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Last Updated: Dec 5th, 2008 - 13:00:38 |
Treasury Says Bailout Won’t Focus on Toxic Assets
The Bush administration says it plans to shift course in how it will hand out the $700 billion bailout to Wall Street. On Wednesday, Treasury Secretary Henry Paulson said the government no longer plans to buy up the toxic assets of financial firms. Instead, Paulson said the bailout will focus on boosting financing for companies that give out loans.
Treasury Secretary Henry Paulson: “Over these past weeks, we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets. Our assessment at this time is that this is not the most effective way to use TARP [Troubled Assets Relief Program] funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role, relative to other potential uses of TARP resources, in helping to strengthen our financial system and support lending.”
The Treasury Department says it’s still finalizing details of the new approach.
Report: No Action Taken on Bailout Oversight
The news comes as the Washington Post reports the Bush administration has taken no action to fill congressionally-mandated independent positions to oversee how the bailout is used. A deadline for the first bailout monitoring report has already passed. The Treasury has already committed $290 billion in taxpayer money so far. Eric Thorson, the Treasury Department’s inspector general, said, “It’s a mess. I don’t think anyone understands right now how we’re going to do proper oversight of this thing.”
Fed Refuses to List Banks Drawing $2T in Federal Loans
A new controversy has erupted over the Bush administration’s refusal to identify banks on the receiving end of almost $2 trillion in taxpayer loans. The Bloomberg news company has sued the Federal Reserve to release a list of borrowing banks and the troubled assets they’re putting up as collateral. The Fed says it won’t release the list to avoid financial panic. The bank loans have come outside of the $700 billion Wall Street bailout package and don’t require congressional approval. The loans were made under the auspices of eleven different government programs. Eight of them have been created in the past fifteen months.
Congolese Citizens Caught in Crossfire of Battle for Region’s Lucrative Resources
The United Nations is poised to send an additional 3,000 troops to the eastern part of the Democratic Republic of Congo, where reports of rape, looting, and murders of civilians by both government and rebel forces continue to rise. A quarter of a million people have been displaced since rebel forces led by General Laurent Nkunda advanced towards the provincial capital of Goma this August.
The United Nations has accused both the Congolese army and Nkunda’s forces of committing war crimes during the latest violence. Goma is now ringed with refugee camps but rebel leaders ordered displaced people staying near the United Nations peacekeeping compound to return to their homes. Many are scared of going back.
The UN Secretary General called for a ceasefire Monday to allow aid workers to reach refugees in rebel-held areas. But its unclear when the fighting will stop. Neighboring Angola has announced it will send troops to assist the Congolese army and rebel leader Nkunda has vowed to attack any foreign troops that enter the conflict. Some reports indicate Rwandan army soldiers have been fighting alongside General Nkunda but Rwanda denies backing the rebel leader.
Meanwhile Congolese activists in Belgium protested outside the US embassy Wednesday calling on the US to end its support for the governments of both Rwanda and the DRC.
Dems to Push Auto Industry Bailout Measure
Democratic congressional leaders say they’ll introduce emergency legislation next week to include the struggling auto industry in the $700 billion Wall Street bailout. The Democratic plan would give car companies up to $50 billion in taxpayer money. It would either come as a stand-alone measure or as part of a broader package alongside new money for health care, food stamps and public infrastructure. President-elect Barack Obama raised the issue with President Bush at their Monday White House meeting. Bush reportedly suggested he would only back an auto industry bailout if Democrats support the stalled “free trade” deal with Colombia. The Colombia trade deal has been help up in part over human rights concerns. On Tuesday, shares in the auto giant General Motors fell an additional 13 percent to its lowest level since 1943. More on this story after headlines.
Report: Top Intel Officials Expecting Dismissal Under Obama
The incoming Obama administration continues to take shape. The Washington Post reports the nation’s top two intelligence officials expect to be dismissed within months of Obama’s inauguration. Director of National Intelligence Mike McConnell and CIA Director Michael Hayden are linked to several controversial Bush administration policies, including the use of torture on prisoners and warrantless spying. As a Senator, Obama voted against Hayden’s nomination to protest his role in the warrantless spying program while heading the National Security Agency.
Transition Team Limits Lobbyist Role
Meanwhile, the Obama transition team says it’s issued a set of regulations that will limit the role of lobbyists in the incoming administration. Under the new rules, lobbyists joining the transition won’t be allowed to work in the field in which they previously lobbied. And transition officials who go on to become lobbyists will not be allowed to lobby the Obama White House for at least one year.
Obama to Launch Office for US Cities
Obama aides have also announced the President-elect plans to create a White House Office of Urban Policy. The office would coordinate federal aid to US cities.
Obama: Keep Lieberman in Dem Caucus
In other news from Washington, President-elect Obama has endorsed keeping Independent Senator Joseph Lieberman of Connecticut in the Democratic caucus. Lieberman broke with his former party and openly campaigned for Republican nominee John McCain. Outraged Democrats have called for Lieberman to be stripped of his chairmanship of the Homeland Security and Governmental Affairs Committee.
21 Killed in Afghan Suicide Bombing
In Afghanistan, at least twenty Afghan civilians and a US soldier have been killed in a suicide attack on a US military convoy. Another seventy-four people were wounded. The attack occurred outside a town in eastern Afghanistan.
Democrat Takes Lead in Alaska Senate Race
Back in the United States, Democratic challenger Mark Begich has taken what some are calling a commanding lead over incumbent Republican Ted Stevens in the ongoing tallying of the Alaska Senate race. The latest count has Begich leading Stevens by 814 votes. Another 40,000 votes are set to be counted over the next week, with most coming from Democratic-leaning districts. Stevens was convicted just a week before the election on corruption charges. A Begich win would give Democrats control of fifty-eight Senate seats, two short of a filibuster-proof majority. The outcome of Senate races in Minnesota and Atlanta are still to be decided.
Group: NYPD Abandons Video Surveillance of Peaceful Protesters
And the New York Police Department has reportedly ended a policy of videotaping peaceful protesters at demonstrations. The New York Civil Liberties Union says the videotaping has been dropped in response to its lawsuit against the NYPD following the 2004 Republican National Convention. Police officials have apparently restored what are known as the Handschu guidelines that dictate how the police carries out political investigations. The NYCLU says the guidelines were changed last year, but it wasn’t informed until last month.
© Copyright 2006 SeeingBlack.com
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