In VA-35, Both Campaigns Predict Tight Race

The race to replace 35th District Delegate and Democratic Attorney General candidate Steve Shannon is within a 2-point margin – or at least it was two weeks ago, according to polls conducted for Republican candidate Jim Hyland.

Hyland’s margin, described by his campaign manager Kevin Conroy as “within the margin of error,” reflects a tightening of the race since a July benchmark poll, when pollsters Barry Zeplowitz and Bill Lee of TelOpinion Research indicated in a confidential memo posted on Hyland’s website that Hyland held a 7-point lead 43 percent to 36 percent lead, with 21 percent undecided. The memo did not indicate the size of the sample or whether “likely voter” filters were used.

Read more at Collins on Politics

Liveblog: AIG - Where is the taxpayer's money going?

By Kayleigh Harvey - Talk Radio News Service


Talk Radio News Service will be liveblogging the House Oversight and Government Reform Committee hearing with AIG CEO Edward Liddy today at 10:00. Refresh this page for updates.

AIG Chairman and CEO, Edward Liddy, will come before Congress today for the second time since it was revealed, in March, that AIG paid out $120 million in bonuses after receiving a $85 billion from the government bailout package.

Chairman of the Committee Edolphus Towns (D-N.Y.) said, "Eight months ago, the American taxpayer came to the rescue of AIG with an $85 billion bailout. That was followed by more money in November, more again in December and more money still in March. The taxpayers have now provided more than $180 billion in financial assistance to AIG.

"A few days ago, we learned that the aIG has put together a plan called Project Destiny. Project Destiny is described as "a multi-year roadmap for the restructuring of AIG. I requested a copy of this plan, but AIG says that disclosing the plan "would undermine its efforts to achieve its goals for the benefit of American taxpayers." AIG says it is consulting on the issue with the New York Fed. In other words, "trust us." Everything will be alright."

Adding, "I was surprised and disappointed to see that AIG continues to argue for secrecy. In his testimony, Mr. Liddy seems to argue that criticism of AIG will somehow hurt the company. Again we are hearing, "Trust us." But we are not willing to let $180 billion go just on trust. We will questions, we will inquire, we will verify, and we will not hesitate to probe every aspect of AIG management and operations to protect the taxpayer's investment."

Ranking Member, Darrell Issa (R-Calif.) said, "I want to acknowledge that none of this is the trustees' fault, they are simply operating within the organization that was created by others, and no doubt do so out of patriotic spirit of public service."

Adding, "The American people have a right to know what is being done with their money."

In his opening testimony Edward Liddy said, "We are working hard to determine the destiny of the component parts of AIG."

Adding, "We intend for taxpayers to realize the fullest possible value from every asset disposition, and we intend that every company that emerges at the end of restructuring will be strong, transparent, and a credit to all its owners.

In particular, we are transferring two major foreign life insurance companies - ALICO and AIA - into special purpose vehicles in exchange for a substantial reduction in AIG's debt to the Federal Reserve Bank of New York. We expect to complete the contractual arrangements for these in the near future."

Liddy added, "We recognize our responsibility to work hand in hand with the government to preserve that value, and I assure you that is our goal. We continue to welcome a frank and open dialogue with Congress on our progress in restructuring, so that you can be in a position to support our efforts. That is essential and I will help us to preserve the value of AIG franchise for the benefit of AIG's stakeholders, the American taxpayer most of all."

Asked by Towns, "Can you confirm that AIG will not require any other additional government money?"

Liddy, "What I can say is we will do our best not to require any additional funding...that answer is very dependent on what happens around the financial globe...I can't give you a guarantee on that. I can't control what happens in the global market."

Towns asked Liddy to provide a copy of 'Project Destiny' by the end of the day.

Liddy responded by saying, "I will do my best."

Liddy will consult with AIG lawyers on this issue as he fears that releasing details of 'Project Destiny' could provide access to marketing information to their competitors and then impact AIG's ability to pay back taxpayers money."

Towns closed by saying, "Do you honestly believe you have a right to prevent Congress from reviewing how the taxpayers money is being spent?"

