White House Update

White House Update
Thursday, April 23

The President’s meeting today with 13 executives from the credit card industry underscores one of the administration’s most vexing dilemmas: trying to stabilize the banks while getting the struggling U.S. economy back on its feet.

Here’s the dilemma: the White House acknowledges that a sound banking system is one of the bedrocks of the American economy. To be sound, banks have to have, and are shoring up, their capital position. But at the same time, they’re being asked to step up lending.

Obama told the executives today that the interest rates and fees they charge are “unfair” and says they need to be more “consumer friendly.” The banking industry’s response – although they didn’t say this to the President’s face today – has been along these lines: “We HAVE been consumer friendly; TOO consumer friendly. We flooded the market with cheap credit for much of this decade and now a lot of customers can’t pay it back.”

The President himself knows all too well about credit card debt. At the White House news briefing this afternoon, Press Secretary Robert Gibbs told reporters that up until recently – obviously before the multi-million dollar book sales – Obama himself was in the red.

But the high levels of credit delinquency, personal bankruptcies, auto repossessions and, of course, mortgage foreclosures, appear to support the banks’ point. No question, millions of Americans are hurting – but for people with a proven inability to pay, who are already up to their necks in debt, is more debt the answer?

In short, that is the banking industry’s position – and the President’s dilemma.


WITHER IRAN?

Another dilemma for the West Wing - surprise, surprise: the Middle East. During talks Tuesday with Jordan’s King Abdullah, the President said he wants to see Israel, the Palestinians and neighboring Arab countries – like Jordan – to step efforts to forge some kind of peace agreement. The White House envoy to the region, former Senate Majority Leader and architect of the Northern Ireland peace agreement, George Mitchell, says he is cautiously hopeful.

To nudge things along, Obama will invite Israeli Prime Minister Benjamin Netanyahu, Palestinian Authority President Mahmoud Abbas and Egyptian President Hosni Mubarak to the White House for talks in the next few weeks. But not all at once.

But Obama’s priorities are not Israel’s. Netanyahu said earlier this week that he will not participate in talks until the President makes headway on Israel’s number one issue: stopping Iran’s nuclear program. To drive that point home this morning, the President was told by Israeli Ambassador Sallai Meridor to confront Iran “before it’s too late.”

Meridor made the comments at a Holocaust memorial service on Capitol Hill. Also speaking: a top official of the U.S. Holocaust Memorial Museum, Joel Geiderman, who was even more blunt, reminding Obama about Iran’s pledge to destroy Israel. He warned the President to ignore that threat at America’s “own peril.”

The White House also faces a dilemma with the Palestinians. Abbas’ Fatah faction has seen its power eroding, to the benefit of the Islamist militant group Hamas. Hamas controls the Gaza Strip, but the administration has so far maintained the Bush policy of refusing to deal with – branding it a terrorist group.


TORTURE LATEST

At the briefing, Gibbs appeared to distance himself from comments made this morning by Defense Secretary Robert Gates, who said he supported the release of sensitive memos on detainee interrogation methods. Gates said he viewed the disclosure as inevitable.

Gibbs’ response: "I have not seen Secretary Gates's full remarks." Gibbs inferred that a lot of people have different opinions on the subject. He added "The problem...isn't the existence of a paragraph or a term in a memo…It is the very existence of their use."

FIRST 100 DAYS (94 and counting)

Conflicting editorials in the Wall Street Journal and Washington Post.

The Post’s David Broder says Obama has gotten off to a good start: The "President has shown - and it is important - a mastery of the art of managing the presidency." He lauds Obama’s He lauds his “good organizational and management skills” and says in sum, “A bravura performance on Obama's part."

The Journal’s Daniel Henniger counters, focusing on the president’s grip-and grin with Venezualan President Hugo Chavez as symbolic of White House weakness. He writes: "The weirdly ebullient Mr. Obama did not...show reserve." He adds: "The Obama people seem to believe that talking top guy to top guy is the yellow brick road to progress" and that "There appears to be no coherent strategy beyond "talk to our enemies."

WEST WING NOTES

…the President will hold a prime-time news conference next Wednesday at 8pm, EDT; it is the 100th day of his presidency.

…it was “Take Your Daughters to Work Day” at the White House, but Malia and Sasha Obama didn’t make the 60-secnd commute to the Oval Office with Dad. First Lady Michelle Obama did speak to 160 kids – of administration, household and Secret Service employees. Mrs. Obama said: She doesn’t miss cooking, the new dog, Bo, is “crazy” and says one of the best parts about being First Lady is that she gets to do a lot of “fun stuff.”