Roundup

TPMDC Morning Roundup

Eric Kleefeld | November 19, 2009, 9:00AM

Obama: U.S., Allies, Discussing Sanctions Against Iran
At a press conference in South Korea, President Obama said that the United States and allies could have a package of sanctions against Iran "within weeks." "We weren't going to duplicate what has happened with North Korea," said Obama, "in which talks just continue forever without any actual resolution to the issue."

Obama's Day In South Korea
President Obama visited U.S. Embassy staff and their families in Seoul, South Korea, at 10:10 a.m. local time (8:10 p.m. ET last night). He participated in an arrival ceremony at the Blue House, at 11 a.m. He held a bilateral meeting with South Korean President Lee Myng-bak at 11:15 a.m., with an expanded bilateral meeting at 11:50 a.m., and a joint press conference at 12:30 p.m, and a working lunch at 1:10 p.m. Obama delivered remarks to service-members at at Osan Air Base at 3:20 p.m., and departed South Korea at 4:05 p.m. (2:05 a.m. ET). He will arrive in Anchorage, Alaska, at 9:40 a.m. ET, will depart form Anchorage at 11:40 a.m. ET, and arrive at Andrews Air Force Base in Washington at 6:05 p.m. ET.

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Roundup

TPMDC Morning Roundup

Eric Kleefeld | October 28, 2009, 8:59AM

Kyl Prefers Opt-In Over Opt-Out; Thune Condemns Any Public Plan
The Hill reports Senate Minority Whip Jon Kyl (R-AZ) said he would much prefer an "opt-in" public option for state, over the opt-out model being offered by Democrats. Sen. John Thune (R-SD) expressed surprise at this, as it implies acceptance of a public option at all. "I'd be really surprised if Sen. Kyl votes for anything that includes a government plan," said Thune. "[Democrats] have to come up with a way for this to not look like what it is, but at the end of the day it still is what it is, which is a government plan."

Obama's Day Ahead
President Obama will deliver remarks at an 11 a.m. ET Congressional Gold Medal ceremony, honoring former Sen. Edward Brooke (R-MA), the first black Senator since Reconstruction. Obama will have lunch with Vice President Biden at 12 p.m. ET, and the two of them will host a 1:20 p.m. ET meeting with the co-chairmen of the President's Intelligence Advisory Board and the senior leadership of the intelligence community. At 2:30 p.m. ET, Obama will sign the National Defense Authorization Act for Fiscal Year 2010. Obama and Biden will meet at 3:10 p.m. ET with Secretary of Defense Robert Gates. Obama will attend a commemorative tree planting at 5:30 p.m. ET, and he will deliver remarks at a 6:05 p.m. ET reception, commemorating the enactment of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act.

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Roundup

TPMDC Saturday Roundup

Eric Kleefeld | October 24, 2009, 1:00PM

Obama: Big Banks Must Help Small Businesses
In this weekend's YouTube address, President Obama talked about his administration's commitment to small businesses -- and called on large banks that have been helped by the bailout to do their part:

"But while credit may be more available for large businesses, too many small business owners are still struggling to get the credit they need," said Obama. "These are the very taxpayers who stood by America's banks in a crisis - and now it's time for our banks to stand by creditworthy small businesses, and make the loans they need to open their doors, grow their operations, and create new jobs. It's time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system, and more broadly shared prosperity. And we're going to take every appropriate step to encourage them to meet those responsibilities."

Johanns Denounces 'Shameful' Health Care Deals
In this weekend's Republican address, Sen. Mike Johanns (R-NE) went after the Democrats on health care:

"We're about to significantly alter one-sixth of our economy -- now is not the time to shut Americans out," said Johanns. "Reports of this deal-making are shameful. Why do Michigan, Rhode Island, Oregon and Nevada get special deals on Medicaid costs? Why do New Yorkers with Cadillac plans get a pass on paying the tax? It is shameful. So now, as a select few deliberate over legislation that will mean higher premiums across the board; higher taxes for hard-working families; and cuts to Medicare for senior citizens; I ask: will this improve your life?"

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Roundup

TPMDC Morning Roundup

Eric Kleefeld | October 22, 2009, 8:56AM

Treasury To Order Steep Pay Cuts At Bailed-Out Firms
The Treasury Department is expected to order bailed-out financial firms to cut their compensation packages for their top executives -- with a 90% slash to base salaries, and a 50% cut to total compensation. Elizabeth Warren, the head of the TARP oversight committee, confirmed the reports: "It's real in the sense that it says,Guys, you have to understand that you can't party on like it's 2007. If you're going to take taxpayer dollars, then the game has to change. In that sense it's real."

