Angry taxpayers burn bank execs in effigy, demand end to using bailout dollars to fight bank reform

Remember those summer protests against healthcare reform, when angry conservatives overwhelmed congressional town hall meetings with accusations that President Obama was a closet socialist?

Well, apparently the Right does not have a lock on voter rage.

Today, for the third day in a row, taxpayers, mobilized against the big banks for taking $17.8 trillion in government bailout money and then using some of it to lobby against reforms, are gathering at the American Bankers Assn.'s annual meeting in Chicago.

True, these are organized protests, spearheaded by the Service Employees International Union and other advocacy groups that support the White House effort to enact reforms.

Still, the protesters are making a splash. Yesterday they took over the lobby of Goldman Sachs headquarters in the Windy City, demanding the dismantling of banks deemed "too big to fail."

And Illinois Sen. Dick Durbin joined the protests, urging voters "to push back" against the business lobby's efforts to fight financial reform.

Inside the Sheraton Chicago Hotel & Towers, industry officials defended their practices. "You did not make any abusive subprime loans; you did not take big bonuses for products that later blew up," ABA President Edward Yingling said during his opening remarks, blaming a few bad apples for last fall's financial collapse. "We can never again let bad actors and bad policies create a financial disaster."

-- Johanna Neuman

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Photo: Reuters

What Obama's trying (Applause) to tell union folks these days (Applause)

After narrowly escaping a roundtable discussion with workers in Ohio today, President Obama flew into Pittsburgh to address the AFL-CIO convention.

And he turned it into something of a pep rally. Or a coach's halftime locker room talk without the garbage can kicking. Obama needed 10 thank you's just to quiet the crowd before he said a word. He claimed to be blushing. Think they like him?

We said Tuesday morning the president was returning to the campaign trail and, boy, did he ever in Pittsburgh. You'd have thought the election was tomorrow and Obama was delivering the gospel.

The president recalled the bad economic times of last winter, as if they're over. He mentioned a huge federal deficit he inherited. He hailed the economic stimulus package that his administration wanted and obedient Democrats pushed through Congress and assured everyone it "didn't include any of the usual Washington earmarks or pork-barrel spending." A remarkable claim.

The president said he's stopped the country's "economic freefall." He said he would not allow the United States to return "to the culture of irresponsibility and greed" of recent years. He made his now familiar healthcare argument with the requisite sad worker story. He said the fundamental issue facing the country was whether it would become a nation of rich haves and middle class have-nots.

That he would not only save millions of jobs but create millions of new ones. And better educate all the children for the future. And free the nation from dependence on foreign oil. And create a new green industrial base.

Obama said his healthcare reforms were essential for America's future, urged the union members to make phone calls and knock on doors in support.

"We can't wait! We can't wait!" they chanted.

Yes, there was one heckler. But it wasn't about lying this time. "I love you!" they screamed. Obama returned the sentiment.

"Arm in arm," the president told the team, uh, audience, "we are going to get this done."

Once he had them fired up, Obama asked the crowd if it was fired up?

The audience replied in the affirmative. You can read it all below. And here's another Ticket item on the president's day in Pennsylvania.

-- Andrew Malcolm

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Remarks by President Obama at the AFL-CIO convention, as provided by the White House

THE PRESIDENT: Thank you. Thank you, AFL-CIO. Thank you. Thank you very much. Thank you so much.  Please, everybody have a seat.  Thank you. Thank you, guys. Thank you very much, everybody.  All right, you guys are making me blush. Thank you.

AUDIENCE:  Obama!  Obama!  Obama!  (Applause.)

THE PRESIDENT: Thank you so much, everybody. You know, I tell you what, the White House is pretty nice, but there's nothing like being back in the House of Labor. (Applause.) Let me begin by recognizing a man who came to Washington to fight for the working men and women of Pennsylvania and who has a distinguished record of doing just that, Arlen Specter. (Applause.)

I want to give my thanks and the thanks of our nation to one of the great labor leaders of our time, a man whose entire life has been devoted to working people, who brought new life to a movement, who worked tirelessly on behalf of organized workers, and who will be stepping down tomorrow, your President, John Sweeney. (Applause.)  John, I know that Maureen is looking forward to seeing a little more of you, and your granddaughter Kennedy is about to get a whole lot more spoiled by her grandpa. But we are so proud of the work that you've done, and grateful for your lifetime of service.

I know it's bad luck to congratulate somebody before they are officially elected, but I'm going to....

Obama promises Government Motors won't run General Motors (full text)

President Obama today made it official. The U.S. government will infuse another $30 billion into GM, the fabled American auto manufacturer that makes Buicks, Cadillacs, Chevrolets and Hummers, and which filed a massive bankruptcy petition today.

