Statement by Press Secretary Robert Gibbs
Categories: Economy, Office of the Press Secretary, Statements and Releases Tags:
WEEKLY ADDRESS: President Obama Says We Must Move Forward on Wall Street Reform
WASHINGTON – In his weekly address, President Barack Obama said that in the wake of the economic crisis Wall Street reform is too important an issue for inaction. The plan moving through Congress will end bailouts, hold Wall Street accountable, and protect consumers, taxpayers and the economy from the kind of abuses that helped bring about the economic crisis. Every day without reform, those abuses, and the system which allowed them, remain in place. It is time to move forward with real reforms for Wall Street.
The audio and video will be available online at www.whitehouse.gov at 6:00 am ET, Saturday, April 17, 2010.
Remarks of President Barack Obama
As Prepared for Delivery
The White House
April 17, 2010
There were many causes of the turmoil that ripped through our economy over the past two years. But above all, this crisis was caused by failures in the financial industry. What is clear is that this crisis could have been avoided if Wall Street firms were more accountable, if financial dealings were more transparent, and if consumers and shareholders were given more information and authority to make decisions.
But that did not happen. And that’s because special interests have waged a relentless campaign to thwart even basic, common-sense rules – rules to prevent abuse and protect consumers. In fact, the financial industry and its powerful lobby have opposed modest safeguards against the kinds of reckless risks and bad practices that led to this very crisis.
The consequences of this failure of responsibility – from Wall Street to Washington – are all around us: 8 million jobs lost, trillions in savings erased, countless dreams diminished or denied. I believe we have to do everything we can to ensure that no crisis like this ever happens again. That’s why I’m fighting so hard to pass a set of Wall Street reforms and consumer protections. A plan for reform is currently moving through Congress.
Here’s what this plan would do. First, it would enact the strongest consumer financial protections ever. It would put consumers back in the driver’s seat by forcing big banks and credit card companies to provide clear, understandable information so that Americans can make financial decisions that work best for them.
Next, these reforms would bring new transparency to financial dealings. Part of what led to this crisis was firms like AIG and others making huge and risky bets – using things like derivatives – without accountability. Warren Buffett himself once described derivatives bought and sold with little oversight as “financial weapons of mass destruction.” That’s why through reform we’d help ensure that these kinds of complicated financial transactions take place on an open market. Because, ultimately, it is a marketplace that is open, free, and fair that will allow our economy to flourish.
We would also close loopholes to stop the kind of recklessness and irresponsibility we’ve seen. It’s these loopholes that allowed executives to take risks that not only endangered their companies, but also our entire economy. And we’re going to put in place new rules so that big banks and financial institutions will pay for the bad decisions they make – not taxpayers. Simply put, this means no more taxpayer bailouts. Never again will taxpayers be on the hook because a financial company is deemed “too big to fail.”
Finally, these reforms hold Wall Street accountable by giving shareholders new power in the financial system. They’ll get a say on pay: a vote on the salaries and bonuses awarded to top executives. And the SEC will ensure that shareholders have more power in corporate elections, so that investors and pension holders have a stronger voice in determining what happens with their life savings.
Now, unsurprisingly, these reforms have not exactly been welcomed by the people who profit from the status quo – as well their allies in Washington. This is probably why the special interests have spent a lot of time and money lobbying to kill or weaken the bill. Just the other day, in fact, the Leader of the Senate Republicans and the Chair of the Republican Senate campaign committee met with two dozen top Wall Street executives to talk about how to block progress on this issue.
Lo and behold, when he returned to Washington, the Senate Republican Leader came out against the common-sense reforms we’ve proposed. In doing so, he made the cynical and deceptive assertion that reform would somehow enable future bailouts – when he knows that it would do just the opposite. Every day we don’t act, the same system that led to bailouts remains in place – with the exact same loopholes and the exact same liabilities. And if we don’t change what led to the crisis, we’ll doom ourselves to repeat it. That’s the truth. Opposing reform will leave taxpayers on the hook if a crisis like this ever happens again.
So my hope is that we can put this kind of politics aside. My hope is that Democrats and Republicans can find common ground and move forward together. But this is certain: one way or another, we will move forward. This issue is too important. The costs of inaction are too great. We will hold Wall Street accountable. We will protect and empower consumers in our financial system. That’s what reform is all about. That’s what we’re fighting for. And that’s exactly what we’re going to achieve.
Thank you.
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Remarks by the President at a Meeting with the President’s Economic Recovery Advisory Board
Roosevelt Room
1:38 P.M. EDT
THE PRESIDENT: Hello, everybody. All right -- don’t break anything. (Laughter.) You guys all set? All right.
Well, thank you all for coming. We have a few topics to discuss today and I’m eager to hear from all of you about how the economy looks from your perspective and your forecast for the next few months. We’re particularly interested, obviously, in the issuing of hiring and how we’re putting Americans back to work. And I’m also going to be focused on hearing from you your recommendations in terms of how we can increase exports in the years to come -- because we know that if we are selling products overseas and not just purchasing products and services, then that is going to directly benefit the growth of our economy.
I do want to say a few words quickly about the issue of Wall Street reform. I know that some of you have worked in the financial industry or been leading financial regulators. Many of you have been advocates of reform for some time -- Paul and Bill, in particular, have been active in this area for more years than they probably care to remember.
As I’ve said before, we need a strong and healthy financial sector to grow jobs and our economy. And it’s exactly because of the centrality and importance of the financial sector that we have to act. The devastating recession that we just went through offered a very painful lesson in what happens when we don’t have adequate accountability and transparency and consumer protection.
We can’t allow history to repeat itself. Never again should American taxpayers be forced to step in and pay the price for the responsibility of speculators on Wall Street who made risky bets with the expectation that taxpayers would be there to break their fall. And we can’t leave in place a tattered set of rules that will allow another crisis to develop without the tools to deal with it. And that’s why I expect that we are going to have a strong reform proposal that demands new accountability from Wall Street and provides new protections for consumers.
This is reform that will force banks and financial institutions to pay for bad decisions that they make, and not have taxpayers pay for those bad decisions. And that means no more bailouts.
This reform would also bring new transparency and accountability to the derivatives market, and this is something that Paul Volcker spoke publicly about just the other week. The derivatives market is where a lot of the big, risky financial bets by companies like AIG took place. There are literally trillions of dollars sloshing around this market that basically changes hands under the cover of darkness. When things go wrong, as they did in AIG, they can bring down the entire economy, and that’s why we’ve got to bring more transparency and oversight when it comes to derivatives and bring them into a framework in which everybody knows exactly what’s going on, because we can’t afford another AIG.
Now, let’s be honest. Some in the industry are not happy with the prospect of these reforms. We’ve seen the usual army of lobbyists dispatched up on Capitol Hill. They have found some willing allies on the other side of the aisle in Congress who have been trying to carve out a lot of exceptions and special loopholes so that folks on Wall Street can keep making these risky bets without any oversight.