Frustrated at Liddy's response that he would need to talk to his counsel before providing Congress with details on 'Project Destiny,' Issa gave Mr. Liddy a chance to talk to his attorney sitting behind him.

After conversing for less than two minutes, Mr. Liddy concluded that it there would be limitations to what can be provided as there is "commercially sensitive" information in the plans that AIG would not want competitors to see.

Congressman Paul Kanjorski (D-Penn.) said, "Do you have any opinion whether it would be helpful...if in someway we developed a Federal Insurance charter?"

Liddy replied, "There needs to be someone that looks at systemic risks."

Congressman Brian Bilbray (R-Calif.), "Are you hoping to be able to pay back the taxpayer before the ceiling falls in....How long will it take to pay the taxpayers back?"

Liddy replied, "Somewhere between three and five years. What makes the answer so difficult is how strong will the economy be worldwide and how strong will the financial markets be worldwide."

Bilbray added, "When will you start repaying debt?"

Liddy replied, "As soon as possible....hopefully in a matter of months assuming we get all the Federal approval. "

Congressman Elijah Cummings (D-Md.) asked, "What can you tell them [people who have lost jobs and homes] about what they can expect to see as they see foreclosures signs in front of their houses and businesses?

AIG is looking at its contracts to ensure bonuses are paid on performance basis. Liddy said, "If there are bonuses you earn them."

Congressman Jeff Fortenberry (R-Neb.) asked Liddy to explain to the public what exactly AIG is.

Listing several branches, Liddy said, "It's an insurance company with a few exceptions."

Liddy told the committee, "My time today is focused on today and tomorrow and less on yesterday."

Fortenberry asked Liddy about new figures on AIG bonuses differing from those provided to Congress in March.

It has now been revealed that AIG paid $454 million to bonuses in to its employees in 2008, compared to the $120 million figure released in March.

Apologizing for any confusion on how much was paid exactly for bonuses. Liddy said, the discrepancy on the amount occurred when they were asked by Congress about different type of bonuses, specifically cooperate bonuses.

Appearing frustrated and angry at Liddy's responses throughout the hearing, Congressman Dennis Kucinich (D-Ohio), told Liddy that AIG's behavior was "unacceptable." Adding, "You cheated people who saved lives, who save our children, what are you going to do about this?"

Liddy said he would work with Congress and offered to meet with Kucinich after the hearing.

Kucinich told Liddy that until this matter is resolved "Congress is not going to let you go," shouting that this was "unacceptable" behavior. He told Liddy that Congress "will keep calling you back here," until this issue was concluded.

Kucinich agreed to meet with Liddy following the hearing.

Congressman Jeff Flake (R-Ariz.) asked Liddy, "Can you tell us what the administration's plans are with moving forward with AIG?"

Liddy said, "I cannot."

Congressman William Clay (D-Mo.) asked, "Is AIG really too bog to fail and has it already failed?"

Liddy said, "I would point out to you that this quarter's figures showed that losses for this quarter were not 62 billion...it was 4.3 billion, substantially less than it was in the first quarter of 2008. It's a very complicated institution. It's a very complicated operation."

Hearing was suspended until 12.15pm as Congress was called to vote.

Congressman Stephen Lynch (D-Mass.) said he was “disappointed” with Mr. Liddy as he failed to address the question both in this written and oral testimony, relating to where the taxpayer’s money is going. Lynch said, “It’s a new ball game. One of transparency and accountability.”

Liddy replied, "The last time I was here we provided a very exhaustive document that explained where all the taxpayers money has gone...it was a very exhaustive analysis that explains that in some detail. I thought we had already answered that."

Lynch said, "We are going to have to have you back up this. I am with Kucinich on this. We will not be rolled on this. When we call you up here and ask you a question, we want you to answer the question. "

Congressman Gerry Connolly (D-Va.) asked, “With respects to the bonuses, how many people left the company?

Liddy said, “On the FP sector we had about maybe 10 to 12 to maybe 15 resignations...don’t know if the resignations are over yet.”

