The Washington Post reports Rep. Jesse L. Jackson Jr. "told federal investigators that Gov. Rod Blagojevich asked for a $25,000 campaign contribution during Blagojevich's 2002 run for governor and may have exacted retribution when the money did not arrive" by refusing Jackson's wife a gubernatorial appointment. Kenneth Edmonds, Jackson's Washington spokesman, "said the congressman 'has shared information with the U.S. attorney's office about public corruption in the state during the past several years.'"
The AP reports that Blagojevich told Jackson "he didn't appoint the congressman's wife as lottery director because he had refused him a $25,000 campaign donation, a person familiar with the conversation told The Associated Press on Tuesday."
NBC Nightly News called the revelation about Jackson a "new bombshell in the scandal." WGN-TV Chicago also reported "it's been confirmed," Jackson "has been singing to federal investigators about public corruption, and he has been doing it for years."
Meanwhile, The Hill reports the "alleged 'pay-to-play' scheme coarsely laid out by" Blagojevich "in FBI wiretaps sent the political world on the hunt for those who reportedly offered $1.5 million for a Senate seat." But campaign finance experts "and some lawmakers" do not "see much difference between what" Candidate No. 5's "'emissary' offered and standard operating procedure in Congress - where the promise to raise millions is part of advancing into leadership or a chairmanship."
Rezko Sentencing Indefinitely Delayed The AP reports, "Jailed political fundraiser Antoin 'Tony' Rezko's sentencing has been postponed indefinitely, possibly adding to the legal problems of Gov. Rod Blagojevich." The judge ordered the delay on "Tuesday amid speculation that Rezko has resumed talking to prosecutors about his relationship with Blagojevich and other figures in the federal investigation of state government."
Blagojevich Fundraiser To Plead Guilty WFLD-TV Chicago reported that Blagojevich's case may be weakened after one of his fundraisers, Chris Kelly, changed his plea to guilty on charges of "failing to report gambling proceeds." The Chicago Sun-Times notes that Kelly "was not charged with conduct related to state deals but is widely known to be under scrutiny for fund-raising schemes under Blagojevich."
Facing the potential prospect of a Republican winning President-elect Obama's Senate seat if a special election were held, media reports note that Illinois Democrats on Tuesday indicated they would not pursue that avenue to fill the vacancy. The Wall Street Journal reports that Illinois Democrats "slammed the door Tuesday on a special election." In his blog for The Politico, Josh Kraushaar notes "the Democratic-controlled Illinois General Assembly did not take up legislation yesterday that would remove the governor's ability to appoint a Senate successor even as it unanimously passed legislation to begin impeachment hearings."
The AP reports Republicans "say Democrats are simply afraid of losing the election, particularly if a potential backlash arises from the criminal charges against Blagojevich." Roll Call also reports the story.
Obama: Issue Best Left To Legislature The AP reports Obama said yesterday "he'll let the Illinois legislature decide whether a special election should be held to choose his successor." McClatchy says that at his press conference, "Obama sidestepped a question about whether he supported a special election."
The Chicago Sun-Times reports Obama refused a question on the role his staff may have played in discussions of the seat, saying, "Let me just cut you off, because I don't want you to waste your question. The US Attorneys Office specifically asked us not to release this until next week."
Republicans Launch Ad Campaign The AP reports Illinois Republicans "have launched a political ad campaign demanding a special election to fill the Senate vacancy that...Blagojevich allegedly tried to sell, hoping to pick up a seat they had no shot at before the scandal." Meanwhile, in her Chicago Sun-Times blog, Lynn Sweet noted a "polling memo from the Illinois Republican Party" which states that "2/3 of Illinois voters support a special election."
Plurality In Illinois Backs Special Election McClatchy reports that according to an Ipsos/McClatchy online poll, "44 percent said the state should have a special election; 35 percent said the power to appoint a successor should be transferred to Lt. Gov. Pat Quinn; 19 percent think the state legislature should choose a replacement for Obama; 2 percent think Blagojevich should pick the new senator."
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President-elect Barack Obama's selection of Arne Duncan to head the US Education Department is receiving widespread media praise. Most analysts describe Duncan as a centrist and a successful reformer and some reports are casting his selection as an act of defiance toward the teachers' unions, a powerful Democratic constituency. USA Today reports Duncan has "backed No Child Left Behind, President Bush's 2002 education law, but testified in 2006 that Congress should amend it to give schools, districts and states 'the maximum amount of flexibility possible' to implement it."
