President Obama is receiving largely though not unanimously positive reviews for his performance during a White House press conference yesterday. On the positive side, for example, CBS's Katie Couric said briefly immediately following the news conference, "The President does what he does well, and does so often, taking his case directly to the American people with his second prime time news conference in just six weeks." ABC's George Stephanopoulos said of Obama, "I think he got what he wanted out of that press conference." NBC's David Gregory referred to "a very careful presentation from the President tonight. ... I thought he moderated his tone with regard to the anger he was demonstrating about the AIG bonuses, saying we can't afford to demonize every investor or entrepreneur who tries to get a profit."
The Chicago Tribune notes the President's message last night was that "his initiatives are essential to recovery from recession," and that "the $3.55-trillion federal budget which he proposes is part of the solution." McClatchy reports "the economy dominated the discussion," and that Obama "suggested reasons for optimism, a shift of tone from him after weeks of dire warnings." The Wall Street Journal says Obama "repeatedly took openings to make the case that the government should spend now on renewable-energy development, education and a health-insurance overhaul that would put the economy on a sounder footing once it recovers."
The New York Times notes Obama "fired back at Republicans who have been criticizing the big deficit numbers in his plan, accusing them of having a 'short memory' after the growth of the Federal debt under his immediate predecessor, George W. Bush." USA Today says Obama's tone "was a mix of the populist 'I'm as angry as anybody about those bonuses,' he said at one point, albeit with a calm demeanor -- and the professor."
Less positive were other assessments from some print media analysts and Obama critics. The AP reports "Obama's plea Tuesday for patience in the economic turmoil fits with the view of most economists that a turnaround will take some time. It doesn't fit quite so neatly with his bullish budget." The New York Daily News describes Obama's performance as "less-than-electrifying."
Karl Rove, on Fox News' The O'Reilly Factor, said Obama's "best moment" was when "he showed some empathy with people around the country making a sacrifice," but Rove added that Obama "was mailing it in often tonight...no emotion, no passion, no real connection." Howard Kurtz writes in the Washington Post that Obama "faced far more aggressive questioning than in his first prime-time encounter with the media." The Washington Times reports, "The White House press corps, filibustered into silence during...Obama's first press conference, came alive on Tuesday night, asking tough questions about the economy and the skyrocketing federal deficit and demanding answers in repeated follow-up questions."
The Politico's Michael Calderone reports that in "quite a departure from the first presser -- and White House protocol -- Obama skipped over the nation's top newspapers. Indeed, there were no questions from the NY Times, Washington Post, Wall Street Journal or USA Today." Howard Kurtz writes in the Washington Post that Obama's decision amounted to a break "with tradition."
President Obama is set to discuss his budget with members of Congress today, just as media reports suggest key Democrats intend to substantially alter his plan. McClatchy says the House and Senate budget committees are hoping "to cut hundreds of billions of dollars from the president's outline." The Financial Times refers to an "increasingly critical response...from centrist Democrats who are sounding the alarm about exploding fiscal deficits." The budget "faces a particularly sceptical Kent Conrad, chairman of the Senate budget committee."
The Politico reports Conrad's own plan "would narrow the deficit by two-thirds but severely weaken...Obama's ability to achieve the tax cuts and health care reform at the heart of his domestic agenda." The Wall Street Journal reports Conrad's version includes "an increase in annual nondefense spending of 7% for 2010 -- a $15 billion reduction from the president's." Rep. John Spratt, House Budget Committee chairman, "was expected to make somewhat smaller reductions when he rolled out his plan on Wednesday." The Washington Post notes Spratt said that "the House plan would include a procedural shortcut that would permit Democrats to push an overhaul of the health care system through the Senate without Republican votes." Conrad "adamantly opposes the move, known as reconciliation, as does Senate Finance Committee chairman Max Baucus."
The AP notes that Conrad's plan "was released in the wake of new" CBO estimates "that predicted Obama's plan would produce alarming estimates of red ink --- $9.3 trillion over 10 years and a deficit of $749 billion in 2014." The New York Times adds that "despite the differences in the Senate blueprint," OMB director Peter R. Orszag "said the major elements of the president's agenda were protected in the budget." Another Wall Street Journal article reports the White House "plans to create a task force to consider elimination of corporate loopholes and corporate welfare, tougher enforcement against tax avoidance and tax simplification." The AP also reports that "Obama says he can save money on defense and veterans programs by targeting the way the military buys its equipment."
