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The government giveth, and the government shall taketh away. Lawmakers are moving to tax away the $165 million in bonuses paid to AIG employees. Senators including Finance Committee Chairman Max Baucus are proposing a special tax as high as 100 percent on the “retention bonuses” paid to 73 employees in the insurance giant’s financial products subsidiary, 11 of whom no longer work at the company. Some lawmakers, The Wall Street Journal reports, see the tax as a pressure tactic to goad the AIGers into giving up the bonuses voluntarily. Other senators, including Chuck Schumer of New York, have signed a letter to AIG CEO Edward Liddy demanding he renegotiate the bonuses, while the Obama administration is seeking to use a clause in the stimulus that would allow Treasury Secretary Tim Geithner to claw back the payments if they were “inconsistent with the purpose” of the TARP.
A strange absence of bad news on Wall Street today pushed the Dow Jones Industrial Average up 178.73 points, or 2.5 percent, to close at 7,395.70. The S&P 500 erased more than half its loss since Obama took office, gaining 3.2 percent, and the Nasdaq surged 4.1 percent. An unexpected rebound in homebuilding started the day off right, and speculation that the Fed will details plans to strengthen the economy helped JPMorgan Chase and Citigroup climb at least 7.7 percent. “The market was depressed to an extreme level because of the constant stream of bad news and events,” said a money manager at Westwood Management Corp. in Dallas. “The mere fact that the negative news has stopped allows the market to come back up to a reasonable level.”
Days after FBI agents raided Vivek Kundra’s former office at the District of Columbia’s technology department, he’s back on the job as President Obama’s chief information officer. Kundra, who’d taken a leave of absence in the wake of the raid, was not a target of the raid, but his former employee Yusuf Acar has been charged with bribery. The New York Times’ Caucus blog reports Gov. Tim Kaine of Virginia, a former boss of Kundra’s, pleaded his case to the White House to get him reinstated. “Mr. Kaine said that since Mr. Kundra was not under investigation, he should be reinstated,” The Times reports. “Otherwise, he said, Mr. Kundra’s reputation would be ruined and the administration would miss out on having someone with valuable skills help with its important task of making the government more transparent.”
With some news outlets declaring actress Natasha Richardson "brain dead" and others reporting her suffering from "brain swelling," only one thing is certain: The 45-year-old wife of Liam Neeson is in critical condition after suffering a "traumatic head injury" on a Quebec ski slope yesterday. IrishCentral.com reports Richardson is being transported from Montreal to New York City to receive expert medical care, a day after falling during a private lesson on a beginner slope. Though there was no blood or major impact after she fell, two patrollers came to her aid. At the time, she apparently waived her right to medical care and seemed fine. An hour later, however, she complained of having a headache and 911 was called. Richardson is the mother of two teen boys and the daughter of Vanessa Redgrave.
Unsettling news from Madagascar, where a day after soldiers stormed his offices, Marc Ravalomanana resigned as president and handed power of the African nation to the military. The move was aimed at empowering loyalists, but the army appears to be backing opposition leader Andry Rajoelina, who has already put together a transitional government, The Guardian reports. Ravalomanana’s resignation follows weeks of political unrest that killed more than 100 people. Ravalomanana had proposed a referendum on his presidency after the army was ordered to open fire on a political demonstration and killed 28 protesters, but Rajoelina, a former disc jockey who was fired as the capital’s mayor in February, refused the referendum. Instead the opposition issued a warrant for Ravalomana’s arrest, accusing him of violating the constitution and hiring mercenaries to prop up his reign.
Pope Benedict XVI, never one to shy away from controversy, is making waves again on his first pilgrimage to Africa as pontiff. Before his arrival today in Cameroon, he addressed condom use for the first time and said it is not the answer in the fight against HIV and AIDS—and that it speeds the rate of infections. “You can’t resolve it with the distribution of condoms,” he said. “On the contrary, it increases the problem.” Although Benedict’s position is not new—Pope John Paul II often said sexual abstinence was the best way to prevent the spread of HIV and AIDS—it immediately sparked criticism from activists in sub-Saharan Africa, where 22 million people are infected with HIV. “His opposition to condoms conveys that religious dogma is more important to him than the lives of Africans,” said a representative of the Treatment Action Campaign in South Africa.
