House Speaker Nancy Pelosi (D-Ca.) discusses how some of the $2 billion in the American Recovery and Reinvestment Act designated for higher education will go toward developing programs at Hispanic and historically black colleges. (0:28)
By Ravi Bhatia – Talk Radio News Service
On Tuesday, House Speaker Nancy Pelosi (D-Calif.), along with other House members and representatives from various universities, touted the research conducted with money from the American Recovery and Reinvestment Act of 2009.
Also known as the stimulus package, the ARRA allocated $21.5 billion for scientific research, purchasing equipment and science-related construction projects.
“There was a time, if you promise not to tell anybody, when in Washington you had to choose between science and faith, take your pick,” Pelosi said. “And [then] we said, ’science is an answer to our prayers.’ It’s all pretty compatible.”
The university officials universities pointed to the website www.scienceworksforUS.org, which details the stimulus-sponsored research being conducted across the country. ScienceWorksForUS is an initiative of the Association of American Universities, the Association of Land Grant Universities, and the Science Coalition, who together represent 200 research institutions.
By Ravi Bhatia – Talk Radio News Service
Bank of America (BOA) executives, including two members of the bank’s board of directors, testified Tuesday in front of the House Oversight Committee to explain how a private deal between BOA and Merrill Lynch turned into a federal bailout.
The $50 billion deal between the two banks occurred in September, 2008 and saved Merrill Lynch from bankruptcy. A January 2009 report of its earnings, however, showed that Merrill Lynch lost $21.5 billion in the fourth quarter of 2008, requiring the government to subsequently provide it with an emergency $15 billion preferred stock investment through the Troubled Asset Relief Program.
Committee Chairman Rep. Edolphus Towns (D-N.Y.), claimed during Tuesday’s hearing that the government did not force Bank of America to take the bailout. Towns noted that it was former Bank of America Chairman Ken Lewis who asked former Treasury Secretary Hank Paulson on Dec. 17, 2008 to intervene.
“That one phone call put everything in motion,” Towns said. “Lewis claimed that he believed Bank of America could back out of the deal with Merrill Lynch based on the Material Adverse Change clause in the merger agreement – the so-called ‘MAC clause.’ [Former Bank of America General Counsel Timothy J.] Mayopoulos was suddenly fired nine days later without explanation and replaced by a senior insider who had not practiced law in years.”
Mayopolous testified Tuesday that, “Based on information [that was] already disclosed to shareholders, a reasonable investor would have been on notice that Merrill Lynch might well suffer multi-billion dollar losses in the fourth quarter of 2008.”
During his prepared remarks, Mayopolous also denied involvement in Bank of America’s approving Merrill Lynch to pay billions of dollars in bonuses to its employees. However, he did advise Steele Alphin, Bank of America’s Chief Administrative Officer, that Merrill Lynch, not Bank of America, should determine year-end bonuses for Merrill Lynch employees.
“I also advised Mr. Alphin, however, that it was appropriate for him to make clear to the Chair of Merrill’s Compensation Committee that it would be inappropriate for John Thain, Merrill Lynch’s CEO, to be paid a year-end bonus,” Mayopolous said. “My advice was not legal advice that such a bonus would be illegal, but rather my business judgment as to what would be best for the combined company.”
Bank of America’s President of Consumer and Small Business Banking Brian Moynihan said Tuesday he was proud of the role his firm has played in the economy “during this period of economic difficulty,” and that Bank of America’s acquisition of Merrill Lynch helped prevent a further financial collapse.
“We have extended $759 billion in new credit since we filed our first report in the fourth quarter of 2008,” he said. “That represents almost $17 for every dollar of the $45 billion of taxpayer assistance to the Bank of America.”
By Ravi Bhatia – Talk Radio News Service
In a news conference Monday, Sens. Jim Webb (D-Va.) and Lamar Alexander (R-Tenn.) introduced their alternative to the Kerry-Boxer climate bill. The “Clean Energy Act of 2009” would allocate $100 billion in loans for technology-neutral, carbon-free electricity over the next 20 years, with the goal of doubling nuclear production during that time.
The legislation would invest $1 billion over five years on enabling the Nuclear Regulatory Commission to review new nuclear reactor designs. Hitachi and General Electric are two companies that have worked on a design that would create reactors that use fewer pumps and would cut the construction time of a nuclear power plant to 42 months.
Both senators argued that their bill could easily attract bipartisan support, unlike the cap and trade plan, which they said encourages the outsourcing of American jobs. Webb said he was particularly concerned with the complexity of cap and trade, claiming that that there is “no way to fully measure [its] potential impact on the economy.”
“[Our bill] is measurable, achievable, targeted,” Webb said.
While the Webb-Alexander bill primarily focuses on nuclear energy, it would also fund what Alexander calls five “Mini-Manhattan Projects,” which would invest in clean coal, advanced biofuels, advanced batteries, solar power, and nuclear fuel recycling.
