President Barack Obama decried as "inexcusable and irresponsible" the delay of his economic recovery legislation in Congress with an estimated 3.6 million Americans losing their jobs since the recession began.
Mr. Obama's remarks were some of his most direct and pointed in support of the massive economic package that the Senate considered Friday and tried to pare down. Obama acknowledged the $900-billion-plus plan was not perfect and pledged to work with lawmakers to refine the measure, which he called "absolutely necessary."
"But broadly speaking, it is the right size," Obama said in prepared remarks. "It is the right scope... It will take months -- even years -- to renew our economy. But every day that Washington fails to act, that recovery is delayed." (Read the full text of Obama's prepared remarks on the economy.)
Employers slashed payrolls by 598,000, the most since the end of 1974, catapulting the unemployment rate to 7.6%. The rate is the highest since September 1992. (See related article.)
"These numbers demand action. It is inexcusable and irresponsible to get bogged down in distraction and delay while millions of Americans are being put out of work. It is time for Congress to act," Mr. Obama said bluntly.
"That's 3.6 million Americans who wake up every day wondering how they are going to pay their bills, stay in their homes, and provide for their children. That's 3.6 million Americans who need our help," he said.
Making good on a promise to name a diverse outside economic advisory panel, Mr. Obama appointed a slate of business, economic and labor leaders – from conservative economist Martin Feldstein to AFL-CIO secretary-treasurer Richard Trumka – to help guide him on the path out of recession.
The President's Economic Recovery Advisory Board, chaired by former Federal Reserve Chairman Paul Volcker, will be modeled after the existing Foreign Intelligence Advisory Board to bring in voices from outside government to help shape policy.
Obama aides say the board will focus on short-term measures to stimulate the economy as well as longer-term efforts to restructure the regulatory apparatus overseeing financial markets. Austan Goolsbee, a University of Chicago economist and close campaign aide, will be its executive director.
Some of the panel's members have close Republican ties, such as Mr. Feldstein, a Reagan White House economist, and William H. Donaldson, a former chairman of the Securities and Exchange Commission appointed by President George W. Bush. Others have close political ties to the president, including Penny Pritzker, an heir to the Hyatt hotel fortune, and Robert Wolf, chairman of chief executive of UBS Group Americas. The group also includes Roger W. Ferguson Jr., a former Federal Reserve vice chairman, not chief executive of TIAA-CREF, Silicon Valley venture capitalist John Doerr, and Jeffrey R. Immelt, chief executive of General Electric.
The advisory board:
William H. Donaldson, Chairman, SEC
Roger W. Ferguson, Jr., President & CEO, TIAA-CREF
Robert Wolf, Chairman & CEO, UBS Group Americas
David F. Swensen, CIO, Yale University
Mark T. Gallogly, Founder & Managing Partner, Centerbridge Partners L.P.
Penny Pritzker, Chairman & Founder, Pritzker Realty Group
John Doerr, Partner, Kleiner, Perkins, Caufield & Byers
Jim Owens, Chairman and CEO, Caterpillar Inc.
Monica C. Lozano, Publisher & Chief Executive Officer, La Opinion
Charles E. Phillips, Jr., President, Oracle Corporation
Anna Burger, Secretary-Treasurer, SEIU
Richard L. Trumka, Secretary-Treasurer, AFL-CIO
Laura D'Andrea Tyson, Dean, Haas School of Business at the University of California at Berkeley
Martin Feldstein, George F. Baker Professor of Economics, Harvard University
Jeffrey R. Immelt, CEO, GE
Friday, February 6, 2009
Thursday, February 5, 2009
This administration has become a joke, a parody
Yet another Obama cabinet nominee turns out to be a tax-cheat.
A Senate committee today abruptly canceled a session to consider President Obama's nomination of Rep. Hilda Solis to be labor secretary in the wake of a report saying that her husband yesterday paid about $6,400 to settle tax liens against his business -- including liens that had been outstanding for as long as 16 years.
She also has small problem with violating House ethics rules. But, hey, what's a frakking huge little conflict of interest when you're pledged to serve The One?