I hope that we can pass a bipartisan bill. Bipartisanship cannot mean simply allowing lobbyist-driven loopholes that put American taxpayers at risk. That would not be real reform.
So in the coming weeks, every member of Congress is going to have to make a decision: Are they going to side with the special interests and the status quo, or are they going to side with the American people? And anyone who opposes this reform is going to be leaving taxpayers on the hook if a crisis like the one that we’ve just seen ever happens again. And I consider that unacceptable.
My hope and belief is that all of us, Democrats and Republicans, are going to be able to find some common ground on this issue and move it forward. It is too important to become bogged down in the same partisan gridlock and politics that we’ve seen. It’s time that we demanded accountability from Wall Street and protections for consumers so that we don’t find ourselves in this same mess again.
All right. So with that, we’re going to officially convene the meeting, which will be live-streamed. So let’s clear out the room a little bit.
All right. Everybody was much better behaved than usual. (Laughter.)
CHAIRMAN VOLCKER: Well, I guess we’re making progress.
THE PRESIDENT: Yes, obviously. Usually I get at least one shouted question. This time everybody was very well behaved, it was good.
PARTICIPANT: Friday afternoon.
THE PRESIDENT: Yes, exactly. (Laughter.)
Q Well, Mr. President, can I ask you -- (laughter) --
PARTICIPANT: You took the bait.
THE PRESIDENT: Go ahead. Go ahead.
Q -- if you would veto legislation if the derivatives language isn’t as strong as what Senator Dodd has?
THE PRESIDENT: You know, I want to see what emerges, but I will veto legislation that does not bring the derivatives market under control and some sort of regulatory framework that assures that we don’t have the same kind of crises that we’ve seen in the past.
Okay. All right. With that, I’m going to turn it over to our Chairman, Mr. Paul Volcker.
END
Categories: Economy, Office of the Press Secretary, Speeches and Remarks, The President Tags:
Statement by the President on Passage of Temporary Extension of Jobless Benefits
“In these tough economic times, it is more critical than ever to bring relief to Americans who are working every day to find a job, and families that are struggling to make ends meet. Millions of Americans who lost their jobs in this economic crisis depend on unemployment and health insurance benefits to get by as they look for work and get themselves back on their feet. I’m grateful that the House and Senate moved forward on this temporary extension today. But as I requested in my budget, I urge Congress to move quickly to extend these benefits through the end of this year. I also urge Congress to move forward on legislation to help small businesses grow and hire and other measures to increase the pace of job growth. This is my top priority, and I will fight day and night until every American who wants a good job has one.”
Categories: Economy, Office of the Press Secretary, Statements and Releases Tags:
Statement by the President on Passage of Temporary Extension of Jobless Benefits
“In these tough economic times, it is more critical than ever to bring relief to Americans who are working every day to find a job, and families that are struggling to make ends meet. Millions of Americans who lost their jobs in this economic crisis depend on unemployment and health insurance benefits to get by as they look for work and get themselves back on their feet. I’m grateful that the House and Senate moved forward on this temporary extension today. But as I requested in my budget, I urge Congress to move quickly to extend these benefits through the end of this year. I also urge Congress to move forward on legislation to help small businesses grow and hire and other measures to increase the pace of job growth. This is my top priority, and I will fight day and night until every American who wants a good job has one.”
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Briefing by White House Press Secretary Robert Gibbs and Treasury Secretary Tim Geithner, 4/14/10
James S. Brady Press Briefing Room
1:32 P.M. EDT
MR. GIBBS: Good afternoon. We're on time today. I know that's a surprise to many of you.
Q You're actually two minutes late.
MR. GIBBS: Two minutes late -- which is a vast improvement in efficiency.
Obviously you know the President met this morning with bipartisan congressional leadership, mainly to talk about financial reform, the upcoming legislative activity around that, and the President’s strong hope to get something done as quickly as possible. To that end, Secretary Geithner is here to speak for a few minutes about what the President and the leaders talked about and take some questions on what was talked about around financial reform.
So, Mr. Secretary.
SECRETARY GEITHNER: Thanks, Robert.
How are you all? So I think it’s a critical moment for reform, a promising moment. A lot of hard work, lot of progress. It’s been two and a half years since this crisis started, more than a year since we first laid out a comprehensive set of reforms. And I think we know what we need to know about the choices we face; it’s just time to decide and time to move.
We're going to make sure we have a comprehensive bill that brings derivatives out of the dark, ends “too big to fail,” and gives consumers and investors basic protection against abuse, against predation.
There’s been a lot of movement on the consumer, as you’ve seen. The focus is now shifting to the really important but very complicated areas of derivatives and “too big to fail.” But I think there, too, we've taken a lot of ideas from the other side of the aisle; I think we've got a very strong package of reforms and I think we're very close to something that we can stand up and say with pride is going to be a good, strong bill, and prevent us from ever seeing this kind of crisis again in the future.
I don't think it’s tenable for anyone to stand up and see, in the face of the devastation this crisis caused, it’s not tenable for anyone to argue now, I think, that we don't need sweeping reforms. We can't afford to leave this system in place.
And again, I think we're very close. We're, as I said, open to ideas. Our test is going to be, though, what’s going to work, what’s going to be in the public interest, what’s going to leave us with much better protections against these basic failures and these abuses.
We're going to keep reaching out to the other side of the aisle. I thought the tone of the discussion today was very positive. Senator McConnell said, as he’s said many times before, that he’s -- we’d like to work on something, but of course, our test is going to be what’s going to work, what’s going to leave us with a strong enough set of reforms.
Q Are we out of the woods now?
SECRETARY GEITHNER: In terms of the --
Q The prosperity, economic return?
SECRETARY GEITHNER: We are in a much stronger position today than we were. The economy is definitely getting stronger. We're coming out of this stronger and more quickly than many people expected, and stronger and faster than many countries around the world.
Q Why?
SECRETARY GEITHNER: Why? Why are we? Because the President acted so forcefully initially, doing things that were politically difficult, but he acted with overwhelming force to put out the financial fire, stabilize the economy. And we've been growing now for three quarters.
But too many people are out of work. We've got a lot of work to do still. This is going to take a long time to heal. And we're going to keep working to make sure that we're getting a strong recovery in place that gets more people back to work.
Q Is it a permanent answer now, with more controls on the financial --
SECRETARY GEITHNER: Will it be a permanent answer? This is going to be the most sweeping set of reforms we have contemplated as a country since those put in place after the Great Depression. But we let our system -- a system designed for a different era -- fall way behind the curve of risk and innovation in this market. Never should have let that happen. But I think this is a very strong package of reform. Again, I think we're very, very close -- I think we're going to have very broad support for this because it’s so important. Again, I think it’s very hard for anybody to argue that we can look at the devastation caused by this crisis and not say we all share a huge responsibility to fix what was broken.
Q The administration has said that it would like to see this bill strengthened. What areas need strengthening?