Obama's Day Ahead
President Obama will hold a videoconference at 10 a.m. with Lt. General Karl Eikenberry, U.S. Ambassador to Afghanistan. He will meet for lunch at 12:30 p.m. ET with Speaker Nancy Pelosi. At 2:15 p.m. ET, he will sign the Veterans Health Care Budget Reform and Transparency Act. He will meet at 3:15 p.m. ET with Secretary of the Treasury Tim Geithner, and at 3:45 p.m. ET with Secretary of State Hillary Clinton.

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Michele Bachmann

Bachmann: America Won't Be The World Leader 'If We Dis Free-Market Capitalism'

Eric Kleefeld | September 28, 2009, 12:17PM

Rep. Michele Bachmann (R-MN) appeared late last week on Neil Cavuto's show on the Fox Business Channel, to voice her objection to the political culture of economic bailouts -- and to demonstrate her ability with street slang.

"Again, I hope the United States will not be the leader for government control of not only just the national institutions, but of non-financial institutions as well," said Bachmann. "We won't be the leader anymore in the world if we dis free-market capitalism."

"Dis capitalism," Cavuto responded. "I like the way you phrase that."

MA-SEN

TPMDC Morning Roundup

Eric Kleefeld | September 24, 2009, 9:01AM

Patrick To Announce Senate Pick, Kirk The Favorite
Gov. Deval Patrick (D-MA) will announce today his appointment for interim Senator, at an 11 a.m. press conference. The widespread expectation is that Kennedy family friend Paul Kirk will be appointed to Ted Kennedy's Senate seat, to serve as a caretaker until the January special election.

Obama's Day Ahead
President Obama will chair a 9:15 a.m. ET meeting of the U.N. Security Council. At 12 p.m. ET, he will co-chair, with British Prime Minister Gordon Brown, a meeting of the leaders of the Friends of Pakistan. He will depart from New York at 2:20 p.m. ET, arriving at 3:30 p.m. ET in Pittsburgh, Pennsylvania. At 6 p.m. ET, the President and First Lady will greet leaders of the G-20 and their spouses. At 7:30 p.m. ET, Obama will attend a G-20 leaders working dinner.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | September 14, 2009, 9:07AM

Poll: Americans Continue To Worry About The Economy
A new AP/GfK poll finds that 80% of Americans rate the condition of the economy as poor, and a majority continue to worry about their own ability to make ends meet. In addition, 68% worry about big, unexpected medical expenses, up 7 percent from July. In a silver lining for President Obama, only 20% blame him for the economic crisis, compared to 54% who blame George W. Bush, and 19% who blame Bill Clinton.

Obama's Day Ahead
President Obama will depart from the White House at 9:55 a.m. ET, arriving in New York City at 11:05 a.m. ET. He will deliver a major speech on the financial crisis at 12:10 p.m. ET, marking the one-year anniversary of the collapse of Lehman Brothers. He will depart from New York at 3:35 p.m. ET, arriving back at the White House at 4:45 p.m. ET.

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Ted Kennedy

TPMDC Morning Roundup

Eric Kleefeld | August 31, 2009, 9:01AM

Hundreds Line Up To Visit Ted Kennedy's Grave
The Washington Post reports that hundreds of people turned out on Sunday to visit the grave of Sen. Ted Kennedy (D-MA), after he was buried Saturday night at Arlington National Cemetery: "Arlington had been closed to the public for Kennedy's burial, which was attended only by family members and a few close friends. When the cemetery opened at 8 a.m. Sunday, a small group of people was already waiting. By 11 a.m., the line had swelled to more than 100 people."

U.S. Ramping Up Withdrawal From Iraq
The United States is working to withdraw forces from Iraq, picking up the pace a year ahead of the August 2010 deadline: "The goal is to withdraw tens of thousands of troops and about 60% of equipment out of Iraq by the end of next March, Brig. Gen. Heidi Brown, a deputy commander charged with overseeing the withdrawal, told The Associated Press in one of the first detailed accounts of how the U.S. military plans to leave Iraq."

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | August 10, 2009, 8:59AM

Obama Looks To Regain Momentum Over Recess
Roll Call reports that President Obama plans to use the August recess to regain momentum in the health care debate. "It's been confusing for people and there's a lot of misinformation, so the president is going to use August to set the record straight," said an unnamed senior White House official. "He'll be very direct."

Obama's Day Ahead
President Obama is spending today in Guadalajara, Mexico. He will hold a trilateral meeting at 10 a.m. ET with Mexican President Felipe Calderón and Canadian Prime Minister Stephen Harper. The three of them will hold a press conference at 12:30 p.m. ET. Obama will depart from Mexico at 2:15 p.m. ET, arriving back at the White House at 6:35 p.m. ET.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | June 17, 2009, 9:02AM

House Passes War Funding Bill Over GOP And Left-Wing Dem Opposition
The House of Representatives passed the $106 billion funding bill for the Iraq and Afghanistan wars, by a 226-202 margin. The roll call vote shows that only five Republicans voted in favor -- due to a GOP effort to derail the bill over the inclusion of money for the International Monetary Fund -- along with 32 Democrats voting No, on the grounds that the bill did not do enough to end the wars.

