Texan senate breaks own rules in failed attempt to pass anti-abortion bill

"This is what democracy looks like".

There's confusion in Texas this morning, after a marathon filibuster speech aimed at preventing the passage of restrictive abortion laws was seemingly ignored by the state senate leadership. Democratic senator Wendy Davis spoke for 11 hours before being interrupted, but colleagues picked up the baton and continued the filibuster until midnight, when the legislative session should have ended. Instead, it appears that the Republican leadership of the legislature is attempting to use a mixture of twisted rules and misdirection to claim that the law passed anyway.

Senate Bill 5, the act in question, would completely ban abortions after 20 weeks of gestation in the state, with no exceptions even in cases of rape or incest, and it requires two in-person visits with a doctor before an abortion can be provided. Moreover, it imposes stringent requirements on the doctors and clinics offering the service. Physicians must have admitting privileges at a hospital no more than 30 miles from where the abortion is performed which provides OB/GYN services. In practice, that will shut a huge number of clinics, particularly in rural areas, and force doctors to jump through yet more hoops to provide abortions. Finally, the bill requires every abortion provider to be licensed as an ambulatory surgical centre, a hugely expensive and cumbersome requirement; Planned Parenthood estimates that that license alone could cost well over $1m to obtain, and render all but five clinics in the state unsustainable.

Against that background, the Democratic minority of the Texan senate used all the legislative tricks at the disposal. At the centre of the fightback was Senator Wendy Davis, a 50-year-old lawyer from Fort Worth, and her attempt to filibuster the law. Due to the procedure under which the legislation was being passed, any vote had to happen before midnight local time; Davis delayed that vote for 10 hours and 45 minutes, but eventually fell prey to the senate's "three-strike" rule, requiring her to only cover topics "germane" to the bill.

Her first warning was issued for a discussion of Planned Parenthood's budget. Her second warning wasn't for deviation, but for violation of the convention that filibusters be made unaided and unassisted – she had received help from a fellow senator to put on a back brace seven hours in. That point of order went to a vote, which split down party lines. Finally, at 10:07 local time, Donna Campbell, the Republican senator for San Antonio, called a third point of order when Davis began discussing the impact of a 2011 Texan law requiring sonograms before abortions. At that point, with three strikes, a simple majority vote was all that was needed to end the filibuster.

With less than two hours to go, Democrats began using other tactics to push the vote past the midnight deadline. Senator Kirk Watson filed an appeal against the Republican Lieutenant Governor's decision to sustain the third point of order; Senator Leticia Van de Putte asked for a run-down of the reasons for all three points of order; and eventually, decorum broke down entirely, with Senators from both parties openly speaking over each other. "At what point must a female senator raise her hand or her voice to be recognized over her male colleagues in the room?", asked Van de Putte in a moment of clear frustration.

In the end, it came down to the crowd. Cheering erupted with a quarter of an hour to go until the deadline, drowning out all other discussion. It intensified as the clock ticked down, and for a brief moment it looked like it had won the fight. Voting had started before midnight, but finished after; the last two questions were asked on 26 June, a fact clearly recorded on the legislature's website. Chants of "this is what democracy looks like" broke out.

But then it was the Republicans' turn to fight. Firstly the legislature's website went down. When it came back up, the timestamps had been altered to record all four votes as occurring on 25 June. Lt. Gov. Dewhurst told the AP that voting began just before midnight, leading the agency to report that the GOP had passed the bill, even as the assembled crowds were still celebrating their victory in preventing it.

As things stand, the Republican leadership of the legislature is acting as though the case is closed. The bill is being passed to Governor Rick Perry to be signed into law, and the assembled protestors outside the capitol are being forcibly dispersed. This is what democracy looks like, 2013 USA style.

That was fast. It took an hour of confusion, with both sides insisting their version of events were accurate, before the cold evidence seen by the 180,000 people watching the live-stream won out. Dewhurst reversed his posistion, and at 1:47am AP reported his declaration that the vote came too late to pass. The attempt to steal the vote nearly succeeded, and may well have done so if it weren't for the massive attention fostered on the bill by social media and campaign groups. Even while the protestors were being evicted, CNN was reporting on the calorie count of blueberry muffins. It's not as bad as it felt an hour ago; but damning nonetheless.

The Texas Capitol. Photograph: Flickr/tex1sam, CC-BY

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The need for responsible investment banking with a strong regional focus

Let’s begin by stating the problem: there’s a lack of long-term investment in the UK economy, both in infrastructure and in the capital needed to run productive businesses.  That counts double at a regional level across the country. This is an old song to be sure, but that doesn’t detract from its reality.  And with the main fallout from Brexit likely to be a decline in foreign direct investment, the investment gap is only going to get worse.

