News What Are Your Thoughts on Obama's Appointments and Holbrooke's AIG Role?

[Gokul43201]

Nine countries have a flat tax now.
http://www.brusselsjournal.com/node/202

All were communist states?!

I haven't been able to decide whether I like a progressive tax, a flat income tax, or a flat sales tax better.

 

[Astronuc]

Labor Nominee's Hearing Off as Husband's Tax Liens Surface
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/05/AR2009020503148.html

A Senate committee yesterday abruptly called off a session to consider President Obama's nomination of Rep. Hilda Solis (D-Calif.) to be labor secretary after learning that her husband had paid about $6,400 to settle tax liens, some on file as long as 16 years.
. . . .

The White House defended Solis, saying that the taxes paid Wednesday were for the Los Angeles area auto repair business owned solely by her husband, Sam Sayyad. "If you owe taxes . . . you should pay them," said Obama press secretary Robert Gibbs. "But at the same time, this obviously is a business that she's not a partner in and we're not going to hold her responsible for."

Deputy press secretary Tommy Vietor added that Sayyad chose to settle the liens -- first reported by USA Today -- even though he believes he had previously paid the taxes and fees. He said Sayyad "does not believe the penalties were correctly assessed" and plans to appeal.
. . . .

One should pay, then appeal. Can't these people find good tax consultants?

I think the folks in congress need to write a tax code that is not so vague and ambiguous. Others simply need to pay their taxes - like the rest of us.


Update: Obama's Team
http://projects.nytimes.com/44th_president/new_team

 

[mheslep]

I think the folks in congress need to write a tax code that is not so vague and ambiguous. Others simply need to pay their taxes - like the rest of us.

Is that support for a flat tax?

 

[chemisttree]

It's support for lawful behavior. You are given a bill for taxes from the county... you pay the taxes. If you don't, you get penalized but you still pay... you don't get into a pissing match arguing about how the penalties were calculated that LASTS FOR 16 YEARS!

Think of all the money that was denied emergency services, road maintenance, school funds etc. by people like these. And their late payment (or no payment in the case of Solis' husband) causes the rest of us to make up the difference with increased tax rates and diminished services.

Still, how does this affect Solis if she is not a partner in the business? I don't see how it should affect her nomination.

There are other issues that should affect her nomination. Namely,

A seemingly innocuous letter sent to the Clerk of the House of Representatives last Thursday by President Obama's Secretary of Labor nominee Hilda Solis raises serious and troubling legal questions about her nomination and apparent violation of House ethics rules. Not only was she involved with a private organization that was lobbying her fellow legislators on a bill that she has cosponsored, but she apparently kept her involvement secret and failed to reveal a clear conflict of interest.

Solis was a co-sponsor in 2007 of the so-called "Employee Free Choice Act," the card check legislation that would effectively eliminate the secret ballot and destroy the ability of employees to make an anonymous decision (without fear of retribution) on whether they want to join a union. She was also a co-sponsor of the Public Safety Employer-Employee Cooperation Act, legislation that would force states to allow public safety officers to form unions. At the same time, however, Solis was a board member of a pro-union organization, American Rights at Work, that has been lobbying Congress on both of these bills. According to a letter filed by Solis with the House Clerk on January 29, 2009, she was not just a director of the ARW, along with fellow travelers like David Bonior, Julian Bond, and John Sweeney, she was actually the treasurer. In other words, she is the official legally charged with the fiduciary duty of approving and signing off on all spending by the organization. And to make matters worse, she did not reveal to her colleagues in the House of Representatives that membership on her financial disclosure forms, which may constitute a separate ethical violation.

http://www.weeklystandard.com/Content/Public/Articles/000/000/016/101mswgc.asp

More 'exceptions' from the most ethical administration in history?

 

[Skyhunter]

Here is one I admire.

Jane Lubchenko. Here is an article from a speech she gave in 1997.

http://www.sciencemag.org/cgi/content/full/279/5350/491

The conclusions from this overview are inescapable: during the last few decades, humans have emerged as a new force of nature. We are modifying physical, chemical, and biological systems in new ways, at faster rates, and over larger spatial scales than ever recorded on Earth. Humans have unwittingly embarked upon a grand experiment with our planet. The outcome of this experiment is unknown, but has profound implications for all of life on Earth. An assessment from the Ecological Society of America entitled the Sustainable Biosphere Initiative states that "environmental problems resulting from human activities have begun to threaten the sustainability of Earth's life support systems... . Among the most critical challenges facing humanity are the conservation, restoration and wise management of the Earth's resources" (21).