Webb, whose opposition to the Kerry-Boxer legislation is a serious blow to the oft-debated bill, said that he and Alexander would continue to oppose it even if their legislation was included.
By Ravi Bhatia – Talk Radio News Service
Director of Policy Planning for the U.S State Department Anne-Marie Slaughter said Monday that a new study aimed at plotting out the future of the department, the Quadrennial Diplomacy and Development Review, could yield improvements in international relations.
“[Following the success of the QDDR] we would have much greater capabilities in the building of a new global architecture of cooperation,” said Slaughter. “[This] would include a greater capability and greater strategy in building bilateral partnerships with emerging nations and with our traditional allies. We would have a far greater capacity to work with non-state actors.”
According to the State Department, the QDDR hopes to provide a short, medium, and long-range blueprint for U.S. diplomatic and development efforts by showing how the current and future administrations should develop foreign policy, allocate resources, deploy staff, and exercise authority. The Review’s final report will be presented to President Barack Obama and Congress.
Slaughter spoke about the QDDR’s efforts at the Center for American Progress, a left-leaning think tank in Washington, D.C. Her remarks coincide with the release of the center’s recommendations for Obama’s National Security Strategy.
The CAP report states that the NSS should fundamentally change the U.S. response to radical extremists, increase U.S. funding for development in “weak or failing” states and use diplomatic tools to engage with hostile regimes, among other recommendations.
“Everywhere you turn, it is clear that we need not only government power, but the power of the private sector, the power of [non-government organizations], the power of think thanks like [CAP] — all putting in their comparative advantage and resources to tackle common problems,” Slaughter continued.
The Obama administration was required to deliver its first NSS report within five months of the president taking office, according to the CAP report’s executive summary. The administration has yet to issue one.
Retired Army Major General Paul Eaton, who also spoke on behalf of the CAP report, discussed the government’s unresolved issues with allocating resources, which the QDDR and the CAP report seek to correct through their recommendations.
“There is no hard-ass Colonel who is telling people in a directive fashion, in the development of a plan, how you’re going to resource the plan,” he said. “There’s no mechanism today to establish directive authority, to establish tasking authority and to make things happen in a comprehensive, integrated fashion. Until that entity is created, [our diplomatic and development efforts aren’t] going anywhere,” said Maj. Gen. Eaton.
By Ravi Bhatia – Talk Radio News Service
Senator Lindsey Graham (R-S.C.) has teamed up with Senators John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) to find common ground on creating bipartisan climate change legislation, with hopes of making progress before the United Nations Climate Change Conference in Copenhagen next month.
“The green economy is coming. We can either follow or lead,” Graham said at a press conference on Wednesday. “Those countries who follow will pay a price. those countries who lead in creating a new green economy for the world will make money.”
Graham and Kerry wrote an opinion piece for the New York Times published on Oct. 11 that highlighted some of the goals of the legislation, which include acknowledging that climate change is real, investing in wind, solar and nuclear energy and breaking U.S dependence on foreign oil.
Republicans boycotted the Senate Environment and Public Works Committee markups of the Kerry-Boxer Clean Energy Jobs and American Power Act on Tuesday and Wednesday in an attempt to urge the committee to submit the legislation to the Environmental Protection Agency for economic analysis. Ranking member Sen. James Inhofe (R-Okla.) was the lone Republican to attend Wednesday’s meeting, although he departed after only 15 minutes.
“I do believe that all of the cars we have on the road and the trucks and the energy we use that produces carbon daily is not a good thing for the planet,” Graham said. “But if environmental policy is not good business policy you’ll never get 60 votes.”
According to Lieberman, the stakes are “too high” to wait on drafting climate change legislation.
“We will be held accountable by history unless we make every effort to find common ground,” he said.
By Ravi Bhatia, Talk Radio News Service
If the public option on health care is viable and sustainable for the American people, then members of Congress and the Senate should sacrifice their own federal health benefits and use it themselves, said Rep. Joe Wilson (R-S.C.) and other House Republicans Wednesday.
“If this government-run plan is so good, why don’t members of Congress take the plan?” asked Wilson, during a press conference promoting an amendment to the Affordable Health Care For All Americans Act requiring all members of the House and Senate subscribe to the public insurance option offered by the legislation.
While Wilson admittedly does not support the public option, the proposed amendment is being interpreted as a way to make a point to Wilson’s Democratic colleagues.
“We know why the majority of the ‘Pelosi takeover bill’ does not provide this,” Wilson continued. “They do know that the government-run option will not be in the interest of the American people, either individually or for the American citizens at large. I’m just very hopeful that they’ll reconsider, that they will understand if it’s good enough for the American people, it’s good enough for Congress.”
Wilson added that the House is “shoving this bill through.”
Wilson went on to say that the House is “shoving this bill through.”
