TPMDC Timothy Geithner
Ben Bernanke
Congressional Dysfunction Begins To Spook Old Pros
U.S. Capitol building
Congress has always been Washington's whipping boy, particularly near election time. The antics get sillier, the pace shifts from glacial to gridlock, and the frustrated public gets daily reminders that lawmakers are often too mired in politics to function in the national interest.
That's not news.
What is news is that this time it's starting to scare the pros.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Ben Bernanke, Budget, Congress, Debt Ceiling, Deficit, Economy, Eric Cantor, Government Shutdown, Recession, Robert Gates, Stimulus, Timothy Geithner, Unemployment
Timothy Geithner
Geithner Dodges On Sympathy For Occupy Wall St, Expresses Shock At Wall Street Antipathy To Obama
Treasury Secretary Timothy Geithner
Treasury Secretary Tim Geithner told an audience of the country's elite Wednesday that he sympathizes with the underlying loss of faith anti-Wall Street protesters and other Americans have in the country's ruling class -- though not specifically for the growing "Occupy Wall Street" protest movement itself. But at the same time he expressed astonishment and dismay at Wall Street's loss of faith in President Obama and the administration.
The juxtaposition is striking, and illustrates how at odds the anti-Wall Street movement is with the administration.
"I feel a lot of sympathy for what you might describe as the general sense among Americans as whether we've lost the sense of possibility and whether after a pretty bad lost decade in terms of income growth or fiscal responsibility...followed by a devastating crisis, huge loss of faith in public institutions, people do wonder whether we have the ability to do things that can help the average sense of opportunity in the country," Geithner said at The Atlantic's Ideas Forum, just a few blocks from both the U.S. Capitol and the White House.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, Financial Reform, Occupy Wall Street, Timothy Geithner, Wall Street
Timothy Geithner
Geithner: Suskind Book Has No Basis In Reality
Office of Management and Budget Director Jacob J. Lew, and Treasury Secretary Timothy Geithner
Treasury Secretary Tim Geithner strongly rejected the way he is depicted in "Confidence Men," Ron Suskind's new book on the Obama administration's economic policies and efforts to shore up the financial sector in the wake of the collapse.
"I haven't read this book, but -- to borrow a phrase -- I've lived the reality," Geithner told reporters at a White House press briefing Monday. "Reports about this book bear no resemblance to the reality we lived."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Confidence Men, Economy, Jay Carney, Ron Suskind, Timothy Geithner, Treasury, Treasury Department, White House
Jobs
How Obama's Jobs Plan Could Trigger Another Debt Limit Fight Before Election Day
President Barack Obama and Treasury Secretary Timothy Geithner
If President Obama manages to get his entire jobs plan passed -- a big if, of course -- it will quicken the pace at which the federal government is burning through its new borrowing authority and could set up another debt limit battle with Republicans before Election Day 2012.
There are several variables at play, and another debt limit fight before the election wouldn't be a sure thing. But it's not out of the question, especially if economic growth between now and then is weaker than predicted.
A slower-than-expected economy -- or a double dip recession -- combined with the jobs bill's $447 billion price tag, means the federal government could run out of borrowing authority right about October 2012, according to one worst-case-scenario estimate. The deal to raise the debt limit last month was designed to give the government enough cushion to make it past the election before the parties would have to square off again. But that was before Obama introduced his new jobs plan, and before revised economic forecasts revealed the economy's in worse shape than economists believed earlier this year.
Here are the variables to watch that could come together to create an exquisitely timed political crisis:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, Budget, CBPP, Debt, Debt Ceiling, Default, Deficit, Jobs, Super Committee, Timothy Geithner, Treasury, Treasury Department, White House
Treasury
CHART OF THE DAY: S&P's $2 Trillion Error Explained
President Barack Obama and Treasury Secretary Timothy Geithner
In the weeks leading up to last week's debt limit deal, the ratings agency Standard & Poors warned that they would downgrade the country's AAA bond rating if the White House and Congressional leaders couldn't reach a fiscal consolidation plan of at least $4 trillion over 10 years.
The Congressional Budget Office scored the deal they ultimately reached at just over $2 trillion and S&P, perhaps feeling locked into its threat, made good on it.
The implication, to borrow from the Vice President, is that $2 trillion worth of deficit spending over ten years is a BFD.
But as Treasury Department officials, including Secretary Tim Geithner, have been angrily pointing out since Friday night, S&P's original analytical justification for the downgrade included a $2 trillion error, exaggerating U.S. deficits over the same 10 year window.
Geithner himself said, "[t]hey've shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement."
Most reports have simply alluded to the error without explaining it. But here, according to Treasury officials, is what actually happened.
Topics: Debt, Debt Ceiling, Deficit, S&P, Spending, Standard & Poors, Timothy Geithner, Treasury, Treasury Department
Debt Ceiling
Chart Of The Day: Treasury's Quickly Draining Coffers
The chart below shows the operating balance for the U.S. Treasury, i.e. the "cash and debt operations" the federal government has, based on data from the Financial Management Service up until July 25th, and estimates from the Bipartisan Policy Center (BPC) to August 15th.
