipients of the favorable terms were known as "Friends of Angelo" in internal company documents and e-mails.

"Make an exception due to the fact that the borrower is a senator," Mozilo wrote in one e-mail obtained by the magazine, referring to a loan for Kent Conrad, a Democratic lawmaker from North Dakota.

The other officials who allegedly received special attention from Mozilo included President George W. Bush's former housing secretary, Alphonso Jackson, and two senior figures from former president Bill Clinton's administration -- former United Nations ambassador Richard Holbrooke and former Health and Human Services secretary Donna Shalala, the magazine wrote.

Mozilo made no effort to conceal his special favors, Guy Cecala, publisher of Inside Mortgage Finance Publications, told the Washington Post.

"It was something he handed out like party favors. He was fairly forthcoming with it," Cecala said. "As long as I can remember, he was offering that."

Dodd and Conrad, the chairman of the Senate Budget Committee, denied they had sought out or received any special deals.

"I was never told I was given preferential treatment. I didn't ask for it, didn't seek it, and as far as I know, I didn't get it," Conrad was quoted as saying by the Post.

Dodd, who has been mentioned as a possible vice presidential pick, said: "As a United States senator, I would never ask or expect to be treated differently than anyone else refinancing their home."

The reports come shortly after former Fannie Mae chief executive Jim Johnson was forced to resign as an adviser to Democratic presidential candidate Barack Obama following a report in the Wall Street Journal alleging he received favorable treatment on loans from Countrywide.

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Why do we care if 1500 OTB workers have jobs? The organization was a net drain on NYC which means it was a drain on the tax payer. Keep the betting at the race tracks and close OTB down. The State would be better off.