Media reports are casting the AIG bonus controversy as an exercise in political scapegoating, with rising conflicts between Democrats in the House, Senate, and Administration over responsibility for permitting the $165 million AIG bonus payments. In particular, reports noted criticism directed at Treasury Secretary Timothy Geithner and Sen. Christopher Dodd, who the AP reports, were "engaged in finger-pointing about who was responsible for Congress' failure to prevent" the bonuses "in the first place."
ABC World News reported that "on Capitol Hill today, the angriest voices were Republicans. They say blame for the bonuses lies with Democrats." But CNN's Situation Room said "it's not just Republicans assigning blame. More and more congressional Democrats are pointing fingers at the White House, telling us they believe they tried to deal with this issue, but were stopped by the Obama Administration."
The Hill reports Senate Democratic leaders "defended their handling of the stimulus bill that allowed executives from bailed out firms to collect excessive bonuses." The Wall Street Journal reports Speaker Pelosi "said Federal Reserve Board Chairman Ben Bernanke deserves at least part of the blame."
Geithner drew barbs from Republicans, including some calls for his resignation. Bloomberg News also reports congressional Democrats "are growing increasingly nervous about the ability" of Secretary Geithner "and the Obama administration's economic team to manage the crisis and effectively convey a coherent policy."
The Politico reports Geithner "acknowledged Thursday that his department 'expressed concern' to Sen. Chris Dodd (D-Conn.)" about the provision. The Politico reports Sen. Johnny Isakson "suggested Thursday that" Secretary Geithner "should resign because of his tarnished credibility, which he believes is hurting the Obama administration's ability to respond to the economic crisis."
ABC World News reported, "However much the President enjoyed being out of Washington, the AIG controversy followed him" to California. Republicans "said his trip and media blitz, including an appearance on the 'Tonight Show' this evening is campaigning, not governing. And they faulted him for allowing the AIG bonuses."
Meanwhile, reports note that the AIG controversy has taken an additional toll on Sen. Dodd's reelection prospects. The Hill reports Sen. Dodd "suffered repeated political blows this week, weakening his already tough reelection prospects, but Democrats are standing by their candidate as he faces the first big electoral challenge of his 29-year Senate career."
The New York Times reports in a front page story that "across Connecticut, anger is erupting against" Dodd, who "finds himself a symbol of the political establishment's coziness with tainted corporations and a target of populist wrath over their excesses."
Geithner Dismisses Calls For Resignation In an interview with correspondent Ali Velshi on CNN's Campbell Brown, Secretary Geithner responded to calls for his resignation: "I think this comes with the job. If this was not challenging, it would not be consequential."
Holbrooke Served On AIG Board The AP reports Obama Administration special envoy Richard Holbrooke "was on the American International Group Inc. board of directors in early 2008 when the insurance company locked in the bonuses now stoking national outrage."
By a 328-93 margin, the House yesterday voted to tax retroactively the bonuses paid by AIG. McClatchy notes the bill would "levy a 90 percent tax on bonuses paid to employees with household incomes exceeding $250,000 a year at companies that have received at least $5 billion in federal bailout assistance." ABC World News reported, "As the old saying goes, don't get mad, get even." On Capitol Hill, "members of Congress, already mad, today, added the even. The House passed a bill, taking dead aim at the bonuses paid to executives at AIG."
The New York Times notes that "despite questions about the legality of the retroactive 90 percent levy, Democrats and some Republicans said the tax on bonuses for traders, executives and bankers earning more than $250,000 was the quickest way to show angry Americans that Congress intended to recoup the extra dollars."
The CBS Evening News said that "for once, the House acted like a house on fire, with virtually all other business set aside." NBC Nightly News also reported, "After days of anger and outrage, and yes, finger-pointing, now we have Congress taking some action. And it was unusually fast."
USA Today reports "the margin of victory came despite sharp Republican attacks calling the legislation a legally questionable ploy divert attention from Obama administration missteps."
The Wall Street Journal reports, "In both the House and Senate bills, companies could escape the tax by repaying enough government aid. Some Wall Street firms have formally applied to repay the government ahead of schedule, and the new tax is spurring talk among others." However, "regulators have been leery of allowing firms to repay, in part because it could complicate efforts to promote stability in the financial system." The Chicago Tribune, in a story also running on the Los Angeles Times' front page, says the vote came as Congress struggles "to keep ahead of public outrage over the actions of Wall Street firms."
