Blunt Wants Investigation of AIG's TARP Money

Congressman Roy Blunt is urging the Financial Services Committee to schedule a hearing to examine a report that the Federal Reserve Bank of New York was unprepared to deal with bailout money AIG received last year.

Blunt said the committee must investigate before legislation regarding further AIG-style bailouts are considered.

From BLOOMBERG: The inspector general’s report “paints a devastating picture of government regulators ill-prepared to deal with the failure of complex financial institutions like AIG, and who failed to fight for what was in the best interest of the taxpayers," Blunt and Bachus said in the letter today.

"Without a hearing to fully explore the decisions that led to the bailout of AIG and its counterparties, we are concerned that efforts to extend and expand TARP, as well as legislation currently being considered by the Financial Services Committee to codify a permanent bailout authority, will only lead to many of the same mistakes that have cost taxpayers hundreds of billions of dollars," reads Blunt's letter.

Skelton on Sunday Morning TV

4th District Congressman and House Armed Services Committee Chairman Ike Skelton will appear on CBS' Face The Nation Sunday.

The topic will be squarely on foreign affairs, namely Afghanistan. Other guests on the program include Gen. James Jones, National Security Adviser, Sen. Carl Levin, D-Mich., Chairman, Senate Armed Services Committee and Gen. Anthony Zinni, Former Commander, Centcom.

In the Springfield television market, 'FACE' airs at 9:30 a.m.
***
ALSO: A YEAR LATER, IKE DEFENDS TARP

In his weekly column, Skelton wrote about the collapse of the financial system one year ago and defended the progress of the Troubled Assets Relief Program.

"I was downright angry that we found ourselves in the situation we did. But the crisis was real and it had to be addressed head on," Skelton wrote. "Doing nothing was not an option because the consequences of inaction would have been dire for the Show-Me State residents and for America's economic and national security.

"One year later, there are signs of progress in the economy and money authorized under the $700 billion Troubled Asset Relief Program is being repaid to American taxpayers," Skelton went on.

Skelton pointed out that in recent Congressional testimony, the Inspector General noted progress, including bank repayments of $70 billion dollars so far, and an additional $50 billion scheduled over the next 12 to 18 months. "In addition, taxpayers have received about $3 billion from warrant repurchases and over $6.5 billion in dividends, interest and fees," he said.
***
Republicans are putting up their biggest fight against Skelton in years. Sen. Bill Stouffer and former GOP State House representative Vicky Hartzler are both mounting aggressive campaigns.

The Tea Party

TEMPEST IN A TEA POT?

Why there were there, what they're protesting and who they see as true conservative leaders in Missouri that can steer the government back to "fiscal sanity."

PLUS: Reality Check . . . A Drury University professor of Economics weighs in on President Obama's economic policies and notes the level of debt as a percentage of the economy was actually higher in the 1980s under President Reagan.

ALL Tonight . . . On The BIG Show

. . . KY3 NEWS @ 10

Blunt Calls Homeland Security Report "Politically Motivated"

SPRINGFIELD'S TAX DAY TEA PARTY

LIVE COVERAGE on KY3 NEWS @ 5 & 6

***
Though he isn't personally speaking to any Tea Party rallies, Congressman and U.S. Senate candidate Roy Blunt is issuing his support for the movement and criticizing a Homeland Security report that warns about a rise in "rightwing extremist activity."

ROY BLUNT'S STATEMENT:

"I support the Tea Party movement and share its concerns for America and bad policies that endanger the present and the future. Missourians have a right to be angry. They are tired of being treated like an open ATM by President Obama, Speaker Pelosi and Senator Harry Reid. Like the Missourians participating in these Tea Parties, I strongly opposed the so-called ‘stimulus.’ The liberal Democrats rammed through nearly $1 trillion in new spending in a bill that nobody even read. My opponent, Robin Carnahan, told The Associated Press she supports the Obama spending spree. The massive spending plan Robin Carnahan supported will slow recovery, slow the creation of jobs and saddle our children and grandchildren with a mountain of debt," said Congressman Roy Blunt.

BLUNT CALLS REPORT "POLITICALLY MOTIVATED"

"This report by President Obama's Department of Homeland Security is absolutely outrageous. It is wrong for the Department of Homeland Security to be playing politics, much less monitoring Americans who are exercising their First Amendment rights at tea parties across the nation. The Obama Administration should have learned a lesson from Missouri when Jay Nixon’s Administration was criticized for issuing a similar report targeting conservative candidates and conservative causes," said Congressman Roy Blunt in a statement.