Obama's Day Ahead
President Obama will meet with financial regulators at 11:40 a.m. ET. At 12:50 p.m. ET, he will deliver remarks laying out a comprehensive regulatory reform plan. At 2 p.m. ET, he will meet with Sec. of Housing and Urban Development Shaun Donovan. At 5:45 p.m. ET, he will deliver remarks and sign a Presidential Memorandum to grant benefits to same-sex partners of federal employees.

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Guantanamo Bay

TPMDC Morning Roundup

Eric Kleefeld | June 16, 2009, 8:57AM

WaPo: Documents Suggest CIA Mistakes In Torture Of Detainees, False Confessions
The Washington Post reports that new documents show that key Guantanamo detainees told the Combatant Status Review Tribunal that they either lied to the CIA in order to stop being tortured, or were later informed of mistakes in their capture. "They told me, 'Sorry, we discover that you are not Number 3, not a partner, not even a fighter,'" said Abu Zubaida. And Khalid Sheikh Mohammed described his interrogation: "Where is he? I don't know," Mohammed said. "Then he torture me. Then I said yes, he is in this area."

Obama's Day Ahead
President Obama will meet one-on-one with President Lee Myung-bak, of the Republic of Korea, at 10:30 a.m. ET. They will have an expanded meeting at 10:45 a.m. ET, and then a joint press availability at 11:35 a.m. ET, and a working lunch at 12 p.m. ET. At 4:30 p.m. ET, Obama and Vice President Biden will meet with Sec. of Defense Robert Gates.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | June 12, 2009, 9:04AM

Obama And Congressional Negotiators Reach Compromise On Abuse Photos
House and Senate negotiators have approved a $106 billion compromise bill to fund the wars in Iraq and Afghanistan, after President Obama personally intervened on the controversy over an amendment to forbid the release of detainee abuse photos. The amendment was removed in the hope of assuaging liberal Democrats -- but Obama promised to use all means at his disposal to prevent their release.

Obama's Day Ahead
President Obama will meet at 2:30 p.m. ET with Sen. Sherrod Brown (D-OH), and at 2:50 p.m. ET with Sen. Dianne Feinstein (D-CA). At 3:30 p.m. ET, he will meet with Zimbabwean Prime Minister Moran Tsvangirai, who will press Obama for international aid and try to assuage the doubts about his country's political situation, given the uneasy power-sharing government he has with his rival, President Robert Mugabe.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | June 11, 2009, 9:02AM

Senate GOPers Ask Sotomayor For More Information
The Republican members of the Senate Judiciary Committee have sent Sonia Sotomayor a letter complaining that her questionnaire is incomplete, asking her to submit another supplement: "If you believe that your questionnaire is fully responsive, we would appreciate an explanation to that effect." They also ask her for copies of materials she edited for the Yale Law Review, and to explain why an all-female organization that she belongs to does not violate the Code of Judicial Conduct.

Obama's Day Ahead
President Obama will hold a town hall meeting at 1:10 p.m. ET today in Green Bay, Wisconsin. The subject of the event will be to discuss the need for health-care reform. He will arrive back at the White House at 5:10 p.m. ET.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | June 10, 2009, 9:01AM

Mitchell: Obama Administration Committed To Palestinian State
George Mitchell, the White House Special Envoy on the Israeli/Palestinian conflict, said today after meeting with Palestinian officials that Washington is committed to the creation of a Palestinian state, saying that Obama considered it "the only viable resolution to this conflict...for the aspirations of both sides to be met through two states." He also said the Administration will be seeking "prompt resumption and early conclusion" of peace talks.

Obama's Day Ahead
President Obama will have lunch with Vice President Biden at 12 p.m. ET. At 4 p.m. ET, Obama will meet with Sec. of the Treasury Tim Geithner. At 4:45 p.m. ET, Obama and Biden will meet with with Sec. of State Hillary Clinton.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | June 8, 2009, 9:01AM

Obama To Speed Up Stimulus Spending
President Obama is set to announce today that the administration is ramping up stimulus spending this summer, with a targeted goal of saving or creating more than 600,000 jobs. "We have a long way to go on our road to recovery but we are going the right way," Obama will say, according to prepared remarks.

Obama's Day Ahead: Meeting With The Cabinet
President Obama will be meeting with his Cabinet at 11:45 a.m. ET, after the morning's routine briefings with advisers. The big subject of the Cabinet meeting will be implementation of the Recovery Act, after reports over the weekend that Obama was going to ask his administration for specific goals to ramp up stimulus spending.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | June 5, 2009, 9:00AM

Obama Calls For Increased Efforts For Two-State Solution
In a press conference earlier today, alongside German Chancellor Angela Merkel, President Obama called for the international community to increase its efforts towards a two-state solution in the Israeli-Palestinian disputes. "I think the moment is now for us to act on what we all know to be the truth," said Obama, "which is each side is going to have to make some difficult compromises."