SECRETARY GEITHNER: Well, again, the key test for us is going to make sure there is a strong, independent authority to write rules, enforce rules for consumers -- that protect consumers that apply across the financial system.
Again, what happened in our system was we let people operate outside any basic set of constraints. And over time what happens is what always happens, is the business migrated to where the rules were weakest. And that’s critically important.
We need to bring derivatives out of the dark so we don't have future AIGs. We saw what devastation that caused when you let huge complex companies write hundreds of billions of dollars of commitments in derivatives without the capital to back that. And we do not want to have the American taxpayer ever be in a position again where they’re forced to choose between putting billions of dollars of taxpayers’ money at risk or facing catastrophic collapse of the financial system.
Those are our three basic tests. So we're going to make sure the bill comes out in ways that are strong in each of those things, it is not weakened by loopholes which allow people to exempt themselves from stronger rules of the game.
Q Are you recommending language to the senators?
SECRETARY GEITHNER: We are working, as we have been from the beginning, working very closely with Chairman Frank and Chairman Dodd to make sure this bill comes out in the strongest possible position. And we're working with Republicans, too, as I said. I've been spending a lot of time with Republicans. I'm going to continue to listen to them, open to their ideas, because, again, we want to make sure we have the strongest possible set of reforms.
Q The Republican leadership is saying that this fund that is in the bill will actually set up perpetual bailouts and --
SECRETARY GEITHNER: We're not -- let me just say we will not support a bill that creates that risk. The central test of credibility on any “too big to fail” is to make sure we can stand up and say that when large companies manage themselves to the point where they cannot survive without the government, that we put them out of existence. We do so safely with less risk to the economy and in a way that doesn’t leave the taxpayers on the hook. So the central part of this is to make sure that in future financial crises, that banks bear the cost of any risk the government has to take to protect the economy.
Q Do you need that risk pool in the bill?
SECRETARY GEITHNER: Well, again, the basic principle for us is going to be to make sure people understand that we will not leave the taxpayer exposed to any risk of loss. Any risks the government takes are going to be borne by large financial institutions, as it should be, and which is completely consistent with what the President proposed in his -- our financial responsibility fee, which as you know, is designed to cover any losses we ultimately face as a result of TARP.
Q So you're saying you need the fund?
SECRETARY GEITHNER: No, I'm saying we need to make sure we have a framework in place that provides for the effectiveness of bankruptcy for large institutions in a way that doesn’t leave the taxpayer exposed to a penny of loss.
Q So you're saying that any fund contained in the bill would have that kind of language around it --
SECRETARY GEITHNER: Absolutely.
Q -- that says the taxpayer would be repaid --
SECRETARY GEITHNER: And there’s lots of different ways to do this. You saw different ideas in the House, there are some different ideas in the Senate, different ideas on the other side of the aisle. But --
Q What’s your idea?
SECRETARY GEITHNER: Well, you’ve heard our idea -- we laid out our idea in the initial reforms. Again, the basic test for us is if the government is ever exposed again to any risk of loss, that the cost of that will be borne by large financial institutions, as it should be. It’s a simple, basic proposition of fairness.
Q Just following up on that point, it’s irrelevant to the administration whether that fund is created, whether the money is raised in advance or whether it’s raised later when a problem arises?
SECRETARY GEITHNER: As you know, we don’t think it’s necessary to raise in advance. But, you know, this is something that Chairman Dodd is going to be talking to Senator Shelby about later today. I know it’s on both their minds. And I’m very confident that we’re going to come out with something that meets this basic test, which is -- again, this is the basic test, which is we don’t want the taxpayers to be exposed to bearing any of the losses that the government might have to take in the future as part of an effort to save the economy from financial collapse.
Q I’d like to ask about the over-the-counter contracts in Blanche Lincoln’s bill. First of all, what role did the White House have in helping her write that bill?
SECRETARY GEITHNER: We have been working very, very closely, as we did in the House, with Senator Lincoln and with her Republican counterparts on their efforts to design a set of reforms on the derivatives markets that would bring them out of the dark. So we’ve been closely -- working closely with them throughout this period of time. And I want to compliment her for the initiative she took in laying out a set of very strong elements for reform.
If you look at where she is now today and where Dodd’s bill is and where we are, there’s a lot in common in those basic approaches. And I know that she’s going to be working closely with Senator Dodd and will be helpful in this area in ironing out those remaining differences.
But this is a -- again, this is a very strong package of reforms that would bring derivatives out of the dark, would make sure that companies like AIG, again, can’t write trillions of dollars of commitments without the capital to back them up so that -- and that the relevant authorities -- the SEC, CFTC -- can police fraud and manipulation. These are basic, sensible, necessary reforms.
Q There’s always been a move on the part of the CFTC in recent years to bring some of these on to exchanges and so forth, but is there any room for exemptions? And I’m thinking of the agricultural contracts.
SECRETARY GEITHNER: Right. I think there is -- I’ve said before, there is a good economic case for a carefully designed, narrowly crafted exemption for what you might call manufacturing companies -- people that make real things but have a need to hedge their exposure to certain types of risks. I think we can do that, but the key thing is to make sure we do that in ways that does not provide an opportunity for other people to evade the basic protections of the bill -- so that’s the balance.
Q One final thing. Lincoln’s bill has been described at least so far initially as a pretty tough bill. Does that get you 60 votes in the Senate?
SECRETARY GEITHNER: Well, again, she hasn’t put a bill forward, so we’ve got to look at the details of this stuff. But based on what she’s laid out in public it looks like a very strong bill, very close to where we are on these things. And I know that she is going to work closely with Chairman Dodd to work out the details.
MR. GIBBS: And let me add something on the 60 votes. I think the President reiterated today that, as the Secretary says, we are coming up on the anniversary of this financial crisis. We can’t celebrate that anniversary with the rules from the past. But it is both good policy and good politics for both parties to come together and pass strong financial reform.
The President was clear that he stands ready, as the Secretary does, to work with any Democrat or any Republican to make this bill stronger. But in the name of bipartisanship, the President is not going to codify bad policy. The American people expect and deserve far more from financial reform than bad policy.
Major.
Q Mr. Secretary, one question on reg reform and one on the debt -- some comments of Ben Bernanke today. On reg reform, could you respond to Republican criticism that it doesn’t address to their satisfaction Fannie or Freddie, which even those who support regulatory reform believe was a precipitant cause of the crisis? And number two --
SECRETARY GEITHNER: Let me just say on that, of course they’re right. We did not take on the broad question of reform of the GSEs or the broader housing finance market in this bill. We did that consciously. But we’re beginning a process now to figure out what the most sensible set of reforms are not just for fixing the GSEs -- and we can’t leave them as they are -- but for looking at the broader housing finance market as a whole and make sure that’s going to be -- do a better job in the future at giving people access to affordable housing. That’s going to come, but we did not -- we consciously decided not to do that in this bill.