As you can see, there is a severe drop-off directly before and after August 2nd, when our national bank account goes into the red, seeming to confirm what Treasury Secretary Timothy Geithner has been saying for weeks. There has been some back-and-forth on what exactly the August 2nd deadline means, but according to the projections, the government will only have $12 billion in incoming revenue on August 3rd, and $32 billion in commitments.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Debt, Debt Ceiling, Timothy Geithner, Treasury, Treasury Department
Debt Ceiling
GOP Demand Obama Protect Seniors From Default, Won't Name What To Cut Instead
Rep. Louie Gohmert (R-TX)
Republican lawmakers are pushing President Obama to put seniors, troops, and bondholders at the front of the line should Congress fail to raise the debt ceiling. The rest? Well, that's up to him.
Topics: Bill Huizenga, Debt Ceiling, Louie Gohmert, Nan Hayworth, Timothy Geithner
Debt Ceiling
Geithner On Debt Limit: 'No Way To Give Congress More Time To Solve This Problem'
Treasury Secretary Timothy Geithner
Treasury Secretary Timothy Geithner says the time is all but up, and Congress must raise the debt limit by August 2, or unleash financial hell.
"There is no way to give Congress more time to solve this problem," Geithner told reporters in brief remarks outside the Senate chamber after meeting with the Democratic caucus.
"We're a country that meets its obligations, we're a country that pays our bills, and that we will act and do what's necessary to make sure that we can maintain that commitment," he added.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Chuck Schumer, Debt, Debt Ceiling, Default, Eric Cantor, Harry Reid, Mitch McConnell, Timothy Geithner, Treasury, Treasury Department
14th Amendment
Pelosi On Obama Ignoring The Debt Limit: Ain't Gonna Happen
House Minority Leader Nancy Pelosi (D-CA)
House Minority Leader Nancy Pelosi dumped the last shovel-full of dirt on the idea that President Obama can ignore the national borrowing limit if Congress refuses to raise it.
At her weekly press conference on Capitol Hill, she gave reporters a glimpse into a Thursday meeting at the White House with Democratic and Republican leaders, which, she said, became dominated by the question of the Constitutionality of the debt ceiling.
"At our meeting they spent a whole lot of time talking about the 14th Amendment. I said, 'you know what? Why are we talking about something that's not going to happen.'"
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: 14th Amendment, Barney Frank, Debt, Debt Ceiling, Default, Nancy Pelosi, Timothy Geithner, Treasury, Treasury Department
Debt
Pick Up The Pace! White House Says Congress Needs Debt Deal By July 22
President Barack Obama and Treasury Secretary Timothy Geithner
For all the talk about August 2 being the hard-and-fast deadline for Congress to raise the debt limit, that's never really been the case. The Treasury department considers August 2 the day they're likely to run out of headroom and either take drastic action to avoid a credit default, or begin missing interest payments and unleashing hell. It's like the outer bound. But practically, White House officials now say, that means Congress needs to have a debt limit deal in hand about two weeks before then -- a legislative lifetime -- if they're going to have enough time to crank out a bill and raise the debt limit in time to prevent calamity.
Topics: Debt, Debt Ceiling, Default, Timothy Geithner, Treasury, Treasury Department, White House
Debt Ceiling
How Republicans Are Convincing Themselves That A Debt Default Wouldn't Be So Bad -- And Why They're Wrong
House Speaker John Boehner (R-OH) with Senate Minority Leader Mitch McConnell (R-KY)
Congressional Republicans are falling under the spell of an unorthodox group of financial experts who dispute the views of their peers and say that the U.S. could default briefly on debt payments without major, lasting consequences to the U.S. economy and international markets.
The most influential of these dissidents is Stanley Druckenmiller, a billionaire former-hedge fund manager who helped George Soros build his fortune. His recent comments to the Wall Street Journal have carried the day with senior Republicans like House Budget Committee Chairman Paul Ryan (WI), House Majority Leader Eric Cantor (VA), and Sen. Pat Toomey (PA), all of whom now say the U.S. could weather three or four days of missed interest payments, as long as the U.S. debt ceiling were quickly lifted, and a credible debt reduction plan signed into law.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Congress, Debt, Debt Ceiling, Deficit, Eric Cantor, Jamie Dimon, Pat Toomey, Paul Ryan, Timothy Geithner, Treasury, Treasury Department
Roundup
TPMDC Morning Roundup
Kerry: Pakistan Boosting Cooperation With U.S.
AFP reports: "Pakistan, under renewed US pressure since the death of Osama bin Laden, is stepping up its efforts to battle extremists and help stabilize Afghanistan, senior US Senator John Kerry said Tuesday. 'Some of them are important things that are very important to us strategically, but they are not appropriate to discuss publicly,' said the Democratic lawmaker, who chairs the Senate Foreign Relations Committee. Kerry, newly returned from a whirlwind visit to both countries, said he had heard 'frustration' from top Pakistani officials about the US raid that killed the Al-Qaeda leader, but had made clear Washington expects more from its ally."