Nice to see the separation between science and state being dissolved.

 

[WhoWee]

If Mr. Geithner couldn't figure out his taxes, is it any wonder there are reports that TARP 1 overpaid by $78billion for assets. I can't wait to see how much they overpay for "toxic assets".

I think the recipients of the $78billion and (all future overpayments made by mistake) should be given a tax bill from Mr. Geithner/IRS...call it unearned income...the governments/tax pyer loss is SOMEONES GAIN.

I hope the man is just incompetent.

 

[jreelawg]

If Mr. Geithner couldn't figure out his taxes, is it any wonder there are reports that TARP 1 overpaid by $78billion for assets. I can't wait to see how much they overpay for "toxic assets".

I think the recipients of the $78billion and (all future overpayments made by mistake) should be given a tax bill from Mr. Geithner/IRS...call it unearned income...the governments/tax pyer loss is SOMEONES GAIN.

I hope the man is just incompetent.

Wasn't that Paulson who overpaid?

It is kind of telling how much we can trust people to play with hundreds of billions of dollars. They spend 250 billion, 78 billion of it is totally wasted, kind of a bonus for the banks. A large portion of the rest was used for takeovers and buyouts. I am not comfortable trusting former bank CEO's with taxpayer money. These are the same people that knowingly screwed us all over in the first place, and we are going to trust that they won't do it again when we make it as easy as pie to do it. We give a pro schemer and scammer a way to make quick easy billions for his buddies and expect him to not?

 

[Gokul43201]

If Mr. Geithner couldn't figure out his taxes, is it any wonder there are reports that TARP 1 overpaid by $78billion for assets.

Is it?

Looks like you're blaming the wrong person!

The U.S. Treasury looks to have overpaid financial institutions to the tune of $78 billion in carrying out capital injections last year, the head of a congressional oversight panel for the government's $700 billion bailout program told lawmakers on Thursday.
...
Warren said the Treasury, under then-Secretary Henry Paulson, misled the public about how it would price them.
...
Neil Barofsky, another watchdog for the TARP program, told the Senate committee his office is turning to criminal investigations. "That's going to be a large focus of my office," he said.

Barofsky, the inspector general for TARP within Treasury, told the Los Angeles Times in an interview Wednesday that misrepresentations in applications for TARP funds would be grounds for criminal prosecution.

http://uk.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUKN0535801720090206

http://www.sigtarp.gov/reports/congress/2009/SIGTARP_Initial_Report_to_the_Congress.pdf (warning: 189 page pdf)

 

[chemisttree]

Or maybe he's not!

Timothy Geithner, 47, has had a seat at the table since the credit crisis erupted in August 2007 and eventually sparked the deep economic downturn the nation is facing now. As a result, at least until his confirmation hearing, he’ll be criticized for having a major role in a government response that hasn’t always instilled confidence in financial markets — even if it prevented a wider financial meltdown.

As the Fed’s man on Wall Street, Mr. Geithner was a key architect of the $30 billion bailout to prevent the bankruptcy of Bear Stearns Cos., leading to charges the government was stoking moral hazard. He shaped the Fed’s lifeline to investment banks that followed, and was among the officials involved in assessing the implications of the troubles around Fannie Mae, Freddie Mac, Lehman Brothers Holdings, American International Group and numerous other firms (from Wachovia to Citigroup) that have come under market pressure.

http://blogs.wsj.com/economics/2008/11/21/who-is-timothy-geithner/

 

[Gokul43201]

The way I've read it, Geithner was responsible for nothing. He helped decide who should and who shouldn't get bailed out, but the responsibility and the allocation of funds ultimately lay with Treasury.

 

[WhoWee]

Paulson was in charge, but Mr. Geithner has been involved from the start...previously he oversaw many of the same banks in NY...this is why they considered him to be too important to do without.

