The Ed Schultz Show - News

Iran moves closer to nuke warhead capacity

Mon, 08 Feb 2010 00:00:00 GMT

Iran has pressed ahead with plans that will increase its ability to make nuclear weapons.

They formally informed the U.N. nuclear agency of its intention to enrich uranium to higher levels.

Rationale Questioned
World powers questioned the rationale behind the move.

They warned Iran could face more U.N. sanctions if it made good on its intentions.

Read the AP story

Rep. John Murtha Dead at 77

Mon, 08 Feb 2010 00:00:00 GMT

Rep. John Murtha, D-PA, died Monday.

He had been suffering from complications from gallbladder surgery.

Murtha was 77.

Rep. Murtha was a tall, gruff-mannered former Marine who became the voice of veterans on Capitol Hill.

Later he became an outspoken and influential critic of the Iraq War.

Murtha said, "The war in Iraq is not going as advertised. It is a flawed policy wrapped in illusion."

Murtha became the first Vietnam War combat veteran elected to Congress.

Read the AP story

Obama Official tells Health Insurer to Justify 39 pct Rate hike

Mon, 08 Feb 2010 00:00:00 GMT

Health Secretary Kathleen Sebelius called on a health insurance company to publicly explain why it raised premiums for some customers by 39 percent.

Sebelius Letter
Sebelius wrote to the insurance company, "With so many families already affected by rising costs, I was very disturbed to learn through media accounts that Anthem Blue Cross plans to raise premiums for its California customers by as much as 39 percent" or 15 times faster than inflation.

Read the AP story

Obama invites GOP leaders to health care talk

Mon, 08 Feb 2010 00:00:00 GMT

President Barack Obama plans to host a televised meeting with Republican and Democratic congressional leaders on health care reform on Feb. 25.

The meeting is an attempt to reach across the aisle but not a signal that the President Obama plans to start over.

President Obama Comments
President Obama said, "I want to come back after the Presidents Day congressional recess and have a large meeting, Republicans and Democrats, to go through, systematically, all the best ideas that are out there and move it forward."

Obama said, "If we can go step by step through a series of these issues and arrive at some agreements."

He said, "Then procedurally, there's no reason why we can't do it a lot faster than the process took last year."

Obama appeared in an interview with Katie Couric during CBS's Super Bowl pre-game show Sunday.

Read the AP story

Read: Obama invites Republicans to summit on health care

Read: Obama Plans Bipartisan Summit on Health Care

Read: Obama, congressional leaders to talk health care Feb. 25

Obama hasn't ruled out NY trial for 9/11 planner

Mon, 08 Feb 2010 00:00:00 GMT

President Barack Obama said Sunday he has not ruled out a New York federal court trial for Sept. 11 planner Khalid Sheikh Mohammed.

But Obama said he was taking into account the objections of the city's mayor and police commissioner.

He said using the traditional judicial method was a "virtue of our system" in which Americans should take pride.

Defends Decision
Obama also defended his decision, noting again that the administration of former President George W. Bush had handled terror suspects arrested in the United States in the same way.

President Obama said, "They prosecuted 190 folks in these Article III courts, got convictions and those folks are in maximum security prisons right now. And there have been no escapes."

He said, "And it is a virtue of our system we should be proud of."

Read the AP story

House Democrats support ending tax cut

Mon, 08 Feb 2010 00:00:00 GMT

House Democrats say leadership has their work cut out in convincing the public to support a tax increase on those making more than $250,000.

Centrists and liberal Democrats told The Hill they support allowing President Bush's tax cuts on those making more than $250,000 to expire.

But they said leaders must win public support by portraying the tax increase as reducing the nation's record budget deficit.

Rep. Pomeroy Comments
Rep. Earl Pomeroy, D-ND, said, "I believe there is a message from back home that is loud and clear: do something about these out of control deficits."

Pomeroy said, "Failure to address that would produce the worst consequence for the country and therefore the worst consequence politically."

Rep. Grijalva Comments
Rep. Raul Grijalva, D-AZ, said, "If we're going to rescind these [tax cuts], which is still going to be a battle, we have to have our message out there on why we are doing it."

Grijalva said, "On taxes and some other things we've been on the defensive the whole time."

Read The Hill story

Gates says it's not too late for Iran sanctions

Sun, 07 Feb 2010 00:00:00 GMT

Defense Secretary Robert Gates said Sunday it was time for the international community to rally together to put significant pressure on Iran to abandon its nuclear program.

Gates expressed optimism that, given time, tougher sanctions would work.

Secretary Gates Comments
Gates said, "If the international community will stand together and bring pressure to bear on the Iranian government, I believe there is still time for sanctions and (diplomatic) pressure to work."

Gates said that no one has tried more sincerely to reach out to the Iranian government than President Barack Obama.

Read the AP story

Geithner says US credit rating safe despite debt

Sun, 07 Feb 2010 00:00:00 GMT

Treasury Secretary Timothy Geithner says the U.S. government "will never" lose its credit rating despite big budget deficits and a newly increased debt limit that now tops $14 trillion.

Secretary Geithner Comments
Geithner said, "We have much, much lower risk of that today than at any time over the last 12 months or so."

He said, "We are in an economy that was growing at the rate of almost 6 percent of GDP in the fourth quarter of last year. The most rapid rate in six years. So we are beginning the process of healing."

Geithner said that in times of economic crisis, international investors will continue to buy U.S. Treasury bonds because the bonds are a safe investment.

Geithner appeared on ABC's "This Week."

Read the AP story

Obama adviser: Stop Criticizing Anti-Terror Effort

Sun, 07 Feb 2010 00:00:00 GMT

Deputy National Security Adviser John Brennan criticized Republicans for playing politics on national security and making ignorant allegations about the investigation into the Christmas airliner plot.

Brennan said that politicians, many of them Republicans, were unfairly criticizing the administration for partisan purposes and second-guessing the case with a "500-mile screwdriver" that reaches from Washington to the scene of the abortive attack in Detroit.

John Brennan Comments
Brennan said, "Quite frankly, I'm tiring of politicians using national security issues such as terrorism as a political football."

He said, "They are going out there. They're unknowing of the facts. And they're making charges and allegations that are not anchored in reality."

