Washington Post, February 2nd, 2009

The Senate this evening confirmed Eric H. Holder Jr. as the nation’s first African American Attorney General in a vote of 75 to 21, opening a new chapter for a Justice Department that had suffered under allegations of improper political influence and controversial policy decisions on wiretapping and harsh interrogation practices.

Holder, 58, will arrive at the Justice Department headquarters in Washington tomorrow for a swearing in ceremony and to greet some of the department’s 110,000 employees. More…

“Sen. Daschle decided to remove his name from consideration,” said White House spokesman Robert Gibbs. “We’re at a critical juncture at our nation’s history . . . and the president has a robust agenda to deal with many of those problems.”

Daschle Withdraws Name for HHS Secretary

Washington Post, February, 3rd, 2009

Thomas A. Daschle, President Obama’s choice to be secretary of health and human services, withdrew his nomination today, citing the distractions that followed his failure to pay $146,000 in taxes in recent years.

His decision came shortly after another prominent Obama nominee, Nancy Killefer, withdrew her nomination to be chief performance officer because of similar — although smaller — tax lapses.

Daschle, a former Senate majority leader, had come under pressure since Friday, when it was reported that he did not pay some taxes over the past three years, primarily for the use of a car and driver given to him by an associate. He met yesterday with members of the Senate Finance Committee to explain the omission and apologized. But some Republicans had questioned whether the nomination should go forward, and his confirmation vote had been postponed until at least the middle of next week. More…

Los Angeles Times, February 4th, 2009

Reporting from Washington — President Barack Obama unveiled new restrictions on pay for executives at financial institutions receiving federal bailout money today, slamming corporate leaders for “narrow self-interest” in enriching their paychecks with taxpayer money.

“For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn’t just bad taste — it’s a bad strategy — and I will not tolerate it as president,” Obama said during a White House appearance with Treasury Secretary Timothy Geithner. “We’re going to be demanding some restraint in exchange for federal aid — so that when firms seek new federal dollars, we won’t find them up to the same old tricks.”

Under new rules, companies that receive “exceptional financial recovery assistance” — large bailouts like those given to Citigroup and American International Group — would not be allowed to pay senior executives more than $500,000 in total annual compensation.

The exception would be grants of stock or other long-term incentives that contain restrictions that limit when it could be cashed in — after the government has been repaid or after a set period that takes into account how the company has been repaying the federal money. More…

CNN News, February 4th, 2009

WASHINGTON (CNN) — The newly empowered Democratic majority flexed its political muscle Wednesday as the House of Representatives voted to expand a key federal health care program to an estimated 4 million additional children.

The 290-135 vote to expand the State Children’s Health Insurance Program fell largely along party lines, with almost every Democrat voting in favor of the expansion and most Republicans voting against it.

President Obama is expected to sign the bill late Wednesday afternoon; the Senate passed it Friday.

“As the worsening economy causes families to lose their jobs and health insurance, it is vital that we redouble our efforts to ensure that every child in America has access to affordable health care,” the president said in a statement after Senate passage last week. More…

Justice Ginsburg has pancreatic cancer surgery

Washington Post, February 5th, 2009

U.S. Supreme Court Justice Ruth Bader Ginsburg today underwent surgery for pancreatic cancer at the Memorial Sloan-Kettering Cancer Center in New York, according to a statement released by the court.

Ginsburg had no symptoms from the illness, apparently caught at an “early stage” during a routine checkup late last month, the court statement said.

Court officials said that a CT scan administered at the National Institutes of Health in Bethesda detected a small tumor, “approximately 1 cm across, in the center of the pancreas.”

At his regular news briefing, White House press secretary Robert Gibbs told reporters this afternoon that President Obama “has not talked with the justice, but his thoughts and prayers are with her and her family right now.”