Q Okay. And secondarily, that the proposals on the table on derivatives Republicans say will push the trading of those instruments overseas, make them less transparent, and cost American jobs.
SECRETARY GEITHNER: No risk of that and I would not support that. And we’ve been working very closely because of that potential challenge to make sure that European countries and others are moving with us and put in place a complementary framework, very similar protections. And we have very broad convergence with the Europeans on what we think would be an effective global framework that will avoid that risk.
Q And on the debt, Ben Bernanke said today that under a likely tax scenario, meaning most of the Bush tax cuts extended, as the President has called for, and continued relief of AMT, by 2020 the deficit of the federal government will be 9 percent of GDP and federal debt would be more than 100 percent of GDP.
SECRETARY GEITHNER: Well, I didn’t see his remarks --
Q He said that would be unsustainable and there must be a more aggressive approach.
SECRETARY GEITHNER: Of course, that would be unsustainable, but that’s not going to happen if Congress adopts the policies the President has laid out. He’s laid out a very comprehensive, detailed set of policies that would bring our deficit down dramatically over the next few years and get them much closer to the point where we’re living within our means again as a country.
But, of course, everybody recognizes right now that we’re living with unsustainable deficits. And it will be very important to make sure that we have a strong recovery going forward, that Congress demonstrate that we’re able to make some tough choices to bring those deficits down. But the policies the President laid out would bring about a very substantial, necessary, important, dramatic reduction in the deficits once we have an economy where we have a recovery in place led by the private sector that’s strong enough.
Q Mr. Secretary, Senator Dodd has said he wants to get a bill through the Senate by the end of April. What’s the administration’s timetable on that? There’s been talk of Memorial Day. Is that feasible?
SECRETARY GEITHNER: I think that’s something you’ve got to talk to the Majority Leader about. I know he’s thinking about the best strategy. Obviously we want to move quickly and we want to get a strong bill. And again, I think on the basis of what we’ve seen, we’ve got a very good chance of enacting the most sweeping, strongest, most comprehensive set of reforms we have contemplated as a country since those put in place after the Great Depression. I think we’re in a good position to get there, but the timing and that kind of question is up to the Majority Leader.
Q Are you confident it will be done this year?
SECRETARY GEITHNER: Well, again, I don’t think it is -- I don’t see how -- I’m a little more optimistic about our country. Again, I think we have the ability to stand up and tell the American people that we acted to fix what was broken, to put in place stronger rules with teeth that would prevent this from happening again. And I can’t believe we wouldn’t take the opportunity now. So I’m very confident we’ll be able to get there.
MR. GIBBS: It’s untenable that Congress would go home to campaign for reelection in November, answering questions that the same rules that were in place two years ago, the regulatory structure that led to what we’re dealing with, that those would still be in place. I don’t even think those that have clearly sided with the financial industry and want to slow this down think that’s a good solution.
SECRETARY GEITHNER: Could I end, Robert, with just encouragement -- are you going to let me escape?
MR. GIBBS: I’m going to give you one more question and then --
SECRETARY GEITHNER: I want to end with one point, but go ahead. (Laughter.)
Q I just wanted to ask you for clarification. Republicans have claimed they’ve been pushed out of this process, sidelined to a certain extent. You’ve said that there been ideas incorporated from the other side. Could you just detail what those are?
SECRETARY GEITHNER: Oh, absolutely. I mean, I could -- it’s a long list. On the design of a bankruptcy process for large institutions like future AIGs, there’s been a lot of careful, detailed, helpful work done by a number of Republican senators on the Banking Committee -- Senator Shelby, Senator Corker, many others. Senator Gregg has been a strong supporter of making sure that the Federal Reserve -- although we’re going to limit their authority in important ways -- that the Federal Reserve is given the authority and the accountability to constrain risk-taking by the largest financial institutions.
This bill brings a revolution in terms of transparency and disclosure across the financial markets, not just in derivatives but more broadly. That’s something that of course you have broad support for on the Republican side.
There is a long list of areas with bipartisan support throughout the process. And as you know, Chairman Dodd has worked -- it’s April -- we started this a year ago -- it’s April -- because he has spent so much time trying to build consensus with a group of Republican senators on the Senate Banking Committee who would like to find the basis for a good, strong bill.
Q Mr. Secretary, a quick question on the mortgage modification program. Why has it not worked the way you guys said it was going to work a year ago?
SECRETARY GEITHNER: Well, I want to step back a little bit and take issue with your premise. The strategy that the President embraced with respect to the housing market has been hugely successful in its most vital objective, which was -- if you look back, think back a year ago, when we were all sitting here then, most people at that point were living with the real prospect that house prices across the country could fall another 20 to 30 percent. And what you saw very quickly because of the actions we took -- you saw house prices show a measure of stability. That’s held over this -- for now like more than nine months. That is hugely important to what’s happened in the recovery. And we did that by bringing down mortgage interest rates, a whole range of areas -- it’s hugely beneficial to --
Q A lot of these banks are not cooperating.
SECRETARY GEITHNER: Hold on, I’ll come to your question. That’s hugely important to the tens and tens of millions of Americans that -- for whom their home equity values is a big measure of their financial security.
In addition to that, we launched a modification program to help a set of homeowners stay in their homes. That program has now reached more than 1.1 million Americans. Average increase in -- average reduction in monthly payments: $500 to $600 per month for the average household. That is a substantial amount of financial relief that also is very powerful. That’s a -- more than a million Americans. And we are working very hard to make sure that that program is reaching as many people as we can reach and that those -- that temporary relief turns into permanent relief.
Q -- 200,000 have gotten the permanent relief approximately?
SECRETARY GEITHNER: It’s a little higher than that. But, again, we're going to make sure that as many of those temporary mods turn into permanent mods as possible. One reason why -- this is an important thing -- we wanted to move as quickly as possible so -- although you're right that banks have been a little slow and they did not do as good a job as they should and they’re still not doing as good a job to reach these people -- we got them to move very quickly. And they’ve provided a number of these temporary modifications without documentation. So it was in place quickly; people had immediate relief.
And because of that, it’s taken a little bit longer to have those converted into permanent mods because, again, we want to make sure the people who are getting this relief are actually eligible for relief.
Now, there’s still a lot of risk of foreclosures across the country. It’s still going to be a very painful process for millions of Americans, but we're going to keep working to make sure this program reaches as many people as we can reach. And, again, don't miss the fundamental achievement, which is to say it’s not just the economy is growing now, but we took -- we brought a measure of stability and took a lot of fear out what is a central part of most American families’ basic economic security.
I want to do one last thing. Just let me -- I want to leave you with one encouraging -- just one exhortation. I think the level of attention you and your colleagues have brought to particularly the debate on consumer, which for many -- consumer protection -- which defined really the first nine months of this debate in the public eye, was very important, very helpful. And I think the progress we've seen now where you see again broad recognition from a lot of the opponents of consumer -- that we were going to have strong independent consumer protection authority is the result of that attention.