Personally Briefed Republicans
Brennan said he had personally briefed top GOP lawmakers on Christmas night about Abdulmutallab's arrest and that none of them raised objections.

Brennan said, "There's been quite a bit of an outcry after the fact, where again, I'm just very concerned on behalf of counterterrorism professionals throughout our government, that politicians continue to make this a political football and are using it for whatever political or partisan purposes."

Brennan said he briefed Senate Minority Leader Mitch McConnell, R-KY, House Minority Leader John Boehner, R-OH, and the top Republicans on the congressional intelligence committees, Sen. Kit Bond, R-MO, and Rep. Pete Hoekstra, R-MI.

Suspect Treated Like other Terror Suspects
Brennan said that Umar Farouk Abdulmutallab was treated no differently than any other terror suspect arrested on U.S. soil.

He said that the FBI and others involved in his arrest acted appropriately.

Brennan said, "I think those counterterrorism professionals deserve the support of our Congress."

He said, "And rather than second-guessing what they are doing on the ground with a 500-mile screwdriver from Washington to Detroit, I think they have to have confidence in the knowledge and the experience of these counterterrorism professionals."

Justice System will Prevail
Brennan said, "I have no doubt that the American justice system will prevail. Despite the claims and the criticisms of a lot of folks, including in Congress, that our judicial system is unable to handle these terrorists, I believe that our system of justice here is strong."

Brennan appeared on NBC's "Meet the Press."

Visit msnbc.com for breaking news, world news, and news about the economy

Read the AP story

Read: Obama aide says Republicans playing politics with terrorism

Palin: Obama Could Win Votes by Playing War Card

Sun, 07 Feb 2010 00:00:00 GMT

Sarah Palin said Sunday that if President Barack Obama "played the war card," he could improve his chances of being re-elected.

Palin said that declaring war on Iran or showing stronger support for Israel might convince voters that Obama is tougher than they think on national security and doing all he can to protect the U.S.

Otherwise, she said, Obama won't be re-elected if he continues on his current path.

On Running for President
Palin says it would be absurd for her not to consider running for president in 2012.

She said she will run for president if she believes it's right for the country and right for her family.

Palin appeared on "Fox News Sunday."

She is a paid contributor for the network.

Read the AP story

Read - Palin: Obama Making Misguided Decisions

Sarah Palin Attacks Obama at Tea Party

Sun, 07 Feb 2010 00:00:00 GMT

Sarah Palin gave a $100,000 speech to the 1st Tea Party Convention that was short on ideas but big on enthusiasm.

She gave a 45-minute speech was filled with folksy jokes.

Palin attacked President Barack Obama and the Democratic Majority in Congress.

Sarah Palin Comments
She told the tea party crowd, "America is ready for another revolution and you are a part of this."

Palin said, "The Obama-Pelosi-Reid agenda will leave us less secure, more in debt and under the thumb of big government."

She asked, "How's that hope-y, change-y stuff workin' out for you?"

Palin said, "This is about the people, and it's bigger than any one king or queen of a tea party, and it's a lot bigger than any charismatic guy with a teleprompter."

Palin on Terror
Palin attacked President Obama on the subject of terror and the attempted Christmas Day bombing.

She said, "Treating this like a mere law enforcement matter places our country at great risk because that's not how radical Islamic extremists are looking at this."

Palin said, "They know we're at war, and to win that war we need a commander in chief, not a professor of law standing at the lectern."

Palin said Obama had misguided thinking and a pre-Sept. 11 mindset.

Democratic Losses
She reminded the crowd of recent Democratic Governor losses in New Jersey and Virginia last fall and in the Massachusetts Senate race last month.

Palin said, "When you're 0-3 you'd better stop lecturing and start listening."

Palin talked of limited government, strict adherence to the Constitution, and the "God-given right" of freedom.

The speech was short on Palin's own policy ideas, if she was seriously laying the groundwork to run for the White House.

Activists Paid to Hear Palin
600 people had paid $549 to attend the Tea Party Convention.

According to organizers, another 500 paid $349 just to see for her speech alone.

DNC Response
Democratic National Committee spokesman Brad Woodhouse said afterward the George W. Bush administration also prosecuted terrorism suspects in criminal court.

Woodhouse said, "No one should take national security advice seriously from a person who told the world in 2008 that her qualifications in this area were that she could see Russia from her home state."

Visit msnbc.com for breaking news, world news, and news about the economy

Read the AP story

Read - Palin: America ready for another revolution

Read: Palin Back on Political Stage

Read: Palin Assails Obama at Tea Party Meeting

Read - Palin: 'Tea party' the future of politics

Read: Palin urges Republican Party to 'absorb' Tea Party movement

Obama and GOP Argue over Jobs

Sat, 06 Feb 2010 00:00:00 GMT

Republicans and President Barack Obama argued in their Saturday media addresses over proposals to create jobs.

President Obama pushed Congress to use $30 billion that had been set aside to bail out Wall Street to start a new program that provides loans to small businesses.

Republicans asked where are the jobs the president promised in exchange for the billions of dollars already spent?

President Obama Comments
President Obama said, "Even though our economy is growing again, these are still tough times for America."

Obama said, "Too many businesses are still shuttered. Too many families can't make ends meet. And while yesterday, we learned that the unemployment rate has dropped below 10 percent for the first time since summer, it is still unacceptably high - and too many Americans still can't find work."

Rep. Hensarling Comments
In the weekly GOP address, Rep. Jeb Hensarling, R-TX, criticized Obama for proposing a 2011 budget last week that would increase spending, taxes and the national debt.

Hensarling said, "Americans are still asking, 'where are the jobs?' but all they are getting from Washington is more spending, more taxes, more debt and more bailouts."

Read the AP story

Read - Obama: Pass small jobs plan now

Read: Obama urges small-business boosts

Read: Obama promotes small businesses, calls for Congress to act

Obama says he's not giving up on health reform

Sat, 06 Feb 2010 00:00:00 GMT

Democrats on Saturday heard from President Barack Obama who urged optimism in the face of Republicans' challenge to their congressional majority.

Visit msnbc.com for breaking news, world news, and news about the economy

Obama warned fellow Democrats that "we have to acknowledge that change can't come quickly enough."