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ABC World News reported "the government is coming to the rescue of another part of the auto industry: $5 billion in TARP funds being set aside for auto part suppliers." NBC Nightly News also noted "the money would come from the rescue package that's already been passed by Congress."
USA Today describes the initiative as an "effort to keep the industry running while the government works on a broader restructuring plan." The New York Times says "the financing from the Treasury Department for suppliers is the initial step by a presidential task force to stabilize the ailing industry, and could be followed by more bailout money for General Motors and Chrysler."
The Detroit Free Press notes "two key Senate Republicans criticized the Obama administration's plan," saying the Administration "had misled Congress about how it would help the auto industry." Sens. Bob Corker and Judd Gregg "cited a letter from National Economic Council director Larry Summers to Congress in January that automakers would 'only receive additional assistance in the context of a comprehensive restructuring.'" The Detroit News says the two GOP senators called the loan assistance "a violation of trust." But the Washington Post reports that "Administration officials responded that the aid does not represent a new program but merely an extension of earlier efforts to aid auto companies because it provides support to them by propping up their supply base."
McClatchy reports "automotive suppliers employ at least 500,000 workers nationwide, but are unable to tap credit at banks because of the credit crunch," and "many of them face growing financial uncertainty as GM and Chrysler wrestle with plunging sales and production. ... Only suppliers to US automakers, not foreign transplants such as Toyota and Nissan, may apply."
The Wall Street Journal reports, "For many observers, the government's move solidified a sense that the administration would provide more aid to GM and Chrysler and avoid pushing the companies into bankruptcy."
On its front page, the Los Angeles Times reports President Obama's "$3.55-trillion budget has stumbled into a series of economic and political pitfalls that threaten to undercut his grandest ambitions." Yesterday, "the chairman of the Senate Budget Committee...projected deficits far higher than the Obama administration had calculated, possibly as much as $1.6 trillion higher over the next 10 years."
Obama Budget Strategy Compared To Reagan's The Hill (3/20, Alarkon) reports that like President Reagan, President Obama is "using arcane budget rules to push for massive, transformational changes in American life." Like Reagan, Obama has "pressed for an ambitious budget that seeks seminal shifts in spending, the tax code and the size of deficits. What's more, he's doing this while trying to pull the country out of the worst recession since the one Reagan faced."
NYTimes Defends Obama Deductions Cap The New York Times editorializes that President Obama's "plan to cap itemized deductions for high-income taxpayers at a 28 percent rate flew like a lead balloon in Congress, reportedly sending the White House in search for other sources of revenue." But "it would be a pity if the administration were to forgo that money -- some $320 billion over the next 10 years to finance a good share of its proposed health care reform." While "philanthropy is a good thing...it is driven by the donors' tastes. It cannot replace the socially necessary investments that government needs to make."
President Obama capped his two-day visit to California by appearing on NBC's "Tonight Show", the first such appearance by a sitting president. Interviewed by Jay Leno, the President defended his economic agenda and addressed the AIG scandal, telling Leno he was "stunned" over the disclosure of the bonuses. The Los Angeles Times reports "Obama bantered casually with Leno" and expressed "occasional frustration with life inside the presidential bubble, laying out his position on the bonuses paid to AIG employees, and giving his pick for the NCAA basketball tournament."
The New York Times says Obama "walked a tightrope between projecting good humor and projecting a presidential air." The Politico reports "Senate Minority Whip Jon Kyl latched onto the 'Tonight Show' appearance, saying Obama should skip the humor and come back to work on the AIG scandal."
Later on, the President was asked if he feels the kind of scrutiny that has accompanied his first 59 days in office has been fair, Obama said, "I...think in Washington, it's a little bit like 'American Idol,' except everybody is Simon Cowell." Bloomberg News reports that "Obama's appearance on the 'Tonight Show' is an evolutionary rather than revolutionary step in presidential communications, according to Stephen Hess, a presidential historian at George Washington University in the capital."