The Homeland Security Secretary is standing by the report today, according to The Washington Times.

Reports: Big crowds lined up for Midday Branson Tea Party

Your Questions, McCaskill's Answers

Q & A
The Notebook asked for your questions for Sen. Claire McCaskill as she tours the state during the Congressional recess. Below is video of her full answers given during her Springfield stop to your inquiries on gay marriage, A.I.G. bonuses, a student minimum wage and Twitter.


GAY MARRIAGE
"According to the Iowa Supreme Court I was wrong."

Q: Ron Bradley asked about Iowa's gay marriage ruling, and if the Senator would be comfortable with a similar court decision in this state?

McCaskill said "they couldn't make a similar decision in Missouri because there's a constitutional amendment." When reminded that she said such an amendment wasn't needed in Missouri, she replied, "According to the Iowa Supreme Court I was wrong."

A.I.G. BONUS TAX
"I would vote for it."

Q: Dustin James asked about the A.I.G. bonuses and if she supported the Congressional move to take them away.

McCaskill said she did, although possibly in a different way than the House voted to do so. "If somebody's doing a really good job and they want to give them a bonus, that's fine, but they need to wait to collect it, after we've been paid back," McCaskill said.

Also notes the President Obama is criticized whether he intervenes in companies or he doesn't.

STUDENT MINIMUM WAGE
"I think that's a bad idea."

Q: Brian Rushing asked if Sen. McCaskill would support a special student minimum wage to help protect small family-owned businesses?

McCaskill said she would not. "We need to be giving college kids as much help as possible," she said.

Mentions she's not proud that MIZZOU leads the Big 12 in tuition.


THE AGE OF TWITTER
"I think, what would Jim Talent think?"

Q: Greg Holman wanted to know if McCaskill really thinks Twitter will help Democrats win elections?

McCaskill doesn't believe Twitter is a fad and explained how it serves as a great discipline, because it makes her think about Missouri.

She reads each Twitter three times before she clicks.
First, she makes sure what she thinks.
Then, she asks what her grandmother would think.
Finally, she thinks "what would Jim Talent think."

VIDEO: Newt Takes Obama Fiscal Policies to Task

In the first clip, Newt Gingrich says President Obama's move to ask the head of General Motors to resign is an unfair but clear signal he's moving to protect the autoworkers union.

"I'm very opposed to the President of the United State randomly deciding who heads corporations," Gingrich said.

*WATCH FULL CLIP ABOVE*

He also needled Obama for taking on too much at once and called Congress "a cowardly mob" for the way the body reacted to the recent A.I.G. bailout bonuses.

In the second clip, Gingrich acknowledges that Republican stewardship of the economy has been just as irresponsible, reminding students that "everything Obama's doing, Bush started last year."

But he notes that under his leadership as Speaker (when Bill Clinton was president), growth of government averaged about 2.9% a year. Under President Bush, growth was 6.1%. In Obama's first year, Gingrich estimates, it will be near 36%.

ALSO: Hits Treasury Secretary Timothy Geithner on the way he's designed his "toxic assets plan" and criticizes Obama for trying to slice the tax break for charitable donations.

Blunt to Tour Mt. Vernon Vet Clinic Monday

Congressman Roy Blunt will visit the Missouri Rehab Center and Gene Taylor Veterans Clinic in Mt. Vernon Monday at 9:45 a.m.
***
OTHER BLUNT POINTS:

• According to American Medical News, Congressman Blunt seems to agree that Congress needs to fix the Medicare reimbursement formula this year. "Almost everyone in the Congress believes that you need to be more fairly compensated and that Medicare takes advantage of the system by not doing [its] part,"Blunt is quoted saying at a March 10th conference.
• Blunt has co-sponsored legislation with Rep. Ron Paul (i.e. Mr. Revolution) that calls for the Federal Reserve to be more transparent about their operations. The legislation requires a full audit of the Fed by the end of 2010. "An extra level of transparency could prevent our current troubles from worsening -- and perhaps could have prevented them from becoming this severe," Blunt said.
• Capital J, a D.C-based Jewish publication, reports that Blunt wants a greater effort from the State Department to enforce sanctions against Iran. He wants the Obama administration to apply more pressure on firms that invest in Iran's energy sector.