Obama's Day In Germany
President Obama arrived at Dresden Castle at 2:55 a.m. ET (8:55 a.m. local time), and held a bilateral meeting with German Chancellor Angela Merkel at 3 a.m. ET, then meeting with an expanded German delegation at 3:15 a.m. ET. At 4:10 a.m. ET, Obama and Merkel held a press conference, and then toured Church of Our Lady at 4:45 a.m. ET. Obama will tour Buchenwald Concentration Camp at 9:15 a.m. ET, and will then make a statement to the press at 10:05 a.m. ET. He will visit Landstuhl Regional Medical Center at 11:50 a.m. ET. He will depart from Ramstein Air base at 2:30 p.m. ET, en route to Paris, France.

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Afghanistan

TPMDC Morning Roundup

Eric Kleefeld | May 6, 2009, 9:00AM

Specter Loses Seniority On Committees
The Senate Democratic Conference voted unanimously last night to deny seniority to Sen. Arlen Specter (D-PA), putting him near or at the very bottom of the Democratic rankings in each of his five committees during this Congress. He will be the last Senator to ask questions during the upcoming Supreme Court confirmation hearings. This matter could potentially be revisited after the 2010 elections.

Obama's Day Ahead
President Obama will meet with Sen. Tom Coburn (R-OK) at 11:30 a.m. ET. Obama and Vice President Biden will then meet at 12 p.m. ET with Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-MT). At 2 p.m. ET, Obama and Biden will meet with President Hamid Karzai of Afghanistan, and then at 2:40 p.m. ET with President Asif Ali Zardari of Pakistan, followed by a 3:30 p.m. trilateral meeting with both Karzai and Zardari. Obama will then deliver public remarks at 4:15 p.m. ET.

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Pecora

Investigation Of Financial Crisis Idea Gaining Steam

Brian Beutler | May 1, 2009, 1:20PM

Earlier this year, House Speaker Nancy Pelosi suggested the creation of an internal "Pecora-like" congressional committee to investigate the causes of the financial crisis, and, since then, we've been following the idea as it moves closer to fruition.

In the last couple weeks, there have been some significant developments on that front. On the House side, influential Rep. John Dingell (D-MI) introduced a stand-alone resolution that mirrors Pelosi's preference. "This [House] select committee," Dingell said, would "be comprised of members appointed from the Committees on Financial Services, Agriculture, Energy and Commerce, and Oversight and Government Reform...modeled on the Pecora Commission that held hearings in 1932 and 1933 to investigate the roots of the Great Depression."

The Pecora investigations were conducted in the Senate Banking Committee, but you get the idea. Dingell hasn't been in close conversation with leadership about his particular plan, but he did send Pelosi a letter asking for her support. I asked Dingell spokesman Adam Benson why Dingell prefers this configuration as oppose to, for instance, an independent outside commission. He said, "The committees of jurisdiction should be involved because they'll be the ones to write any legislation that results from the investigation."

Senators Byron Dorgan (D-ND) and John McCain (R-AZ) feel much the same way. They introduced a measure that would create a select committee in the Senate with the same charge. "While I also support an outside commission, and have previously introduced legislation to establish such a commission," Dorgan said, "I believe the Senate has an important oversight responsibility that cannot be delegated. That's why we need a select Senate committee to investigate this financial crisis and make sure it never happens again."

That measure--an amendment to the Fraud Enforcement Recovery Act (FERA)--got the go ahead earlier this week when the bill overwhelmingly passed the Senate.

But another, similar FERA amendment would create an external commission, containing members appointed by both House and Senate leaders, and Hill sources suggest that's where the action is.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | April 24, 2009, 9:01AM

Al Gore, Newt Gingrich, John Warner To Headline Committee Hearing
The House Energy and Commerce Committee will be holding a hearing on climate change at 10 a.m. ET today, featuring an all-star line-up of guests: Former Vice President Al Gore, former Speaker of the House Newt Gingrich, and former Sen. John Warner (R-VA). Gore and Warner support various legislation to limit carbon emissions, while Gingrich was added at the last minute, at the request of Republicans, as an individual who is skeptical of the claimed human contribution to climate change.

Obama's Day Ahead
President Obama will meet with Vice President Biden for lunch at 12:30 p.m. ET. Then at 1:30 p.m. ET, he will speak about higher-education costs, discussing his proposal to end the Federal Family Education Loans program, a government subsidy to banks, in favor of direct government financing.

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Bailout

TPMDC Morning Roundup

Eric Kleefeld | April 21, 2009, 9:05AM

Geithner To Face Questions On TARP
Treasury Sec. Tim Geithner will be testifying at 10 a.m. ET today before the Congressional Oversight Panel for the TARP program, where he is expected to face tough questions on the progress of the program -- and regarding a recent report by Inspector General Neil Barofsky criticizing the program for benefitting business and being potentially unfair to the taxpayer.

