Political Bulletin

WASHINGTON NEWS

Bush Floats "Orderly" Automaker Bankruptcy

President Bush yesterday left the door open to facilitating an "orderly" bankruptcy for the Detroit automakers. The Detroit Free Press reports the "possibility of government assistance for an automaker bankruptcy sent waves through Wall Street, with GM shares off nearly 13% this afternoon." The Financial Times reports White House spokeswoman Dana Perino "told reporters the administration was 'very close'" to a decision. The Detroit News also notes that "under a managed bankruptcy, the government could provide financing to automakers to run their businesses while they reorganize under court supervision.

The Washington Post reports that meanwhile, "senior officials at the Treasury Department were coalescing around an alternative that would reshape the companies but not require them to file for bankruptcy protection, sources familiar with the matter said." The New York Times says "a senior administration official......described" a managed bankruptcy "as a last resort, to be used only if an agreement for a voluntary overhaul of the industry could not be reached."

Local TV in Detroit was sharply negative toward the idea of an "orderly bankruptcy." WJBK-TV Detroit, for example, reports Detroit Mayor Ken Cockrel, Jr. says "the President needs to do the right thing," and abandon the idea of "managed bankruptcy." WXYZ-TV Detroit said bankruptcy is "not the word Detroit wants to hear." USA Today also reports "the White House mention of bankruptcy, orderly or otherwise, was not welcomed by many in the industry. There is widespread fear potential buyers will abandon any automaker that files for bankruptcy protection due to worries about vehicle resale values, warranty support and parts availability."

GM, Chrysler Deny Merger Talks Report The Detroit Free Press reports General Motors Corp. "today unequivocally denied a published report that merger talks with Chrysler had been restarted." The Wall Street Journal reported Wednesday "that Chrysler's majority owner Cerberus Capital had reopened the talks that foundered last month." But The Detroit News says both GM and Chrysler "denied" the story's veracity.

Emanuel, Blagojevich Held "Discussions"

WGN-TV Chicago last night referred to a Chicago Sun-Times (12/18, Korecki, 291K) story that asserted that incoming Chief of Staff Rahm Emanuel had "direct discussions" with Gov. Rod Blagojevich about the Senate seat being vacated by President-elect Barack Obama. WGN said that although "the Obama team vehemently denies" Emanuel "ever spoke directly with the governor," at least one of the alleged conversations "was captured on federal government wiretaps."

However, while the TV report said the Obama team denies Emanuel "ever spoke directly" with Blagojevich, the Sun-Times actually reported that "a source with the Obama camp" only denied "strongly" that Emanuel spoke with the governor "directly about the seat," saying Emanuel "only spoke with Blagojevich once recently to say he was taking the chief of staff post." The Sun-Times also said that according to "sources with knowledge of the conversations," Emanuel "talked with the governor in the days following the Nov. 4 election and pressed early on for the appointment of Valerie Jarrett to the post," though "there was no indication from sources that Emanuel brokered a deal." Meanwhile, The Sun-Times adds that "at least some of the conversations between Emanuel and Blagojevich were likely caught on tape, sources said."

Governor's Lawyer Says Wiretaps Not Legal Blagojevich attorney Edward Genson yesterday told the Illinois' legislature's impeachment committee that Federal wiretaps used to document US Attorney Patrick Fitzgerald's criminal complaint against the Governor were, in fact, illegal. The AP reports Genson "told the impeachment committee that it shouldn't consider any material from the wiretaps." WMAQ-TV Chicago said Genson's argument was "a departure from Genson's earlier line that Blagojevich has done nothing wrong."

Panel Expands BlagojevichAllegations The Washington Post reports the Illinois House impeachment committee "questioned witnesses Thursday about allegations" that Blagojevich "had trampled over the state's system of checks and balances by making policy end runs around lawmakers, expanding the testimony against him beyond the charges in the criminal complaint unveiled Dec. 9."

The New York Times notes Democratic State Rep. Lou Lang said yesterday, "These are not as sensational as the criminal charges. ... But in terms of abuse of power, in terms of the running of the governor's office and in terms of his ability to continue to serve, these are very critical issues."

WLS-TV Chicago reported on allegations by a former FBI informant that Rod Blagojevich was involved in "illegal bookmaking" in the late 1980's when he was "working as an assistant Cook County prosecutor."

Meanwhile, the New York Times reports Illinois Attorney General Madigan "denied a request on Thursday by Mr. Genson that his fees be financed with public money, and federal authorities advised officials with Mr. Blagojevich's campaign fund not to spend any of that money." The Wall Street Journal reports, "Blagojevich's salary as governor is about $177,000," and "he has unpaid legal bills of at least $500,000 from the firm Winston & Strawn LLP, according to an attorney at the firm."