He said political leaders must plot their way forward to November with an understanding of the economic difficulties Americans face.

President Obama Comments
Obama said, "I understand their frustration. You understand it as well."

Obama sought to energize Democratic loyalists against what he called "the other party."

He urged Democrats to work with their Republican counterparts.

Obama said, "We can't solve all of our problems alone."

The audience sat in silence at the comment.

Obama on Health Care
Obama insisted he wasn't willing to abandon his top domestic priority that consumed months of his agenda and has produced slim hints of victory.

He said, "Let me be clear: I am not going to walk away from health care insurance reform."

That brought the audience in the hotel ballroom to their feet.

Obama said, "We can't return to the dereliction of duty."

He said, "America can't afford to wait, and we can't look backward."

Read the story on MSNBC

Read - Obama to DNC: 'I am not going to walk away from health insurance reform'

Read: Obama seeks to rally Democrats

Read: Obama Rallies the Party Faithful

Palin e-mails reveal a powerful 'first dude'

Sat, 06 Feb 2010 00:00:00 GMT

Newly released e-mails show that Todd Palin was busy doing more than snowmobiling and salmon fishing during Sarah Palin's two and a half years as governor and vice presidential candidate.

3,000 Pages of E-mails
Nearly 3,000 pages of e-mails that Todd Palin exchanged with state officials draw a picture of a Palin administration where the governor's husband got involved in a judicial appointment, monitored contract negotiations with public employee unions, received background checks on a corporate CEO, added his approval or disapproval to state board appointments and passed financial information marked "confidential" from his oil company employer to a state attorney.

Visit msnbc.com for breaking news, world news, and news about the economy

Read the MSNBC story

Read: E-mails detail Todd Palin's role in Alaska decision-making

Read: Palin e-mails suggest husband's role in governing

Tea Party Convention Calls Obama is a Socialist

Sat, 06 Feb 2010 00:00:00 GMT

600 people have paid $549 each to attend the first Tea Party Convention in Nashville, TN.

They heard former Presidential candidate and former Rep. Tom Tancredo, R-CO, call President Barack Obama a socialist.

Saturday night, they hear from former Vice Presidentail candidate and ex-Governor Sarah Palin, who is recieving $100,000 for the speech.

Tom Tancredo Comments
Tancredo told the Tea Party Convention, "People who could not even spell the word 'vote', or say it in English, put a committed socialist ideologue in the White House."

Tancredo said, "His name is Barack Hussein Obama."

Read the CNN story

Read: Notes From the Tea Party Convention

Read: Main Stream Media Meet Tea Party

Read - Tancredo: Obama Elected Because 'We Do Not Have A Civics, Literacy Test' To Vote

Read: Tea Party is still taking shape

Read: Tea party activists await Palin's words

January unemployment rate drops to 9.7 percent

Fri, 05 Feb 2010 00:00:00 GMT

The unemployment rate dropped unexpectedly in January to 9.7 percent from 10 percent.

The rate dropped because a survey of households found the number of employed Americans rose by 541,000.

Employers Cut Jobs
The Labor Department said employers cut 20,000 jobs in January.

Last January there were 741,000 jobs lost.

The job losses are calculated from a separate survey of employers.

8.4 Million Jobs Lost
In all, the Great Recession has eliminated 8.4 million jobs.

That's the most of any recession since World War II as a proportion of total payrolls.

Read the AP story

Law Enforcement: Airline Bomb Suspect turns against Cleric

Fri, 05 Feb 2010 00:00:00 GMT

Law enforcements says the Nigerian suspect in a failed Christmas Day airliner bombing has turned against the cleric who claims to be his teacher.

Umar Farouk Abdulmutallab has been cooperating with the FBI for days.

With information provided to law enforcement the suspect has helped the U.S. hunt for the U.S.-born Yemeni, Anwar al-Awlaki, who is a radical preacher.

The cooperation by Abdulmutallab is significant.

Read the AP story

Obama tells Democrats to keep faith

Fri, 05 Feb 2010 00:00:00 GMT

President Barack Obama rallied his party faithful on Thursday.

Obama told them that he understands their frustration that Washington hasn't changed during the first year of his presidency.

Fundraiser Event
President Obama attended and spoke at 2 Democratic events aimed at raising up to $3 million.

List of Accomplishments
Obama ticked off a list of accomplishments during his first year in office.

He asked supporters to stand with him as he tackles campaign promises he has been slow to deliver on.

President Obama Comments
Obama said, "In ways large and small, we've begun to deliver on the change that you believed in."

But he admitted it's hardly been the year his most ardent supporters had expected.

Obama said, "I know some of you might feel discouraged because changing the ways of Washington is hard. It's harder than a lot of you thought it might be. Sometimes it may make you feel that it's not possible. You might want to give up."

He said, "Don't give up."

President Obama told supporters, "You know the American people are right to be frustrated about a Washington where every day is Election Day and the basic theory is 'If you lose, I win.'"

Obama said, "I don't want you to feel discouraged. I want you to understand that we've got to push that much harder."

Obama on Health Care
President Obama made his latest health care pitch a personal one.

He told a story of a campaign volunteer who died of breast cancer after putting off needed medical exams she couldn't afford it.

The President said the woman fought to get him elected so that others would have better health insurance.

Obama said, "How can I say to her, 'You know what? We're giving up.'"

President Obama said, "If Congress decides we're not going to do it, even after all the facts are laid out, after all the options are clear, then the American people can make a judgment as to whether this Congress has done the right thing for them or not."

He said, "That's how democracy works."

Obama on Jobs
But, Obama said Congress should keep its focus on putting Americans back to work, not the health care overhaul that faced a setback.

Read the AP story

Read: Obama calls for talks with GOP on health care, then vote by Congress

Sen. Brown Independence could Face Senate Test

Fri, 05 Feb 2010 00:00:00 GMT

Sen. Scott Brown, R-MA, says he's a different kind of Republican.

He says he is a centrist willing to work with Senate Democrats to fix health care and the ailing economy.

Sen. Brown Comments
Sen. Brown said, "I'm going to look at everybody's qualifications and make my own decision."