Obama's Day Ahead
President Obama will meet with King Abdullah of Jordan one-on-one at 10 a.m. ET, and the two will hold an expanded meeting at 10:30 a.m. ET. At 2 p.m. ET, Obama will present the Commander in Chief's trophy to the Naval Academy football team. At 2:45 p.m. ET, he will meet with Ted Kennedy and Bill Clinton to discuss national service, and at 4 p.m. ET he will sign the Edward M. Kennedy Serve America Act into law, at the SEED School in Washington.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | April 17, 2009, 9:00AM

WaPo: Banks Seek To Pay Back TARP -- But Are Taking Other Government Money
The Washington Post reports that J.P. Morgan and other major banks are seeking to repay TARP money, which CEO Jamie Dimon called a "scarlet letter." On the other hand, the company is seeking to repay TARP money while still benefiting from other federal programs, which have in fact paid out even more money. Says the Post: "Other large banks are attempting the same combination of breakup and embrace."

Obama At The Summit Of The Americas
President Obama is in Trinidad today, attending this weekend's Summit of the Americas. The gathering of Western Hemisphere leaders will address such issues as the drug war, global warming, and the economy. And as the Associated Press points out, the biggest job Obama will have will be to just improve relations with America's neighbors, after the tumult of the Bush years.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | April 15, 2009, 8:58AM

NYT: White House Making Plans To Reveal Bank Information
The New York Times reports that the Obama Administration is drawing up plans to publicly reveal key information from the stress tests for the 19 biggest banks in the country. All are expected to pass the tests, but some would do so better than others. After initial reluctance to make this move, it has been decided that doing so will better help prevent the kind of market uncertainty that would send investors fleeing.

Obama's Day Ahead
President Obama will be delivering a speech at 11:55 a.m. ET from the Eisenhower Executive Office Building, recognizing Tax Day by discussing his efforts to make a fairer tax code and provide more tax relief for working families. Obama will meet for lunch with Vice President Biden at 12:30 p.m. ET, and at 4 p.m. ET he will meet with U.S. Trade Representative Ron Kirk.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | April 14, 2009, 8:59AM

Obama Giving Economic Speech Today, While Administration Warns Of More Immediate Bad Times
President Obama will be giving a speech on at the economy at Georgetown University, at 11:35 a.m. ET. Obama will discuss the steps his administration has taken to fix the economic crisis. At the same time, the administration are hedging their rhetorical bets and bracing the country for less than stellar news. Appearing on NBC's The Today Show, economic adviser Christina Romer said that there are "small little signs that maybe some parts of the economy are stabilizing," but also that there will likely be "several more months of job losses."

Report: Obama To Tap Fannie Mae's Herbert Allison To Administer TARP
The Washington Post reports that the Treasury Department plans to tap Fannie Mae CEO Herbert Allison to run the financial recovery program. Note that Allison became head of Fannie Mae after the government took it over this past September, and would be replacing the current Bush-appointed TARP head Neel Kashkari.

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Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | April 2, 2009, 9:02AM

G-20 Leaders Reaching Outlines Of Agreement On IMF, Regulations
The G-20 leaders have reportedly agreed to give more than $500 billion to the IMF, in order to help governments struggling because of the financial crisis, along with stronger financial regulations to avoid another crisis in the future, though details remain to be hammered out. "I'm not saying that everything is sewn up. It isn't," said UK Business Minister Peter Mandelson. "I mean there are arguments, or some tensions over precisely what resources we're talking about."

Obama's Day Ahead: The G-20 Summit In London
President Obama met with South Korean leaders in London at 3 a.m. ET this morning. At 3:30 a.m. ET, he attended the G-20 leaders breakfast. At 4:50 a.m. ET, he attended the G-20 summit's opening plenary session. At 8:25 a.m. ET he attended the G-20 leaders lunch. At 9:30 a.m. ET he will attend the afternoon plenary session. At 10:35 a.m. ET he will meet with leaders of Saudi Arabia, and at 11:30 a.m. ET he will meet with leaders of India. At 12:45 p.m. ET, he will hold a news conference.

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Bailout

Frank to Treasury: Do Foreign Banks Get Preferential Treatment?

Brian Beutler | April 1, 2009, 3:43PM

Looks like we may soon be learning more about the preferential treatment major banks may have enjoyed in the wake of the AIG bailout.

Last week, we noted Rep. Spencer Bachus's efforts to bring to light the issue of smaller U.S. banks that are allegedly being stiffed on their loans to an AIG subsidiary even as major CDS counterparties (some of them foreign banks) were paid off in full. Bachus is the ranking member on the House Financial Services committee, and he aired his concerns at a hearing and in letters he sent to both Geithner and Barney Frank, the committee chairman.