Obama's Day Ahead
President Obama will depart form the White House at 8:30 a.m. ET, and depart from Andrews Air Force Base at 8:50 a.m. ET, arriving at 10 a.m. ET in New London, Connecticut. At 11:30 a.m. ET, he will deliver the commencement address at the United States Coast Guard Academy. He will depart from new London at 4:10 p.m. ET, arriving at 4:45 p.m. ET in Boston, Massachusetts. He will deliver remarks at a DNC event at 6:15 p.m. ET, and at another DNC event at 8:25 p.m. ET. He will depart from Boston at 9:55 p.m. ET, arriving at Andrews Air Force Base at 11:15 p.m. ET, and arriving back at the White House at 11:30 p.m. ET.
Topics: Barack Obama, Joe Biden, John Kerry, John McCain, Lindsey Graham, Osama Bin Laden, Pakistan, Roundup, Taxes, Timothy Geithner
Debt Ceiling
U.S. Hits Debt Ceiling
Treasury Secretary Timothy Geithner
As the Treasury department has been warning -- and as House Republican leaders have promised -- the United States hit its debt limit Monday morning. The government can no longer meet its obligations by borrowing more money. And since incoming revenues aren't sufficient to pay for the services Congress has ordered and for interest payments on existing debt, the Treasury department is taking a series of ever-more extraordinary measures to pay all of its bills.
It can get away with this, according to Secretary Timothy Geithner, until August 2. If Congress doesn't lift the debt ceiling by then, the country will default, triggering a number of severe economic consequences.
Already, Geithner has stopped issuing securities to states that help them keep their books in balance and maintain infrastructure. Today, the government will defer payments to and investments in federal pension funds -- pensions Republicans want federal workers to pay more money into than they currently do.
But despite these difficult measures, you won't get the impression that time is of the essence from congressional Republicans.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Budget, Chamber of Commerce, Debt, Debt Ceiling, Defense Spending, John Boehner, Mitch McConnell, Paul Ryan, Spending, Taxes, Timothy Geithner, Wall Street
Roundup
TPMDC Morning Roundup
Obama Administration Fights To Save Healthcare Law
Reuters reports: "Lawyers for President Barack Obama go to court on Tuesday to try to save the cornerstone of his healthcare overhaul, arguing that the requirement for Americans to buy insurance is constitutional. A three-judge panel of the U.S. Court of Appeals for the Fourth Circuit will consider whether a lower court was correct in striking down the requirement. But they will not be the final arbiter in a fight that is expected to reach the Supreme Court. Legal scholars see the case as pivotal because it is the first to have oral arguments before an appeals courts. That means its ruling could affect other courts and become the first challenge to the law to reach the high court."
Obama's Day Ahead
President Obama and Vice President Biden will receive the presidential daily briefing at 9:30 a.m. ET. Obama will depart from the White House at 10:30 a.m. ET, and depart from Andrews Air Force Base at 10:45 a.m. Et, arriving at 2:40 p.m. ET in El Paso, Texas. At 3:30 p.m. ET, he will deliver a speech on the importance of fixing the immigration system. He will depart from El Paso at 4:40 p.m. ET, arriving at 6 p.m. ET in Austin, Texas. He will deliver remarks at a DNC event at 6:50 p.m. ET, and at another DNC event at 8:25 p.m. ET. He will depart from Austin at 10:15 p.m. ET, arriving at Andrews Air Force Base at 1 a.m. ET, and back at the White House at 1:15 a.m. ET.
Topics: Barack Obama, Budget, China, Debt Ceiling, Health Care, Immigration, Medicare, Roundup, Timothy Geithner
Budget
White House: Failing to Raise Debt Ceiling Would Be 'Armageddon-Like' For Economy
President Obama speaks at a bipartisan White House gathering with Minority Leader John Boehner (R-OH) in the background.
Fresh off last week's down-to-the-wire spending showdown, President Obama and Speaker John Boehner (R-OH) are locking horns again on fiscal matters -- and this time the stakes for the U.S. economy are even more monumental.
The White House is demanding a "clean" bill to raise the nation's debt ceiling rather than using it to cut additional spending or for policy additions like last week's attempt to attach legislation defunding Planned Parenthood, but Boehner has already said that idea is dead on arrival. There's no way a debt-ceiling bill would pass the House (i.e. the muster of his unruly GOP conference) without some spending cuts for balance.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, Budget, Budget Committee, Debt, Debt Ceiling, Debt Commission, John Boehner, Timothy Geithner
Roundup
TPMDC Morning Roundup
Obama Invites Top Lawmakers, Spending Feud Rages
AFP reports: "President Barack Obama invited top US Congress leaders for talks to break an impasse on spending cuts, with an elusive deal needed by week's end to avert a partial government shutdown. But Republican House Speaker John Boehner, expected to attend the Tuesday meeting, blasted a tentative compromise with Senate Democrats to slash $33 billion through October 1 as 'not enough' and heavy on 'smoke and mirrors.'"
Obama's Day Ahead
President Obama and Vice President Biden will receive the presidential daily briefing at 9 a.m. ET, and hold a meeting on Libya at 9:30 a.m. ET. They will meet at 10:15 a.m. ET with Congressional Leadership, to discuss ongoing negotiations on a funding bill. Obama will meet at 11:45 a.m. ET with Israeli President Shimon Peres, and they will hold a working lunch at 12:10 p.m. ET. Obama will meet at 2:50 p.m. ET with Millennium Challenge Corporation CEO Daniel Yohannes, and meet at 3:05 p.m. ET with Overseas Private Investment Corporation CEO Elizabeth Littlefield.
