What You Need to Know: 03.16.09

Obama: AIG Bonuses an ‘Outrage’ to Taxpayers
“President Obama today blasted the payment by insurance giant American International Group of millions of dollars in bonuses to traders who helped bring the company to the brink of ruin, calling the rewards an “outrage” that violates “fundamental values” and underscores the need for financial regulatory reform.

In remarks following a meeting at the White House with small-business owners, Obama said AIG “is a corporation that finds itself in financial distress due to recklessness and greed.” The company has received an estimated $170 billion in federal bailout money.”

Obama Announces Plan to Aid Small Businesses
“Seeking to ease the credit freeze for small businesses, the Obama administration will inject $15 billion into the industry, buying up securities that are linked to small-business loans.

In announcing the latest cylinder of his government’s economic recovery effort, President Obama said the infusion was needed because “small business owners are really struggling” because their credit lines had been pulled.”

Government Combs Through G.M.’s Survival Plan
“Treasury officials and management experts hired by the Obama administration quietly began combing through General Motors’ latest downsizing plan in Detroit last week, in a last-minute effort to assess whether more government aid could make the company viable, or whether the better choice was a managed bankruptcy.

President Obama faces a deadline of March 31 to decide the fate of G.M., and by extension its huge network of suppliers. In interviews, however, administration officials said they would not be bound by that date, when Mr. Obama is scheduled to visit London for a summit meeting on the global economic crisis.”

Obama enlists campaign army in budget fight
“President Obama will kick off an all-out grass-roots effort today urging Congress to pass his $3.55 trillion budget, activating the extensive campaign apparatus he built during his successful 2008 candidacy for the first time since taking office.

The campaign, which will be run under the aegis of the Democratic National Committee, will rely heavily on the 13 million-strong e-mail list put together during the campaign and now under the control of Organizing for America (OFA), a group overseen by the DNC. Aides familiar with the plan said it is an unprecedented attempt to transfer the grass-roots energy built during the presidential campaign into an effort to sway Congress.”

Administration open to taxing health benefits
“The Obama administration is signaling to Congress that the president could support taxing some employee health benefits, as several influential lawmakers and many economists favor, to help pay for overhauling the health care system.

The proposal is politically problematic for President Obama, however, since it is similar to one he denounced in the presidential campaign as “the largest middle-class tax increase in history.” Most Americans with insurance get it from their employers, and taxing workers for the benefit is opposed by union leaders and some businesses.”

This entry was posted on Monday, March 16th, 2009 at 5:32 pm and is filed under what you need to know. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.