Congressman Lynn Westmoreland (R-Ga.) asked Mr. Liddy to get and provide Congress with the number of lawsuits AIG are facing and to find out whether news reports on binding arbitration are true.

Congresswoman Marcy Kaptur (D-Ohio) asked, “Have you paid the taxpayers back any of the money they have lent you to date?”

Liddy responded, “Yes.”

Kaptur: “How much?”

Liddy: “Several billion dollars”

Kaptur: “Several Billion?”

Liddy: “Yes”

Kaptur asked for a list of dates, sums to be submitted for the record. Liddy agreed.

Kaptur then questioned Liddy about his connections with Goldman Sachs which revealed that Mr. Liddy has shares to the market value of $3 million from Golden Sachs.

Congressman Michael Turner (R-Ohio) wants to work with AIG and Mr. Liddy to look at how to improve mortgage back loan to value ratios. Turner fears that if this is not addressed then, "I believe that what we are going the see is the largest theft or fraud in history."

Congresswoman Jackie Speier (D-Calif.) told Liddy, “We are all scratching our heads how can you possibly pay back the taxpayers?”

Liddy said, “It is possible...as I said you before it depends on market circumstances.”

Kucinich said, "Is it true that even if the United States took over AIG 100 per cent these bonuses would still be awarded?"

“No. We have been looking at how we keep people spirited but how we keep in line with Federal regulations.”

Kucinich read a letter sent to employees which asked them to keep bonuses confidential. Kucinich asked Liddy, to inform Congress about any future bonuses.

Towns asked Mr. Liddy to remember that the American public wants to know why a company that contributed to our current economic crisis paid out bonuses that rewarded failure.

Kaptur asked anyone in the committee room currently under contract with AIG to stand - 6 people stood. Kaptur has asked for the details of their contracts.

Kaptur continues to probe into Liddy's connections with Goldman Sachs. Asking the committee to obtain minutes from meetings Liddy attended.

Issa told Liddy, "Please do not think you will not be back before us if you cannot answer...what have the American taxpayers bought for $190 billion dollars?"

Adding, "Provide us with some understanding on how you will pay us back."

Liddy said, "Assets values should be sufficient to satisfy all of what the company owes."

Congresswoman Carolyn Maloney (D-N.Y.) asked, "Whether the life insurance sector of AIG needed a bailout?"

Liddy said, "The life insurance sector was solvent."

Maloney asked, "Do you foresee that in the future that youl will not need any additional public money?

Liddy sighed saying, "Again, I would say that I certainly hope so."

Towns in closing told Liddy that he needed to understand that the "American taxpayer is frustrated."

Edward Liddy was able to leave the hearing at 1.36pm.

Republicans: Our Energy Proposal Creates “Real Jobs”

By Kayleigh Harvey - Talk Radio News Service

“Innovation, conservation and production,” were the key messages coming from the Republican Study Committee and the Western Caucus as Congressional Republicans unveiled their alternative energy proposal today.

Congressman Tom Price (R-Ga.) said, “Republican are wholly committed to finding positive solution to the challenges we face. Like with the stimulus, like with the budget and now in contrast to the Democrats national energy tax we are here to offer our vision.”

The American Energy and Innovation Act, as the proposal will be labeled, will create jobs and reduce debt according to Republicans. The main aims outlined in this bill are to, “encourage innovation” by creating renewable fuel options and environmental jobs. “Promote conservation” by “providing incentives for easing energy demand and creating a cleaner, more sustainable environment” and “increase production” by making use of all available technology and resources.

Congressman Rob Bishop (R-Utah) said there were now “two roads” Americans could chose to tackle energy needs. “The Democrat road is saying it can’t work we are not even going to it, our road is saying we have the ideas now is the time to do it, said Bishop.

Adding that “The Democrats have already given us an option on energy issues that will cost individuals up to $3000...the Republican road we want to go down is one that actually grows our energy supply so that no-one is harmed and in fact we have the chance to reduce the cost of energy.”