President Obama is overseeing a renewed military effort in Afghanistan but Americans are ready to turn the corner. In a poll conducted just this weekend, domestic support for the war is at a new low, with 42 percent now saying the entire 2001 invasion was "a mistake," up noticeably from 30 percent in February. When the war started, just 6 percent deemed it "a mistake." Today, only 38 percent believe the war is going well. The public is actually more optimistic about the war in Iraq, with 51 percent saying the war is going well.
A minor consolation for losing your life savings in Bernie Madoff's investment ponzi scheme: The I.R.S. has decided to allow his victims to claim deductions for their losses, their commissioner told a Senate committee today. "The I.R.S. will allow investors who are not suing Mr. Madoff to claim a theft-loss deduction equal to 95 percent of their investments, minus any withdrawals, reinvested gains and payouts from the Securities Investor Protection Corporation," according to the New York Times. Jilted investors who are suing Madoff can claim deductions up to 75 percent of their lost funds. The I.R.S. plan also applies to victims of other ponzi schemes less famous than Madoff's.
On that winter night in Miami, Details reporter Jason Gay had no idea what a gift he was getting: an interview with slugger Alex Rodriguez just before Sports Illustrated broke the news of his steroid use—but after reporter Selena Roberts confronted the Yankees star in a gym locker room about his positive 2003 drug test. During his interview with Gay, who had no idea the story was about to break, A-Rod appeared perfectly calm and carefree. Bizarrely, he even called the next day to raise concerns about revealing his favorite Madonna song; he wanted the information taken off the record because he feared opposing stadiums would play it whenever he got up to bat. Most tellingly, when talking with Gay about Michael Phelps and the bong incident, A-Rod said, “You’ve got to put yourself in a position that, no matter who has what, the truth will be revealed. That’s ultimately the place I want to be in.” It was the place he was in a mere 36 hours later.
Surprising news from DailyKos’ weekly national poll: 8 percent of Americans have a favorable opinion of Bernie Madoff! (To be fair, 76 percent said they had no opinion of the admitted Ponzi schemer, so perhaps the figures were skewed.) Of 1,400 people surveyed, 57 percent approved of Oprah Winfrey, 56 percent said they had a favorable opinion of Ted Kennedy, 23 percent approved of Bush, and 29 percent said they got positive vibes from Rush Limbaugh. Bush received the highest unfavorable rating, with 68 percent, followed closely by Rush, with 64 percent, and Bill O’Reilly, with 52 percent. Could this be a partisan group?
If you feel music is getting too complicated these days, what with all the guitars and pianos and drum sets drowning out voices, has Ben Folds recorded an album for you! After scouring the nation’s top colleges for undiscovered talent, the bespectacled pianist has compiled a new album of university a cappella groups covering his songs (rather earnestly, we suppose). The songwriter appears proud of his new record, and said, “I’d rather this be my greatest hits record than someone collecting my masters and slapping on a photo of me leaning against a piano.” Ben Folds Presents: University A Cappella will be released on April 28.
In the remote jungles of Peru, Shining Path guerrillas are terrorizing peasants once again after roughly a 15-year hiatus. Empowered by drug trafficking, the Shining Path has played a major role in making Peru the second largest producer of cocaine in Latin America. The story is all too familiar to peasants living in the lawless jungle towns, who are caught between an aggressive military hellbent on squashing the insurgency and revolutionaries quick to label anyone a traitor to the cause. Very little is known of the two brothers that have led Shining Path in its new direction, but it appears they have modeled their operation after the Colombian FARC, another group that made the convenient shift from ideological warfare to drug trafficking.
