Cheat Sheet
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In a stunning reorganization of the 90-year-old global insurance conglomerate, American International Group will announce today that it is breaking into parts and handing over control of its two largest divisions to the U.S. government in exchange for $30 billion. This brings the government's ownership to nearly 80 percent in a holding company that, once its restructuring is complete, will have as its main task the selling off and listing of its own businesses. There was speculation about the breakup last week, but the announcement, will end any hope that the company might survive as a stand-alone entity. "Given the systemic risk AIG continues to pose and the fragility of markets today, the potential cost to the economy and the taxpayer of government inaction would be extremely high," a Treasury Department official said in a statement defending the plan.
Stimulus? Check. Bank strategy? Check. Obama keeps crossing off the large, complicated issues on his checklist, but the next item might give him pause: Healthcare. Following the nomination of Kansas Gov. Kathleen Sebelius for secretary of health, Obama's healthcare summit kicks off tomorrow. But some of healthcare policy's biggest players may sit this one out. Hillary Clinton—who, some argue, botched universal healthcare for her husband in the 90's—is focused on her new job as Secretary of State and is unlikely to participate in this new iteration of the healthcare debate. Likewise, Senator Ted Kennedy, though reportedly working on healthcare legislation from his own sickbed, seems an unlikely candidate for heavy lifting at this point. Obama has, however, put forth broad plans for securing health cover for all Americans and for maintaining the employer's role in the American insurance system. As for the votes, the Obama Administration is reportedly considering a tactic that would allow them to get the healthcare and energy bills through on 50 Senate votes only—the filibuster-proof budget reconciliation process, a controversial method for passing policy proposals that would likely make Republicans—and even some Democrats—uncomfortable.
Still without a Secretary of Health and Human Services even as he pushes forward a $634 billion health care reform plan, President Obama is looking to Kansas Governor Kathleen Sebelius to take the job. According to White House officials, Obama called Sebelius yesterday to formally offer her the job, an offer she accepted. Sebelius has a reputation for bipartisanship and pragmatism, but is also a fierce advocate for abortion rights, making her an intriguing choice to help shepherd Obama's ambitious health agenda through Congress.
Early in the day, German Chanellor Angela Merkel decisively shut down the possibility of a multibillion dollar bailout for eastern Europe at an European Union summit. With eastern Europe nearing financial ruin, many have looked to Germany, home to Europe's largest economy, for leadership and a bailout. But today Merkel said "you cannot compare" the hardships of individual European nations with one another, and that a large-scale multi-national bailout would be unwise. Hungary's Prime Minister Ferenc Gyurcsany says his nation is crumbling and needs up to 190 billion euros ($241 billion) to restore eastern Europe's sinking banks. The nine eastern nations seeking help are Poland, Hungary, Slovakia, the Czech Republic, Bulgaria, Romania, and "three Baltic states" according to the Associated Press. At the end of the day, EU officials told the press that the nations in question had changed their minds and that the EU had collectively decided the bailout was not for them.
With Democrats controlling both branches of Congress and the executive branch, Republicans are scrambling to find a new leader. But who will fill the roll? Depending on how you read the indicators, it could be Mitt Romeny, the Massachusetts governor who, for the third time in a row, won conservative activist convention CPAC's annual straw poll. Romney won 20% of the vote, while Louisiana's Bobby Jindal won 14% without even being present. Alaska Gov. Sarah Palin (also absent) and firebrand Texas libertarian Ron Paul tied for third place. One person conservatives definitely don't want: George W. Bush, who drew comparisons to Obama for "big spending." Romney's first CPAC win, in 2007, launched the then little-known governor into the ring with the Republican Party's heavyweights; however, some would argue that Mitt's spectacularly costly, failed bid for presidential nominee means Romney's star is waning.
For eight years, America's attitude towards international action against climate change was the less the better, with Bush famously abandoning the Kyoto Protocol early in his presidency and spurning all efforts later to cut emissions worldwide. But with President Obama talking up a more active approach to combating climate change and putting his money where his mouth is in his budget, which includes a cap and trade program, environmentalists are growing excited about the possibility of a new global effort to reduce emissions. According to The New York Times, Obama's chief negotiator on climate change aims to have a treaty ready to sign in Copenhagen in December. “The No. 1 thing will be for everyone to see that the U.S. is on an urgent and transformational path to a low carbon economy — that would have a galvanizing effect,” John Ashton, Britain's special representative for climate change, told the Times.
After a week of glitzy red carpets and finest five star hotels America has to offer, the movie's child stars have returned to Mumbai and their family homes in the slums, and the adjustment hasn't been easy. Azharuddin Ismail, who played the young Salim, developed a fever of 103 degrees and has been vomiting since his return, says the Daily Telegraph. A prescription of antibiotics has yet to improve his condition. Ismail is the same star who, after growing tired of interviews, was allegedly thrashed by his father. Ismail's mother says her son "has not recovered from going to America and all the media interest," while Ismail says he "just want[s] to be in America still." Fellow child star Rubina Ali, who played the young Latika, has reportedly refused to take off the gown she wore to the Oscars and wants "a proper bed... I have seen what it is like in America. Here, there is garbage everywhere, people get angry, swear and shout. I have realized how bad life is here. I just want to get out."