Bishop compared the two strategies to the movie ‘Back to the Future’ saying, “Remember those sequels to ‘Back to the Future’ where there were the two worlds? Our world is the one where the McFly family is happy, the Democrat version is the one where Biff runs everything.”

Congressman Jim Jordan (R-Ohio) said the bill would be a “common sense act that is going to use our natural resources and our advanced technology to meet our energy needs and most importantly help our economy grow.”

In closing, Congressman John Fleming (R-La.) added, our vision “creates a vision for jobs, more jobs, not the so called paper mache jobs the green jobs, but real jobs created by industry.”

The Senate Rebuilds Pakistan

By Michael Ruhl, University of New Mexico - Talk Radio News Service

Senator John Kerry (D-Mass.)
Photo by Michael Ruhl

In the next 5 years, the Pakistani infrastructure will be fortified by almost $10 billion American dollars, if Senators John Kerry (D-Mass.) and Richard Lugar (R-Ind.) have anything to say about it. The aptly titled Kerry-Lugar Bill will provided money for rebuilding the lives of civilians in war torn Pakistan.

Both Kerry and Lugar said that most of the money that has been funneled into Pakistan in the past few years has gone towards security. The aim of this bill is to shift the balance, to place more of an emphasis on infrastructure.

The Senators want to use the money for building schools, improving health care, building bridges, water projects, and other elements of infrastructure. Kerry said that the target projects are “things that would improve life and give people a sense of progress” to civilians.

The money would also be used for ensuring an independent media, expanding human rights and the rule of law, expanding transparency in government, rooting out political corruption and countering the drug trade.

Additionally military funding would be conditioned upon several things, including Pakistani security forces preventing al Qaeda and Taliban forces from operating in Pakistan. The military forces would not be able to interfere in politics or in the judicial process, according to the provisions of the bill.

The legislation bill would give $1.5 billion each year from FY 2009-2013, and would recommend similar amounts of money over the subsequent five years. There would be required benchmarks to measuring how effective the funding is, and the President will have to submit semi-annual reports to Congress about progress made.

Reid: Democrat’s Support of Specter is Not Conditional

By Michael Ruhl, University of New Mexico – Talk Radio News Service

Senate Majority Leader Harry Reid (D-Nev.)
Photo by Michael Ruhl

According to Senate Majority Leader Harry Reid (D-Nev.), the Democratic Leadership will stick by Pennsylvania Senator Arlen Specter through thick and thin. The remarks came at a power breakfast on Capitol Hill, where Reid addressed, among other things, Specter’s recent defection to the Democratic Party.

President Obama, Vice President Biden and Reid have all pledged to support Specter when he comes up for reelection in 2010. When asked today whether or not that support was dependent on Specter voting a certain way, Reid said that it wasn’t.

“I’m not going to be in a forever, never position, but the facts are that he’s going to vote with us most of the time,” Reid Said. “I can’t foresee him doing anything that would be so mean spirited that Obama, Biden, and Reid would turn against him.”

If Al Franken wins the Senate Seat in Minnesota, which is still being contested in court, Specter would be the 60th Democrat in Congress, the number needed to stop a Republican filibuster.

“I don’t think [Specter is] going to be an automatic vote, but I don’t have any automatic votes,” Reid said. He was referring to fears from the right that Specter will be the key vote in stifling Republican policy.

Critics believe that Specter is going to help the Democrats steamroll through radical legislation.

Senate Minority Leader Mitch McConnell (R-KY) has called the filibuster-proof Senate a “threat to the country.” He it would allow the Democrats to “have whatever it wants, without restraint, without a check or a balance.”


Specter's defection became a reality when he was assured by Reid that his seniority in the Senate would not be compromised. Reid has publicly stated that no members of Congress will be “bumped” from a committee position to make room for Specter.

The deal struck regarding Specter’s seniority was that upon defecting, he would be treated as though he had been elected a Democrat in 1980.

Not this Congress, at least.

Reid left open the door to moving Specter up in the ranks next Congress, and said, “We’ll work something out,” adding that in every new session of Congress, committee positions are worked out at the beginning of the term and restructured as necessary, and that the next Congress will not be an exception.