New York Attorney General Andrew Cuomo has uncovered some cold, hard facts about AIG's much-criticized bonus program. Turns out that 73 employees, including 11 no longer affiliated with the insurance giant, received bonuses of $1 million or more after the government bailed the firm out. Cuomo released the findings today after issuing a subpoena yesterday. "He says contracts written in March 2008 guaranteed employees 100% of their 2007 pay for 2008, regardless of their performance," the Wall Street Journal reports. Outraged Democrats in the Senate have proposed a 91% "excise tax" on the AIG bonuses to get around the legal rules of rescinding them entirely.
Dick Cheney blasted Obama in a recent interview and the president's aides are giddy at the chance to link their critics to the foremost member of the "Republican cabal." "I guess Rush Limbaugh was busy," press secretary Robert Gibbs joked in response to the former VP's claim that Obama was making America less safe by undoing Bush-era measures such as torture and Guantanamo. Gibbs emphasized that by detaining captured terrorists indefinitely the Bush administration damaged the nation's moral standing. "The very perpetrators that the vice president says he's concerned about weren't brought to justice," Gibbs said. A colleague of Cheney's said he elected to speak in public after becoming concerned about the scale of economic stimulus and bailout. Despite all their differences, the Washington Post highlights several controversial Bush policies, such as missile strikes in Pakistan, that remain in place under Obama.
Everyone from Rush Limbaugh to Bobby Jindal is trying their hand at "face of the GOP" but Governor Sarah Palin remains near the top of the party's A-list despite being preoccupied with Alaskan politics. The former vice presidential candidate will boost her profile in June with a keynote speech at the annual Senate-House GOP dinner, Republican lawmakers announced yesterday. "Gov. Palin has quickly emerged as one of the most popular and recognizable faces in the Republican Party, and we are honored to have her deliver the keynote address at the Senate-House dinner," Senator John Cornyn told Politico.
It took threats from Hillary Clinton to cut off aid and signals that the Pakistani military might take over the government, but President Asif Ali Zardari finally gave in to mass protests and acceded to opposition leader Nawaz Sharif's demands. A dispute over judges had put the country on the brink of anarchy, with Zardari cracking down on dissent and placing Sharif under house arrest while protesters prepared for a mass march that threatened to topple the government.
It seems New Yorkers have yet another thing to worry about -- random arrow attacks. Yesterday a rogue archer fired a powerful 30.5 inch hunting arrow into Denise Delgado-Brown's stomach as she stood outside a Bronx nursing home. Delgado-Brown was rushed to St. Barnabas Hospital where doctors were able to save her. "I thought, 'I've been hit by maybe a softball,' and I looked down and I saw an arrow protruding out of my stomach," Delgado-Brown told The New York Daily News. "I was going to pull it out at first, but it was stuck really deep...I was shocked. I kept looking down, going, 'This can't be happening.'" The dastardly bowman has yet to be found, but Police Commissioner Ray Kelly says the attack may have been an accident.
The most dramatic moment of opening day of the trial of Josef Fritzl, the infamous Austrian accused of raping and enslaving his daughter in his basement, came when the prosecutor asked jurors to take a whiff of the stench of his dungeon. Jurors recoiled in disgust as the smell from a box taken from the basement was presented. "It has a morbid atmosphere, which starts with having to crawl in on your hands and knees through the 83 centimeter entranceway...” the prosecutor said. “It's incredibly damp, a damp that creeps into you." Worse, she continued, was "the uncertainty—when will [Fritzl] return, when will he turn on the electricity, when will he go again, what will happen if he doesn't return?"
Yes, everyone's pretty mad at Wall Street right about now over the whole wrecking the economy thing, but if they knew how badly the rich are suffering they just might change their minds. Case in point: the Hamptons is facing a mortgage crisis, with the number of homes going into foreclosure last week—16—nearly as high as the number of homes sold—21. Things have gotten so bad that billionaire hedge fund manager John Paulson recently reduced the price on his 6,500 square foot home from $19.5 million to $13.9 million. So the next time you're in a huff over something like AIG's bonuses, just think what it's like to be in poor Paulson's shoes.