And the stuff ahead of us now is derivatives, it’s “too big to fail,” it’s complicated stuff -- okay? But make sure that you bring the same level of exposure and the spotlight on the choices ahead, because we -- I think we all have an interest in resisting the efforts that are going to be made -- and they’re going to come still -- to weaken, to exempt, to carve people out of those basic protections.
So I end with that compliment. Thank you guys very much.
Q You just said something nice about the media. (Laughter.)
MR. GIBBS: He’s a visitor. (Laughter.) No, that was a joke. Obviously I'm glad he came and I'm glad you got an update on what the President talked about.
I do want to add just one thing. To build a little off the timeline that Secretary Geithner mentioned, for weeks, for months, Senator Dodd met with Senator Shelby, the ranking member of the committee, in order to try to bring he and other Republicans along. That was unsuccessful, and Senator Corker came for several weeks to try to do the same thing. Now, as Secretary Geithner mentioned, Senator Shelby is meeting tonight with Senator Dodd in an effort to try to do this again. The President was --
Q What do they want --
MR. GIBBS: I think there have -- quite honestly, Helen, I think there are very conscious efforts to weaken this bill on behalf of lobbyists and special interests that have been paid a huge amount of money to do exactly that.
The President was very, very clear with the members this morning. He is happy to listen to, happy to work with, and happy to incorporate anyone -- any ideas that strengthens financial reform. But we are not going to make bad policy decisions through the artificial lens of hoping something is bipartisan, because in the end the test will be whether or not we have rules in place that prevent this from ever happening again. That is the standard by which the President and his team have gone about this reform effort; that is the way in which we will measure the product that comes out of the Senate and ultimately what the President signs into law.
Q Is the administration concerned that these Shelby and Dodd meetings might weaken the bill?
MR. GIBBS: I don't believe so. I think Senator Dodd has a very strong product and I think the -- quite frankly, I think everything points in the direction of strengthening this legislation. Whether it is on derivatives, whether it is on, as you heard the Secretary mention, the consumer financial protection agency, where people thought this legislation might end up a few months ago, is now in a much, much stronger position. And I quite frankly think that there will be a decent number of Republicans that will be on the side of reform.
I don't doubt, again, that there will be, as the Secretary said, some very deliberate efforts to water down, to weaken and to put the special interests in control of a process that does exactly that, in weakening this bill. I think the President has been clear with the leaders that he will not accept that.
Q I'm just wondering if you can give us your interpretation of Senator McConnell’s position. He came out -- I think it was pretty extraordinary -- right after meeting with the President he walks to the driveway and blasts the White House for wanting to jam through a partisan bill and not wanting to work with them.
MR. GIBBS: I've got to tell you I get the sense the -- the sense the readout you got was several hundred degrees on the oven hotter than what it was in the room. You could ask --
Q Are you saying he didn’t --
MR. GIBBS: He mentioned to the President that he got the feeling that we weren’t willing to work with anybody. Again, the President then took the opportunity to say that Senator Dodd had spent weeks with Senator Shelby. When Senator Shelby decided he could no longer take part, Senator Corker stepped up. Senator Dodd spent weeks with Senator Corker. A lot of Republicans get to church; very few of them have made it to the altar. (Laughter.)
Q What did McConnell say in response to that --
Q What does that mean?
Q What does that mean -- yeah.
Q It’s a fun little -- but what do you mean by that?
MR. GIBBS: What I mean by that is --
Q Are you saying they’re not --
MR. GIBBS: No, what I mean is -- their motives, you will have to ask them. I'm just saying that in order to be bipartisan you have to be willing to -- for the President, you have to be willing to accept a strong bill. And the effort to get this close is simply to take steps to water or weaken that legislation -- that's not what the President is interested in. And again, I think that -- well, the President was very clear, and the Secretary has been clear about talking with and working with Democrats and Republicans. The question is whether or not Republicans, quite frankly, are going to be willing to accept some of the strong measures that might put them at odds with some of their campaign contributors.
Q But after the President said that what was the response from McConnell?
MR. GIBBS: I think they both agreed that they’d be willing to sit down and work together, and the President mentioned to Senator McConnell, if it’s -- he said, if I'm not mistaken, I think the ranking member is meeting with the committee chair.
Again, we're happy to have these conversations, but the President was very clear, we have bottom lines, where this debate and the amendment procedure is not going to be, in the President’s view, a race to the bottom, to weaken, to hide, to make less transparent the aspects of this legislation that the American people so rightly deserve.
Q Just one quick follow-up on that. I mean, the talking points or at least the charge the Republicans are making is that this is going to lead to more taxpayer bailouts. And there is an argument even in the left wing of the Democratic Party that this bill isn’t tough enough and it will lead to more bailouts. But I'm wondering -- you seem to be questioning -- you seem to be saying the Republicans’ charge on that is insincere.
MR. GIBBS: I think it is -- I don't think it’s true. I don't -- I think you heard the Secretary say the President will not accept -- I'll tell you what will lead to the taxpayers continually being on the hook: Not doing anything. Right? Using the same rules of the road that got us into the ditch as a road map for how to move forward.
This legislation will end the concept of “too big to fail.” It will -- you’ve heard the President discuss in the State of the Union the desire to put a fee on the very largest banks that got help through TARP, a fee to make the taxpayers whole for having, quite frankly, loaned many of these institutions money in order not to bring down the rest of the economy.
So again, the President is hopeful, the Secretary is hopeful, that we can get a strong bipartisan bill, and I think they outlined the case that it is in everybody’s interest -- policy, first and foremost, as well as politically -- to get this done.
Q Robert, I still want to get at what’s behind this disconnect, though, between this tone -- apparently agreeable tone in the meeting with the President and when they come out to the stakeout mics, it appears that the two sides are far apart.
MR. GIBBS: I don't -- again, I sat in the entire meeting; it was a very cordial meeting. I can't explain to you why they thought it wasn’t or why they -- their readouts seem to be, like I said, hotter than what their discussion points were. I mean, Senator McConnell mentioned financial reform. Congressman Boehner talked about the supplemental. But there wasn’t an extensive heated back-and-forth.
Q Was there any heat, though? Was it tense at any time?
MR. GIBBS: I think it was frank. I think they talked about the desire to get -- the President talked about the desire to get the New START treaty ratified quickly. The President discussed with Senator McConnell the need to get appointments through the Senate in a far more timely -- on a far more timely schedule than has been thus far. I wouldn’t, though -- I hope I'm not jamming them up, but I don't think it was that contentious.
Q At the stakeout it was very clear that the Democrats were very upset with how Republicans have been holding up nominations, holding up bills. And you didn’t see any of that back-and-forth --
MR. GIBBS: No, no, again, I will tell you that, as I just said, there was no question that it was discussed that on the calendar sit 94 nominees that are out of committee that are awaiting a vote. And I've mentioned this on countless occasions and I'll do so again -- we have nominees that have cleared committee for months. They sit there. The Republican leader insists that Senator Reid file cloture, which starts a 30-hour clock. At the end of that 30-hour clock, no one -- no one opposes the nominee. And then after that vote they have an up or down vote on the nomination in which no one opposes the nominee. Whether or not that was a tactic to slow the process down during health care -- may be the case.