With the U.S. government now owning at least 60% of General Motors, many are labeling the company Government Motors.

But Obama said taxpayers are "reluctant shareholders," and that GM executives, not the government, "will call the shots." Which is a relief to anyone who wants to buy a racy Corvette and doesn't want some Washington bureaucrat picking out the color.

Still, the government ownership comes with a lot of strings -- incentives for energy-efficient cars that so far have not wowed consumers, pay cuts for union workers and the like.

The political upside for Obama: if the deal works, putting GM back on its feet within a few years, he will be a hero to the American voters, especially in the battleground Midwest, whose jobs often revolve around the manufacturing sector. If it doesn't, look for Republicans to decry the Obama takeover of private industry and its disastrous impact on a private sector economy.

For his part, Obama seemed sanguine about his course. "What is good for General Motors and all who work there," he said, "is good for United States of America."

For more details, check out the White House fact sheet below, and the text of the president's remarks this morning.

-- Johanna Neuman

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Photo credit: General Motors

Michigan mayor's auto aid plan: Buy Michigan-made or you're fired

You’ve got to admire James Fouts and his eagerness to start a courtroom brawl.

The mayor of Warren, Mich., has issued an executive order requiring that all political appointees drive an American-made car. For those who now drive a Honda or a Lexus? Get shopping.

According to Fouts, they have to guarantee that their next car purchase will be a vehicle made by General Motors, Chrysler or Ford.

To those who don’t want to make the switch?

“They can find another place to work,” Fouts said.

Seem harsh? Consider this: GM and Chrysler are the town’s No. 1 and 2 employers, respectively.

Tax revenues generated by the two carmakers account for 15% of the city’s $98-million annual budget, and one-third of the Detroit suburb’s 138,000 residents rely on the auto industry for their livelihood.

That’s a lot of folks.

When someone dared to point out that Honda and Toyota make many cars in the U.S. with U.S. workers, Fouts shrugged. 

“People understand," he said adamantly, "their salaries are dependent upon whether Chrysler and General Motors succeed, or whether they go out of business.”

Fouts himself drives a new, midnight-black Dodge Charger, which he sheepishly admitted to getting pulled over for speeding in it a while back.

And he is determined that, someday soon, all city workers will join him in driving vehicles made by one of the Big Three. Teachers. Janitors. Sewer crews. Anyone pulling a paycheck from the city.

It’s become a point of contention these days, as Fouts and city officials are proposing the requirement as they negotiate contracts with the local labor unions. Given Chrysler’s recent bankruptcy filing, and GM facing a June 1 deadline to come up with a viable plan to avoid a similar fate, it’s possible that Fouts’ wistful proviso might actually get some traction.

There's more about how the community’s wrestling with the Chrysler bankruptcy over here.

-- P.J. Huffstetter

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Photo: Warren, Mich., Mayor James Fouts. Credit: Associated Press

Obama predicts a Chrysler comeback, slams hedge fund holdouts

Standing in front of his auto task force in the Grand Foyer of the White House, President Obama today announced the Chapter 11 bankruptcy filing for Chrysler, the once proud member in good standing of America's Big Three automakers.

The last time a major American car company sought bankruptcy protection (cue the music, Alex)? Studebaker. In 1933. As in the Great Depression. Studebaker managed to come back, producing wagons and other car engines into the 1950s.

Obama said all the right things in hopes that Chrysler will come back too.

He said he has "every confidence that Chrysler will emerge from this process stronger and more competitive."

Obama thinks the new partnership with Fiat "will give Chrysler a chance not only to survive, but to thrive in a global auto industry." 

He lauded the company's management and the United Automobile Workers, for making concessions. He even praised J.P. Morgan and other financial firms that "agreed to reduce their debt to less than one-third of its face value to help free Chrysler from its crushing obligations" and German automaker, Daimler, for agreeing to give up its stake.

Then he slammed unnamed hedge funds that rejected the government’s settlement offer in hopes of getting a taxpayer-funded bailout. "They were hoping that everybody else would make sacrifices, and they would have to make none," he said. "Some demanded twice the return that other lenders were getting."

Then, with pointed anger, the president added:

I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars. I don't stand with those who held out when everybody else is making sacrifices. 

 No names were mentioned but you can read his full statement below.

-- Johanna Neuman

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Photo: Agence France-Presse

Obama takes the wheel from Detroit -- speech transcript here

The Obama administration is offering Detroit a lot of tough love today.