Topics: Barack Obama, Budget, Chris Van Hollen, Debt Ceiling, Government Shutdown, Hillary Clinton, Israel, Joe Biden, Roundup, Shimon Peres, Timothy Geithner
Social Security
White House To Remain Mum In Social Security Fight -- Until Congress Comes Up With a Plan
The White House will not prominently inject itself into congressional negotiations on Social Security reform until after key legislators in both the House and Senate unveil their plans to reduce projected long-term deficits, according to administration officials.
That won't please Republican leaders on Capitol Hill, who have attacked Obama for remaining silent in this debate. And these 64 Senate Republicans and Democrats won't be too happy either. But it's part of a broader political and policy strategy the administration is employing to keep Obama's powder dry while Republicans struggle to reduce deficits without increasing revenues in any meaningful way.
The White House's reticence has been characterized by some as a symptom of a rift between Obama's economic and political advisers. Some, like Treasury Secretary Timothy Geithner, do in fact believe that a bipartisan deal on Social Security would result in real economic benefits, while others argue that Obama shouldn't embrace any plan that substantially cuts benefits at all.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, David Axelrod, Entitlement reform, Entitlements, Gene Sperling, House Republicans, Larry Summers, Medicare, Mitch McConnell, Republicans, Social Security, Timothy Geithner
Sunday Shows
The Sunday Show Line-Ups
Treasury Secretary Timothy Geithner
Here are the line-ups for the Sunday talk shows this weekend:
• ABC, This Week: Treasury Secretary Tim Geithner, Palestinian Prime Minister Salam Fayyad, Israeli Opposition Leader Tzipi Livni.
• CBS, Face The Nation: Treasury Secretary Tim Geithner, former DNC Chairman Howard Dean, Rep. Jerrold Nadler (D-NY).
• CNN, State Of The Union: Senate Majority Whip Dick Durbin (D-IL), Rep. Elijah Cummings (D-MD), Rep. Jim McDermott (D-WA).
• Fox News Sunday: Rep. Paul Ryan (R-WI), Rep. Chris Van Hollen (D-MD), Supreme Court Justice Stephen Breyer.
• NBC, Meet The Press: New York City Mayor Mike Bloomberg (I).
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Chris Van Hollen, Dick Durbin, Elijah Cummings, Howard Dean, Israel, Israel/Palestine, Jerrold Nadler, Jim McDermott, Mike Bloomberg, Paul Ryan, Salam Fayyad, Stephen Breyer, Sunday Shows, Timothy Geithner, Tzipi Livni
Bush Tax Cuts
Tax Cut Negotiators Meeting This Morning
Treasury Sec. Timothy Geithner
The bipartisan group set to negotiate the issues surrounding the expiration of the Bush tax cuts is set to meet at 10:15 a.m. ET, in the Dirksen Senate Office Building.
The roster:
• Secretary of the Treasury Timothy Geithner
• Director of the Office of Management and Budget Jacob Lew
• Sen. Max Baucus (D-MT), Chairman of the Senate Finance Committee
• Senate Minority Whip Jon Kyl (R-AZ)
• Rep. Chris Van Hollen (D-MD), the incoming ranking member of the House Budget Committee
• Rep. Dave Camp (R-MI), the likely next Chairman of the House Ways and Means Committee.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Bush Tax Cuts, Chris Van Hollen, Dave Camp, Jacob Lew, Jon Kyl, Max Baucus, Tax Cuts, Taxes, Timothy Geithner
Health Care
TPM's Guide To The Major Health Care Reform Lawsuits
Virginia Attorney General Ken Cuccinelli and the Virginia state seal
At the end of last week, a U.S. district court judge in Detroit issued the first ruling on the merits of health care reform, finding that one of the law's key provisions -- the insurance mandate -- meets constitutional muster.
The news heartened the law's supporters and the Obama administration, which will have to defend the law in a number of cases including -- most famously, in a federal challenge brought by nearly two dozen states across the country. The constitutional challenges to the health care reform law fall generally into two categories. In the first, states claim that their own laws trump the federal law -- an argument that legal experts consider to be almost a sure loser. The second argument is that the insurance mandate exceeds the power given to Congress in the Commerce Clause. That argument is less radical than the first, but is rooted in contemporary conservative legal philosophy that courts have occasionally validated in recent years, albeit under limited circumstances.
The wheels of justice are turning in several cases already, and it can be difficult to keep track of them all. Here are the basics.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, Constitution, Eric Holder, Health Care, Health Care Implementation, Health care lawsuits, Kathleen Sebelius, Ken Cuccinelli, Repealing health care, Timothy Geithner
Consumer Financial Protection Bureau
Obama Appoints Elizabeth Warren To Advisory Position On Consumer Protection
Elizabeth Warren, Chairman of the Congressional Oversight Panel for TARP
The White House made it official this morning, appointing Elizabeth Warren to serve as an adviser to Treasury Secretary Timothy Geithner to help the administration set up the Consumer Financial Protection Bureau.