Hmmm... Has anyone checked the President's taxes yet? Thinking
The new Obama poster, via Exurban League:
Wednesday, February 4, 2009
WSJ NEWS ALERT: CIA Nominee Panetta Earned $700,000 in Fees in 2008
By GLENN R. SIMPSON
WASHINGTON -- The White House's nominee for director of the Central Intelligence Agency, Leon Panetta, has earned more than $700,000 in speaking and consulting fees since the beginning of 2008, with some of the payments coming from troubled banks and an investment firm that owns companies that do business with federal national security agencies.
Mr. Panetta received $56,000 from Merrill Lynch & Co. for two speeches and $28,000 for an Oct. 30, 2008 speech for Wachovia Corp. Both firms suffered big losses last year and were acquired by larger banks.
The Wachovia honorarium was on Oct. 30, while the last Merrill Lynch honorarium was on Oct. 11, according to disclosure forms filed by Mr. Panetta in connection with his nomination. At the time, Bank of America had already agreed to a rescue of Merrill Lynch, while Wachovia had agreed to be acquired by Wells Fargo & Co.
Mr. Panetta also received a $28,000 honorarium from the Carlyle Group, which owns a number of companies that do business with the national-security agencies of the U.S. government.
Mr. Panetta is a former congressman from central California who served as White House chief of staff under President Bill Clinton. A White House spokesman for Mr. Panetta didn't immediately respond to inquiries about the disclosures.
Mr. Panetta also reported receiving a $60,000 "Governmental Advisor Fee" from the Pacific Maritime Association, which represents the shipping industry. The group lobbies the federal government regarding terrorism laws that affect shipping. A spokesman for the association didn't respond to a request for comment.
Another big source of income for Mr. Panetta was California State University, Monterey Bay, which hosts his nonprofit foundation, the Leon & Sylvia Panetta Institute for Public Policy. The school paid Mr. Panetta $150,000 in "consulting fees," he reported.
Mr. Panetta is set to appear before the Senate Intelligence Committee Thursday about his nomination.
WASHINGTON -- The White House's nominee for director of the Central Intelligence Agency, Leon Panetta, has earned more than $700,000 in speaking and consulting fees since the beginning of 2008, with some of the payments coming from troubled banks and an investment firm that owns companies that do business with federal national security agencies.
Mr. Panetta received $56,000 from Merrill Lynch & Co. for two speeches and $28,000 for an Oct. 30, 2008 speech for Wachovia Corp. Both firms suffered big losses last year and were acquired by larger banks.
The Wachovia honorarium was on Oct. 30, while the last Merrill Lynch honorarium was on Oct. 11, according to disclosure forms filed by Mr. Panetta in connection with his nomination. At the time, Bank of America had already agreed to a rescue of Merrill Lynch, while Wachovia had agreed to be acquired by Wells Fargo & Co.
Mr. Panetta also received a $28,000 honorarium from the Carlyle Group, which owns a number of companies that do business with the national-security agencies of the U.S. government.
Mr. Panetta is a former congressman from central California who served as White House chief of staff under President Bill Clinton. A White House spokesman for Mr. Panetta didn't immediately respond to inquiries about the disclosures.
Mr. Panetta also reported receiving a $60,000 "Governmental Advisor Fee" from the Pacific Maritime Association, which represents the shipping industry. The group lobbies the federal government regarding terrorism laws that affect shipping. A spokesman for the association didn't respond to a request for comment.
Another big source of income for Mr. Panetta was California State University, Monterey Bay, which hosts his nonprofit foundation, the Leon & Sylvia Panetta Institute for Public Policy. The school paid Mr. Panetta $150,000 in "consulting fees," he reported.
Mr. Panetta is set to appear before the Senate Intelligence Committee Thursday about his nomination.
McCain, Coburn Threaten to Hold Up Legislation in Name of Fiscal Discipline
McCain, Coburn Threaten to Hold Up Legislation in Name of Fiscal Discipline
By John Stanton
Roll Call
January 28, 2009
Sens. Tom Coburn (R-Okla.) and John McCain (R-Ariz.) told their colleagues Wednesday that they would block legislation they believe violates a series of government reform proposals the Obama administration unveiled earlier this month, including the creation of duplicative programs or earmarks over $25,000 that are not competitively bid.
Citing the continued economic crisis, the two fiscal hawks pledged in a letter to Senators to back Obama’s “Plan for Restoring Fiscal Discipline.” The duo argued that it will help ensure any legislation does not increase the national debt. Read the entire letter here.