Under the headline "Obama Defies Unions To Pick School Reform," the Financial Times reports Obama yesterday "promised to break free from the 'tired' partisan debate over issues such as performance-related pay and independent charter schools, long advocated by conservatives and opposed by the left." The Washington Post reports, "Duncan's résumé appeals to those identify themselves as reformers and tend to support tough accountability, charter schools, performance-pay plans and other steps that shake up the status quo."
The Washington Post notes "Education Secretary Margaret Spellings, who visited a Chicago elementary school last week to highlight Duncan's pay-for-performance program, showered praise on the executive in an interview with The Washington Post last week." ABC World News reported "Duncan's efforts to close failing schools in Chicago, sometimes put him at odds with parents and teachers."
Duncan Backed "Gay-Friendly High School" CNN's The Situation Room reported the "most controversial" reform Duncan supported was "the creation of a gay-friendly high school. Proponents say it would have been a safe place for gay and lesbian teenagers who have experienced bullying. Duncan tells CNN, 'This is a kind of innovative idea we will look at and evaluate on the national level.'"
The Des Moines Register reports former Iowa Gov. Tom Vilsack "is expected to be named President-elect Barack Obama's designee to be US Secretary of Agriculture on Wednesday, Democratic officials said today."
Fox News Special Report noted that "late last month, Vilsack told the De Moines Register he had not been contacted for any position and would not serve as agriculture secretary." Yesterday, says the Los Angeles Times, Vilsack "declined to comment" on reports of his selection for USDA.
The New York Times reports "both Mr. Obama and Mr. Vilsack are regarded as staunch advocates of ethanol and other bio-fuels as a way to reduce the nation's reliance on foreign oil." The Washington Post says "both environmentalists and food industry leaders reacted positively to the choice of Vilsack, a political centrist." The Politico, Roll Call, AP. Wall Street Journal and AFP also report the story.
The Hill reports Rep. Xavier Becerra (D-Calif.) "will remain in Congress as vice chairman of the House Democratic Caucus and will not join the Obama administration as its lead trade negotiator, Becerra announced Tuesday." Roll Call says Becerra's decision averts "a potentially divisive Democratic leadership race" and he "retains a coveted slot on the Ways and Means Committee."
Kirk Seen As Possible Obama Choice The AP says that "with Becerra removing himself from contention, other names circulating for the trade job include former Dallas Mayor Ron Kirk, also said to be under consideration to become transportation secretary."
Media reports suggest the Federal Reserve's latest round of interest rate cuts is a dire indication of economic weakness. ABC World News reported, "In an ever escalating effort to rescue the economy from deep recession, the Federal Reserve took sweeping steps and cut a key interest rate to the bone. The federal funds rate was slashed to between .25% and zero. The lowest ever." The CBS Evening News said the Fed is "ready to use every weapon in its arsenal to turn it around, beginning with this, free money." NBC Nightly News notes that "one analyst called what happened today 'shock and awe.'"
The AP reports after the rate cut, "Wells Fargo, Wachovia and U.S. Bancorp immediately lowered their prime lending rates from 4 percent to 3.25 percent, and other banks will probably follow suit." The Financial Times says "the decision to set a range for interest rates reflects an admission that the US central bank cannot tightly control the actual rate that prevails in the market in current conditions." The Wall Street Journal reports "the cut was more than many economists expected." USA Today notes the rate cut "came as the government released new data showing the worst housing market in decades and a second record-setting monthly decline in consumer inflation." The Washington Post , the Los Angeles Times, McClatchy, AFP and New York Times also report the story.
Stocks Soar After Fed's Move NBC Nightly News reported, "On Wall Street, the reaction to this historic move today was positive, went up quickly." The AP notes "the Dow rose 359.61, or 4.20 percent, to 8,924.14." The Standard & Poor's 500 index "advanced 44.61, or 5.14 percent, to 913.18, and the Nasdaq composite index rose 81.55, or 5.41 percent, to 1,589.89." The Wall Street Journal, Financial Times, and Washington Post, among other print outlets, also attribute the stock numbers to the Fed's rate cut.