After we reported this, the Wall Street Journal dug up a couple examples of just this issue, one of which occurred in Bachus' district.

Now, it seems, the committee is taking some steps toward investigating Bachus' complaint.

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Bailout

The Second Scariest Number You'll Hear Today

Elana Schor | March 31, 2009, 3:34PM

Bloomberg reported a frightening fact this morning: The U.S. government has spent committed nearly as much on to bailing out financial firms -- $12.8 trillion, when you total up guarantees and loans given by the Treasury, Fed, and FDIC -- as the nation's entire $14.2 trillion domestic product.

But that's not the only eye-popping bailout number that was released today. In a Senate Finance Committee hearing today, panel chairman Max Baucus (D-MT) noted that the Troubled Assets Relief Program (TARP) has put taxpayers on the book for at least $2.9 trillion. That number is almost equal to the U.S. government's total spending during the 2008 fiscal year, which you can find in Table 5 of this document.

Baucus described the bailout as a shadow U.S. budget "dedicated solely to saving the financial system, and that is truly surreal."

Bailout

More on the Double-Standard Debate: Did GM Concede More?

Elana Schor | March 30, 2009, 4:45PM

Jed Lewison, writing at Daily Kos, observes that GM's Rick Wagoner isn't the only CEO at a bailed-out company to be asked to step down by the government -- a counterpoint to the double-standard question raised today by Sen. Carl Levin (D-MI), Rep. Thaddeus McCotter (R-MI), and numerous media outlets (including TPMDC).

It's true that the Treasury Department and Federal Reserve asked Robert Willumstad to resign after three months in AIG's top spot, and that Fannie and Freddie's CEOs were also asked to resign last year.

Here's where those cases diverge from GM: the government controlled the majority of AIG when it ousted Willumstad and had already placed Fannie and Freddie directly into conservatorship when it booted their CEOs. The government also has become a leading shareholder at Bank of America and Citigroup, while taking the discrete step of lending money to GM ... while planning on showing the door to upwards of half of GM's board in the coming days.

None of this is intended to take a side in the double-standard debate that TPM readers have dismissed as a false equivalency -- merely to observe that it would be equally false to compare the circumstances behind Wagoner's resignation to those behind the AIG and Fannie-Freddie departures.

Barack Obama

Levin: Detroit & Wall Street Held to Different Standards -- But We Can't Dwell On It

Elana Schor | March 30, 2009, 2:10PM

It's an admittedly over-simplified question, but one that's lingered in the background today after the Obama administration insisted on the resignation of GM CEO Rick Wagoner: Is the government insisting on stronger concessions from Detroit than it is from Wall Street, despite the latter's receipt of a far bigger taxpayer bailout?

Sen. Carl Levin (D-MI) just told reporters that he believes there has been "a double standard for a long time in terms of the treatment of the financial industry, compared [with] the way the auto industry has been treated. It's something we've fought against ... but something we've got to live with and deal with."

Levin added that it would be a distraction to lament banking CEOs' ability to keep their jobs while boasting managerial records nearly as dismal as Wagoner's (Bank of America chief Ken Lewis and Citigroup chief Vikram Pandit are the names that often spring to mind).

When the senator was asked if he advised the president not to fire Wagoner, however, Levin offered a curious demurral:

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Bailout

Obama Urges Congress to Revive 'Cash for Clunkers' Proposal

Elana Schor | March 30, 2009, 12:56PM

As he rolled out one last reprieve for the nation's troubled automakers, President Obama also restarted a legislative push that ran out of gas during last month's stimulus talks: a $10,000 rebate offer to car owners who traded in their old models for more fuel-efficient wheels.

The "cash for clunkers" plan was originally proposed by Sens. Dick Durbin (D-IL) and Tom Harkin (D-IA), at a total cost of about $16 billion. It was dropped from the stimulus amid GOP opposition, but Obama said today that he would "work with Congress to identify parts of the recovery act that could be trimmed to fund such a program and make it retroactive starting today."

Could that strong presidential endorsement give the rebate plan the momentum it needs to win quick congressional approval? Stay tuned...

Late Update: Sen. Charles Schumer (D-NY), who sponsored a $4,500 version of the "cash for clunkers" rebate alongside Sens. Dianne Feinstein (D-CA) and Olympia Snowe (R-ME), has just released a statement promising to work quickly on complying with the president's request:

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Auto Industry

GM & Chrysler Kept Lobbying to Continue Their Unworkable Business Decisions

Elana Schor | March 30, 2009, 12:10PM

The Obama administration's candid "viability assessments" of GM and Chrysler emphasize one unsurprising but unfortunate theme: Both auto companies have contributed to their own financial demise by relying on gas-guzzling trucks and SUVs instead of cultivating more fuel-efficient cars.