But his independence is likely to be tested in a bitterly divided Senate where party loyalty is often at a premium.

Read the AP story

Sen. Brown: Senate should use 50-vote tactic on more than healthcare

Fri, 05 Feb 2010 00:00:00 GMT

Sen. Sherrod Brown, D-OH, on 'The Ed Show', said Senate leaders should use a parliamentary maneuver to sidestep filibuster rules a lot more.

Sen. Brown said that many Democratic senators are urging leadership to use the budget reconciliation process, which requires only a simple majority to pass legislation, on more initiatives.

Brown said, "I agree with that," when asked by MSNBC host Ed Schultz on whether the 59-vote Democratic majority should use reconciliation more.

Sen. Brown said, "As much as we can pass with a majority vote, we do."

He said, "A lot of us are urging our leadership on that."

Brown said, "I don't think we can do it on everything since there are a lot of rules."

He said, "But we can do it a lot more than we are."

Senate Democrats are considering using the 50-vote process to pass a set of fixes to its original healthcare bill in exchange for the House being willing to approve that initial bill.

Read The Hill story

Toyota's chief apologizes for global recalls

Fri, 05 Feb 2010 00:00:00 GMT

Akio Toyoda, President of Toyota Motor Corp. apologized for the automaker's global recalls.

Toyoda promised to beef up quality control by setting up a special committee he would head himself.

He said the automaker was still deciding what to do to fix braking problems with the popular Prius gas-electric hybrid.

The automaker has acknowledged the new Prius that went on sale in May last year has braking problems.

Read the AP story

Read - Toyota: Apology but no new recall

Commerce secy to detail push to double exports

Thu, 04 Feb 2010 00:00:00 GMT

Commerce Secretary Gary Locke is outlining how the White House wants to double exports in the coming 5 years.

The National Export Initiative will target 3 key areas.

The program will expand trade advocacy, improve access to credit for small and medium-sized businesses and enforce international trade laws.

Secretary Locke Comments
Secretary Locke said, "Increasing the export of American products and services to global markets can help revive the fortunes of U.S. companies, spur future economic growth and support jobs here at home."

Locke said, "This initiative will correct an economic blind spot that has allowed other countries to slowly chip away at the United States' international competitiveness."

Read the AP story

Ed Schultz Pleads For Health Care Reform, Calls Lieberman a Coward

Thu, 04 Feb 2010 00:00:00 GMT

Ed Schultz made an impassioned plea for health care reform on The Ed Show on MSNBC during an on-location shoot at a temporary free clinic in Hartford, CT.

Calls on Congress to Act
Schlutz told of unemployed and under-insured Americans waiting for treatment and diagnoses to save their lives and told Congress to act.

He said that Connecticut passed a statewide health care reform bill that included a public option--only to have it vetoed by the state's Governor.

Calls Lieberman a Coward
Schultz also called Sen. Joe Lieberman, I-CT, a "coward" and invited politicians to visit the clinic and see how badly reform is needed.

Visit msnbc.com for breaking news, world news, and news about the economy

Read the Huffington Post story

Read: The Ed Show Originates from Hartford

Health spending consumed record portion of economy in 2009

Thu, 04 Feb 2010 00:00:00 GMT

National health spending accounts for the largest share of the U.S. economy since federal auditors began tracking the data in 1960.

In 2009, national health spending made up a record 17.3 percent of the gross domestic product.

That is the largest-ever one-year increase reported.

Read The Hill story

Read: Public Share of Health Tab to Top 50%

Holder: I made decision to charge terror suspect

Thu, 04 Feb 2010 00:00:00 GMT

Attorney General Eric Holder said Wednesday he made the decision to charge the Christmas Day terror suspect in civilian court rather than the military system.

He had no objection from all the other relevant departments of the government.

Letter to Sen. McConnell
Holder wrote in a letter to Senate Republican Leader Mitch McConnell, R-KY, that the FBI told its partners in the intelligence community on Christmas Day and again the next day that Umar Farouk Abdulmutallab would be charged criminally.

Suspect Talking to Interrogators
The letter came after senior administration officials disclosed that the suspect had resumed talking to U.S. interrogators last week.

Abdulmutallab has discussed his contacts in Yemen and provided intelligence in multiple terrorism investigations

Meeting with Obama
Holder said that the possibility of detaining Abdulmutallab in the U.S. military system under the law of war was discussed in the days following the arrest.

The discussions were part of a Jan. 5 meeting that included President Barack Obama and senior members of the national security team.

Holder wrote, "No agency supported the use of law of war detention for Abdulmutallab, and no agency has since advised the Department of Justice that an alternative course of action should have been, or should now be, pursued."

Decision Consistant with Bush Policies
Holder said his decision was consistent with earlier practices followed uniformly in both the Obama and Bush administrations.

Holder wrote, "The Bush administration used the criminal justice system to convict more than 300 individuals on terrorism-related charges."

Attorney General Holder specifically mentioned the case of Richard Reid, who tried but failed to ignite a shoe bomb on a U.S.-bound trans-Atlantic jetliner.

He said, "The practice of the U.S. government followed by prior and current administrations without a single exception, has been to arrest and detain under federal criminal law all terrorist suspects who are apprehended inside the United States."

Holder defended the decision to read Abdulmutallab his Miranda rights.

Read the AP story

Read: Criticism of Obama on national security likely to remain big issue

House faces tough vote on $1.9 trillion more debt

Thu, 04 Feb 2010 00:00:00 GMT

House Democratic leaders are counting on new budget deficit cuts to help ease the pain to vote for a bill allowing the government to go $1.9 trillion deeper into debt over the next year.

$14.3 Trillion Cap
The debt measure set for a House vote Thursday would raise the cap on federal borrowing to $14.3 trillion.

The new cap would be enough to keep Congress from having to vote again on the issue before the November elections.

$40,000 Per Person
The accumulated debt amounts to $40,000 per person.

The debt is increasingly held by foreign nations such as China.

60-40 Vote in Senate
Democrats barely passed it through the Senate last week over a unanimous "no" vote from GOP members present.

Democrats attached tougher budget rules designed to stop the rising deficit.

Pay as You Go
The new rules would require future spending increases or tax cuts to be paid for with either cuts to other programs or equivalent tax increases.