Obama Says Fed Can't Do It Alone The Chicago Sun-Times reports President-elect Barack Obama said, "We are running out of the traditional ammunition that's used in a recession, which is to lower interest rates. They're getting to be about as low as they can go. And although the Fed is still going to have more tools available to it, it is critical that the other branches of government step up, and that's why the economic recovery plan is so absolutely critical." The Wall Street Journal also notes "Obama used the Fed move as a rallying call for more fiscal stimulus."
Consumer Prices Plunge The CBS Evening News reported inflation "gone. The government reported today that consumer prices in November fell 1.7 percent. That is the biggest drop on record, and those plunging gas prices led the way." The Financial Times and New York Times also report the story.
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The New York Times reports on its front page this morning that as she bids to be appointed to Sen. Hillary Clinton's (D) seat, Caroline Kennedy (D) must "overcome skepticism about her experience and credentials, and deflate what some Democrats view as a sense of entitlement by a member of a storied American political family trying to begin her political career near the top of the ladder."
The New York Times says in an editorial that there are "interested questions" about Kennedy, such as is she "ready for the heat and the criticisms that are about to bear down on her?" Another "question being asked quietly among government and business types in New York is whether Ms. Kennedy has the legislative skills to help New York's senior senator, Charles Schumer, and the rest of the state's delegation, negotiate their state's fair share of much-needed federal money in very difficult times." And will she "do the hard political work to show she would represent New Yorkers who live outside Manhattan's best ZIP codes?"
The AP says that prior to Kennedy's emergence, Paterson "had been considering about a dozen other potential contenders, most prominent among them Kennedy's former relative by marriage, Andrew Cuomo. ... Others who were said to be interested include Nassau County executive Tom Suozzi and Reps. Kirsten Gillibrand, Carolyn Maloney and Brian Higgins."
Despite these misgivings, Kennedy seems to be in a powerful position. The Washington Post says on its front page that, "Although there are other contenders for the job, establishment figures have quickly closed ranks around Kennedy." In addition, CNN's The Situation Room reported Senator Majority Leader Harry Reid is "gushing about the prospect of Caroline Kennedy's replacing Senator Hillary Clinton. Reid even says he's called New York's governor, David Paterson, on Caroline Kennedy's behalf." The Washington Post reported on its 'The Fix' blog that Reid's endorsement carries "significant weight."
Sen. Clinton herself has weighed in. The New York Post reports that yesterday she "called off the dogs, telling loyal surrogates to quit sniping at Caroline Kennedy with questions about her qualifications to serve in the US Senate, sources told The Post." The New York Daily News similarly reports that Clinton is "telling her supporters to stop trashing Caroline Kennedy, sources told the Daily News."
The Minneapolis Star Tribune reports this morning that the Minnesota state Canvassing Board "began sifting through the first of 1,500 challenged ballots in the disputed U.S. Senate race this afternoon, providing a tedious - but sometimes eye-opening - lesson in democracy under the gaze of reporters and lawyers for the campaigns of Republican Sen. Norm Coleman and DFLer Al Franken." The AP reports Coleman's leads rose to 264 votes from the 188 vote lead at the end of the recount. The New York Times adds Secretary of State Mark Ritchie "said the panel hoped to complete its task by the end of Friday," but "that will not settle the matter." Coleman is "going to the State Supreme Court here on Wednesday in an effort to prevent 1,500 additional ballots from being counted."
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Jay Leno: "As you know, President Bush took a surprise trip to Baghdad over the weekend and at a press conference with the Iraqi premiere, a reporter threw his shoes at him." This "guy was so angry" and "so anti-Bush, at first people just assumed he was an American journalist, but no."
David Letterman: He "is an Iraqi journalist and they say he's a hot head with poor...journalistic skills. ... Well, no surprise, today he was offered his own show on Fox News."
Jay Leno: "This is the big news in New York. Well, all over the world, really. It's just an amazing story. A Wall Street tycoon named Bernard Madoff has been arrested for running a $50 billion Ponzi scheme. ... You know what a Ponzi scheme is? That's where they use the money of new investors to pay off the older investors, or as we call it, Social Security."
David Letterman: "Everybody in New York is in the holiday spirit. The crack dealers, for example, have...formed an acapella choir."
Conan O'Brien: "The current Administration of course is winding down, not just President Bush, but everybody is sort of talking about the eight years. Yesterday, Dick Cheney was interviewed by ABC News and he reflected on his eight years in office. Yeah. Then he turned into a bat and disappeared in a puff of smoke."
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