Here's the relevant excerpt from GM's White House status report:

GM earns a disproportionate share of its profits from high-margin trucks and SUVs and is thus vulnerable to energy cost-driven shifts in consumer demand. For example, of its top 20 profit contributors in 2008, only nine were cars.

And the administration's take on Chrysler was even more grim:

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Auto Industry

The Double-Standard Question Haunting Today's Detroit Announcement

Elana Schor | March 30, 2009, 10:56AM

President Obama is about to administer tough medicine to GM and Chrysler, giving them 60 days and 30 days, respectively, to formulate workable plans for financial survival -- in addition to securing the resignation of GM CEO Rick Wagoner.

Wagoner's departure hardly comes as a shock, given that the once-mighty General Motors began its current swoon under his stewardship. But Michiganders and Wall Street analysts alike are pointedly asking the same question Josh raised last night at the TPM mothership: Why did the Obama administration call for Wagoner's head but allow ineffectual banking CEOs to stay on the job and the government dole?

Here's how Rep. Thaddeus McCotter (MI), the third-ranked House Republican leader, put it to Reuters:

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Barack Obama

TPMDC Sunday Roundup

Eric Kleefeld | March 29, 2009, 1:04PM

Obama: Afghanistan Is "America's War"
In his interview on CBS' Face The Nation, President Obama was asked whether the Afghanistan War was now his war. "I think it's America's war," said Obama. "What we want to do is to refocus attention on al Qaeda. We are going to root out their networks, their bases. We are gonna make sure that they cannot attack U.S. citizens, U.S. soil, U.S. interests, and our allies' interests around the world."

Petraeus: "I Wouldn't Necessarily" Agree With Cheney That Obama Is Making Us Less Safe
Appearing on CNN's State of the Union with John King, Gen. David Petraeus was asked his opinion of Dick Cheney's comments that President Obama's decisions were increasing the risk of a terrorist attack. "Well, I wouldn't necessarily agree with that, John. I think that, in fact, there is a good debate going on about the importance of values in all that we do," said Petraeus, outlining his own opposition to torture.

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Barack Obama

TPMDC Saturday Roundup

Eric Kleefeld | March 28, 2009, 1:03PM

Obama Reaches Out To Flood Victims In Video Address
In this weekend's YouTube address, President Obama discussed the support the federal government is giving to people in flood-damaged areas of Minnesota, North Dakota and South Dakota:

"For at moments like these, we are reminded of the power of nature to disrupt lives and endanger communities," said Obama. "But we are also reminded of the power of individuals to make a difference."

Gregg In RNC Address: Obama's Budget An Extraordinary Move To The Left
In this weekend's Republican YouTube, Sen. Judd Gregg (R-NH) -- who very nearly became President Obama's Secretary of Commerce -- lays out the Republican case against Obama's proposed budget:

"These are staggering numbers and represent an extraordinary move of our government to the left," said Gregg.

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Bailout

Cummings to IG: Tell Us More About AIG Counterparties

Brian Beutler | March 27, 2009, 9:47AM

Earlier this week, we flagged a solicitation letter Rep. Elijah Cummings (D-MD) sent to colleagues seeking their support for an inquiry into the AIG counterparty payments.

That effort has, as planned, resulted in a different letter, this one to Neil Barofsky, the special inspector general for the TARP. "We would like to know if the A.I.G. counterparty payments, as made, were in the best interests of the taxpayers who provided the funding," the letter says. According to the New York Times, Cummings got 26 members of the House to sign this letter--every one of them Democrats.

The absence of Republican signatories (or at least one particular Republican signatory) is a little bit curious. Cummings wants to know who made the decision to pay off in full AIG's biggest trading partners, and he ought to have an unlikely bedfellow in Rep. Spencer Bachus (R-AL), the ranking member on the House Financial Services committee. As we reported yesterday, Bachus wants the answer to a very related question: Were those partners paid off in full at the expense of smaller partners who are allegedly being asked to take a 70 percent hit on loans they made to AIG subsidiaries.

Barack Obama

TPMDC Morning Roundup

Eric Kleefeld | March 27, 2009, 9:03AM

Obama Announcing New Strategy Against Al-Qaeda In Afghanistan
President Obama will be rolling out the new strategy for Afghanistan and Pakistan today, involving the deployment of another 4,000 military advisers to Afghanistan to help train the Afghan army, and an increase in spending of 60 percent from the current $2 billion per month rate. New benchmarks will also be imposed on the Afghan government, with Obama reportedly telling Congressional leaders: "The era of the blank check is over."

Obama's Day Ahead
President Obama will be speaking from the Eisenhower Executive Office Building at 9:25 a.m. ET, delivering remarks about the new strategy for Afghanistan and Pakistan. At 10:25 a.m., he will speak at the installation ceremony of Attorney General Eric Holder at George Washington University. At 12 p.m. ET, he will meet with a group of leaders from financial institutions. At 6 p.m., he will depart from the White House, headed for Camp David.