“Speaker Pelosi still has not informed us about what the amendment process will be for this bill,” Wilson said in a statement released Wednesday. “An issue as important as a health care overhaul that will impact every American is much too important through rush through without transparency or a democratic amendment process.”
Wilson garnered controversy when he shouted the phrase “you lie” during President Barack Obama’s address to a joint session of Congress in September.
By Ravi Bhatia-Talk Radio News Service
Small business owners testified in front of the Senate Health, Education, Labor and Pensions Committee Tuesday in an attempt by the committee to find methods for reducing the ever-increasing health insurance costs facing small businesses.
“Today, I’m announcing my own investigation into the pricing practices of health insurance companies that sell policies to small businesses,” said Sen. Tom Harkin (D-Iowa), HELP Committee Chairman. “Health insurance companies should open their books, explain to the American people why they support a health insurance market for small businesses that is so dysfunctional and so lacking in transparency.”
Harkin argued that the legislation presented by the Senate would create health insurance exchanges that pool small business together and increase competition, also making health insurance more transparent.
“Small businesses pay 18 percent more then large businesses for exactly same insurance plan and coverage. The [exact] same policy,” he said.
Art Cullen, editor of the Storm Lake Times in Storm Lake, Iowa, accepted a $5,000 deductible on services provided by a hospital in order to keep costs manageable for his small business. The deductible forces cancer patients covered by the policy to pay $2,500 out-of-pocket for a shot at a local hospital – or to drive to the next town in order to pay $25 for the same shot at a clinic. The insurance prices, he said, drive down the potential revenue that the town could have earned from treating the patient at the local hospital.
“We need more insurance competition in the rural marketplace by knocking down state cartels,” he said. “We need to know that a single health catastrophe will not bankrupt us and bring down everything we have worked for over the past 20 years.”
Kansas Insurance Commissioner Sandy Praeger, Chair of the National Assn. of Insurance Commissioners, said that the cost of health care is rising rapidly and that insurance companies have little ability to address the issues.
“The challenge moving forward will be to overhaul the delivery system to promote prevention, quality and results-based care to encourage healthy lifestyles and to eliminate waste and fraud in the system,” said Praeger. “The difficulties in the small group market, as in the individual market, are ultimately the result of medical spending that has outstripped the ability of most Americans to pay for it.”
By Ravi Bhatia – Talk Radio News Service
Joseph Figueroa at the University of Virginia’s Center for Politics says that today’s Gubernatorial elections in Virginia and New Jersey and the Congressional election in upstate New York reflect little on national political trends. Figueroa’s sentiment conflicts with Republicans who believe that GOP victories in the three races would serve as a referendum of sorts on the job performance of President Barack Obama.
“You really have to take the results for what they are, as a reflection of the campaign that the two candidates ran,” said Figueroa, referring to the race for governor in Virginia. “I don’t think you can really extrapolate a whole lot in terms of national or even state trends because Virginia is a purple state, and it’s gonna remain so for a while.”
In Virginia, polls suggest that former state Attorney General and Republican candidate Bob McDonnell holds a double-digit lead over Democratic candidate Creigh Deeds. In New Jersey, the race between incumbent Democratic Governor John Corzine and his challenger, Republican Chris Christie, remains deadlocked.
“New Jersey is a blue state – it’s dark blue,” Figueroa said. “It’ll be interesting to see because Christie did have a bit of an upswing in the polls at the very end there. But it is a deadlocked race. That’ll be the one to watch tonight.”
In New York’s 23rd Congressional District, Republican candidate Dede Scozzafava dropped out of the race after being outpolled by Conservative Party candidate Doug Hoffman. She has since endorsed Democrat Bill Owens.
“A lot of the people who were inclined to support Scozzafava because she’s running under the Republican banner may not be so quick to vote for Owens because of their own ideals,” Figueroa continued. “It’s gonna be really interesting to see – they have a very difficult to decision to make.”
The polls close in Virginia at 7 p.m. tonight. In New Jersey, the polls close at 8 p.m. and in New York, they close at 9 p.m.
By Ravi Bhatia – Talk Radio News Service
Lisa Curtis, a senior research fellow at the Heritage Foundation in Washington D.C., told Talk Radio News Service Monday that it would be a mistake for the United States to scale back its military efforts in Afghanistan after Hamid Karzai was declared President for another term by Afghanistan’s election commission.
“The whole election debacle was a setback for international efforts in Afghanistan,” Curtis said in a telephone interview. “That said, U.S stakes in the region are far too high to allow the imperfect election to cause us to think about scaling back the mission there.”
Karzai’s competitor, Abdullah Abdullah, dropped out of the race Sunday, citing the risk of voter fraud.
General Stanley McChrystal has requested 44,000 more troops in Afghanistan. President Barack Obama is expected to adopt a military strategy in the coming weeks.