Some (thankfully) lighthearted news by way of fancy software and curious researchers sniffing out a clue: A self-portrait of Renaissance man Leonardo da Vinci has been discovered inside a 500-year-old manuscript of "Codex on the Flight of Birds," reports The Telegraph. An Italian journalist noticed the faint pencil sketch of a nose between the ink-drawn lines, and employed graphic designers, art historians, and forensic experts to confirm its similarity to another well-known sketch made by da Vinci in his later years. The artist’s prominent beard was a helpful give away.
Weeks after allegedly beating his girlfriend Rihanna, Chris Brown appears not only to have earned her forgiveness, but also a surprising amount of public sympathy as well, the L.A. Times writes. While commenters on blogs have been quick to defend Brown, some celebrities have gotten into the act as well—Kanye West pleaded with a Culver City studio audience recently on Brown's behalf, asking "can't we give Chris a break?" On tonight’s episode of VH1 Storytellers, West will defend a handful of demonized celebrities including Michael Phelps, Michael Jackson, and O.J. Simpson—although his controversial defense of Brown will not air. According to People magazine, Rihanna herself may have forgiven Brown. People reports that the young pair are holed up at P. Diddy's Miami Beach mansion, working on reconciliation. No charges have been filed against Brown.
Lame duck Prime Minister Ehud Olmert is warning Palestinians not take advantage of Israel's current transition period by launching rockets, a number of which have hit Israel since it declared a truce in its Gaza operation in January. "If the rocket fire from Gaza continues, it will be answered with a painful, harsh, strong and uncompromising response from the security forces." Olmert said on Sunday. Diplomats from around the world are meeting on Monday for a conference in Egypt on Gaza reconstruction, where Secretary of State Hillary Clinton is expected to pledge $900 million in US aid. International Middle East envoy Tony Blair is currently visiting Gaza to personally survey the damage caused by its recent war with Israel.
Seeing Pakistan cut deals with Islamic extremists to institute religious law in sections of the country may make Western stomachs churn, but Newsweek's Fareed Zakaria says that such moves are a necessary price for security. According to Zakaria, America has failed to distinguish between Islamic extremism and violence, not realizing that many ultra-conservative Muslims are unlikely to turn to terrorism despite their radical reviews. Instead, Zakaria writes, the trend is largely in the opposite direction whenever religious zealots are given greater control. "Bin Ladenism has already lost ground in almost every Muslim country. Radical Islam will follow the same path," Zakaria writes. "Wherever it is tried—in Afghanistan, in Iraq, in parts of Nigeria and Pakistan—people weary of its charms very quickly. The truth is that all Islamists, violent or not, lack answers to the problems of the modern world."
Might an envoy led by bold-faced Hollywood names lead to talks with notoriously antagonistic Iran? Annette Bening and motion picture academy president Sid Ganis are in Tehran this weekend in an exchange approved by the State Department “for cultural purposes only” and which an AMPAS spokesperson said contained “no political agenda.” The Wrap reports they are expected to attend seminars and visit film locations. The art adviser to Iranian President Ahmadinejad said Iran’s cinema officials will speak with members of Hollywood “when they apologize to the Iranians for their 30 years of insults and slanders” and cited The Wrestler and 300 as offensive films. Back to you, Obama.
Drug traffickers have taken all but complete control over Ciudad Juarez, the center of Mexico’s bloody drug trade, forcing the federal government to step in with military reinforcements. After the mayor appointed a new police chief in Ciudad Juarez that the drug traffickers disliked, they began killing police officers every 48 hours until he agreed to resign — after at least five were killed, the chief gave in and fled the city. Nearly 3,000 have been killed in the area in drug-related violence and 45 cops have been murdered in Ciudad Juarez since January 2007.
Prepare for a posthumously published bestseller. Jack Kerouac’s first, previously unpublished novel The Sea is My Brother has been acquired by Harper and will grace the racks of Barnes & Noble shortly, reports The Guardian. Kerouac wrote the surely not self-referential work detailing the life of a merchant seaman while he was also at sea. The author described the tome as “a man's simple revolt from society as it is, with the inequalities, frustration, and self-inflicted agonies.” The cult novelist has enjoyed a high profile lately—And the Hippos Were Boiled in Their Tanks and a collaboration with William S. Burroughs were published with much success earlier this year.
It's been President Obama's nemesis since the day he won — the dreaded presidential bubble that surrounds world leaders. Obama fought successfully to keep his Blackberry as part of an effort to maintain contact with the outside world and has made an effort to carry some vestiges of normal life to the White House. On Friday, Obama attended a Chicago Bulls game in casual dress and he and Michelle have escaped the White House chef on occasion to eat out at local restaurants. But the president's small forays into normal life are carefully supported by a staff of hundreds. For example, Obama reads 10 letters sent to the White House every day, a sampling carefully selected by staff from the 40,000 letters that arrive there daily.
Defense Secretary Robert Gates took to NBC's Meet the Press today to discuss the withdrawal of US combat troops from Iraq, scheduled to be complete by August 2010. Gates is the only cabinet member to have served under both Obama and Bush. Asked by moderator David Gregory on the difference between the two leaders, Gates at first laughed, then sat for a moment in silence. His response: Obama "is somewhat more analytical.... He makes sure he hears from everybody in the room on an issue—and if they don't speak up, he calls on 'em." Though President Bush "was interested in hearing different points of views, but didn't go out of his way to make sure that everybody spoke if they hadn't spoken up before." In other words, Obama is a friendly elementary school teacher, whereas Bush was more like high school shop class.