As for results of TARP 1, I've been watching a deal in Pittsburgh/Cleveland. PNC (former Pittsburgh National) is very well capitalized and stable. They didn't want any TARP funds. They told the treasury if they took funds they would use the funds to acquire National City Bank in Cleveland.

They took a few $billion and acquired National City. Then regulators told them about 60 branches were in too close proximity in W. PA and would need to be closed or sold or the deal would not be possible. They decided to move forward and announced there would be changes.

Last week (during the Steeler's victory parade) PNC announced their first loss (I think EVER) due to the acquisition and announced layoffs...5,800 people lost their jobs last week...arguably because of the bailout.

 

[Astronuc]

Gregg withdraws as nominee for Secy of Commerce

Gregg withdraws nomination to become commerce secy
http://news.yahoo.com/s/ap/20090212/ap_on_go_ca_st_pe/gregg_withdrawal

WASHINGTON – Republican Sen. Judd Gregg of New Hampshire abruptly withdrew his nomination as commerce secretary Thursday, citing "irresolvable conflicts" with President Barack Obama's handling of the economic stimulus and 2010 census. "We are functioning from a different set of views on many critical items of policy," Gregg said in a statement released by his Senate office.

Gregg, 61, is a former New Hampshire governor who previously served in the House. He has been in the Senate since 1993 and currently serves as the top Republican on the Senate Budget Committee, where he is known as a crusader against big spending.
. . . .
In his statement, Gregg thanked Obama for the nomination, and said, "I especially admire his willingness to reach across the aisle."

In citing the stimulus and census, he said, "Prior to accepting this post, we had discussed these and other potential differences, but unfortunately we did not adequately focus on these concerns. We are functioning from a different set of views on many critical items of policy."
. . . .

Ouch! I wonder how far apart Gregg and the Obama administration were.

 

[Werg22]

Another one bites the dust. What's going on with this administration?

 

[mgb_phys]

Another one bites the dust. What's going on with this administration?

Politics?

If you are a republican and you join Obama's administration aren't you rather collaborating with the enemy? Presumably the only reason to consider it would be so that your negotiating position in your own party increases.

Unless of course you are one of those politicians who are only in Washington for the good of the people

 

[Gokul43201]

Ouch!

Why doesn't Obama just pick a bunch of spineless cronies? No better way to avoid all this withdrawing nonsense.

 

[WhoWee]

Let's take a Census...ummm, survey...who thinks the selection to replace (now) Gregg makes much of a difference...find a loyal warm body and move forward.

I'm more concerned about Mr. Geithner and the details of his plan.

 

[turbo]

Obama could choose to reward either or both of Maine's (R) senators with high-level posts in the administration, since they joined with the democrats to get the stimulus package passed. Maine's (D) governor could appoint democrats to fill the positions to give that party a filibuster-proof majority in the senate.

 

[LowlyPion]

March 5, 2009
BREAKING: Gupta withdraws from consideration for cabinet post
Posted: 05:18 PM ET

WASHINGTON (CNN) – CNN correspondent Sanjay Gupta has withdrawn his name from consideration as the nation’s next surgeon general, opting to continue to devote time to his reporting and his medical career.

Gupta will discuss his decision, and the president’s health care agenda, tonight on CNN’s Larry King Live.

http://politicalticker.blogs.cnn.co...ithdraws-from-consideration-for-cabinet-post/

 

[mheslep]

Nazareth withdraws from Treasury Deputy Sec.; two weeks ago Caroline Atkinson withdrew From Treasury Intl. Affairs.
http://www.google.com/hostednews/ap/article/ALeqM5g9fUAlnzqRFsKsENhDXm_oy6yqjgD96OASSG0

 

[Alfi]

withdraw
withdraw
??Hmmmm

maybe, They are discovering that Obama wants them to work like it's a real job and show why they deserve the diplomas they earned.

 

[chemisttree]

http://www.miamiherald.com/news/nation/story/957178.html"

Another tax-dodger on board.

 

[Astronuc]

http://www.dallasnews.com/sharedcontent/dws/news/politics/national/stories/DN-kirk_03nat.ART.State.Edition2.4a68fa3.html

WASHINGTON – Ron Kirk's excess deductions for basketball tickets and failure to report speaking fees as income have cost him $10,000 in back taxes, a Senate committee disclosed Monday, in the latest IRS-related embarrassment for an Obama Cabinet pick.

