Responding to the shocking allegations against Illinois Gov. Gov. Rod Blagojevich, President-elect Barack Obama yesterday said he had "no contact" with Blagojevich regarding his Senate seat. Media accounts note the statement would appear to contradict remarks by his adviser David Axelrod in an interview last month. Some press reports also note some GOP criticism of Obama camp's handling of the controversy an approach the New York Times likens to the Bush Administration's response to the CIA Plame leak case. "Obama's advisers," says the Times, "made the decision on Tuesday essentially to remain silent and ignored criticism for doing so from Republicans, a strategy reminiscent of how the Bush administration reacted to the last high-profile case of Mr. Fitzgerald, who was the special prosecutor in the CIA leak case."
The Chicago Tribune reports that in an interview conducted "just hours" after Blagojevich was arrested, Obama "said he had never spoken personally to Blagojevich about his possible replacement, either before or since his victory." The New York Times notes Obama adviser David Axelrod "issued a statement late Tuesday saying he had misspoken in comments he made in November that now seemed to contradict Mr. Obama's assertions that he had no contact with Mr. Blagojevich in the conversations over a replacement." Fox News' Special Report also noted "an aide to Mr. Obama's transition told Fox Axelrod misspoke."
The Los Angeles Times, USA Today, Chicago Tribune, Washington Times, AP and AFP, among other news outlets, note Obama is not being accused of involvement in the alleged corruption. Nonetheless, says the Financial Times, "the case could prove embarrassing" for the President-elect, "who, like Mr Blagojevich has received fundraising help in the past from Tony Rezko, a Chicago businessman convicted of corruption" who is part of the broader investigation into Blagojevich's dealings. The Wall Street Journal also reports the Blagojevich indictment "cast an embarrassing glare on the world of Chicago politics he shares with...Obama, even though the two Democrats aren't close and there is no suggestion Mr. Obama did anything inappropriate." The Journal adds "the case will keep the public spotlight on some episodes Mr. Obama thought he had put behind him, including his ties to...Rezko."
CNN's The Situation Room also reported that "this is very uncomfortable for Obama's team and never pleasant to be connected any way even indirectly to an ugly investigation." Taking a more ominous tone, the Washington Times headlines its report "Scandal Casts Cloud Over Obama Presidency," while McClatchy describes Obama as "untainted but not untouched...by the stunning scandal."
Who Is "Adviser B"? The complaint makes numerous references to people like 'Advisor B, a consultant in Washington,' whose identity will likely be one of the hottest topics of conversation in town for the next few days or longer. ABC News' Political Punch, the AP, and the Washington Post also report on the Obama connections referenced in the complaint. The Hill says the complaint "cited several individuals who discussed the open Senate seat, either directly or through intermediaries, with the governor and his aides, prompting speculation that one or more members of Congress could become ensnared in the scandal." The Wall Street Journal, meanwhile, reports Axelrod "lists Mr. Blagojevich on his firm's Web site as one of his clients, when the politician was a candidate for Congress."
Fox News' Special Report notes in 2002, Obama "worked as a key advisor for to Blagojevich's first run for governor. So did Mr. Obama's chief of staff, former Chicago congressman Rahm Emanuel."
The White House and congressional Democrats reached an "agreement in concept" on a rescue plan for Detroit auto makers. Media reports expect a tough battle for passage in the Senate, where a GOP filibuster is likely to force supporters to garner 60 votes for the deal. The New York Times reports the White House is "working behind the scenes...to build support for the proposal among Republicans," with GOP "support for the auto industry bailout...in serious doubt." The Washington Times, however, notes a "top Republican senator, briefing reporters on background, said opposition has been raised within the Republican caucus to the short-term bailout and that the White House had applied 'zero' pressure on Republican lawmakers to support the bill."
The Detroit Free Press reports "key Senate Republicans promised a filibuster of the draft proposal for not requiring more sacrifices from the UAW." Some Republicans, says the Washington Post, "were annoyed that they had been excluded from the negotiations. Others raised more fundamental objections, saying the plan didn't go far enough to compel the auto giants to make painful changes in their operations and to ensure that taxpayers are repaid."
USA Today reports "work continued on details of a final bill. If that's successful, the bill could be considered by Congress this week." Outlining the agreement's main provisions, the Detroit News says "the White House won a key concession that would essentially force automakers to file for bankruptcy if they don't complete long-term restructuring plans by March 31." The Wall Street Journal says the legislation sets "the stage for one of the most far-reaching government interventions in American industry in decades." The Christian Science Monitor says "the auto rescue plan sets up a level of government oversight and control not seen since World War II." The Politico, McClatchy, the AP, Los Angeles Times, Financial Times, and Roll Call run similar stories on the preliminary agreement.
Speculation About Car "Czar" Appointees Noted The Washington Post says Speaker Nancy Pelosi "mentioned former Federal Reserve chairman Paul Volcker as the type of person she would support" as the oversight "czar" for the auto industry. A "variety of commentators have mentioned high-profile names such as Jack Welch, retired General Electric chief executive, and Kenneth Feinberg, a Democratic lawyer who oversaw the compensation fund for victims of the Sept. 11 attacks."
Public Split On Detroit Rescue NBC Nightly News reported the new NBC News/Wall Street Journal poll shows "when it comes to a taxpayer bailout of the auto industry, Americans are pretty evenly split. Forty-six percent approve, 42% disapprove. That's just the car industry. Banks, different story. When asked about the bailout of the financial industry, only 27% approve and a solid 50% saying they disapprove." The Wall Street Journal reports the "initial opposition to the financial-sector bailout was actually smaller -- 38% disapproved in an early October poll -- but it was much more vocal."
The Wall Street Journal reports sources "familiar with the matter" said the "panel set up to oversee the Treasury Department $700 billion financial-rescue fund is expected to release a report Wednesday highly critical of the government's handling of the bailout.." The report "will also press the Bush administration to act more aggressively to prevent foreclosures," and is "expected to raise fresh questions about the program at a time when many lawmakers expect the Bush administration to seek access to the second half of the funds."
The New York Times says the report "will outline 10 topics for both lawmakers and the panel itself to address as they monitor the financial rescue plan." The "topics range from the general, like Treasury's overall strategy, to the practical, like the method it is using to decide which institutions get bailed out." But they "all pose detailed questions that the panel says have not yet been answered by the administration." Bloomberg News and USA Today run similar stories.
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Illinois Gov. Rod Blajoveich's arrest for allegedly scheming to sell the Senate seat vacated by President-elect Barack Obama has scrambled efforts to name a replacement. The Hill reports Blagojevich's arrest "raises new questions about those considered for appointment to replace President-elect Obama in the Senate." While "only one of the potential replacements is implicated in any wrongdoing - Blagojevich himself - details within the criminal complaint suggest Obama adviser Valerie Jarrett and State Attorney General Lisa Madigan were among those considered for the post."
Roll Call reports, "Two days ago, a half-dozen Democrats were considered candidates to be the next U.S. Senator from Illinois. Today, most are likely to need legal representation to answer questions from federal investigators about what they knew" about the allegations against Blagojevich.
Meanwhile the AP reports the "scandal leaves the Senate seat in limbo," and Illinois legislative leaders "said they were preparing to quickly schedule a special election to fill Obama's seat rather than let Blagojevich pick someone." Sen. Dick Durbin said yesterday, "No appointment by this governor, under these circumstances, could produce a credible replacement." Fox News' Special Report noted that Durbin, however, "declined call for Blagojevich to resign or step aside." The Christian Science Monitor reports Illinois Senate President Emil Jones "promised to call lawmakers back into session to consider a bill for a special election to fill the seat."
Roll Call, however, reports that "according to one published report, a statewide special election could cost as much as $50 million to administer -- and that could give state lawmakers pause in these hard economic times." In addition, "a special election could throw a safe seat for Democrats into total chaos, plus give Republicans a rare shot at a statewide office. And this time the usual suspects for a statewide bid could actually be suspects in the federal probe."
The Wall Street Journal editorializes, "Now would be a good time for the President-elect to say that Mr. Blagojevich and his cronies should have nothing to do with naming Mr. Obama's successor. And that, given the taint of corruption that now hangs over any choice, the state should hold a special Senate election."
The New York Times editorializes, "Blagojevich must be deemed innocent until proved guilty. But surely the recorded conversations, full of expletive-laced schemes, render him unfit to appoint anyone, least of all himself, to the vacant Senate seat."
The Washington Post agrees in an editorial, "The best solution to this problem is for the Illinois legislature to call a special election to fill Mr. Obama's seat, as proposed yesterday by" Durbin.
Kirk Would Consider Run In Special Election The Politico (12/10, Kraushaar, Martin, Brown) reports a "well-connected GOP operative with ties to Illinois said" Rep. Mark Kirk (R) "is likely to consider running. Operatives from both parties agree Kirk would be a strong candidate." Kirk, a naval officer, "has a clean image with no ties to Springfield or the Chicago political machine. Meanwhile, the risk for Kirk would be minimal in running during an off-year special election. Under that scenario, he would not have to step down from his House seat to run for the Senate."
Tribune Says Blagojevich Should Resign The Chicago Tribune editorializes, "It has been clear for more than a year that...Blagojevich is not capable of governing. As we said in October 2007, he is 'an intentionally divisive governor and a profoundly unhelpful influence." He "must resign immediately. If he doesn't, the Illinois House should begin proceedings to impeach him."
The AP reports that this morning Massachusetts Sen. Edward Kennedy (D) is "said to be working the phones" to boost the chance of New York Gov. David Paterson (D) appointing his niece Caroline Kennedy to fill Sen. Hillary Clinton's Senate seat. The AP says "It's a chance to perpetuate a family legacy begun when President John F. Kennedy was first elected to the Senate in 1952."
Meanwhile, the New York Daily News reports Caroline Kennedy and state Attorney General Andrew Cuomo (D) "are running neck and neck among voters on who should fill Hillary Clinton's Senate seat, a new poll shows." A Marist College poll shows 25% say Paterson should pick Kennedy, 25% want Cuomo, 26% were unsure, and the rest backed a wide array of lesser-known politicians.
The Los Angeles Times, in an editorial this morning says that there appear to be "two routes" governors can take to fill a Senate vacancy "They can pick someone with a beloved family name, as New York Gov. David Paterson has reportedly been considering with political scion Caroline Kennedy, or they can try to put the seat up for sale, as a federal prosecutor alleged was the case with Illinois Gov. Rod R. Blagojevich." The Times would "like to suggest a third possibility: Select someone with the wisdom, talent and experience to serve in the world's greatest deliberative body. Oddly, this seems to be a novel concept."
Rep. King "Seriously Considering" Senate Bid The AP reports that whoever fills the seat may faces a serious challenge from the GOP when a special election is held for the seat in November 2010. Rep. Peter King (R) said yesterday "that he is preparing for a run for the New York Senate seat, even if that means facing off against Caroline Kennedy. 'I am seriously considering the race for Hillary Clinton's seat,' King told The AP. 'I'm very serious about it.'" King "New York's GOP chairman Joseph Mondello 'supports me 100 percent,' and that state Conservative Party chair Michael Long has responded positively." The Hill notes King "is one of just three GOPers in the New York congressional delegation to survive November's elections and has a good fundraising start on the race, having banked $1.2 million as of late November." The Hill adds that former New York Mayor Rudy Giuliani (R) is also rumored as a potential GOP candidate for Clinton's seat."
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Jay Leno: "Illinois Governor Rod Blagojevich is now in Federal custody on corruption charges. ... They say he conspired to sell the US Senate seat held by Barack Obama. Remember he left it vacant?" Blagojevich "was trying to sell it to the highest bidder. Yeah, now, I don't want to say he was brazen about it, but he did it on eBay. Come on!"
Jay Leno: "Earlier today, President-elect Obama and Vice President-elect Biden met with Al Gore in Chicago to discuss energy and climate change issues. ... So, you have the greatest speaker of our lifetime, the most boring speaker of our lifetime, and the guy who speaks non-stop for our entire lifetime all together in one room."
David Letterman: "When former New York Governor Elliott Spitzer heard about Governor Blagojevich, he said, 'Hey, you call that a scandal? No, I don't think so.'"
Conan O'Brien: "Now, some Senate leaders in Washington say they're...very close to reaching a bailout deal for the car companies. The senators say it's taking so long because every time they almost get a deal, the car executives say, 'I have to go back and check with my manager.'"
Conan O'Brien: "Governor Rod Blagojevich was arrested by the FBI because he was trying to sell the Senate seat being vacated by Barack Obama. ... Blagojevich says he's sorry he tried to sell the seat and extremely sorry he did it on Craigslist."
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