In its efforts to combat terrorists abroad, the military is becoming increasingly reliant on unmanned, heavily armed, robotic aircraft that receive their marching orders via satellite from thousands of miles away. Produced by Skynet—er, General Atomics—the Pentagon's fleet of 195 Predator models and 28 Reapers have been in constant demand, most notably in Pakistan, where some three dozen missile strikes have been launched against suspected Al Qaeda and Taliban members in recent months. Of course the use of the robotic air force raises many uncomfortable questions: Has anyone at the Pentagon watched the Terminator movies? The Matrix? That awful Jamie Foxx film?
Across the country, America is experiencing a swell in the ranks of volunteers, as more laid off workers look to avoid indolence. In a new trend, non-profits are now being flooded with volunteers at the professional level that provide welcome expertise in administration and public relations. Many in the non-profit sector are thrilled at the unemployed volunteers who are looking to help, expand their skill set and network. Volunteers cite the work as a type of therapy that takes one mind off the frustrating hunt for a new job. Not surprisingly though, despite the new hands on deck, non-profits are suffering in the economy as well; endowments and donations have substantially decreased from last year.
In some of his final work, Heath Ledger directed two music videos, one by Modest Mouse, the other a David Bowie cover by Grace Woodroofe. Prior to his death by accidental overdose, Ledger was known to have a lot of enthusiasm for working behind the camera, and was in the initial stages of directing and starring in a film about chess. The lead singer of Modest Mouse said he was contacted by Ledger, who expressed interest in making the animated video. A member of the Ledger's art collective, the Massive, was in charge of animation.
This doesn’t look good for Rep. John Murtha: The Washington Post is reporting that a Pennsylvania defense research center regularly consulted with two “handlers” close to the Democratic congressman as it collected almost $250 million in federal funding through him—and then channeled much of the money to companies that were among his campaign supporters. The Electro-Optics Center, created by the lawmaker a decade ago, relied on advice from a lobbyist for PMA Group—the subject of a federal investigation tied to Murtha—and a longtime Murtha friend who’s now a member of his appropriations staff. Describing Murtha’s requests for earmarks known as “plus-ups,” a former defense appropriations official told The Post: “A staffer for a congressman says, ‘I need you to accept this money for sensors, a couple million.’ If I said no, he can turn around and say I won’t support you on this other thing you really want. I could say no—then his boss calls the general to complain about me.”
Happy St. Patrick’s Day! To mark the occasion tomorrow, Obama will meet with Sinn Fein leaders Gerry Adams and Martin McGuinness. In recent days McGuinness has come under fire for his reaction to attacks by fringe Irish republican groups that have killed two British soldiers and a police officer. (He said only that the attacks “betrayed the political desires” of the Irish people.) The Irish leaders are expected to reassure the White House that Sinn Fein is united in its approach to the violence, while the White House will ask whether there are lessons to be learned from Northern Ireland that could be applied to another region of seemingly intractable conflict, the Middle East.
President Obama and his team were all over the news yesterday decrying AIG's $165 million in bonus payments in no uncertain terms and pledging to get that money back to the taxpayer. But damage from the administration's hesitation to pledge action against the bailouts over the weekend and claims by some lawmakers that the bonuses could have been stopped earlier may be too late to undo. Much of Obama's agenda is tied to his administration's plan to bailout the financial sector by subsidizing private investors who buy up toxic assets. With AIG facing an angry mob, selling Congress on more money for Wall Street without more radical punitive measures attached may become increasingly difficult. Lawmakers on both sides of the aisle yesterday hit Obama for not taking on the AIG bonus issue sooner. "I warned them this would be met with an unprecedented level of outrage," Democratic Sen. Christopher J. Dodd told The Washington Post yesterday.
Congrats to porn legend Jenna Jameson, 34, who gave birth yesterday to two healthy boys. Jameson, who has starred in adult films, mainstream films, video games, and even co-wrote a bestseller, How To Make Love Like a Porn Star, says she has no plans to marry the father, mixed martial arts fighter Tito Ortiz. "I think I'm gonna stay unmarried and just go for the babies," Jameson told Us. "I'm following in Angelina's footsteps!"