In a post on the White House blog, Warren writes, "The President asked me, and I enthusiastically agreed, to serve as an Assistant to the President and Special Advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, Bernie Sanders, Consumer Financial Protection Bureau, Elizabeth Warren, Financial Reform, Jeff Merkley , Timothy Geithner
Timothy Geithner
The Pile On Begins: Pence Echoes Boehner's Call For Geithner Resignation
House Republican Conference Chairman Mike Pence (R-IN), Minority Leader John Boehner (R-OH), and Minority Whip Eric Cantor (R-VA)
The third-ranking Republican in the House agrees with Minority Leader John Boehner that President Obama's economic team should resign. "I join Republican Leader John Boehner in calling for the resignations of Treasury Secretary Timothy Geithner and Director of the White House National Economic Council Larry Summers," reads a statement from Republican Conference Chair Mike Pence.
This isn't surprising in and of itself. It's an all-win, headline-grabbing move for the Republicans, particularly knowing, as they did, that the White House would tell them to buzz off. It's age-old politics for the opposition party -- Republican or Democrat -- to call for executive branch resignations, and on that level, this is nothing new.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Economy, John Boehner, Larry Summers, Mike Pence, Republicans, Stimulus, Timothy Geithner
2010 elections
Biden Hits Back: 'Mr. Boehner Is Nostalgic For Those Good 'Ol Days But The American People Are Not'
Vice President Joe Biden
Vice President Joe Biden today slammed House Minority Leader John Boehner's recent speech as empty of economic ideas and Boehner as wanting to rewind the clock by rewarding rich people with tax cuts.
The headline from Boehner's address on the economy at the City Club of Cleveland was that he called on President Obama to fire Treasury Secretary Tim Geithner and the rest of the economic team. Biden mocked Boehner (R-OH) today, calling it "very constructive advice, and we thank the leader for that."
"Mr. Boehner is nostalgic for those good 'ol days but the American people are not," Biden said. "I'm still waiting for what it is they are for."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: 2010 elections, Barack Obama, Economy, Joe Biden, John Boehner, Timothy Geithner
John Boehner
Boehner Is Once Again Short On Specifics In Economic Address
House Minority Leader John Boehner (R-OH)
Republicans billed it as a major economic speech by House Minority Leader John Boehner, and the prepared text of the speech itself promised "a plan to break the ongoing economic uncertainty." But what followed was a familiar litany of criticisms of President Obama's current policies -- including a demand that he fire his Treasury Secretary and his chief economic adviser -- but only a promise that the GOP will offer up its true plan weeks down the line.
Speaking in Ohio this morning, Boehner, who hopes to be Speaker of the House next year, acknowledged that Republicans will offer "a clear and positive governing agenda focused on getting people working again" next month.
For the time being, though, Boehner attacked a recent, $26 billion aide package Obama signed, helping states save the jobs of teachers and other public employees -- in Boehner's words "to protect government jobs."
As terrible as that is, though, the bill is also paid for. "Even worse," Boehner lamented, "the bill is funded by a new tax hike."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: CBO, John Boehner, Larry Summers, Republicans, Stimulus, Timothy Geithner
Roundup
TPMDC Morning Roundup
Senate Starts Kagan Debate With Confirmation On Track
The Senate will begin debate today on the nomination of Elena Kagan to the Supreme Court. A successful confirmation is expected later this week, as nearly all Democrats plus some Republicans have indicated that they will vote for her.
Obama's Day Ahead
President Obama will receive the presidential daily briefing at 9:30 a.m. ET, and the economic daily briefing at 10 a.m. ET. He will sign the Fair Sentencing Act at 11 a.m. ET. He will host a town hall with Young African Leaders at 2 p.m. ET. He will meet at 4:30 p.m. ET with Secretary of Defense Robert Gates.
Topics: 14th Amendment, 2010 elections, Barack Obama, Blue Dogs, Chuck Schumer, Dick Durbin, Earmarks, Elena Kagan, Financial Reform, Roundup, Sarah Palin, Timothy Geithner
Roundup
TPMDC Sunday Roundup
Geithner: Letting Bush Tax Cuts For Upper-Earners Expire Won't Hurt Job Growth
Appearing on This Week, Treasury Secretary Tim Geithner promoted the Obama administration's position on letting the 2001 Bush tax cuts expire for upper-income earners, while extending them for everyone else: "We think that's the responsible thing to do because we need to make sure we can show the world that they're willing as a country now to start to make some progress bringing down our long -- our long-term deficits," said Geithner, also adding: "Just letting those tax cuts that only go to 2 percent to 3 percent of Americans, the highest earning Americans in the country expire. I do not believe it will have a negative effect on growth."
Geithner: No Double-Dip Recession, But 'It's Going To Take Some Time To Heal This'
Appearing on Meet The Press, Treasury Secretary Tim Geithner said he did not think the economy would dip back into recession. "I think the most likely thing is, you see an economy that gradually strengthens -- over the next year or two. You see job growth start to come back again," said Geithner. "Again, investments expanding, manufacturing get a little stronger, exports better. Those are very encouraging signs." He also added, though, that more improvement remained to be done: "And I think most Americans understand it's going to take some time to heal this."