For example, the OECD think tank estimates an annual infrastructure investment of 3.5% of GDP is necessary in developed economies to maintain competitiveness, never mind boost it.  Currently, public sector infrastructure investment in the UK is forecast to reach to be 1.4% of GDP in 2020/21 – and that’s with the increase in capital spending offered in the Autumn Statement.

The curious thing, though, is that there is no actual shortage of capital.  In fact, in the City, there is probably the world’s biggest pot of footloose cash just looking for an investment opportunity. Which suggests that the failure to invest in UK Plc has more to do with the financial plumbing that anything else. Which brings us to investment banks and their role in the economy.

Today’s high street retail banks – the sort you keep your current account with – make their money from mortgage lending and hidden charges on overdraft facilities. The last thing they do is risk lending money to industry or for long-term infrastructure projects. That’s where dedicated investment banks come in.  Their job is to organise the financial plumbing that channels risk capital from its owner through to companies or infrastructure projects, using any means necessary: underwriting share issues, creating consortia to build windfarms, brokering mergers, managing funds, or selling advice.

To cut to the chase: the UK is suffering a blocked financial pipeline.  Our local investment banking system is in crisis.  Post the 2008 Credit Crunch, domestic banks in the UK – Barclays excepted - have been in wholesale flight from investment banking, which is perceived as having been the cause of their ruin. Certainly derivatives trading allied to insane levels of inter-bank lending formed the detonator of the 2008 implosion. And some institutions – notably HBOS – leveraged themselves to unsustainable levels in order to invest in the latter stages of a commercial property bubble whose eventual collapse was obvious to anyone but a banker. 

But the retreat from investment banking activities by UK firms brings problems. First it implies handing over the keys to investment banking and capital supply to Wall Street. Second, if Donald Trump launches his proffered $1trillion infrastructure investment plan for America, there will be a capital flight from the UK and Europe. All of which suggests that Britain needs to make its own arrangements for capital provision through a reformed and expanded domestic investment banking sector or see UK productivity continue to flat-line.

That’s not to say there aren’t questions still to be asked about the ethical behaviour of investment banks. The five biggest global investment banks operating in the UK regularly contrive to pay no corporation tax locally, despite making billions in profits.  Name and shame: I mean JP Morgan, Bank of America Merrill Lynch, Deutsche Bank AG, Nomura Holding and Morgan Stanley.  But without a domestic UK investment banking sector, we are still going to be ripped off.

There is even more of a problem in the regions and nations that make up Britain.  If anything, regional inequality in the UK has worsened since 2010, with London becoming more, not less economically dominant despite the financial crash. The most recent data show that London’s share of Gross Value Added (GVA) increased from 21.5% in 2010 to 22.6% in 2014, while GVA per head also grew quicker in London than elsewhere.  But regional stock exchanges have long since vanished meaning that what capital is available – for growing companies or local infrastructure needs – is stashed in London and won’t go north in a hurry.

There is no single solution to this set of problems so let’s experiment with trying to create various new bits of financial plumbing. First, accept we need an investment banking sector. Next, let’s create some domestic competition in the sector. RBS has spent too much time chasing its tail and downsizing. It’s time RBS recovered its mojo and went back into the investment banking business. Besides, that is probably the only way it is ever going to start generating real profits again.  All it takes is for UKFI, its public owner, to tell CEO Ross McEwan to change course.

We can also unlock domestic capital specifically for safe, long-term infrastructure projects. Here the problem is Solvency II, the new EU regulations governing the capital requirements for the insurance sector and the pension funds they manage. UK pension funds invest an estimated 1% of their total assets in infrastructure. But this is very low compared with funds in Australia and Canada, where 8-15% of assets are invested in infrastructure.  The problem, complain UK insurers, is that the Prudential Conduct Authority is over-interpreting Solvency II and treating the industry as if it were a dodgy bank.  If capital requirements imposed by the PRA on UK insurers were eased, there would be more capital to invest in local infrastructure.

One possible hard solution to the regional investment gap comes from the New Economics Foundation in conjunction with Common Weal, a pro-independence Scottish think tank.  They are pushing the SNP Government at Holyrood to create a Scottish National Investment Bank and have published a detailed blueprint as to how it could work. Using Scottish Government figures for job creation from capital investment, their joint report states that such an investment bank could directly support the creation of 50,000 jobs “within just a few years of being established”.

Investment banking has become a dirty word since 2008. It’s actually a necessary part of the financial furniture.  The trick is to make it work properly. And for that to happen, politicians and regulators have to be pro-active.

Barclays has commissioned a report ‘‘What have the Capital Markets ever done for us? And how could they do it better?’’ by New Financial with the hope to start a debate about the value of capital markets to the economy, especially in the UK. Many thanks go to those who joined us at our events with New Statesman so to examine the report’s findings in detail.

For the previous feature in the series, see Alison McGovern’s Why we must maintain the highest standards in banking in the new political landscape.

George Kerevan is the SNP Member of Parliament for East Lothian.