ALSO on MONDAY: Blunt has an evening fundraiser set for his U.S. Senate bid at Metro in Springfield.

Let's Be Blunt: Taxing AIG Bonuses "Purely Political"

NOT GONNA HAPPEN

"This bill will not pass the Senate"

Congressman Roy Blunt tells The Notebook Friday that his vote to tax 90 percent of bonus money allotted to the big banks was "all about sending a message" and says he's confident the bill won't pass the U.S. Senate.

"If it was going to be real, it would have to have a lot more thought than that bill had," Blunt said in an interview Friday.

Blunt signaled that he might not have voted to tax the bonuses if he knew the legislation had a chance of passing and being signed by the President. "This is all about sending a message. You're going to get slapped back if you do things that don't make sense to people," Blunt explained, calling it a "purely political" vote.

"I'm for sending messages occasionally, and the message here is, when you take a lot of taxpayer money, you have a different level of responsibility than you had before," Blunt said. "This bill will not pass the Senate. This was all about messaging to people who've taken TARP money."

***

The vote to tax bonuses divided the House GOP caucus, with Blunt voting in favor of it along with 84 other Republicans, including Whip Eric Cantor. House Minority Leader John Boehner voted "no."

Politico on Blunt and Adam Putnam: " . . . the populist anger over bonuses paid by a bailed-out company all but required them to get in line behind the Democrats’ tax plan."

Blunt and Putnam are both candidates for statewide office.

BELOW: BLUNT ON GEITHNER

The Congressman said he doesn't have confidence in the Treasury Secretary yet, but is willing to give him more time.

"I'm willing to give him some more time and he needs more help," Blunt said of the Secretary.

Notes 20 vacancies remain in key advisory roles

"I do think he's probably working as hard as anybody in Washington right now, maybe harder, but not producing very good results because he's not fully populated the government with people that need to do these jobs," Blunt explained.

McCaskill: "I Have Confidence In Secretary Geithner"

Sen. Claire McCaskill said Thursday she remains confident in Treasury Secretary Timothy Geithner, despite the "very difficult job" he has right now.

***WATCH FULL CLIP ABOVE***

"I think he has been surprised by some of the disconnect within the financial sector," McCaskill said. "Generally speaking, I think this is a man who understands the challenges . . ."

ON WHO'S TO BLAME: "I think blame can be spread around. I think certainly the President stepped up yesterday and said it's my responsibility. I wouldn't disagree with him."

GOP Consultant John Hancock boldly TWITTERS that Geithner will be toast within a month.

WATCH THE KY3 NEWS @ 10 REPORT HERE

McCaskill: Congress Needs To Go Further on Salary Caps

"We figured out, we're going to have to go that far"

In the first installment of our interview, Sen. Claire McCaskill notes that she offered an executive compensation amendment during the economic stimulus debate that might have helped avoid the A.I.G. bonus controversy.

*WATCH FULL CLIP ABOVE*

McCaskill contends that the compensation limits included in the stimulus just covered "the top people," and not entire divisions of a financial institution.

"Now we figured out, that we're going to have to go that far," McCaskill said. "For the big guys, we limited the top people and thought, that would be enough, not realizing that they were intent upon continuing down a path of giving bonuses to people who have failed."

Said she'll vote to tax the bonuses, but cautions the retroactive move is a "really limited circumstance."

Blunt Votes To Tax Bonuses

Congressman Roy Blunt joined 327 of his colleagues in a House vote to impose 90 percent taxes on bonuses at AIG and other financial firms.

The House vote was 328-93.

Blunt was one of 85 Republicans voting "Yes."

The A.P. writes, "although a number of Republicans cast no votes against the measure at first, there was a heavy GOP migration to the yes side in the closing moments."

Politico: Blunt was one of the last to vote yes, "making a difficult vote in favor of a tax increase."

BLUNT'S SPOKESMAN SAYS BLUNT WAS ONLY LATE BECAUSE OF ANOTHER EVENT:

"He was a yes vote and the reason he was late is because he had a charitable giving press conference," said Nick Simpson, a spokesman from Blunt's Congressional office. "That lasted from about 2 to 2:30. That's why he was one of the last to vote. It didn't have anything to do with waiting for the outcome or anything like that," Simpson said.