Bayh Group Plays Central Role The Wall Street Journal reports on a "coalition of 16 moderate Democratic senators led by Indiana's Evan Bayh," that is "well positioned to force changes in the president's budget." Sens. Bayh, Tom Carper and Blanche Lincoln write in the Washington Post this morning, "Our group hopes to work constructively with members on both sides of the aisle to make the big changes that America needs today and tomorrow." Bayh, on CNBC's The Kudlow Report, said, "If you have a deficit that's growing faster than your economy is growing, eventually that will come back to haunt you in terms of higher interest rates and a depreciated currency." Chris Matthews, on MSNBC's Hardball, noted that "a coalition of liberal activists is gearing up to target conservative and moderate Democrats in the Congress who could block...Obama's big budget fight." The Campaign For America's Future's Roger Hickey identified Democratic Reps. Marion Berry and Chet Edwards as two targets of his group's ads.
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Treasury Secretary Tim Geithner and Federal Reserve Board Chairman Ben Bernanke yesterday told a House committee that the Federal Government needed the authority to seize control of firms that were too important to the economy to fail, such as American International Group.
The Financial Times reports Treasury Secretary Geithner and Chairman Bernanke "joined forces" to "press Congress for powers that would enable regulators to seize control of troubled financial groups including 'non-banks' such as insurer AIG." In a "rare joint appearance before the House financial services committee," Bernanke and Geithner "also called for an oversight body to monitor big financial institutions that pose systemic risks."
The CBS Evening News reported the "country's two top money men urged Congress today to give the Treasury Department sweeping new regulatory power that goes beyond banks to other troubled financial institutions." NBC Nightly News reported Geithner and Bernanke "came here with a request for more authority, that some critics are already calling a power grab." CNN's The Situation Room reported "Republicans, though, are blasting" the plan. Bloomberg's Evening Edition reported congressional Republicans are "not happy about this."
The Wall Street Journal reports Geithner and Bernanke "are channeling widespread outrage over retention bonuses at American International Group Inc. to quickly win authority they have sought for much of the past year to seize nonbank companies and freeze their contracts." USA Today reports, "The heads of the Federal Reserve and the Treasury Department on Tuesday called on Congress to give the government broad emergency powers to shut down financial businesses, using AIG as the poster child for why such powers are needed." The New York Times reports in a front page story that in his "news conference on Tuesday night, President Obama said the government could have handled the A.I.G. bailout much more effectively if it had had the same power to seize large financial companies as it did to take over failed banks."
The AP reports Geithner and Bernanke "argued Tuesday for unprecedented powers to regulate and even take over financial goliaths whose collapse could imperil the entire economy." McClatchy reports the "powers that Geithner seeks are similar to what the Federal Deposit Insurance Corp. has over national banks."
The Los Angeles Times reports the "call for greater authority" would "be a major expansion of government power in the economy, echoing the wide authority granted to Washington during the Great Depression." The Politico reports the "proposed legislation will allow the government to purchase assets, guarantee liabilities, and buy an equity interest in a large array of financial services companies if they pose systemic risk to the financial system."
The AP reports President Obama "says he expects strong support from Americans and Congress for his push for unprecedented regulatory authority over financial institutions." The Hill reports President Obama said Tuesday night that Treasury Secretary Geithner's "request for increased authority over non-bank entities like the American International Group (AIG) will likely receive broad support from both Congress and the American people."
Although the House rushed to pass a bill to tax 90% of the controversial American International Group bonuses, media reports noted that the Senate is in no hurry to take up the bill. The Politico reports with the Senate "adrift on the once-hot AIG bonus tax bill, Democrats are all now waiting for President Barack Obama to send a signal on what to do." But the White House "outside of criticizing the House bill for overreaching isn't endorsing any particular crackdown on bonuses, leaving the issue in limbo."