As the President mentioned, we're past health care. If there are non-controversial, non-ideological nominees at the Department of Justice, the Department of Defense, the Department of Homeland Security, the Department of Treasury, that are not going to be opposed either in cloture or in the process, the tradition has been that unanimous consent is provided and an up or down vote, or even a voice vote, is done on these nominees.
And the President mentioned -- he didn’t spend a lot of time in the Senate but he got how the place worked.
Q What was the response?
MR. GIBBS: Well, the response specifically on that one was the President suggested that someone go sit with -- someone from our team go sit directly with Senator McConnell. The President understood there are ideological -- there are nominees that Republicans will oppose for ideological reasons. Then there are probably 80 percent of the nominees that are on the calendar are likely to be those that I just discussed, where cloture -- there’s no opposition to cloture or on their final vote.
The President asked -- told Senator McConnell we would send a representative over to sit down directly with him, go through the list, and they could pick their ideological ones that they wanted to have a specific floor battle about, but that of the 94, 70 or 75 of those have traditionally just been cleared. The President said we’d send somebody over to sit down and figure out who those 70 or 75 were and get them done.
Q Did he agree?
MR. GIBBS: He seemed to be amenable to sitting down.
Q On the issue of jobs, John Boehner today was hammering the administration for the promised jobs that haven't materialized; that the President, when he signed the stimulus, said that there would be all these jobs, and he’s saying where are all the jobs. How do you respond to this criticism?
MR. GIBBS: I will say this -- did he say that at the stakeout?
Q Yes.
MR. GIBBS: He didn’t mention that in the meeting. So I don't -- if the point he was making was that he mentioned that at the meeting -- the President did provide them a copy of the latest report from the Council on Economic Advisers. There are mayors in his district, there are schools in his district that have reported to us jobs that have been saved or created as a result of the Recovery Act. As the Secretary mentioned, we've seen 3 consecutive quarters of economic growth. The measure that some use is that of the stock market, which prior to me making this comment, appeared to be above 11,000.
So I would say that there are those that seem to continue to deny that we're making progress on the economy despite all available information to the contrary.
Q Just one more question on -- yesterday you got some agreement; you had this communiqué from all of these leaders who were here. What happens going forward? What’s the follow-through to make sure that these agreements, these handshakes actually turn into action?
MR. GIBBS: Well, on specific -- on commitments that have been specifically made, we -- our teams will, both at NSC and DOD, as well as the State Department, will begin to work through our side of those agreements -- for instance, for places like Canada and Mexico that have agreed to, over the course of time, return their highly enriched uranium to us. We have offered to provide Ukraine with technical and financial assistance in ensuring the safe transfer and ultimate disposition of their highly enriched uranium.
So I think on a whole host of measures we will follow up directly with, on a bilateral basis, those countries to ensure that the commitments that have been made are followed through on. A number of instances -- the Ukraine agreement comes most specifically to mind, and that is this is something that has been desired for more than 10 years; that we -- the President received a commitment from the Ukraine leadership to try to get out almost -- a vast majority of their highly enriched uranium this year and to do so before the next nuclear summit in the Republic of Korea in 2012.
So there is a plan in place with staff here to begin to ensure that what we have to do on our side is carried out.
Q Robert, I'm wondering if you could share with us whatever was said inside the meeting with respect to a Supreme Court nominee. The President said he wanted to bring it up.
MR. GIBBS: No, it was not discussed because next week there is a separate meeting with both Senate leaders and the Judiciary Committee chair and ranking member --
Q It didn’t come up at all?
MR. GIBBS: -- it didn’t come up -- to specifically discuss the nominations process and to see -- and to ask, obviously as he did during his first confirmation, what advice each of them had for this process.
Q And then as a follow-on to that, does the President regard this as -- is he starting fresh, completely anew here in the Supreme Court process, or do you feel like you have a road map from -- of nominees and potential candidates from the Sotomayor hearings?
MR. GIBBS: Well, I think it’s safe to say that there are those that went through that process that were ultimately not selected that have gone through the full process of having been looked at by the President and his team. But I would strongly suggest that the notion somehow that this is a process that we are at right now where we are winnowing a list rather than expanding that list -- I would make sure that you understand that we’re in a process of expanding that list and giving the President as many options as he desires to make an important selection.
Q How involved is he personally at this point?
MR. GIBBS: Well, he has -- he obviously was focused most of the weekend on the Nuclear Security Summit, but obviously the team is in the process of, as I said, filling out information on an ever-expanding list of potential nominees.
Q Going to avoid a fight?
MR. GIBBS: I think the President will, as you heard him say in the Rose Garden, is going to pick somebody who is highly qualified. Whether or not we have entered a phase in our politics where a fight is -- on anybody can be avoided, I don’t know the answer to that, Helen.
Q Robert, can you respond to Neil Armstrong’s criticism of the administration’s plans for NASA? He read the new fact sheets that you guys put out and still has the same criticism, this idea that the space program is going to become mediocre.
MR. GIBBS: You know, I watched some of the reporting on this. I would say that, first and foremost, an independent commission has looked at NASA, at its budget, and at its programs, and found that they -- the programs were years behind schedule, massively over budget, that we weren’t going to meet the time frame of going to the moon under any circumstance. In fact, the commission itself found that the idea of going to the moon under the timetable prescribed was un-executable. That’s their word.
Q So why not fix that process, improve that, rather than scrub the program?
MR. GIBBS: Again, they -- again, Chuck, and I’m sure you all have dug into this and found that given the time frame and given the budget and given the ability to meet the goals that they laid out, again, the commission found that that was simply not attainable.
The President will outline a renewed strategy tomorrow in Florida that will provide more jobs for the area, greater investment in innovation, more astronaut time in space, more rockets launching sooner, and a more ambitious and sustainable space program for America’s future.
That’s why, again, there have been many, including Buzz Aldrin, who believe that what the President will outline represents our best opportunity and our best effort to get this agency and program back on pace to put astronauts and rockets into space, as the President so strongly desires.
Q That sounds like you take issue -- it sounds like you take issue with this -- the idea that jobs are going away. Because that’s what a lot of people in Florida -- Senator Bill Nelson is concerned about this -- that jobs are going away. You’re saying there are going to be additional jobs --
MR. GIBBS: There will be additional jobs. Again, remember --
Q -- there are going to be a bunch of jobs going away.
MR. GIBBS: Remember that there was a decision made in 2004 to retire the shuttle program. The deadline actually had been extended. But the plan that the President will outline actually would result in more jobs for the area than would have been had the plans simply been carried out. So I think that, again, the President will outline this in more specificity and detail tomorrow, but this is a sustainable investment in our continued returning to space.