BLUNT'S STATEMENT ON HIS VOTE:

"The message sent by the House today was far from ideal but certainly needed. Failing businesses need to realize they are spending borrowed money and they must stop giving insulting taxpayer-funded bonuses to their executives. If nothing else comes from this vote today, I hope it sends the message to corporations operating with tax dollars they have an obligation to the taxpayers," said the Congressman.

MCC on AIG

The Notebook interviews Sen. Claire McCaskill via satellite from Washington on AIG, confidence in Treasury Secretary Timothy Geithner, how the Inspector General will help oversee stimulus money and her decision to join the moderate caucus.

DEVELOPING . . .

National Review Mocks McCaskill For AIG Letter

"Senator, An angry letter isn't going to change anything"

National Review's Jim Geraghty writes a scathingly sarcastic post, targeting Sen. Claire McCaskill for saying she feels better because of a letter sent to the AIG CEO about returning bonuses.

"Senator, the checks have been mailed, and probably cashed by now. The money's gone. The CEO doesn't have the power to get it back. An angry letter isn't going to change anything. You might as well send a letter to Octomom demanding she not implant herself with multiple embryos," writes Geraghty.

McCaskill wrote about the letter being sent by Democratic Senators on her new blog.

But NR also poses this question to McCaskill: "Did you recognize that you specifically voted to protect these bonuses when you passed the stimulus?"

AND EARLIER: CONGRESSMAN ROY BLUNT also put blame at the feet of the Obama administration:

"Taxpayers already paid for the poor decisions made by AIG executives and are rightfully outraged to now pay for their bonuses. Officials with the Treasury Department and the White House knew, despite their denials two weeks ago, that taxpayer funds would be used to supplement executive salaries but did nothing to stop this insult to hardworking Americans," Blunt said in a statement.

"I am glad the Administration is promising to recoup these funds but their actions are literally two weeks late and $30 billion short. The economic stability package passed last year contained a provision to ensure companies fully reimburse the tax dollars spent to keep their businesses open and it is time to consider acting on this important provision," Blunt went on.

Bond Blames Obama For AIG Bonuses

Sen. Kit Bond is blaming the Obama administration for not blocking bonuses to AIG when it approved the release of an additional $30 billion dollars for the company earlier this month.

"AIG’s intention to pay these bonuses has been no secret, and the Administration was completely aware of the payments," reads the release from the senior Senator's office. "When the Administration gave AIG an additional $30 billion in taxpayer funds earlier this month, Treasury Secretary Geithner could have ensured taxpayer dollars wouldn’t be used to pay the some $170 million in bonuses," the Bond release continues.

WATCH VIDEO OF BOND HERE

Bond called this latest misstep by Secretary Geithner just another example of his failed leadership, but said the greater problem is the administration's "knee-jerk" reaction to the crisis.

Bond said President Obama should focus on the toxic assets clogging the credit system by 1) identifying the failing institutions 2) removing the toxic assets and "failed leadership" and 3) returning healthy banks to the private sector.

***

At the White House Daily briefing Tuesday, spokesman Robert Gibbs was pelted with questions about the AIG bonuses and Geithner.

Gibbs said that President Barack Obama has confidence in Geithner and the Treasury Department's oversight. But Gibbs underscored that Obama is working as quickly as possible with Congress to find ways to block the bonuses at the American International Group Inc. or recoup that money.

"My Phones Have Not Stopped Ringing"

Speaking on MSNBC's Hardball Tuesday night, Sen. Claire McCaskill said she will offer her controversial salary cap amendment over the next few days and adds she's optimistic President Obama will sign the legislation into law.

McCaskill is proposing to cap the amount an executive can make in a year (between $400,000 and $500,000 annually) if his or her company takes federal money. Companies would not be able to pay out more than the cap until they reimbursed the federal government, under McCaskill's plan.

****BLOOMBERG REPORTS OBAMA WILL BACK MCCASKILL'S PLAN IN AN ANNOUNCEMENT WEDNESDAY.****

***
"Only if they are dependent on public money and only until they pay us back," explained McCaskill on Hardball. "It's none of our business what people make in the private sector -- unless the taxpayers are on the hook for hundreds and hundreds of billions of dollars."

Says she's busy trying to "work with the White House as we speak to work out this plan."

"My phones have not stopped ringing since we proposed this," McCaskill said.