The justice, 75, has served on the court for 15 years, after being appointed by President Bill Clinton. Legal scholars consider Ginsburg a reliable liberal vote, and in her time on the bench she has fostered warm relationships with colleagues who espouse more conservative legal views. More…

McClatchy Washington Bureau, February 5th, 2009

WASHINGTON — This much is clear: Sometime soon, probably this month, President Barack Obama will sign an economic stimulus plan.

However, it probably will have at least $50 billion less spending than the Senate’s current version does, and it probably will win a handful of Republican votes after lengthy White House-congressional negotiations.

Senators huddled on Wednesday — with each other and with Obama — trying to craft a plan that will get the 60 votes needed under Senate rules to stop any filibuster, the tactic that obstructs extended debate.

Republican moderates, joined by some Democrats, were looking for a way to pare the $900 billion-plus package by at least $50 billion, likely by cutting much of the education aid and a long list of small spending initiatives. More…

Obama admin. seeks treaty to cut US, Russia nukes

Associated Press, February 5th, 2009

WASHINGTON – The Obama administration, reversing the Bush administration’s limited interest in nuclear disarmament, is gearing up for early negotiations with Russia on a new treaty that would sharply reduce stockpiles of nuclear warheads.

Secretary of State Hillary Rodham Clinton has notified Congress and her staff that she intends to get started quickly on talks with the Russians, who have voiced interest in recent weeks in settling on a new treaty calling for cutbacks in arsenals on both sides.

The 1991 Strategic Arms Reduction Treaty expires at the end of the year. It limited the United States and Russia to 6,000 nuclear warheads each. The American stockpile is believed to be about 2,300 warheads, and the Russians’ even lower.

Clinton’s spokesman, Robert Wood, said the new administration was serious about negotiating reductions in nuclear weapons. A replacement treaty for START “will be put on a fast track,” Wood said. More…

New York Times, February 5th, 2009

The News Corporation, the media empire controlled by Rupert Murdoch, said Thursday that it lost $6.4 billion in the second quarter as profit fell sharply at its television and movie units and it took a write-down on its newspaper assets.

Mr. Murdoch, the chairman and chief executive, said the economy deteriorated faster than anticipated in the last three months.

“Our results for the quarter are a direct reflection of the grim economic climate,” he said. “While we anticipated a weakening, the downturn is more severe and likely longer lasting than previously thought.” More…

Deal announced on emergency stimulus plan

Associated Press, February 6th, 2009

WASHINGTON – With job losses soaring nationwide, Senate Democrats reached agreement with a small group of Republicans Friday night on an economic stimulus measure at the heart of President Barack Obama’s plan for combatting the worst recession in decades.

“The American people want us to work together. They don’t want to see us dividing along partisan lines on the most serious crisis confronting our country,” said Sen. Susan Collins of Maine, one of three Republican moderates who broke ranks and pledged their votes for the bill.

Democratic leaders expressed confidence that the concessions they had made to Republicans and moderate Democrats to trim the measure had cleared the way for its passage. No final vote was expected before Monday.

Officials put the cost of the bill at $827 billion, including Obama’s signature tax cut of up to $1,000 for working couples, even if they earn too little to pay income taxes. Also included are breaks for homebuyers and people buying new cars. Much of the new spending would be for victims of the recession, in the form of unemployment compensation, health care and food stamps. More…

25% of companies plan salary freeze

CNN Business News, February 10th, 2009

NEW YORK (CNNMoney.com) — About a quarter of businesses have frozen workers’ salaries for 2009 in the wake of a pessimistic economic outlook, according to a survey released Monday.

Outsourcing and consulting firm Mercer said 25% of organizations surveyed said they have already decided not to raise their employees’ pay, and another 20% are considering a salary freeze this year. A year ago, just 5% of companies planned to suspend raises for their staff.

Mercer predicted that one in three companies will have frozen wages at 2008 levels by the end of 2009.

“It’s not an easy message to communicate to employees, but we think managers will be aided by the unprecedented context of these difficult decisions – including low inflation and high unemployment,” said Steve Gross of Mercer. More…