Governor May Address Media Tomorrow WGN-TV Chicago reports there was "word from" Blagojevich's "spokesman he may finally address the media tomorrow." WBBM-TV Chicago reporter Jay Levine said the statement "may be limited to an explanation of his decision not to resign."

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Clinton Donors Raise Eyebrows

The release of the list of donors to Bill Clinton's foundation is generating extensive media coverage. Several analyses suggest the sizeable foreign contributions raise some questions about Sen. Hillary Clinton's ability to head the State Department, though reports don't go as far as to predict the disclosure endangers her path to Senate confirmation. The AP says "it was not immediately clear whether the disclosures will raise any serious challenge to...Clinton's nomination." Saudi Arabia, Norway "and other foreign governments gave" Bill Clinton "at least $46 million, and donors with ties to India delivered millions more." Bloomberg News notes "Saudi Arabia was the most generous among the countries, giving between $10 million and $25 million." The New York Times says that "among the largest donors were a Nigerian businessman who was close to the onetime military ruler of Nigeria, a Ukrainian tycoon who was son-in-law of that former Soviet republic's authoritarian president and a Canadian mining executive who took Mr. Clinton to Kazakhstan while trying to win lucrative uranium contracts."

The Politico, USA Today, the Wall Street Journal, the Financial Times, and the Washington Post note the contribution report shows potential conflicts. The Hill reports, "Beyond foreign governments, the list is heavy with well-known Democratic donors and major corporations." However, the Los Angeles Times reports, "the foundation said that over its life the median gift it has received is $45." Another Los Angeles Times also notes the contributors' list.

Disclosure Could Arm Holder Critics USA Today reports the contributor list "could provide ammunition for Republican critics of another Obama Cabinet pick, Attorney General-designate Eric Holder, who oversaw the process that led Bill Clinton to pardon...Rich." Rich's ex-wife, USA Today notes, "donated $250,000 to $500,000." The Washington Times reports, "Rep. Lamar Smith of Texas, top Republican on the House Judiciary Committee, said the donor list 'reinforces concerns'" about Holder.

Obama USTR, Labor Picks Differ On Trade

The New York Times reports President-elect Obama "will nominate Representative Hilda L. Solis, Democrat of California, as his labor secretary and Ron Kirk, a former mayor of Dallas, as his trade representative, transition aides said." Obama "appears to have sought to appeal to each side in the battle over free trade." Solis, "a longtime labor advocate who is of Central American heritage, has been skeptical about free-trade agreements, while Mr. Kirk, a lawyer with a political bent, comes from the Texas establishment and has spoken out in favor of the North American Free Trade Agreement."

The Wall Street Journal headlines its story "Obama's Picks Show Split On Trade," and says that "by naming Mr. Kirk, Mr. Obama nodded to the free-trade wing of the Democratic Party, which is small but has important ties to business." Meanwhile, Solis' nomination "sends a reassuring message to anti-free-trade Democrats."

The Financial Times says "doubts remain...about how much priority Mr Obama will place on trade at a time when his administration faces many more pressing economic challenges." Fox News Special Report said the USTR job is "likely to take a backseat in an Obama presidency."

The AP reports Solis "is expected to advocate greater union influence in the workplace and more 'green' jobs." Under the headline "Labor Ties Drive Solis Pick," The Politico says Solis "will take over the Labor Department in an imploding job market while Big Labor is licking its chops for payback in Washington." The Washington Post notes labor's support for Solis, and The Hill, the Washington Times, and the AP also report on the nominations.

Gay Groups Angered At Selection Of Warren

The CBS Evening News reported President-elect Obama "is drawing anger from gay rights advocates, upset that he's chosen evangelical minister Rick Warren to deliver the invocation at his inauguration. Warren backed the California ballot initiative opposing same-sex marriage."

ABC World News reported the choice of Warren "appears to have ended the honeymoon between Obama and the left-wing of his party." Gay rights and liberal groups "are calling Obama's selection a genuine blow, a divisive choice, and a grave disappointment."

NBC Nightly News showed Obama saying, "It is no secret that I am a fierce advocate for equality for gay and lesbian Americans." Obama also said that "he and Warren have their differences but he wants to move past them."

The AP reports Obama also "pointed out" yesterday "that a couple of years ago, he was invited to speak at Warren's church, despite their disagreements on a number of issues." The Washington Post notes "Obama has appeared twice at Warren's Saddleback Church in Lake Forest, Calif."