If the rules are broken, the White House budget office would force automatic cuts to programs like Medicare, farm subsidies and veterans' pensions.

Read the AP story

New York AG filing civil charges against Bank of America

Thu, 04 Feb 2010 00:00:00 GMT

The New York Attorney General's office said Thursday it is filing civil charges against Bank of America and its former CEO Ken Lewis.

New York Attorney General Andrew Cuomo says the bank misled investors about Merrill Lynch when it acquired the Wall Street bank in late 2008.

Lewis stepped down from Bank of America on Dec. 31 after almost a year of strife that followed the bank's purchase of Merrill Lynch.

Bank of America has been accused of failing to properly disclose losses at Merrill and bonuses paid to investment bank employees before the deal closed.

Charges Against Joe Price
Civil charges were also being filed against Joe Price, the bank's former chief financial officer.

Price is now head of the bank's consumer banking division.

SEC Reaches Settlement
The Securities and Exchange Commission also reached a settlement to resolve charges it brought against Bank of America over similar issues.

Read the AP story

Reid: Senate will take up jobs bill next week

Thu, 04 Feb 2010 00:00:00 GMT

Senate leaders plan to pass a jobs bill next week.

Key Democrats and Republicans are near an agreement on a proposal to give businesses a tax break for hiring unemployed workers.

Rare Bipartisan Cooperation
Passage would mark a rare bipartisan achievement in a Congress that has been sharply divided along political lines.

Sen. Reid Comments
Majority Leader Harry Reid, D-NV, said the Senate will start work on the bill Monday.

Sen. Reid said, "We want to work with the Republicans and it appears to me, on the jobs program, they want to work with us."

He said, "We do believe very emphatically that we will be having a bipartisan bill."

Sen. Schumer Comments
Sen. Chuck Schumer, D-NY, said, "We heard the message of Massachusetts."

Schumer said, "They said focus immediately, and don't take your focus off, jobs, the economy, helping the middle class."

Read the AP story

Read: Senate leaders set to move jobs bill

Read: Democrats coy about jobs bill costs

Tax credits, highway funds in Senate jobs bill

Thu, 04 Feb 2010 00:00:00 GMT

Senate Democrats will unveil tax credits and other proposals on Thursday.

The goal is to bring down the country's 10% unemployment rate.

Credits for Hiring and Purchases
The package includes tax credits to spur hiring and equipment purchases, along with incentives for states to ramp up construction projects.

Soon-to-expire programs that provide unemployment aid and healthcare subsidies for the jobless could also be extended.

Democrats in Congress say job creation is their top priority this year.

Obama Proposal
President Barack Obama has proposed a payroll tax credit of up to $5,000 for every net new employee hired in 2010.

Sen. Chuck Schumer, D-NY, and Sen. Orrin Hatch, R-UT, would allow businesses to avoid paying Social Security taxes on some new hires for the remainder of 2010.

Sen. Harry Reid, D-NV, has suggested extending rules that allow small businesses to deduct more for equipment purchases.

The Senate could shore up the Highway Trust Fund, which provides state and local governments about $40 billion a year for road and transit upgrades.

The package could expand a taxable bond program that helps state and local government pay for big projects.

Read the AP story

Toyota says Prius had brake design problems

Thu, 04 Feb 2010 00:00:00 GMT

Toyota has acknowledged design problems with the brakes in its prized Prius.

Toyota Motor Corp. said it found design problems with the antilock brake system and corrected them for Prius models sold since late January.

The news is more trouble for the Japanese automaker as it recently recalled 4.5 million vehicles with a gas-pedal problem.

Read the AP story

Read: 2007 federal probe of Toyota complaints resolved nothing

Read - Toyota: Software to blame for Prius brake problems

AIG bonuses are outrageous but legal

Wed, 03 Feb 2010 00:00:00 GMT

Executives in AIG's financial products division are getting $100 million in bonsues

Kenneth Feinberg Comments
White House pay czar Kenneth Feinberg calls the bonuses "outrageous."

But, Feinberg said the payments are contractual obligations entered into years ago.

He said out that AIG executives have pledged to repay $39 million out of $45 million in previous bonuses to the U.S. Treasury.

The insurance giant was hit hard by Wall Street's meltdown in 2008.

Attempts to get Money Back
AIG still hasn't repaid all of the $180 billion the government gave to rescue it from financial disaster.

Feinberg said he is using whatever leverage he has to get that money returned to the taxpayers.

Feinberg appeared on ABC's "Good Morning America."

Read the AP story

Obama pushing clean coal and green jobs

Wed, 03 Feb 2010 00:00:00 GMT

President Barack Obama is meeting with governors from coal-producing states, hoping to earn their support for an energy bill.

Republican governors are meeting at the White House to show Obama is willing to work with Republicans as well as Democrats.

Republican Governors Meet at White House
Gov. Jim Douglas, R-VT, Gov, Bob Riley, R-AL, and Gov. Mike Rounds, R-SD, were scheduled to meet with Obama and Vice President Joe Biden today.

Obama Announcement
President Obama is announcing new steps to increase the role of biofuels in powering the nation.

Obama will release a report detailing how Washington could increase investments in green technologies.

Retrofit Housing
The Obama budget proposal would retrofit 1.1 million housing units to improve energy efficiency through next year.

Obama also has budget plans to increase batteries for plug-in hybrid vehicles to 500,000 a year by 2015.

Read the AP story

Obama to Democrats: We must lead

Wed, 03 Feb 2010 00:00:00 GMT

President Barack Obama told Senate Democrats on Wednesday to stay aggressive in pushing their agenda despite the loss of the Massachusetts Senate seat.

President Obama said, "We still have to lead."

Obama reminded Democrats they still hold a 59-41 majority, one shy of the 60 needed to overcome Republican filibuster delay tactics.

Obama said that for Democrats searching for a lesson from that election, "The answer is not to do nothing."

He said, "The American people are out of patience with business as usual."

Read the AP story

Officails: Al-Qaida likely to attempt attack

Wed, 03 Feb 2010 00:00:00 GMT

Senior U.S. intelligence officials told Congress Tuesday that al-Qaida can be expected to attempt an attack on the United States in the next 3 to 6 months.

