TPMDC Morning Roundup
AIG CEO To Defend Company And Bonuses Before Congress Today
AIG CEO Edward Liddy will be testifying today before the House Financial Services subcommittee, defending his company amidst the public uproar over the massive bonuses paid to its Financial Products division. The hearing begins at 10 a.m. ET.
Obama's Day Ahead
President Obama is holding a closed meeting with the Congressional Hispanic Caucus at 10:45 a.m. ET.
He will deliver remarks from the South Lawn at 12:30 p.m. ET, and then leave the White House for California. At 7 p.m. ET, he will hold a town hall event in Costa Mesa, California, discussing the economy, and then spend the night in Los Angeles.
Biden's Day Ahead
Joe Biden is holding a conference on stimulus implementation with local government officials today. He will be speaking at 11 a.m. ET.
Bush Won't Criticize Obama: "He Deserves My Silence"
Former President George W. Bush said during a visit to Alberta yesterday that he won't attack President Obama. "There are plenty of critics in the arena," said Bush. "He deserves my silence."
More GOP Senators Announce Opposition To Iraq Ambassador Nominee
Five Republican Senators -- Jon Kyl, Sam Brownback, Jim Inhofe, John Ensign and Kit Bond -- have sent a letter to the White House, calling for the withdrawal of the nomination of Christopher Hill to be the ambassador to Iraq. Hill's nomination does not appear to be in danger, as he currently has the support of Republican Senator Dick Lugar.
Report: Tauscher Going To State Department
Roll Call reports that Rep. Ellen Tauscher (D-CA) will be appointed to a position in the State Department, heading up arms control and nonproliferation efforts.
Poll: Americans Scaling Back Purchases
A new CNN poll finds that 62% of Americans say they've postponed major purchases such as appliances or furniture, and one in three say they've cut back on necessities, too. "Think increased consumer spending will rescue the economy? Think again," says CNN Polling Director Keating Holland. "Cutbacks in major purchases are the same for rich as well as poor Americans."
Kundra Reinstated As White House CIO
The New York Times reports that Vivek Kundra has been reinstated as President Obama's chief information officer. Kundra temporarily stepped aside after his former office in the D.C. city government was raided by the FBI, but it has become clear that he himself was not a target of the investigation.
Josh
Matt
Eric
Brian
RE: Chris Hill. So, John Negroponte with his lack of ME experience and his shady dealing in Central America was A-OK? What BS, time-wasting posturing.
March 18, 2009 9:14 AM | Reply | Permalink
Once again I will say, this AIG stuff won't be discussed past next week.
March 18, 2009 9:18 AM | Reply | Permalink
I'm curious as to why all of the AIG buildings in the US are still standing and unburnt.
March 18, 2009 9:26 AM | Reply | Permalink
If only President Bush and VP Dick Cheney played by the same rules.... this interview with Cheney makes me so pleased with the country's new administration (even with the AIG nonsense). http://www.governmentalityblog.com/my_weblog/2009/03/dick-cheneys-success-story.html
March 18, 2009 9:26 AM | Reply | Permalink
Obama Proposes Trade of AIG Executives in Primitive Swaps
http://satiricalpolitical.com/?p=6600
March 18, 2009 9:33 AM | Reply | Permalink
I just don't see this AIG stuff sticking on Obama, the greedy AIG fat cats seem to be getting most of the backlash.
If the GOP wanted to pin this on Obama they should have used this as proof he's trying to do too much. They could have taken the stance "We know President Obama would never have stood for such bonuses, we believe he learned about them after the fact like the rest of us did. And that's the problem, he should have known and this is proof that he's taken too much on his plate and should be laser focused on the economy right now".
March 18, 2009 9:47 AM | Reply | Permalink
Why are you giving the GOP ideas?
March 18, 2009 10:00 AM | Reply | Permalink
Oh, he does that all the time. I hope they do what he is saying, because it wouldn't fly.
March 18, 2009 10:04 AM | Reply | Permalink
Allow a longtime reader to comment on the inappropriateness of the "AIG is so far gone" comment of Mr. Kurtz, and the general tone of TPM on the AIG bailout.
TPM may be prepared to conclude that the whole AIG bailout is a sordid mess worthy of disdain, but the last time I checked the bios of Mssrs. Marshall, Kurtz, Kleefeld and Ms. Schor, none of them have backgrounds that readily distinguish them as market experts, and so I would ask that maybe they stick to talking to people who do, report back what those people say, and leave the embedded commentary aside just this once.
Some of us who are admittedly not market experts would like some straight reporting so we can understand what's what. The commentary can come later, or at least, lighter.
March 18, 2009 10:32 AM | Reply | Permalink
Well, I would say that aig was so far gone in September when they shoveled all that tax payer money into aig to prop it up and took an 80% interest in the company. AIG is so upside down right now, it's not even funny. Primarily aig is a paper shuffler and the paper it is shuffling is worthless. As evidence of how so far gone the company is, it is only trading at 83 cents. Most companies that are forcast to go into chapter 11 usually trade at at least a buck. Far gone is an understatement in my book.
They are basically keeping it afloat for a while until the insurance policies on the credit default swaps expire. Half have expired to date. Also, there is no market in the current environment for the "profitable" parts of the company. Nobody is buying. Once the environment improves, the profitable parts will be sold off and the company will cease to exist.
March 18, 2009 10:42 AM | Reply | Permalink
If you have a minute, can you help me understand why they need to wait for the credit default swaps to expire?
March 18, 2009 11:52 AM | Reply | Permalink
Sure, I heard this on npr radio. They explained that the policies issued on the credit default swaps have an end date, which I found unusual, as opposed to being tied to the underlying 30 year paper. When they took them over there was something like 600 billion in policies and since then they are down to something like 300 billion. If there is no claim that can be made on the policies, the policy expires, even though it is listed as a liability during the duration of the policy.
Now, I haven't read the policies, but I presume that there is some type of triggering provision that they are trying to avoid by propping up aig.
That's what this guy was saying. Basically, they are trying to keep it afloat until the policies expire.
March 18, 2009 12:52 PM | Reply | Permalink