Under the headline "Choice Of Pastor Aims To Bridge Divide," the Wall Street Journal reports "Obama is associating himself with one of the most popular religious figures in the nation, reaching out to conservative America and proving he's willing to take some flak from the liberal flank of his party."

USA Today says Obama also "noted that Joseph Lowery, the dean of the civil rights movement and co-founder of the Southern Christian Leadership Conference, will deliver the benediction on Jan. 20."

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CAMPAIGN NEWS

Resistance Builds To Caroline Kennedy Appointment

Yesterday in New York, Caroline Kennedy continued her high-profile effort to win support in her bid to be appointed to New York Sen. Hillary Clinton's (D) seat. As reporter Kate Snow reported on ABC World News, "she has the Kennedy name. She's well known on the social scene as an author. She has raised millions for the New York public schools. Now, what many New Yorkers are asking, is all of that enough to qualify for the US Senate? Caroline Kennedy is quickly discovering running the political gauntlet in New York is no walk in the park."

The Washington Post ads that in upstate and Western New York, there is "resistance," as Buffalo Mayor Byron Brown, "also mentioned as a possibility for the senate seat, said in a telephone interview he found Kennedy 'warm, approachable, very down to earth' and said she had the 'capacity to do the job.' But he added, 'I stressed to her very strongly that people from Buffalo and Western New York would want to see an upstater on the ticket.'"

However, Kennedy continued to press her case yesterday, holding a lunch meeting with Rev. Al Sharpton, a prominent figure in New York Democratic politics. The AP reports on the Sharpton-Kennedy lunch meeting, saying, "After speaking to Kennedy, Sharpton released a statement saying he disagreed with those who say she isn't qualified to be U.S. senator." The New York Times reported on its 'City Room' blog that Sharpton "pronounced Ms. Kennedy... 'the unique candidate in this, the unique person in this with some unique skills.' Ms. Kennedy repaid the compliment, calling their tête-à-tête 'fantastic.'"

Kennedy's bid may have hit a few potential snags yesterday. The New York Daily News says New York City records "has failed to vote in many elections since she registered in the city in 1988 - including votes for the Senate seat she hopes to fill and numerous Democratic faceoffs for mayor." The New York Post adds, "Some Democrats privately expressed surprise about the nonvotes. Kennedy has talked about her civic commitment as a reason why she's seeking the seat."

Also, the AP reports today that the New York State Assembly "will examine whether a charity that Caroline Kennedy helps run was properly granted an exemption from a state law requiring full financial disclosure."

Minnesota Senate Race Down To A Few Votes

The Minneapolis Star Tribune reports that in the Minnesota Senate race, challenger Al Franken (D) "picked up several hundred votes at Thursday's state Canvassing Board meeting, all but erasing the narrow unofficial lead" that Sen. Norm Coleman (R) "has maintained for weeks." Coleman only leads by five votes, and "the DFLer seemed poised to move ahead today, at least temporarily, as the board rules on more challenged ballots." The Politico says that the closeness of the count, "combined with a state Supreme Court decision handed down Thursday, has suddenly heightened the prospects that Franken, who has trailed in every count since Election Night, could end up winning the seat after all the votes are counted." The court ruled that formerly rejected absentee ballots had to be counted, but the Minneapolis Star Tribune reports that the court's "requirement that candidates agree on which absentee ballots were improperly rejected could throw a new curve ball into the process and even prevent legitimate votes from being counted." Overall, the New York Times says the ruling "brought cheers from the Franken campaign."

The Washington Post says the race is in "political limbo" raising "the possibility that the contest could still be undecided when the rest of the class of 2008 is sworn in Jan. 6. Election officials said they are unlikely to finish the recount...before Dec. 30, and the state's Supreme Court issued a verdict mandating the inclusion of perhaps more than 1,000 absentee ballots that had been rejected, making it appear likely that the process could take even longer than envisioned."

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POLITICAL HUMOR

The Latest From Late Night Comedians

Jay Leno: "The roads were closed in Malibu. In fact, there was so much snow, a lot of celebrities couldn't get to the global warming conference."

Jay Leno: "I tell you," the "economy's rough. ... People are standing behind President Bush just to get the free shoes."

Jay Leno: "And the Mexican government has opened up a telephone hotline here for illegal immigrants living in Arizona. Yeah. Here's the best part, the calls are answered by a guy in India."

Conan O'Brien: "According to a new survey that just came out, the most admired profession is doctor. Doctor is the most admired profession. Yeah. The least admired profession?" Illinois Gov. Rod "Blagojevich's barber."

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