Leon Panetta Comments
CIA Director Leon Panetta said the terrorist organization is deploying operatives to the United States to carry out new attacks from inside the country, including "clean" recruits with a negligible trail of terrorist contacts.

Panetta said, "My greatest concern, and what keeps me awake at night, is that al Qaeda and its terrorist allies and affiliates could very well attack the United States."

The warning came as Christmas Day airline attack suspect Umar Farouk Abdulmutullab is cooperating with federal investigators.

Family Members Cooperating
Obama administration officials said that they have secretly gained the cooperation of family members of AbdulMutallab to help get the Christmas Day airline bomb suspect talking.

Officials say the cooperation effort has led to actionable intelligence that could help prevent terror attempts on U.S. soil.

Read the AP story

Read: White House reveals secret cooperation with AbdulMutallab family

Read: Intelligence chiefs say another terror attempt in U.S. is 'certain'

Admiral Mullen: Gay ban should be lifted

Tue, 02 Feb 2010 00:00:00 GMT

The military's top uniformed officer is declaring that gays should be allowed to serve openly in uniform.
Right Thing to Do
Adm. Mike Mullen, Chairman of the Joint Chiefs of Staff and chief military adviser to President Barack Obama argued that it is "the right thing to do."

Mullen told the Senate Armed Services Committee Tuesday he is deeply troubled by a policy that forces people to "lie about who they are in order to defend their fellow citizens."

Don't Ask, Don't Tell
Adm. Mullen said he knows many will disagree about abandoning the "don't ask, don't tell" policy.

He said there are practical obstacles to lifting the 1993 ban.

But Mullen said he thinks the military can handle it.

Read the AP story

Congress Attacks Obama Budget

Tue, 02 Feb 2010 00:00:00 GMT

Democrats are taking shots at President Obama's proposed budget today on Capitol Hill.

Obama has proposed hits on some favored programs, including the cancellation of the U.S. mission to return to the moon and a spending freeze on Army Corps of Engineers projects.

Sen. Murray Comments
Sen. Patty Murray, D-WA, challenged the administration's proposal to include Army Corps of Engineers public works projects in its three-year spending freeze.

Sen. Nelson Comments
Sen. Bill Nelson, D-FL, railed about the decision to eliminate NASA's program, initiated by former President George W. Bush, to send astronauts back to the moon.

Republicans Complain
Republicans are complaining the budget didn't go far enough to trim deficits while increasing taxes too much.

Sen. Snowe Comments
Sen. Olympia Snowe, R-ME, blasted the idea for the $5,000 tax credit.

Snowe said businesses won't hire workers until they need them.

She asked, "Who is going to take the risk?"

Sen. Gregg Comments
Sen. Judd Gregg, R-NH, said Obama's promise to freeze some domestic spending for three years was more symbolism than substance.

Gregg said, "Sure, it's the right sentiment but it doesn't get you anywhere."

He said, "It's small ball. It's not even a bunt."

Read the AP story

Gates to announce review of military gay ban

Tue, 02 Feb 2010 00:00:00 GMT

Defense Secretary Robert Gates has tapped 2 Pentagon officials to lead the military's first in-depth study on allowing openly gay service members.

Secretary Gates will announce the study Tuesday before the Senate Armed Services Committee.

Don't Ask, Don't Tell
It is an important step toward President Barack Obama's goal of eliminating the military's "don't ask, don't tell" policy, which is based on a 1993 law.

Obama called on Congress to repeal the law.

428 people were discharged from the Army, Navy, Air Force and Marines last year for violating the "don't ask, don't tell" policy.

But Democrats want more guidance on how to allow openly gay service members to serve without causing a major upheaval.

Biggest Social Change
The yearlong study could pave the way for the biggest social change to the military since 1948 when there was an executive order for the racial integration of units.

Sen. Gillibrand Comments
Sen. Kirsten Gillibrand, D-NY, said, "The military's �Don't Ask, Don't Tell' policy is an unjust, outdated and harmful rule that violates the civil rights of some of our bravest, most heroic men and women."

She said, "I've been working with my colleagues in Congress and other leaders to overturn this wasteful and destructive policy. I am hopeful that President Obama will make this a top priority."

Read the AP story

Read: Don't ask, don't tell policy on gays in military to change

Read: Gates to present specifics on abandoning 'don't ask, don't tell' policy

Read: Senate to address 'Don't Ask' policy

Obama Budget and Jobs Bill Gets Early Tests on Capital Hill

Tue, 02 Feb 2010 00:00:00 GMT

President Barack Obama's proposed budget is getting an early test with lawmakers concerned about record deficits and nervous about winning re-election in November.

$5,000 Per Job Tax Credit
President Obama is proposing a $5,000-per-job tax credit for companies that hire more workers.

A vote on the proposal could come up in the Senate as early as the end of the week.

Congress rejected the idea of a jobs credit for businesses last year.

President Obama Comments
President Obama said, "We simply cannot continue to spend as if deficits don't have consequences, as if waste doesn't matter, as if the hard-earned tax dollars of the American people can be treated like Monopoly money, as if we can ignore this challenge for another generation."

Other Obama Proposals
Obama supports another round of $250 bonus payments to Social Security recipients and other retirees.

He supports extended jobless benefits and health insurance subsidies for the long-term unemployed.

Obama also calls for another year of middle-class tax credits of up to $400 for individuals and $800 for couples filing jointly.

Rep. Rangel Comments
Rep. Charlie Rangel, D-NY, Chairman of the House Ways and Means Committee, predicted the tax proposals would ignite a spirited debate.

Rangel said, "I only hope the debate can be more focused on policy than politics."

Rep. Spratt Comments
Rep. John Spratt, D-SC, Chairman of the House Budget Committee, said, "The Obama Administration has realized from the start that it will be impossible to bring the deficit down unless the economy is up."

Spratt said, "The budget the president is sending Congress today puts a priority on those objectives."

Read the AP story

Read: Obama budget calls for new spending to lower unemployment, help middle class

Read: In $3.8 Trillion Budget, Obama Pivots to Trim Future Deficits

Read: Obama's budget draws battle lines for weeks ahead

Read: Obama's budget seeks an end to tax break for the middle class

Obama Help for Struggling Small Businesses in NH

Tue, 02 Feb 2010 00:00:00 GMT

President Barack Obama travels to Nashua, NH, on Tuesday to promote freeing up money for small businesses that are hurting.