Q But to Chuck’s point, won’t there still be jobs lost because of the programs that are being discontinued?
MR. GIBBS: Again, that was a decision made more than six years ago to discontinue the shuttle program.
Q But, Robert, on the same thing --
MR. GIBBS: Again, the President is going to get into this in great detail tomorrow.
Q But what response does he have to someone like Neil Armstrong, who has now been out --
MR. GIBBS: The same one I just gave to Chuck, based on --
Q What about the specific comment that America is giving up its leadership?
MR. GIBBS: Understand this. As I said, an independent commission was formulated to study where the program was, whether it was capable of fulfilling what it said it was going to do. The commission -- and, again, an independent commission -- came back and said that was un-executable, not going to happen. What the President has done is put in place something that is sustainable, that will return astronauts and rockets to space, increase our investment in cutting-edge research and innovation, and provide us the best opportunities.
Q But you’re changing from what -- he’s making changes from what he had earlier this year.
MR. GIBBS: He is.
Q And what caused that?
MR. GIBBS: Again, a strong desire to see our nation continue to lead the world in space exploration. But understand -- Major just asked the Secretary and myself about unsustainable budgets. No one has been immune to this. The President froze non-security defense -- non-security discretionary spending for a three-year period of time. We have lived for a long time beyond our means. So the original program, again, envisioned would not have been available to return to space until 2028 to 2030.
Q -- regards the space program, though, as part of the national security -- is a national security issue.
MR. GIBBS: Well, there are -- well, again, I think there are obvious and cutting-edge research and innovation investments that a whole host of people in this administration and out believe are tremendously important. That’s why the President’s renewed program protects that and, again, provides something that is sustainable. The program that had been in place, Chuck, was not going to -- just simply not going to happen.
Q Robert, on another topic, Supreme Court nominee real fast. The list that you’re talking about, the expanded list that you have today, what can you tell us about this list? What types of people are on it? Who are you getting recommendations from? And what --
MR. GIBBS: Everyone and everyone. (Laughter.)
Q Okay. And what recommendations are you really listening to? What organizations or departments are you listening to more so than any other on recommendations? And who is comprising this list?
MR. GIBBS: Well, obviously the Counsel’s Office, Bob Bauer is in charge of the process. The President will solicit recommendations and names from those on Capitol Hill, those that will be involved in the process. I don’t doubt that we’ll read many names that people are interested in seeing considered. This is a process that will take many weeks. I’m not going to from up here get into that name game.
Q But currently on the list -- women? Minorities? Men -- I mean, we know men probably. But women and -- (laughter.)
MR. GIBBS: I can say -- I can narrow it down to both men and women, yes.
Q No, but, I mean, minorities -- are there more minorities on the list?
MR. GIBBS: Again, April, I’m going to come out here many times in the next several weeks and I’m just not going to get into the name game. I think the President will have --
Q Not the names but who’s on the list, what kind of people are on the list.
MR. GIBBS: Not their names but who? (Laughter.) That’s a -- it’s a good try. It’s early in the process. I think you’ve got a chance to refine your question and try to slip it in, say, next Tuesday. No, again, I think the President will have a large, robust list with which to make a decision that will reflect a whole host of different attributes and backgrounds.
Q Robert, you said this is a process that will take many weeks. We’ve actually been hearing a nominee within several weeks. The President said he wanted to move quickly. So how many weeks?
MR. GIBBS: I don’t know -- I mean, I don’t -- I’m not going to -- I don't know the number; between “several” and “many.” If you want to substitute “several” for “many,” please note that the transcript will do that.
Q But Robert -- Robert --
Q Robert, just on space --
Q Robert -- Robert, right here --
MR. GIBBS: Is this just in my head or are you all saying my name? (Laughter.)
Major.
Q Okay. On Friday we were instructed that about 10 would be on the list of current potential nominees. Is this ever-expanding list far beyond 10? Will it be far beyond that in number?
MR. GIBBS: I am not going to get into the several or many names that will be on the list developed over the next several or many weeks.
Q Robert, let me ask you a foreign policy question because the Israeli government yesterday contended that Syria is sending long-range Scud missiles into Lebanon into the hands of Hezbollah, a game-changing -- in their words -- military maneuver that they’ve found extremely destabilizing to the region. U.S. officials expressed some other similar concern. Give me the administration’s evaluation of that. And in the context of what some have described as a rough patch in U.S.-Israeli relations, how does this fit?
MR. GIBBS: Well, as I have said many times up here, we are -- we have an unbreakable bond with the Israeli people --
Q Even when they’re wrong?
MR. GIBBS: -- and in ensuring their security. We are obviously increasingly concerned about the sophisticated weaponry that is allegedly being transferred. We have expressed our concerns to those governments and believe that steps should be taken to reduce any risk and any danger of anything from happening.
Q How has that message been sent and what does this do to the administration’s attempt to engage the Syrians in this more complex discussion about Middle East peace?
MR. GIBBS: Well, again, we have relayed our concerns.
Q At the highest level?
MR. GIBBS: We have.
Q At the highest level?
MR. GIBBS: Yes. And again, obviously this is a -- you heard the President speak yesterday about Middle East peace, his desire to have this nation remain focused on that goal. The potential destabilizing effect, the alarming effect that this has, we’ve expressed our great concern about that.
Thanks, guys.
Q Thank you, Robert.
END
2:22 P.M. EDT
Categories: Economy, Office of the Press Secretary, Press Briefings Tags:
Readout by Press Secretary Robert Gibbs on the President’s Bipartisan Meeting on Financial Reform
The President reiterated his belief that we are open to ideas and eager to work with anyone who is willing to work with us regardless of party. He also made clear that bipartisanship should not be equated with an openness to lobbyists loopholes and special interest carve outs and that he would be unwilling to negotiate on some key issues. And that he could not accept bad policy in pursuit of bipartisanship.
He specifically pushed attendees on derivatives and the recent effort by the financial industry to pressure the Senate to weaken oversight over the same financial products that led to the near collapse of AIG warning that the problems of the future will rest on the steps we take to address derivatives now. He reminded attendees that we proposed a bill almost a year ago and almost two years have passed since the financial industry nearly hit rock bottom, and that Wall Street accountability is long overdue.
In addition, he reaffirmed his belief that we must end taxpayer bailouts, end “Too Big To Fail” and that he would not accept a bill that did not pass that test. Finally he talked about the need for consumer protections and his insistence that the final bill include real independence reminding attendees that a bill that was good for powerful insiders, but not for everyday people is not what the American people deserve.
As he has with other opponents of reform, the President also encouraged attendees to stop the campaign of misinformation being run by financial industry lobbyists and representatives of trade groups. He asked both parties to work together and reminded them that the American people have been through enough—that they deserve quick action on real reform.