The Wall Street Journal reports Congress's "drive to recoup bonuses at American International Group Inc. is slowing significantly as passions on the issue cool, potentially removing a wedge that has threatened to derail the Obama administration's broader agenda."
Meanwhile, the CBS Evening News reported Treasury Secretary Tim Geithner and Federal Reserve Board Chairman Ben Bernanke were "taking heat on Capitol Hill today, most of it from Democrats." The officials "both testified they only learned the details of AIG's huge retention bonuses in early March. Bernanke said he considered suing to get the money back, but..." Bernanke: "Legal staff counseled against this action on the grounds that Connecticut law provides for substantial punitive damages, the suit would fail." NBC Nightly News added, "In political terms that means" Bernanke and Geithner "were dragged before a House committee that wanted to know how and why they let AIG pay out bonuses with taxpayers money." The rules "gave House members five minutes each. That led to rushed and tense exchanges."
USA Today reports that during the testimony of Secretary Geithner and Fed Chairman Bernanke, lawmakers "mainly focused on the issue of the $165 million paid to AIG employees this month. Geithner said the government is working to recoup the money and said that as a penalty, the insurer would receive less cash from a recently announced $30 billion aid package." The Politico reports Bernanke "wanted to sue AIG to stop the company from handing out hundreds of millions in bonus payments over the past two weeks." But Federal Reserve lawyers "advised against litigation, fearing the bank would lose the suit and allow AIG to recoup huge punitive damages."
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The AP reports that Louisiana Gov. Bobby Jindal (R) "again found himself carrying the Republican mantle opposite a primetime appearance from President Barack Obama on Tuesday, saying Republicans must be ready to defy the president when they disagree with his policies." Roll Call adds that Jindal, speaking at a GOP fundraiser, "did not mince words, criticizing the Democrats for liberal spending practices and plans to expand government."
The Anchorage Daily News reports that a Democratic blogger has filed an ethics complaint against Alaska Gov. Sarah Palin (R) that alleges a "conflict of interest" because during a snowmachine race this year, she wore clothing with the logo of her husband's racing sponsor, Arctic Cat. Palin's response: "How much will this blogger's asinine political grandstanding cost all of us in time and money?"
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Roll Call reports after "suffering through perhaps the worst week of his Senate career," Connecticut Sen. Chris Dodd (D) is looking to "cloak himself in normalcy" and "move beyond the political drama that has put his re-election in peril."
The AP reports that Kentucky Sen. Jim Bunning (R) yesterday "blamed his early fundraising difficulties on" Kentucky Sen. Mitch McConnell (R) and NRSC Chief Sen. John Cornyn, saying "during a conference call...that he's found it more difficult to raise money for his" 2010 reelection bid because "the two have tried to recruit someone to challenge him in the GOP primary."
The Politico reports that Norm Coleman (R) "is still considering taking his election lawsuit to the federal court if he's unsuccessful in reversing Al Franken's 225-vote lead in the Minnesota Senate recount," signaling the Minnesota Senate trial "may be far from over."
The Washington Times reports that the Democratic Senatorial Campaign Committee, "which received $100,000 in campaign contributions from disgraced financier Bernard Madoff, has yet to rid itself of the tainted funds that other Washington politicos have rushed to shed since the collapse of Mr. Madoff's $64 billion Ponzi scheme in December."
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Jay Leno: "Earlier today, President Obama filled...three of the remaining top jobs at the Treasury Department. Their job" will be "to collect taxes from all the other cabinet members that haven't paid them yet."
Jay Leno: "Hey," you "hear about this? Very...strange incident at JFK Airport in New York City today. An AIG executive going through security had to empty out all his pockets. You know what fell out? Senator Chris Dodd."
Craig Ferguson: "President Obama held a big press conference earlier tonight. ... He's on TV a lot these days. The only way Obama could get more TV time is if he had eight babies."
Jimmy Kimmel: "Obama also repeated his support for Treasury Secretary Geithner, who unveiled his plan yesterday for the government to buy up the so-called 'toxic assets' from troubled banks and sell them to China, which will then make them into children's toys" and that "should solve the problem entirely."
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