Topics: 2010 elections, Abigail Thernstrom, Charlie Rangel, Chris Christie, Howard Dean, New Black Panthers, Newt Gingrich, Roundup, Sunday Shows, Timothy Geithner
Financial Reform
Geithner To GOP On Repealing Wall Street Reform: Bring It On
Treasury Secretary Timothy F. Geithner
Treasury Secretary Timothy Geithner has a simple message for House Republicans threatening to repeal or gut one of President Obama's top legislative achievements: I am calling your bluff.
At a Christian Science Monitor breakfast with reporters this morning, Geithner dismissed GOP leaders who say they'll gum up the implementation Wall Street reform if they retake the House this November, calling their threats "inconceivable."
"The reason why this bill became law was because Republicans decided they could not block it," Geithner said in response to a question from TPMDC. "That it was untenable to block it. Because they did not want to be in the position of saying they looked at a system that produced this level of disaster for the American economy -- with a system that did not work, did not serve corporate America, businesses across the country -- they did not want to be in the position of blocking change."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Financial Reform, House of Representatives, John Boehner, Mike Pence, Republicans, Timothy Geithner, Wall Street
Timothy Geithner
Geithner: Warren 'Would Be A Very Strong Leader' Of Consumer Bureau
Treasury Secretary Timothy Geithner
Amid reports that he's actively sought to block progressive darling Elizabeth Warren from being appointed to head a soon-to-be-created Consumer Financial Protection Bureau, Treasury Secretary Timothy Geithner sung her praises to reporters today. But when pressed, he stopped short of endorsing her or saying that her nomination would please him.
"It's important to recognize that she is, I think, one of the most effective advocates for [financial] reform in the country," Geithner said at a Christian Science Monitor breakfast this morning. "She has enormous credibility.... She would be a very strong leader of this bureau, but that's a choice the President will have to make."
Geithner added that he'd not yet made an official recommendation to President Obama, but suggested one will be coming soon.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Elizabeth Warren, Financial Reform, Timothy Geithner, Treasury, Wall Street
Financial Reform
Axelrod: Warren A Candidate To Lead New Consumer Protection Bureau
Press Secretary Robert Gibbs, Treasury Secretary Timothy Geithner, and Director of the Office of Management and Budget Peter Orszag
The Obama administration is in cleanup mode, after the Huffington Post reported that Treasury Secretary Timothy Geithner has actively sought to keep consumer watchdog Elizabeth Warren from being named to head a soon-to-be-created Consumer Financial Protection Bureau.
On a conference call with reporters this afternoon, President Obama's top political adviser David Axelrod sought to calm the waters. "Elizabeth is certainly a candidate to lead it," he said.
That sentiment was echoed this morning by Michael Barr, Assistant Treasury Secretary for Financial Institutions. "I don't know where that came from," he said on a conference call. "She's been working closely with me and Secretary Geithner for a year and half to push for this consumer protection bureau. I believe and Secretary Geithner believes that she's exceptionally well-qualified to run it."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)Topics: Elizabeth Warren, Financial Reform, Timothy Geithner, Treasury, Wall Street
Roundup
TPMDC Morning Roundup
Poll: Fear Of Terrorist Attack In U.S. Rises
A new CNN poll finds that a majority of Americans, 55%, believe that it is somewhat or very likely that there will be further acts of terrorism in the United States " over the next several weeks" -- the first time that a majority has believed this since August 2006. The poll of American adults has a ±3% margin of error.
Obama's Day Ahead
President Obama will depart Chicago at 9:10 a.m. ET, arriving at 11:10 a.m. ET in New Orleans. He will attend a briefing at 1:10 p.m. ET by Adm. Thad Allen. He will deliver a statement to the press at 1:30 p.m. ET. He will depart from New Orleans at 2:25 p.m. ET, arriving back in Chicago at 4:35 p.m. ET.
Topics: 2010 elections, AR-SEN, BP, Barack Obama, Bill Clinton, Blanche Lincoln, Financial Reform, Gulf Coast Oil Spill, John Boehner, Lindsey Graham, Oil Spill, Roundup, Senate '10, Timothy Geithner
Roundup
TPMDC Saturday Roundup
Obama: 'Wall Street Reform Will Bring Greater Security To Folks On Main Street'
In this weekend's YouTube address, President Obama promoted what he said would be the benefits of the financial reform bill currently being considered in the Senate, in the areas of consumer protection and institutional oversight.
"With reform, we'll make our financial system more transparent by bringing the kinds of complex, backroom deals that helped trigger this crisis into the light of day," said Obama. "We'll prevent banks from taking on so much risk that they could collapse and threaten our whole economy. And we'll give shareholders more of a say on pay to help change the perverse incentives that encouraged reckless risk-taking in the first place. Put simply, Wall Street reform will bring greater security to folks on Main Street."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Anthony Kennedy, Barack Obama, Chris Lee, Elena Kagan, Eric Holder, Roundup, Supreme Court, Supreme Court vacancy, Terrorism, Timothy Geithner
Roundup
TPMDC Morning Roundup
Geithner: Banks Cannot Be Separated From Risk
Treasury Secretary Tim Geithner is scheduled to testify today at the Financial Crisis Inquiry Commission, where he will say that stability cannot be achieved by separating banks from risk. The Treasury released an excerpt from his remarks: "The lesson of this crisis ... is that we cannot make the economy safe by taking functions central to the business of banking, functions necessary to help raise capital for business and help businesses hedge risk, and move them outside banks, and outside the reach of strong regulation."