“This is why we believe it is essential that President-elect Barack Obama is successful in his pledge to bring change to Washington by changing Congress’ irresponsible spending habits,” Coburn and McCain wrote.
Obama’s reform plan is designed to eliminate most earmarks and redundant federal programs, require that new spending be offset by reductions elsewhere in the budget and require performance measures for new programs proposed in legislation.
While Coburn and McCain commit to holding up legislation that does not fall within those broad outlines, they also warn that other measures could end up being blocked as well.
“This is not an exhaustive list of all of the reasons we may individually object to a particular bill or a unanimous consent agreement for consideration of legislation, but these will be the fundamental parameters by which we will evaluate all legislation,” they said, adding that “our intent is not to be obstacles, but rather to give you the courtesy of knowing how we can work together to accomplish our individual and collective goals and to cooperate with our new President to help him succeed with his plan for restoring fiscal discipline to Washington in a bi-partisan manner.”
Coburn and McCain, Obama’s rival for the White House in 2008, have long been champions of the government reform cause in Congress, and they worked with Obama on a number of earmark and other reform measures in the past several sessions of Congress.
However, Coburn’s use of holds has often run him afoul of leaders from both parties, particularly Majority Leader Harry Reid (D-Nev.). In fact, he and Reid spent more than year battling over Coburn’s use of holds on a package of public lands bills.
By John Stanton
Roll Call
January 28, 2009
Sens. Tom Coburn (R-Okla.) and John McCain (R-Ariz.) told their colleagues Wednesday that they would block legislation they believe violates a series of government reform proposals the Obama administration unveiled earlier this month, including the creation of duplicative programs or earmarks over $25,000 that are not competitively bid.
Citing the continued economic crisis, the two fiscal hawks pledged in a letter to Senators to back Obama’s “Plan for Restoring Fiscal Discipline.” The duo argued that it will help ensure any legislation does not increase the national debt. Read the entire letter here.
“This is why we believe it is essential that President-elect Barack Obama is successful in his pledge to bring change to Washington by changing Congress’ irresponsible spending habits,” Coburn and McCain wrote.
Obama’s reform plan is designed to eliminate most earmarks and redundant federal programs, require that new spending be offset by reductions elsewhere in the budget and require performance measures for new programs proposed in legislation.
While Coburn and McCain commit to holding up legislation that does not fall within those broad outlines, they also warn that other measures could end up being blocked as well.
“This is not an exhaustive list of all of the reasons we may individually object to a particular bill or a unanimous consent agreement for consideration of legislation, but these will be the fundamental parameters by which we will evaluate all legislation,” they said, adding that “our intent is not to be obstacles, but rather to give you the courtesy of knowing how we can work together to accomplish our individual and collective goals and to cooperate with our new President to help him succeed with his plan for restoring fiscal discipline to Washington in a bi-partisan manner.”
Coburn and McCain, Obama’s rival for the White House in 2008, have long been champions of the government reform cause in Congress, and they worked with Obama on a number of earmark and other reform measures in the past several sessions of Congress.
However, Coburn’s use of holds has often run him afoul of leaders from both parties, particularly Majority Leader Harry Reid (D-Nev.). In fact, he and Reid spent more than year battling over Coburn’s use of holds on a package of public lands bills.
Tuesday, February 3, 2009
What GOP Leaders deem wasteful in Senate stimulus bill
(CNN) -- On Monday, Congressional Republican leaders put out a list of what they call wasteful provisions in the Senate version of the nearly $900 billion stimulus bill that is being debated:
The Senate is currently the nearly $900 billion economic stimulus bill.
The Senate is currently the nearly $900 billion economic stimulus bill.
• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Department of Energy defunded last year because it said the project was inefficient.
• A $246 million tax break for Hollywood movie producers to buy motion picture film.
• $650 million for the digital television converter box coupon program.
• $88 million for the Coast Guard to design a new polar icebreaker (arctic ship).
• $448 million for constructing the Department of Homeland Security headquarters.
• $248 million for furniture at the new Homeland Security headquarters.
• $600 million to buy hybrid vehicles for federal employees.
• $400 million for the Centers for Disease Control to screen and prevent STD's.
• $1.4 billion for rural waste disposal programs.
Don't Miss
• $125 million for the Washington sewer system.