President Obama proposes funneling $30 billion to local banks so they can lend small businesses money they need to grow their enterprises and create jobs.

President Obama Comments
In excerpts of his prepared remarks, President Obama said, "Jobs will be our No. 1 focus in 2010."

Obama said, "And we're going to start where most new jobs do, with small businesses. These are companies that begin in basements and garages when an entrepreneur takes a chance on his dream, or a worker decides it's time she became her own boss."

Town Hall Meeting
President Obama will hold his 2nd town hall in 6 days.

Details of Program
The $30 billion in loan financing would come from money repaid by big banks that got help from the $700 billion Troubled Asset Relief Program.

The fund would be open to banks with assets of $10 billion or less.

About 8,000 such small and community banks would be eligible.

Obama on Small Banks
Obama said, "These are the small, local banks that work most closely with our small businesses, that provide them their first loan, and watch them grow through good times and bad."

He said, "The more loans these banks provide to creditworthy small businesses, the better a deal we'll give them."

Sen. Warner Proposal
Obama's plan closely resembles a proposal floated by Sen. Mark Warner, D-VA, last winter.

The new fund would support lending to small businesses by smaller and community banks.

The funds for the new proposals will be drawn from unspent leftovers of the Troubled Asset Relief Program (TARP).

Other Efforts
Obama is calling on Congress to pass legislation creating the new fund, one of several ideas he has promoted recently to help small businesses.

He has called for tax credits for those small businesses that hire new workers or raise wages, and for eliminating all capital gains taxes on small-business investment.

He also has proposed tax incentives for all businesses to invest in new plants and equipment.

Read the AP story

Read: Obama to push for jobs, small-business lending in New Hampshire

Read: Obama proposes $30 billion allocation for small-business loans

Read: Obama to unveil small biz lending plan

Democrats squabble over jobs bill

Mon, 01 Feb 2010 00:00:00 GMT

A squabble among Senate Democrats is complicating early efforts to bring a jobs bill to the floor.

Read the Politico story

Obama Goal to Double Exports in 5 Years

Mon, 01 Feb 2010 00:00:00 GMT

President Barack Obama says he wants to double exports over the next 5 years.

The effort would create 2 million American jobs.

During his State of the Union, Obama said, "The more products we make and sell to other countries, the more jobs we support right here in America."

National Export Initiative
The Obama Administration is launching a national export initiative to help farmers and small businesses who want to sell their goods abroad.

The White House is working to reform export control laws that hurt sales of technology that might have military uses.

They are also pushing both international and bilateral free trade agreements.

Obama has called for strengthened trade relations with South Korea, Colombia and Panama.

Obama Comments to Republicans
President Obama told Republicans on Friday, "My hope is that we can move forward with some of these trade agreements having built some confidence among the American people that trade is going to be reciprocal, that it is not going to just be a one-way street."

Rep. Berman Comments
House Foreign Affairs Committee Chairman Howard Berman, D-CA, met last week with National Security Adviser Jim Jones, Defense Secretary Robert Gates and Commerce Secretary Gary Locke, to discuss how to overhaul export control law that hasn't been updated since 1979.

Berman said bipartisan legislation will be ready by early spring for his committee to consider.

Read the AP story

Obama to Seek Sweeping Change in No Child Law

Mon, 01 Feb 2010 00:00:00 GMT

The Obama administration is proposing a sweeping overhaul of President Bush's signature education law, No Child Left Behind.

Obama's plan will call for major changes in how schools are judged to be succeeding or failing.

Eliminate 2014 Deadline
They also plan to eliminate the law's 2014 deadline for bringing every American child to academic proficiency.

Educators say the proposals would eliminate or rework many of the provisions that teachers' unions, associations of principals, school boards and other groups have found most objectionable.

Read the New York Times story

Obama Unveils $3.83 Trillion Budget

Mon, 01 Feb 2010 00:00:00 GMT

President Barack Obama sent Congress a $3.83 trillion budget on Monday.

There is more money to fight high unemployment, raise taxes on the wealthy and freeze spending for a number of government programs.

Record Deficit
The deficit for this year would be a record-breaking $1.56 trillion.

The deficit would remain above $1 trillion in 2011.

Budget Freeze
But President Obama is proposing a 3-year budget freeze on a wide range of programs outside of the military and homeland security.

Tax Increases on Wealthy
Obama proposes increasing taxes on energy producers and families making more than $250,000.

Jobs Bill
Obama's budget includes a $100 billion jobs bill that would provide tax breaks to encourage businesses to boost hiring.

He also proposed increased government spending on infrastructure and energy projects.

The White House said, "Having steered the economy back from the brink of a depression, the administration is committed to moving the nation from a recession to recovery by sparking job creation to get millions of Americans back to work."

Tax Breaks for Middle Class
Obama's new budget proposes extending the popular 'Making Work Pay' middle-class tax breaks of $400 per individual and $800 per couple through 2011.

The budget also proposes making $250 payments to Social Security recipients.

Increase in Education Funding
Obama's budget has increased Federal spending for elementary and high school education.

The Elementary and Secondary Education Act would see a $3 billion increase to $28 billion.

Plus there is an additional $1 billion if Congress agrees to some major changes in the law.

Race to the Top
The White House would provide an additional $1.35 billion for the president's Race to the Top challenge.

That is a federal grant program in which 40 states are competing for $4 billion in education money included in last year's stimulus bill.

Increase in Pell Grants
The Pell Grant college tuition program would help an additional 1 million students by increasing spending to about $35 billion.

Homeland Security Increase
The Department of Homeland Security would get an additional $734 million to support the deployment of up to 1,000 advanced imaging airport screening machines and new baggage screening equipment to detect explosives.

Increase in Military Spending
President Obama's budget proposes a $33 billion increase in a supplemental appropriation this year for the military.

They seek $159.3 billion in 2011 to boost Obama's strategy dealing with the terrorist threat in Afghanistan and Pakistan.