"Special Olympics" Remark Gets Attention Most newspaper accounts this morning are noting a comment by the President that at least one commentator is describing as "unfortunate." In the Los Angeles Times, TV critic Robert Lloyd writes that Obama, "proudly claiming to have bowled 129 on the White House lanes -- made his one truly unfortunate remark. ... 'It's like the Special Olympics or something.'" An AP story on Obama's Tonight Show interview notes the remark, but without any added commentary. The Politico says "Obama's effort to mix his serious talk with more light-hearted fare was overshadowed" by the comments, made "in an attempt to mock his own lackluster bowling skills."
Obama Struggling As "Public Communicator?" The Politico reports Obama "is struggling as a public communicator." The President's "sluggish and unsteady response to the uproar over AIG bonuses highlights a larger problem of his White House: Obama's surprisingly uneven campaign to educate people about the economic crisis and convince Washington and the broader public that he is in command of circumstances."
Equally critical is an article on the front page of the Financial Times, which says Obama "stepped out from behind his teleprompter on Thursday for an off-the-cuff question-and-answer session with voters in California," but "the spontaneity failed to quell growing criticism of his heavy use of the electronic speech aid, after a technical glitch this week highlighted its fallibility."
Hollywood Feels Snubbed By Obama The Los Angeles Times reports, "It can be dangerous to diss an entire town of divas," but "when it comes to his relationship with Hollywood" Obama "seems willing to run the risk." Is it "any wonder that many of Obama's industry backers were left puzzled this week by what many see as a decision to hold Hollywood at arm's length?"
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The New York Post reports, "AIG gave $100,000 to the New York state Democratic Party shortly before" New York Gov. David Paterson (D) "and the state insurance superintendent moved for its rescue, records reveal."
The Anchorage Daily News reports that Alaska Gov. Sarah Palin (R) "is refusing to accept more than 30 percent of the federal economic stimulus money being offered to" the state, "including dollars for schools, energy assistance and social services." The Politico quotes Palin saying, "We won't be bound by federal strings in exchange for dollars, nor will we dig ourselves a deeper hole in two years when these federal funds are gone," adding, "Simply expanding state government under this federal stimulus package creates an unrealistic expectation that the state will continue these programs when the federal funds are no longer available."
The Politico reports that Mitt Romney's (R) Free and Strong America PAC has raised $571k this year and $2.3 million last year, and while it has helped keep Romney in the "spotlight" for a potential 2012 bid, it has donated only $16k this year and $240k last year to supporting like-minded candidates, the fund's nominal purpose.
The Chicago Tribune reports, "Confronted with anticipated legal bills of upwards of $400,000," Illinois Sen. Roland Burris (D) "is setting up a defense fund to solicit contributions to defray the costs of his struggle to gain his Senate seat, including his defense in ongoing ethics and perjury investigations covering related testimony, a Senate aide said."
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The Boston Globe reports that "bitter rivalries" between former Democratic National Committee chair Howard Dean and some in President Obama's "circle" have kept Dean "out of the three top administration posts committed to changing the healthcare system." Dean "is easing into an exile as a Democratic version of former House Speaker Newt Gingrich, who spent the Bush years operating as a freelance visionary and policy entrepreneur, a permanent creature of the political margins credited with having successfully plotted his party's recapture of power but not long trusted to actually wield it."
CQ Politics reports that a Public Policy Polling (D) survey taken March 12-15 shows North Carolina Sen. Richard Burr (R) leading likely opponent Secretary of State Elaine Marshall (D) 43%-35%; 22% are undecided.
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Jay Leno: "We are very excited to have the President of the United States, Barack Obama here. A lot of people...were surprised that the President came to NBC. You'd think by this time he'd be tired of big companies on the brink of disaster with a bunch of overpaid executives."
Jay Leno: "You know, we were also going to have Vice President Joe Biden come out and say a few words, but, you know, it's only an hour show."
Jimmy Fallon: "Big night for the network tonight. Barack Obama became the first sitting president to ever appear on a late night show. He was on 'Leno' tonight. Of course, it doesn't count the time Thomas Jefferson was on 'Larry King.'"
Jimmy Fallon: "I heard this today, a new audiotape from Osama bin Laden was released." On the tape, "he says he doesn't care what anyone says, he's not giving back his bonus money."
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