• $150 million for Smithsonian museum facilities.
• $1 billion for the 2010 Census, which has a projected cost overrun of $3 billion.
• $75 million for "smoking cessation activities."
• $200 million for public computer centers at community colleges.
• $75 million for salaries of employees at the FBI.
• $25 million for tribal alcohol and substance abuse reduction.
• $500 million for flood reduction projects on the Mississippi River.
• $10 million to inspect canals in urban areas.
• $6 billion to turn federal buildings into "green" buildings.
• $500 million for state and local fire stations.
• $650 million for wildland fire management on forest service lands.
• $1.2 billion for "youth activities," including youth summer job programs.
• $88 million for renovating the headquarters of the Public Health Service.
• $412 million for CDC buildings and property.
• $500 million for building and repairing National Institutes of Health facilities in Bethesda, Maryland.
• $160 million for "paid volunteers" at the Corporation for National and Community Service.
• $5.5 million for "energy efficiency initiatives" at the Department of Veterans Affairs National Cemetery Administration.
• $850 million for Amtrak.
• $100 million for reducing the hazard of lead-based paint.
• $75 million to construct a "security training" facility for State Department Security officers when they can be trained at existing facilities of other agencies.
• $110 million to the Farm Service Agency to upgrade computer systems.
• $200 million in funding for the lease of alternative energy vehicles for use on military installations.
The Senate is currently the nearly $900 billion economic stimulus bill.
The Senate is currently the nearly $900 billion economic stimulus bill.
• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Department of Energy defunded last year because it said the project was inefficient.
• A $246 million tax break for Hollywood movie producers to buy motion picture film.
• $650 million for the digital television converter box coupon program.
• $88 million for the Coast Guard to design a new polar icebreaker (arctic ship).
• $448 million for constructing the Department of Homeland Security headquarters.
• $248 million for furniture at the new Homeland Security headquarters.
• $600 million to buy hybrid vehicles for federal employees.
• $400 million for the Centers for Disease Control to screen and prevent STD's.
• $1.4 billion for rural waste disposal programs.
Don't Miss
• $125 million for the Washington sewer system.
• $150 million for Smithsonian museum facilities.
• $1 billion for the 2010 Census, which has a projected cost overrun of $3 billion.
• $75 million for "smoking cessation activities."
• $200 million for public computer centers at community colleges.
• $75 million for salaries of employees at the FBI.
• $25 million for tribal alcohol and substance abuse reduction.
• $500 million for flood reduction projects on the Mississippi River.
• $10 million to inspect canals in urban areas.
• $6 billion to turn federal buildings into "green" buildings.
• $500 million for state and local fire stations.
• $650 million for wildland fire management on forest service lands.
• $1.2 billion for "youth activities," including youth summer job programs.
• $88 million for renovating the headquarters of the Public Health Service.
• $412 million for CDC buildings and property.
• $500 million for building and repairing National Institutes of Health facilities in Bethesda, Maryland.
• $160 million for "paid volunteers" at the Corporation for National and Community Service.
• $5.5 million for "energy efficiency initiatives" at the Department of Veterans Affairs National Cemetery Administration.
• $850 million for Amtrak.
• $100 million for reducing the hazard of lead-based paint.
• $75 million to construct a "security training" facility for State Department Security officers when they can be trained at existing facilities of other agencies.
• $110 million to the Farm Service Agency to upgrade computer systems.
• $200 million in funding for the lease of alternative energy vehicles for use on military installations.
WSJ NEWS ALERT: Obama to Announce New Executive-Pay Caps
President Barack Obama plans to unveil a series of new pay curbs Wednesday, including limits to executive salaries.
Among the new restrictions being considered is a cap on salaries for executives at companies that receive a substantial amount of government aid. Such a move would amount to an unprecedented effort to limit executive pay.
WASHINGTON -- President Barack Obama will unveil a series of pay curbs on Wednesday, including a strict new limit on executive salaries for companies that receive "exceptional assistance."
The rules represent the White House's attempt to ensure that financial institutions receiving government money are held accountable for spending it responsibly, an administration official said.
[Obama]
President Barack Obama, pictured at the White House Tuesday, plans to unveil a series of pay curbs Wednesday.