ON DASCHLE'S HHS WITHDRAWAL: "This whole situation kind of gives me a stomach ache. This is a good guy, who has worked hard and has such respect up on the hill. I get the rules around here, the rules are you live in a glass house . . . but it is too bad because he had a lot to offer our country. And I really admire him, because nobody made him do this. This wasn't the White House. This wasn't people in Congress. He decided it was the patriotic thing to do."

ALSO: Dismisses there's any bad blood between the White House (& Rhambo) and Howard Dean

Gingrich: McCaskill Should Be Outraged With Herself

In a column for Human Events, former Speaker of the House Newt Gingrich blasts Sen. Claire McCaskill for her plan to cap salaries of top executives.

"Vice President Biden and Sen. McCaskill should be outraged with themselves. The reason is simple: If there had been no big government bailout of these companies, their CEOs would have no fiduciary duty to the taxpayers," Gingrich writes. "It wouldn’t be any of Sen. McCaskill’s business how they compensate themselves. But government offered the money, and private companies took it. So now government is in charge."

Wyrich Opposes Large Obama Stimulus

The Missouri State University Economics Professor says that rather than depend a large economic stimulus plan, Americans should stay patient and realize that downturns of longer than a year are typical.

"Taxpayers from now to eternity are going to be paying interest on that trillion dollars," says MSU's Tom Wyrich, on the projected $800 billion dollar package. "A politician says, I'm going to give you this money and I'm going to let somebody that hasn't been born yet pay for it."

***WATCH CLIP ABOVE FOR MORE***

For more on Wyrich's thoughts on the economic challenges the state faces, CLICK HERE.

Bond Votes Against TARP Funds

U.S. Senator Kit Bond voted against releasing the remaining $350 billion dollars to be used towards a financial bailout.

The U.S. Senate voted 52-42 Thursday to allow President-elect Barack Obama to tap those TARP (Troubled Asset Relief Program) funds to help stabilize the market.

"Taxpayers deserve answers and a responsible plan that provides more accountability, transparency, and oversight," said Bond in a statement after the vote.

Bond voted in favor of the original bailout back in October, and criticized the Bush administration's Treasury Department today for the way they administered those funds.

"While Congress authorized the use of emergency funds to buy toxic assets from financial institutions to stabilize the credit markets, the Administration instead provided billions of dollars in direct capital injections into banks. Despite this change in course the Administration has failed to provide Congress or taxpayers adequate answers and has not been able to account for the $300 billion that has already been spent," the Bond release reads.

Bond said banks should have to be required to write-off bad debts as a condition of receiving funds. He also suggested that the government should provide some partial guarantee of bad debts to help address "the root of the financial crisis."

McCaskill Rips Pay Raises For Judges in Bailout Bill

SENATE BAILS ON BAILOUT

"What's really unfair Mr. President is to give them a pay raise on this day, in this bill, at this time. It's not the right time," said Sen. Claire McCaskill in her floor speech Thursday.

***WATCH EXTENDED CLIP OF HER SPEECH ABOVE***

The $14 billion bailout for Detroit's struggling Big Three died in the Senate after failing on a procedural vote. The collapse came after bipartisan talks on the auto rescue broke down over GOP demands that the United Auto Workers union agree to steep wage cuts by 2009 to bring their pay into line with Japanese carmakers.

On Judges, Adds Her Office Has Been Swamped With Requests for U.S. Attorney Job: "We are not hurting for qualified applicants for the federal judiciary."

Blunt Says Bailouts Are Out Of Line With His Free Market Principles

BUT HE MAY SUPPORT ONE FOR THE CAR COMPANIES ANYWAY

Outgoing House Minority Whip Roy Blunt (R-Mo.) said that the recent bailout proceedings in Congress are "out of line" with his free market principles, but he led Republicans, nonetheless, to support the $700 billion financial bailout, and he may support a bailout for the Big Three automakers.

"None of this is in line with my own free market principles," Blunt told CNSNews.com when asked if giving the automakers another loan-bailout is sound economics.

Blunt said that the U.S. economy is so fragile that taxpayers may need to prop up the teetering automotive industry to "build a bridge to the future." "Clearly, these industries have a huge impact on the economy," he said. "The economy is very fragile right now. And that argues for doing what we need to in order to build them a real bridge into the future. But to do that they have to know what that future is going to look like, and that they are viable in that future."