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Read the AP story

Read: Obama's $3.8 trillion budget calls for jobs assistance, tax changes

Read: War spending surges in President Obama's budget

Read: Deficit to Increase $100 Billion Under Obama's New Budget

Read: Obama's Budget Faces Tough Reaction From Democratic and GOP Lawmakers

Read: White House to roll out $3.8 trillion budget plan

Paulson says Economy Recovering

Mon, 01 Feb 2010 00:00:00 GMT

Former Treasury Secretary Henry Paulson says the country would have suffered Great Depression-era joblessness, near 25 percent, if the government hadn't arranged the financial system bailout.

Paulson defended the bailout, known as the Troubled Assets Relief Program.

He said that he and other top policymakers had no choice but to intervene when they did.

Former Secretary Paulson Comments
Paulson said, "The economy is recovering but that it's got a good ways to go."

He said, "We have not fixed the problems we need to fix."

Defends AIG Bailout
Paulson defended the bailout of the giant insurance company American International Group.

He said it would have been a "disaster" if it had been allowed to fail.

Paulson appeared on ABC's "Good Morning America."

Read the AP story

Axelrod: No decision yet on terror trial site

Sun, 31 Jan 2010 00:00:00 GMT

White House Adviser David Axelrod says the Obama Administration hasn't decided where it will try professed Sept. 11 mastermind Khalid Sheikh Mohammed and others suspected terrorists.

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The Obama Administration said late last year that Mohammed and other conspirators would go on trial in a federal civilian court in New York City.

Resistance from City
But that plan has run into resistance now from city officials over costs and security measures.

Axelrod said the Administration must take into consideration such local opposition.

He said no decision has been made about where a trial will take place.

Axelrod appeared on NBC's "Meet the Press."

Read the AP story

Read - Gibbs: Accused 9/11 plotter likely to be executed

Read: White House still wants terror suspects tried in New York court

Boehner: Opportunities are Limited to Work with Democrats

Sun, 31 Jan 2010 00:00:00 GMT

House Minority Leader John Boehner, R-OH, says despite White House overtures for congressional Republicans to work with Democrats, such opportunities are limited.

Boehner said, "There aren't that many places where we can come together."

Boehner said Republicans were elected to stand by their principles, and those principles are different than the "leftist proposals" offered by President Barack Obama and congressional Democrats.

Boehner appeared on NBC's "Meet the Press."

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Political Strategy
In his State of the Union address last week and in an appearance at the House Republican retreat, Obama accused Republicans of opposing legislation as a political strategy instead of seeking ways to work with his administration and Democrats.

Claims of Liberalism
Boehner said Obama was been "the most liberal" member of the Senate before becoming President, and that his policies now reflected that liberalism.

He said, "Leadership is about standing on your principles and opposing those policies that we believe are bad for the country."

Read the CNN story

Gibbs: Cost of Obama's jobs push in range of $100B

Sun, 31 Jan 2010 00:00:00 GMT

White House Spokesman Robert Gibbs said Sunday on CNN's "State of the Union" that President Barack Obama's push to create jobs may carry a price tag in the $100 billion range.

Gibbs said, "Economic growth will eventually lead to job growth, but obviously we're not seeing the jobs we'd like to and I think additional stimulus and Recovery Act spending can help."

Gibbs said the idea is to help fill in the hole from jobs lost in the deepest recession to hit the country in decades.

Incentives to Employers
In his State of the Union address last week, Obama called for a program costing about $30 billion in incentives to employers to hire workers.

The plan would include tax breaks to small businesses that increase their work force.

Read the AP story

Read - Gibbs: Jobs push will cost $100 Billion

Gibbs: Health Care on Five-Yard Line

Sun, 31 Jan 2010 00:00:00 GMT

White House Press Secretary Robert Gibbs restated President Obama's commitment to passing health care reform.

Robert Gibbs Comments
Gibbs said, "We are still inside the five-yard line."

He said, "We are one vote away in the House of Representatives from making health care reform a reality."

Gibbs said, I think, once again, the American people are far ahead of where Washington is."

He said, "I think we can get something done for the American people if we sit down and listen to each other, if we share ideas and we work together on the priorities of the American people."

Gibbs appreared on CNN's "State of the Union."

David Axelrod Comments
White House Senior Adviser David Axelrod said the American people do not want the president to walk away from health care reform.

Axelrod said, "They want us to act. They would like us to work together to do it."

He said, "The president is determined that we deal with the problems in front of us, and health care is one of them."

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Axelrod appeared on NBC's "Meet the Press."

Visit msnbc.com for breaking news, world news, and news about the economy

Read the Politico story

Read: Health care reform bill 'inside the 5-yard line,' Gibbs says

Read - Axelrod: Americans want health reform

Obama pushes nuclear energy to boost climate bill

Sun, 31 Jan 2010 00:00:00 GMT

President Barack Obama is endorsing nuclear energy like never before.

Obama is calling for a new generation of nuclear power plants.

He singled out nuclear power in his State of the Union address.

His spending plan for the next budget year is expected to include billions of more dollars in federal guarantees for new nuclear reactors.

Sen. Graham Comments
Sen. Lindsey Graham, R-SC, said Obama's speech was an opening that he hoped to take advantage of to court more GOP support.

Graham said, "The president did a great job putting nuclear on the table in a robust way, as well as offshore drilling for oil and natural gas."

He said, "I hope Republicans understand we have a once in lifetime chance, but in return we have to come up with emissions standards."

Read the AP story

$6.4 Billion US Arms Deal to Taiwan

Sat, 30 Jan 2010 00:00:00 GMT

The United States is planning to sell $6.4 billion in arms to Taiwan.

The sale includes Patriot anti-missile systems, helicopters, mine-sweeping ships and communications equipment.

The sale completes an $11 billion arms package originally pledged to Taiwan by former President George W. Bush in 2001.

China Opposes Deal
China has condemned the deal.

China's Defense Ministry suspended military exchanges with the United States and summoned the U.S. defense attache to lodge a "solemn protest" over the sale.

US Response
The United States said weapons sales to Taiwan help to maintain stability in East Asia by making it more difficult for Beijing to bully Taiwan.

Read the AP story

Read: U.S. sells weapons to Taiwan, angering China