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Bailout

U.S. Banks Stiffed By AIG Kept Secret

Brian Beutler | March 26, 2009, 6:30PM

As I reported earlier, at today's House Financial Services hearing, Spencer Bachus (R-AL), the committee's ranking member, made an interesting allegation. He suggested that, though AIG had spent billions of dollars in bailout money to make its major counterparties whole, some smaller institutions (including U.S. banks) had been asked to accept 20 or 30 cents on the dollar for secured loans they'd made to AIG subsidiaries.

This obviously raises several questions. For instance: Which institutions got stiffed? Why were they asked to take a hit when bigger institutions never were? What was the nature of the loans they made? Unfortunately, these turn out to be difficult questions to answer.

What we do know is this: Before today's hearing, Bachus sent letters both to Barney Frank and to Timothy Geithner about this very issue. I've gotten a hold of the former letter, but haven't yet been able to get my hands on the latter.

You can read the whole letter to Frank here, but the key paragraph reads:

I have been informed that, in contrast with its treatment of foreign banks, AIG is now attempting to force many of its creditors that are U.S. banks to accept severe reductions in the debt owed to them. I am told in some cases that these U.S. banks are being asked to accept reductions of over 70% of the debt owed to them.

Which is basically what Bachus said at the hearing. It's also fairly unspecific. The other letter allegedly contains more detail. But, perhaps because of that, nobody's being all that forthcoming with it. At least not yet.

We'll try to get a hold of it, but until then we'll keep our eye on what Bachus and the committee minority have to say publicly about the matter.

Bailout

Wall Street Traders Send Frustrated, Typo-Riddled Letter to Congress

Elana Schor | March 26, 2009, 3:27PM

Financial executives have spent so much time testifying before Congress these days that earlier this week, The Hill offered CEOs a Dos-and-Don'ts guide to staying on lawmakers' good side. Something tells me that the good folks at the Security Traders Association of New York (STANY) haven't read it.

In a letter to the Senate Banking Committee today, the STANY offers a hilariously hyperbolic plea for rejection of the 90% tax on bailout bonuses that the House passed last week. You can read the full letter right here, but here are some key passages ...

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Bailout

The Government Wants Your Take on Geithner's New Bank Plan

Elana Schor | March 26, 2009, 2:47PM

Nouriel Roubini has weighed in. So have Simon Johnson, Brad DeLong, and Paul Krugman.

Now you, the taxpayers, are being asked for your comments on the government's new bank rescue plan -- not by the Treasury Department, but by the FDIC. Are you disturbed by the re-branding of toxic mortgage-backed securities as "legacy assets"? Are you ready to get past this bonuses business and put your trust in the Obama administration? Here's the link to submit your reaction in detail.

The full release on the public comment period is posted after the jump.

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John McCain

Did McCain Just Flip-Flop on AIG and Tweet-Flop on Its Bonuses?

Elana Schor | March 26, 2009, 2:09PM

Sen. John McCain (R-AZ) was in fine flip-flopping form during a speech today at the Heritage Foundation, as the Washington Independent reports.

"The problem started when we bailed out AIG," McCain told the conservative crowd at Heritage. "I would have let AIG go bankrupt. If they have to fail, they fail."

It's been well-noted in the blogosphere that McCain originally supported bailing out AIG in September, when his presidential run was in its, er, last throes. But what's most interesting, per the Independent, is that McCain came out against "controlling the salaries and bonuses of TARP-taking executives."

But I thought McCain wanted to let AIG fail exactly because that would deny bonuses to "greedy execs"! He told us so on his Twitter feed!* Sounds like it's time for some Straight Talk ^TM on AIG executives: Do we let the company fail to deny them bonuses, or let the company fail and make no attempt to prevent them from grabbing bonuses on their way out?

*This is the first and last time Twitter will appear in any of my posts.

Bailout

Viva Cantor-Krugman? House GOP Backs Receivership For Insolvent Banks

Elana Schor | March 26, 2009, 1:49PM

There were few details in today's outline of the House Republican budget alternative -- but on the thorny question of future bank bailouts, the GOP had a clear plan. And it looks a lot like Paul Krugman's preferred method.

TPMDC noted the first stirrings of the GOP's Krugman love earlier this week, when House Minority Whip Eric Cantor (R-VA) joined the liberal economist in lamenting the taxpayer subsidy built into the Obama Treasury's latest bank rescue plan. But today's Republican budget alternative goes even further, directly repeating Krugman's past criticism of the Treasury's bailout ethose:

In sum, the message with bailouts of this magnitude is that your profits will be private but your losses socialized.

Now, House Republicans go on to extrapolate a future of socialized losses as well as profits -- a prediction one suspects Krugman would reject. And then they go right back to Krugman-ville with this proposal:

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