Under the new rules, companies that receive "exceptional assistance" from taxpayers may not pay any top executive more than $500,000 a year, an administration official said. Any additional compensation would have to be in restricted stock that will not vest until taxpayers have been repaid, the official said.
This goes beyond current rules, which bar such companies from taking a tax deduction for compensation above half a million dollars.
Moreover, all banks receiving help will face tougher restrictions, including new rules limiting "golden parachutes" and requirements that shareholders have a say on compensation for top executives, so-called "say on pay" policies. Specifically, senior executive compensation plans and rationale must be submitted to a non-binding shareholder resolution.
All banks will face tougher disclosure rules, which will affect spending on matter such as aviation services, office renovations, entertainment and holiday parties, conferences and events, and golden parachutes.
The rules are expected to be announced by Mr. Obama and Treasury Secretary Timothy Geithner at the White House.
It's not clear yet what counts as "exceptional assistance." People familiar with the matter have suggested it refers to a situation where the government invests heavily in an ailing company, as it did with American International Group Inc.
The new rules would not be applied retroactively to companies that have already received aid. Instead, companies that have already received help from Treasury will be required to demonstrate that they have complied with the existing rules and agree to strict monitoring and oversight.
Financial institutions participating in the Generally Available Capital Access Programs can waive the $500,000 limit but would have to disclose those plans and, if requested, submit to a non-binding "say on pay" shareholder resolution.
The administration official added that the president intends for these standards to mark the start of a long-term effort to institute a "sensible framework" for executive compensation that promotes sound risk management and long-term growth while preventing future financial crises.
Possible steps for the future include requiring compensation committees on all public financial institutions to review and disclose strategies for aligning compensation with sound risk-management.
Another possibility is requiring top executives to hold stock for several years after it is awarded to encourage a more long-term focus on the firm's economic interests.
The Treasury Department plans a conference on executive pay reform to discuss many of these ideas.
Among the new restrictions being considered is a cap on salaries for executives at companies that receive a substantial amount of government aid. Such a move would amount to an unprecedented effort to limit executive pay.
WASHINGTON -- President Barack Obama will unveil a series of pay curbs on Wednesday, including a strict new limit on executive salaries for companies that receive "exceptional assistance."
The rules represent the White House's attempt to ensure that financial institutions receiving government money are held accountable for spending it responsibly, an administration official said.
[Obama]
President Barack Obama, pictured at the White House Tuesday, plans to unveil a series of pay curbs Wednesday.
Under the new rules, companies that receive "exceptional assistance" from taxpayers may not pay any top executive more than $500,000 a year, an administration official said. Any additional compensation would have to be in restricted stock that will not vest until taxpayers have been repaid, the official said.
This goes beyond current rules, which bar such companies from taking a tax deduction for compensation above half a million dollars.
Moreover, all banks receiving help will face tougher restrictions, including new rules limiting "golden parachutes" and requirements that shareholders have a say on compensation for top executives, so-called "say on pay" policies. Specifically, senior executive compensation plans and rationale must be submitted to a non-binding shareholder resolution.
All banks will face tougher disclosure rules, which will affect spending on matter such as aviation services, office renovations, entertainment and holiday parties, conferences and events, and golden parachutes.
The rules are expected to be announced by Mr. Obama and Treasury Secretary Timothy Geithner at the White House.
It's not clear yet what counts as "exceptional assistance." People familiar with the matter have suggested it refers to a situation where the government invests heavily in an ailing company, as it did with American International Group Inc.
The new rules would not be applied retroactively to companies that have already received aid. Instead, companies that have already received help from Treasury will be required to demonstrate that they have complied with the existing rules and agree to strict monitoring and oversight.
Financial institutions participating in the Generally Available Capital Access Programs can waive the $500,000 limit but would have to disclose those plans and, if requested, submit to a non-binding "say on pay" shareholder resolution.
The administration official added that the president intends for these standards to mark the start of a long-term effort to institute a "sensible framework" for executive compensation that promotes sound risk management and long-term growth while preventing future financial crises.
Possible steps for the future include requiring compensation committees on all public financial institutions to review and disclose strategies for aligning compensation with sound risk-management.
Another possibility is requiring top executives to hold stock for several years after it is awarded to encourage a more long-term focus on the firm's economic interests.
The Treasury Department plans a conference on executive pay reform to discuss many of these ideas.
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