Obama's Day Ahead
President Obama will receive the presidential daily briefing at 9:15 a.m. ET, and the economic daily briefing at 10 a.m. ET. He will meet at 11 a.m. ET with his national security team on Afghanistan and Pakistan. He will meet at 3:30 p.m. ET with Secretary of State Hillary Clinton.
Topics: Afghanistan, Barack Obama, Financial Reform, Hamid Karzai, Iran, James Clyburn, Joe Biden, Mitch McConnell, Roundup, Sidney Thomas, Supreme Court vacancy, Timothy Geithner
Financial Reform
Dems Dig For GOP Votes Ahead Of Key Financial Reform Vote
Senator Chris Dodd (D-CT), Senator Harry Reid (D-NV), Senator Max Baucus (D-MT)
The fate of financial reform in the Senate remains very much in flux tonight, with Democrats facing the stark reality that Senate Minority Leader Mitch McConnell has once again managed to unite his caucus in opposition to the Dems' top legislative initiaive. But Democrats remain determined to bring their bill up for a key test vote as early as Monday, and have statements from a number of Republican senators to point to as evidence that they will prevail sooner rather than later.
Is it the same Lucy and Charlie Brown routine again?
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Bob Corker, Chris Dodd, Democrats, Financial Reform, Olympia Snowe, Richard Shelby, Senate, Timothy Geithner
Roundup
TPMDC Morning Roundup
Obama Health Team Turns to Carrying Out Law
The New York Times profiles the Obama administration officials whose job it will now be to put the new health care reform law into practice: "Jay Angoff, a longtime consumer advocate and nemesis of the insurance industry, will lead efforts to regulate insurers and insurance markets. Jeanne M. Lambrew, an idealistic veteran of the Clinton White House, is carrying out provisions of the law aimed at expanding coverage. And Phyllis C. Borzi, a top Labor Department official, will police the conduct of employers, who provide health benefits to more than 150 million Americans. Their task is to translate the promise of the law into reality, with help from the private sector, if possible."
Obama's Day Ahead
President Obama will meet at 12:30 p.m. ET with senior advisers. He will meet at 1 p.m. ET with Sudan Special Envoy General Scott Gration. He will depart from the White House at 3 p.m. ET, and from Andrews Air Force Base at 3:15 p.m. ET, arriving in Los Angeles at 8:25 p.m. ET. He will deliver remarks at a 9 p.m. ET fundraising reception for Sen. Barbara Boxer (D-CA) and the DNC, at another fundraising event for Boxer and the DNC at 9:40 p.m. ET, and at a fundraising dinner for Boxer and the DNC at 11:45 p.m. ET.
Topics: 2010 elections, Barack Obama, Diane Wood, Financial Reform, Health Care, Joe Biden, Ron Paul, Roundup, Sarah Palin, Supreme Court, Susan Collins, Tea Party, Timothy Geithner
Roundup
TPMDC Sunday Roundup
McConnell: Finance Bill Has Bailout Fund -- It Doesn't Matter That It's Produced From Banks
Appearing on State of the Union, Senate Minority Leader Mitch McConnell (R-KY) stood by his contention that the financial reform bill would create a permanent bailout fund. When it was pointed out that this $50 billion fund would be funded by the banks themselves, rather than the taxpayers, McConnell responded: "Regardless of where the - how the money is produced, it is a bailout fund that sort of guarantees in perpetuity that we'll be intervening once again to bail out these big firms."
Warner: McConnell Should Provide 'Specifics, Not Just General Attacks'
Appearing on State of the Union, Sen. Mark Warner (D-VA) rebutted McConnell on financial reform, noting that the $50 billion fund "would be funded by industry." Warner said that the fund was conceived of as a way "to keep the lights on [at a collapsing firm] until you could actually borrow enough money through the FDIC process to orderly resolve and get rid of the firm." Warner also added: "I'd love to hear from Senator McConnell and some of the others, specifics not just general attacks."
Topics: Bill Clinton, Charlie Crist, FL-SEN, Financial Reform, Iran, Iraq, John McCain, Mark Warner, Mitch McConnell, Ray Odierno, Roundup, Scott Brown, Sunday Shows, Supreme Court, Timothy Geithner
Financial Reform
First Budge? Administration Offers Concession To GOP On Financial Reform
Treasury Secretary Timothy F. Geithner
There's always a little wiggle room.
The Obama administration is telling Senate Democrats to ditch a measure in their financial reform bill that would create a $50 billion liquidation fund by assessing a fee on big financial institutions. The fund is intended to be used to cover the cost of winding down large firms, when they fail. According to the Associated Press, the administration would like the financial industry to cover the cost of liquidation after an institution has been dismantled.