The President also reiterated the importance of moving forward on additional assistance for small businesses. Finally, he provided copies of the CEA quarterly report on the American Recovery and Reinvestment Act and encouraged those in the room who opposed the Recovery Act to review the findings that it is responsible for approximately 2.5 million jobs through the end of March of this year, putting the Recovery Act on track to save or create 3.5 million jobs by the end of this year.
Categories: Economy, Office of the Press Secretary, Statements and Releases Tags:
Remarks by the President before Meeting with Bipartisan Congressional Leadership to Discuss Financial Reform
10:53 A.M. EDT
THE PRESIDENT: All right. Hello, everybody. I want to welcome congressional leaders to one of our periodic meetings where, obviously, it’s the beginning of a lengthy work period coming off a very tough work period.
One of the things that we’re going to be talking about is the economy. I'm going to be presenting to them the latest report from the Council of Economic Advisers on the impact of the Recovery Act. What we’re seeing I think is some significant improvement in the economy and stabilization. But, obviously, everybody here -- Republican and Democrat -- recognizes we’ve still got work to do; that there are too many people who are still unemployed, the housing market is still very soft, too many small businesses who aren’t getting credit. And so we’re going to spend some time exploring how can we build on the progress that has been made to make sure that ordinary Americans are seeing improvements in their own lives.
I'm also going to be interested in talking to them about our ability to move quickly on a financial regulatory reform package. I think all of us recognize that we cannot have a circumstance in which a meltdown in the financial sector once again puts the entire economy in peril, and that if there’s one lesson that we’ve learned it’s that an unfettered market where people are taking huge risks and expecting taxpayers to bail them out when things go sour is simply not acceptable.
As a consequence, I am actually confident that we can work out an effective bipartisan package that assures that we never have “too big to fail” again; that consumers are adequately protected when it comes to financial instruments -- whether it’s mortgages or credit cards or debit cards; that we have a strong mechanism to regulate derivatives, something that we have not had, a derivatives market that is in the shadow economy but is enormously powerful, enormously risky -- we want to get that into daylight so that regulators and ordinary Americans know what’s going on when it comes to this huge segment of the financial system.
And I am confident that if we work together diligently over the next several weeks that we can come up with a package that serves the American people well and does not put Americans ever again in a position where they’re having to choose between a terrible economic situation or rewarding people for failed policies and bad risk-taking. And so that's going to be a top priority of this meeting.
Finally, we’ve got a range of issues -- from a Supreme Court vacancy, a START treaty that I believe needs to be ratified, a host of other issues related to appointments -- that we’re going to talk about and I'm going to be also obviously listening to congressional leaders about their priorities over the next several months.
So I very much appreciate them taking the time to come and I'm hopeful that this will not only be a productive meeting, but we will see a productive session over the next several weeks.
All right. Thank you, everyone.
Q Is the bailout bill -- is this a bailout bill as Senator McConnell says?
THE PRESIDENT: Well, I am absolutely confident that the bill that emerges is going to be a bill that prevents bailouts. That's the goal. All right.
END
10:57 A.M. EDT
Categories: Economy, Office of the Press Secretary, Speeches and Remarks, The President Tags:
New CEA Report Finds Recovery Act Already Responsible for about 2.5 Million Jobs
Analysis Shows Half of Those Jobs As a Result of Recovery Act Tax Relief and Financial Assistance for Families
WASHINGTON, DC – A new report released today by the Council of Economic Advisers (CEA) finds that the Recovery Act was responsible for 2.2 to 2.8 million jobs through the first quarter of 2010 – half of which are as a result of the over $200 billion in Recovery Act tax relief and financial assistance that has gone directly to mostly lower and middle-income families. The report, which is the CEA’s third quarterly analysis on the economic impact of the Recovery Act, shows that Recovery Act tax relief and income supports have had an important impact on real disposable personal income in the last year and are contributing to the program being on-track to create or save 3.5 million jobs by the end of 2010. The report can be viewed in-full HERE.
“Bolstering the purchasing power of middle class families through Recovery Act tax relief and financial assistance hasn’t just helped the hardest-hit among us – it’s also created over 1 million good American jobs,” said Vice President Joe Biden. “From tax cuts to construction projects, the Recovery Act is firing on all cylinders when it comes to creating jobs and putting Americans back to work.”
“In addition to shoring up the overall economy, this analysis shows the ways in which the Recovery Act has made a real difference in the lives of families,” said CEA Chair Christina Romer. “The broad set of tax cuts and income supports enacted last year have clearly boosted consumption and employment growth in a way that has been absolutely essential.”
More than $110 billion in tax relief and $90 billion in other income supports such as unemployment benefits and food assistance were provided directly to individuals and families through March of 2010. According to the report, without these provisions, household real disposable (or after-tax) income would have fallen substantially in 2009 and consumer spending would not have rebounded as it did. Instead, income in each of the last three quarters of 2009 actually surpassed its level in the fourth quarter of 2008 and the surge in Recovery Act tax relief this tax season is expected to yield the largest Recovery Act impact on household disposable income yet in the first quarter of 2010.
The report comes at the peak of tax season as American taxpayers are filing to collect on more than a dozen new or expanded tax benefits available this year through the Recovery Act, including an $8,000 First-Time Homebuyer Credit, an up to $2,500 American Opportunity Credit for college expenses and up to $1,500 in Residential Energy Credits for some energy-efficient home improvements. In addition, ninety-five percent of working families are also collecting the up to $800 Making Work Pay tax credit in their paychecks – making it one of the broadest middle class tax cuts in the history of the country. At the time of the report, millions of Americans had not yet filed their 2009 taxes, indicating an additional economic and employment impact of Recovery Act tax relief is likely in early April as the tax filing deadline approaches.
The White House recently launched the Tax Savings Tool on WhiteHouse.gov to help taxpayers see for themselves what Recovery Act tax benefits they are owed this year – and how to collect them. So far, more than 120,000 Americans have already accessed the Tool to generate a customized checklist of the benefits for which they are likely eligible.
The Recovery Act was signed into law by President Obama on February 17, 2009. The program is a combination of tax relief, financial assistance and infrastructure projects designed to cushion the impact of the downturn and lay a foundation for economic recovery. Since the Recovery Act began a little over a year ago, the economy has posted its largest quarterly GDP growth in six years and largest monthly job gains in three years. So far, $525 billion in Recovery Act funds have been obligated, or committed to specific projects, and, of that, $370 billion has been paid out.
Categories: Economy, Office of the Press Secretary, Statements and Releases Tags:
Vice President Biden Hosts Conference Call with Governors to Discuss Recovery Act Implementation
Earlier today, the Vice President hosted a conference call with Governors from across the country to discuss implementation of the American Recovery and Reinvestment Act.
The following elected officials participated:
Governor Chet Culver (D-Iowa) Governor Jay Nixon (D-Missouri) Governor Sean Parnell (R-Alaska) Governor David Paterson (D-New York)
Categories: Economy, Office of the Vice President, Statements and Releases, The Vice President Tags: