As calls for Gov. Rod Blagojevich's resignation mount, media reports and analyses are pointing to possible signs of political danger for President-elect Barack Obama. Under the headline "Obama Team Faces An Early Test Of Its Ability To Weather A Storm," for example, the New York Times reports that "exactly what role" Obama "or his team played will be a focus of intense scrutiny in the weeks to come," and "in that sense, the furor could be the first test of the Obama team's ability to manage a growing scandal." While Obama "said Tuesday that he had never spoken with the governor about the seat," his team "has declined for two days to answer questions about what discussions they had about the seat and whether intermediaries had any contacts with Mr. Blagojevich's advisers." The AP, meanwhile, notes Obama "wouldn't answer a question on whether he was aware of any conversations between the governor and his top aides, including incoming White House chief of staff Rahm Emanuel." Moreover, "aides didn't say whether Emanuel, a Democratic Illinois congressman, was ever approached by the governor's emissaries involved in allegedly corrupt schemes. Nor did they say whether Obama is investigating his own ranks to determine whether any of his staffers had contact with the governor or his office."
Bloomberg News refers to "collateral damage and a taint on Obama's transition to power," while in a piece titled "Big Risks For Obama In Blago Scandal," The Politico calls the scandal "a stink bomb tossed at close range" for the Obama camp." The Politico also poses "7 Blago Questions For Obama" this morning. They are: "1 'Did you communicate directly or indirectly with Blagojevich about picking your replacement in the US Senate?' ... 2 'Why didn't you or someone on your team correct your close adviser David Axelrod when he said you had spoken to Blagojevich about picking your replacement?' ... 3. 'When did you learn the investigation involved Blagojevich's alleged efforts to 'sell' your Senate seat, or of the governor's impending arrest?' ... 4 'Did you or anyone close to you contact the FBI or US Attorney Patrick Fitzgerald about Blagojevich's alleged efforts to sell your Senate seat to the highest bidder?' ... 5 'Did federal investigators interview you or anyone close to you in the investigation?' ... 6 'When did you and Blagojevich last speak and about what?' ... 7 'Do you regret supporting Blagojevich?'" USA Today quotes Emory University political scientist Merle Black saying that "questions about the Blagojevich case will be a 'huge distraction'" for Obama's team, "and they need to address" the scandal "as soon as possible.'" The Washington Post, AFP and Chicago Tribune run additional stories in the ongoing scandal.
Source: There Were "Probably" Calls Between Blagojevich, Obama Camp The New York Times reports this morning, "A Democrat familiar with Illinois politics and the Obama transition, who spoke on the condition of anonymity, said there probably were calls between the Blagojevich and Obama camps about the Senate seat. It was not clear if any calls were recorded by federal agents, who had tapped the governor's phones."
Rep. Jesse Jackson Jr., identified as Senate candidate number 5 in the criminal complaint filed against Gov. Rod Blagojevich, yesterday denied he or agents on his behalf had offered to "pay to play" for the Governor's appointment. The AP reports Jackson "said Wednesday he openly sought appointment to Barack Obama's Senate seat but denied offering favors in return to Illinois Gov. Rod Blagojevich and said he was not involved 'whatsoever in any wrongdoing.'" ABC World News reported "the government says it overheard Blagojevich talking about approaches from emissaries for candidate number five. Quote, 'He'd raise me 500 grand, then the other guy would raise a million, if I made him senator.' Prosecutors say the Governor wanted some of the money paid in advance."
The CBS Evening News showed Jackson saying, "I never sent a message or an emissary to the Governor to make an offer, to plead my case, or to propose a deal about a US Senate seat. Period." The Hill reports, "Jackson used specific words from the document, including 'pay to play' and 'emissary,' and denied he had anything to do with such an arrangement." The Politico notes that Jackson "said he had merely laid out his qualifications and his record to Blagojevich during a meeting in Chicago." The Chicago Tribune referred to Jackson's "frenzied campaigning for the Senate job since Obama won the presidential election last month with his staunch support." The New York Times adds that Jackson "made a defiant appearance before reporters in Washington...denying unequivocally that he had offered Mr. Blagojevich anything in exchange for the Senate seat or had sanctioned any offer by an intermediary." The Washington Times, Washington Post and Financial Times also reports the story.
Criminal Complaint Confirms Rezko Cooperating The Washington Post reports that a footnote in the Blagojevich criminal complaint "confirms what has long been rumored -- that a former longtime friend and fundraiser for President-elect Barack Obama is talking to federal prosecutors in hopes of a reduced sentence." The Chicago Tribune reports, "The government isn't satisfied Rezko is giving a complete version of events, an FBI affidavit filed in the case said, 'but in broad terms Rezko's account incriminates Rod Blagojevich in a pay-to-play criminal scheme.'"
Defense Lawyers Say Case Not "Slam Dunk" In its story focusing on Jackson's comments yesterday, the Wall Street Journal reports, "Mr. Fitzgerald's case against the governor is considered far from a slam dunk. Defense attorneys reading the 76-page FBI affidavit noted many of Gov. Blagojevich's headline-grabbing conversations weren't necessarily crimes."
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The House late last night approved a deal to provide the Detroit automakers with a $15 billion bridge loan by a 237-170 margin. McClatchy reports that while "many supporters conceded that they were uneasy about the plan -- a point they made to Democratic leaders in a closed-door caucus...publicly said they had little choice." The New York Times reports the House voted "mostly along party lines," with the Detroit News, AFP, Financial Times and Los Angeles Times, among other media sources, also reporting on the lower chamber debate.
But key Senate Republicans are expressing their opposition to the bill, a move that media outlets are portraying as potentially fatal for the measure. USA Today quotes GOP Sen. George Voinovich saying, "I don't think the votes are there." The Hill estimates Senate Democrats "would need at least 11 or 12 GOP senators to advance the measure." In fact, "one industry source put the number of GOP votes needed at 16, noting that a few Democrats are likely to vote against the bill." Roll Call, McClatchy, Washington Times, Wall Street Journal, Washington Post, Washington Times. and New York Times run similar assessments.
The Detroit Free Press, meanwhile, notes that over "the last decade, the UAW has spent more than $10 million to elect Democrats and defeat Republicans -- some of them the same GOP senators now being asked to rescue the domestic auto industry." The Hill reports the two Republican senators "most supportive of a federal bailout for American automakers are both up for reelection in 2010, and new polls suggest they could be in trouble." The polls show Sens. Kit Bond and George Voinovich "with less than 50 percent of the vote in hypothetical contests. Pollsters agree that any incumbent who polls under 50 percent is in jeopardy of losing his or her seat."
Democrats Want Volcker As "Car Czar" The Wall Street Journal reports White House officials "will coordinate closely with the incoming Obama administration in choosing a new 'car czar' to oversee the restructuring of the Big Three US auto makers, if Congress passes a bailout plan," as "pressure" grows "in Congress for former Federal Reserve Chairman Paul Volcker to take the job." One person "close to Mr. Volcker said that with enough persuasion Mr. Volcker would 'probably do it,' though so far he hasn't been contacted and would prefer not to take on such a role."
Analyst: Chrysler "Cannot Survive Intact" The Detroit News reports, "Chrysler LLC cannot survive intact, even with a government loan, an automotive analyst said Wednesday." CSM Worldwide forecasters said that "the road ahead for Detroit's automakers, which are losing ground in North America to foreign competitors, is grim." The New York Times also reports on the analyst's comments.
The AP is reporting this morning that the "financial giants now being bailed out by the government spent millions underwriting the Democratic and Republican conventions last summer, just weeks before coming to Washington begging for multibillion-dollar handouts. The big donors included AIG, Ford Motor Co., Citigroup, Goldman Sachs and Freddie Mac." Major corporations, labor unions "and individual millionaires dumped $118 million into the nominating conventions for Barack Obama and John McCain, according to reports from the Campaign Finance Institute and the Center for Responsive Politics."
The Politico notes the "government bailout for American International Group came just weeks after the insurance giant poured $1.5 million into the host committee accounts for the two national party conventions." AIG is "just one of a handful of corporate bailout recipients, or bailout candidates, that donated significant funds to offset the parties, lighting and staging of the nominations of Democrat Barack Obama in Denver and Republican rival John McCain in Minneapolis-St. Paul." Ford, General Motors, Citigroup and Freddie Mac "all provided cash or goods to the conventions, according to a new report prepared by the Campaign Finance Institute and the Center for Responsive Politics, two nonpartisan organizations that track political money."
Poll: Majority Support More Government Regulation The Los Angeles Times reports a "majority of Americans...favor the idea of Washington stepping in to prevent any further collapse of the nation's economy, according to a Los Angeles Times/Bloomberg poll." The survey "showed that most of those surveyed favored increasing government intervention in the economy, and half blamed lack of regulation for many of the nation's current woes. About two-thirds back tighter regulation of banks and financial institutions, and half said the federal government should take an ownership stake in banks and other industries to save the private sector."
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The AP reports this morning that Louisiana Gov. Bobby Jindal (R) said yesterday that he had no interest in running for president in 2012 and planned to seek reelection to his current job in 2011. The AP adds that "in the wake of Republican losses in Congress and a blowout defeat in the presidential race, Jindal is an early favorite among many Republicans for 2012."
The Politico reports this morning that based on "the dollar figures, it looks like the press was one-third more interested in Barack Obama than John McCain. And some network TV news shows were the worst offenders." Media outlets "paid $8.5 million to fly Air Obama compared to $5.8 million to ride the Straight Talk Express during the general election, a difference of 32 percent, according to a Politico analysis of campaign finance reports." The numbers "corroborate studies and Republican gripes positing that the media was more focused on Obama than McCain."
Minnesota Sen. Norm Coleman (R) has been the focus of media attention this week as the state seeks to resolve his apparently razor-thin win over challenger Al Franken (D). However, he may now start getting press for a different reason. The Minneapolis Star Tribune reports this morning that the FBI "is investigating allegations in two lawsuits accusing a friend and political supporter" of Coleman "of attempting to funnel $75,000 to Coleman from the coffers of a Texas company that the friend controls. Sources familiar with the probe said FBI agents in Texas have begun gathering information and contacting people associated with Houston-based Deep Marine Technology Inc., an underwater services company controlled by Nasser Kazeminy." The Washington Times reports that three payments of $25,000 from Deep Marine Technology were sent to Hays Companies, which employs Coleman's wife, Laurie. The lawsuits claim the payments "were arranged 'because the senator needs the money' and were sent to Hays disguised as 'service fees.'"
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Jay Leno: "How many people in our studio got your seats tonight because you paid off Illinois Governor Rod Blagojevich?"
Jay Leno: "Don't you love watching congressmen lecture auto executives on how to run their business? I mean, you got people that put us a trillion dollars in debt lecturing people who put us a billion dollars in debt."
David Letterman: "We're not kidding about this economy," which "is so bad that" Illinois Governor Rod Blagojevich "had to mark down the price of a Senate seat 40%."
David Letterman: "But did you hear about this guy?" Blagojevich "is charged with corruption and apparently" he "was stealing a lot of money, getting a lot of bribes" and "kickbacks and hiding them in his hair."
David Letterman: "Well, I just hope to God this doesn't tarnish the fine reputation of Illinois politics."
Craig Ferguson: "Big news from Washington today. Even though it may make some people uncomfortable, President-elect Obama says he'll use his full name, Barack Hussein Obama, when he's sworn in next month. To show support, Joe Biden is also using his full name, Joseph Adolph Fidel Puppykiller Biden."
Conan O'Brien: "A plan to bail out the Big Three automakers stalled in Congress today. Yeah. As a result, Congress plans to buy a better-built Japanese bailout plan."
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