Perhaps not coincidentally, this is a measure Republicans oppose, on the grounds, they say, that the mere existence of the fund will incentivize risk taking, and lead to more bailouts.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Topics: Bob Corker, Democrats, Financial Reform, Republicans, Timothy Geithner, White House
Sunday Shows
The Sunday Show Line-Ups
Former President Bill Clinton
Here are the line-ups for the Sunday talk shows this weekend:
• ABC, This Week: Former President Bill Clinton.
• CBS, Face The Nation: Sen. Scott Brown (R-MA).
• CNN, State Of The Union: Senate Minority Leader Mitch McConnell (R-KY), Sen. Mark Warner (D-VA).
• Fox News Sunday: Sen. John McCain (R-AZ), Gen. Ray Odierno.
• NBC, Meet The Press: Secretary of the Treasury Tim Geithner, Rep. Marsha Blackburn (R-TN), Gov. Ed Rendell (D-PA).
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Bill Clinton, Ed Rendell, John McCain, Mark Warner, Marsha Blackburn, Mitch McConnell, Ray Odierno, Scott Brown, Sunday Shows, Timothy Geithner
Roundup
TPMDC Morning Roundup
Republicans Meeting In New Orleans
Republicans are gathering today in New Orleans for the Southern Republican Leadership Conference, an early cattle call for several potential national candidates. The biggest speaker will be Sarah Palin, along with Newt Gingrich, Bobby Jindal, Rick Perry and Haley Barbour. Not present will be Tim Pawlenty, who will address the event by video, as well as Mitt Romney, both of whom had scheduling conflicts.
Obama's Day In Prague
President Obama arrived in Prague, Czech Republic, at 9:25 a.m. CEST (3:25 a.m. ET). He arrived at Prague Castle and was greeted by Czech President Vaclav Klaus at 9:45 a.m. CEST. He took a family photo with President Klaus and Russian President Dmitry Medvedev at 9:55 a.m. CEST. He held a bilateral meeting with Medvedev at 10:05 a.m. CEST, and an expanded meeting at 10:45 a.m. CEST. He attended a New START Treaty signing ceremony with Medvedev at 11:50 a.m. CEST. He attended a ceremonial lunch with Medvedev and Klaus at 1 p.m. CEST, and deliver toast remarks. Later, at 6:30 p.m. CEST, Obama will greet central and Eastern European leaders on arrival, and he will host a dinner for the leaders at 7:15 p.m. CEST.
Topics: Barack Obama, Ben Bernanke, China, Joe Biden, Repealing health care, Republicans, Roundup, Sarah Palin, Steve King, Timothy Geithner, Xavier Becerra
Goodwin Liu
TPMDC Morning Roundup
Report: White House To Remove References To 'Islamic Radicalism'
The Obama administration will reportedly remove terms such as "Islamic radicalism" from the upcoming National Security Strategy document, in an effort to emphasize that the administration does not view Muslim nations through a lens of terrorism. "You take a country where the overwhelming majority are not going to become terrorists, and you go in and say, 'We're building you a hospital so you don't become terrorists.' That doesn't make much sense," said National Security Council staffer Pradeep Ramamurthy.
Obama's Day Ahead
President Obama will meet with Secretary of State Hillary Clinton 9:30 a.m. ET. He will receive the presidential daily briefing at 10 a.m. ET, and meet with senior advisers at 11 a.m. ET. He will depart from Andrews Air Force Base at 7:30 p.m. ET, en route to Prague, Czech Republic, where he will sign the new nuclear arms control treaty with Russian President Dmitry Medvedev.
Topics: Arlen Specter, Barack Obama, Goodwin Liu, Joe Biden, John Edwards, Rielle Hunter, Senate Judiciary Committee, Timothy Geithner
Roundup
TPMDC Morning Roundup
White House to Unveil More Restrictive Nuke Policy
The Obama administration is set to unveil a new policy on nuclear weapons, which narrow the circumstances under which the United States would use such weapons. The Associated Press reports: "The U.S. officials said the administration's new policy would stop short of declaring that the United States would never be the first to launch a nuclear attack, as many arms control advocates had recommended. But it would describe the weapons' purpose as 'primarily' or 'fundamentally' to deter or respond to a nuclear attack. The officials said the document would say it is a U.S. goal to move toward a policy in which the 'sole purpose' of nuclear weapons is to deter or respond to nuclear attack. That wording would all but rule out the use of such weapons to respond to an attack by conventional, biological or chemical weapons. Previous U.S. policy was more ambiguous."
Obama's Day Ahead
President Obama will host an Easter Prayer Breakfast at 9:40 a.m. ET. He will receive the presidential daily briefing at 10:45 a.m. ET, and the economic daily briefing at 12 p.m. ET. He will have lunch with Vice President Biden at 12:30 p.m. ET. He will meet with senior advisers at 2 p.m. ET, and he will meet with Secretary of Defense Robert Gates at 4:30 p.m. ET.
Topics: 2010 elections, Barack Obama, CA-GOV, Iran, Joe Biden, Meg Whitman, Nuclear nonproliferation, Roundup, Timothy Geithner
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