The problems are the first indication of potential trouble for Kirk's nomination to be U.S. trade representative, though White House officials and key senators called the errors minor and predicted the former Dallas mayor will be confirmed by the Senate.

"When you put anybody's tax filings under a microscope, people don't have to be dishonest," said Senate Majority Leader Harry Reid, D-Nev. "It's just hard to do all the right things. It certainly shouldn't disqualify him."

. . . .

If that's Reid's attitude, then perhaps he needs to retire - soon.

 

[mheslep]

http://www.dallasnews.com/sharedcontent/dws/news/politics/national/stories/DN-kirk_03nat.ART.State.Edition2.4a68fa3.html

If that's Reid's attitude, then perhaps he needs to retire - soon.

I wouldn't mind it if were even handed about the approach, giving the benefit of the doubt on failure to comply with complex and contradictory rule systems to everyone, or recognizing that the system needs fixing. He does neither.

 

[Astronuc]

Obama envoy Holbrooke served on AIG's board
http://news.yahoo.com/s/ap/20090319/ap_on_go_pr_wh/aig_holbrooke

WASHINGTON – Obama administration special envoy Richard Holbooke was on the American International Group Inc. board of directors in early 2008 when the insurance company locked in the bonuses now stoking national outrage. Holbrooke, a veteran diplomat who is now the administration's point man on Pakistan and Afghanistan, served on the board between 2001 and mid-2008.

During that period, AIG undertook the aggressive investment strategies that led to a near-collapse and forced a multibillion-dollar federal bailout.

. . . .

It remains unclear whether AIG's decision to grant the bonuses ever came before the board. A Holbrooke spokesman declined comment, referring calls to the White House.

. . . .

Holbrooke joined AIG's board in February 2001 and resigned in July 2008, two months before the company nearly collapsed. Over more than seven years as a board member, he may have earned as much as $800,000 in cash and company stock, according to AIG financial documents filed with the Securities and Exchange Commission.

. . . .
AIG chose to approve the executive bonuses in the spring of 2008 "despite obvious signs the 2008 performance would be disastrous in comparison to the year before," New York Attorney General Andrew Cuomo wrote the House Financial Services Committee on Tuesday. Cuomo's office is investigating AIG's executive compensation programs.

For large companies such as AIG, boards of directors are typically made up of high-profile figures from business and academia.

Boards are expected to give the company's top leaders unvarnished advice. But with AIG on life support, the quality of the guidance the company received from its board is under fire.

"The role of a board is to keep a company from going over a cliff," said Robert Litan, an expert on financial institutions at The Brookings Institution in Washington. "I wouldn't be surprised if, in a future lawsuit, a court were to find the (AIG) directors behaved negligently."

For much of tenure on the AIG board, Holbrooke had a role in approving salaries and compensation. From 2001 until mid-2005, he was a member of the board's compensation committee. According to AIG financial statements, the committee sets the salary for the company's chief executive officer and gives advice on how other senior managers are to be compensated.

Holbrooke also led the board's public policy and social responsibility committee from 2005 through July 2008. The committee assesses how political and public policy issues might affect the company's business operations, performance and corporate reputation, according to AIG.

The actual amounts Holbrooke received as an AIG board member are difficult to pinpoint. Before 2005, the SEC reporting requirements did not call for dollar figures to be attached to the stock and option awards for directors. AIG stock awarded for board service may now be worth far less than the value it had originally.

According to the SEC filings, AIG paid Holbrooke $267,943 in fees and stock awards in 2007; he was paid $232,865 in 2006. Compensation figures for the six months he was on the board in 2008 are not yet available. By prorating his 2007 compensation, he could have earned about $107,500 in directors fees and stock.

I'd like to know what exactly Holbrooke did to earn more than $200K/yr, or the rest of the board, while AIG was mucking around with derivatives and CDS's in which the liabilities exceeded the ability of the company to pay (i.e. while the company was going off a cliff). If a company assumes a liability of $2 trillion and only has something like $200 billion, if that, then there is something terribly wrong.