Unhappy with GM's restructuring plan, Obama's auto industry task force pulled the plug on CEO Rick Wagoner over the weekend and gave GM two more months to improve its restructuring plan and shed some of its unpopular models. Convinced that Chrysler was not viable as a stand-alone company, the task force also gave the smallest of the Big Three one more month to do a deal with Fiat. If it succeeds, the company would get $6 billion in new U.S. money. If not, we could be looking at the Big Two. Or maybe that should be the Once-Big Two. Finally, Team Obama suggested a "quick rinse" for the two companies through the bankruptcy courts to streamline their operations.

The Wall Street Journal worried this morning that the tough medicine toward Detroit could pressure the administration to crack down harder on Wall Street.

Michigan Democrat Gov. Jennifer Granholm, on MSNBC's Morning Joe, called Wagoner "a sacrificial lamb."

And Michigan Republican Thaddeus McCotter wondered why the White House has not taken similar moves against companies such as Citigroup, which has received three government rescues since October that could leave U.S. taxpayers owning 36% of company stock. In a statement, McCotter asked:

When will the Wall Street CEOs receiving funds summon the honor to resign? Will this White House ever bother to raise the issue? I doubt it.

In remarks today, President Obama made clear he will not abandon the auto industry.

We cannot, we must not, and we will not let our auto industry simply vanish. This industry is, like no other, an emblem of the American spirit; a once and future symbol of America’s success. It is what helped build the middle class and sustained it throughout the 20th century. It is a source of deep pride for the generations of American workers whose hard work and imagination led to some of the finest cars the world has ever known. It is a pillar of our economy that has held up the dreams of millions of our people.

But noting that the restructuring plans that GM and Chrysler came up with fell short of the mark, Obama added: "We also cannot continue to excuse poor decisions. And we cannot make the survival of our auto industry dependent on an unending flow of tax dollars. These companies –- and this industry –- must ultimately stand on their own, not as wards of the state."

And, he added, "Our auto industry is not moving in the right direction fast enough to succeed."

Read the full transcript below.

-- Johanna Neuman

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Photo illustration: ABC News

Surprising poll also shows what's not on Americans' minds

It seems like new polls come out daily, focusing on President Obama (he's very popular, he's average popular, he's slipped a little) and on the economy, which is issue No. 1 these days. Last spring it was rising (gas) prices.

Not surprisingly, given the job losses, the 8.1% unemployment rate, the fear of job losses and the president's recent rhetorical agenda, the economy remains primary on the American mind. This week's CNN/Opinion Research Poll found the economy was by far the top concern of Americans, at 63%.

What gets less news coverage, however, is what Americans are not thinking about. What's not worrying them?

The topics might surprise you. According to the same CNN/ORC Poll of 1,019 adults between March 12 and 15, Americans are currently the most unconcerned about energy -- only 2%. The second least thing on their minds is a tie at 5% between terrorism and education, despite Obama's much-touted recent education reform announcement.

Of course, an unexplained car bomb in Baltimore could radically change that terrorism number in a few hours.

Close by are two other topics that once were Topic One: The wars in Iraq and Afghanistan, with only 6% concerned about them.

The next least important reported concern for Americans is the federal deficit at 8%, followed closely by healthcare, which the president wants to spend hundreds of billions of dollars reforming. Yet it's of concern to only 9% of this survey, barely a fraction of the 63% concerned over the economy. If such numbers endure, they could make the president's legislative sales job more difficult.

-- Andrew Malcolm

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Gov. Schwarzenegger sets special elections for 32nd District

The downside for Democrats to their electoral successes of last Nov. 4, especially including the election of President Barack Obama, is the decimation of elected Democratic ranks in many places across the country.

The 44th president takes, among others, Arizona's governor for Homeland Security and Kansas' governor for Health and Human Services, as our veteran colleague Mark Z. Barabak recently pointed out here.

And Rep. Hilda Solis, a staunch loyalist of House Speaker Nancy Pelosi, as his secretary of Labor. Solis was another Obama Cabinet nominee with tax problems -- her husband's. But they're paid up and she's sworn in now.

And Tuesday, California's Republican Gov. Arnold Schwarzenegger set May 19 as the primary date for a special July 14 election to fill Solis' seat in the 32nd District, which is that huge chunk of land east of downtown L.A., including Azusa, El Monte, Monterey Park, Baldwin Park, Rosemead, Covina and the West Covina too.

A copy of the governor's official detailed proclamation is published below.

-- Andrew Malcolm

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Photo: Ron Edmonds / Associated Press

Here comes card-check/EFCA: Another bipartisan bridge to nowhere

Big day today for heated controversy in D.C. Maybe you felt the heat on the side of your face facing East. And it's not going away for many months. Count on it.

Democrats, now obviously controlling Capitol Hill and the White House, introduced a long-promised, eagerly anticipated, much-dreaded, surely divisive, middle-class-encouraging, job-threatening piece of legislation in both houses to change the way American workers can opt for or against union representation at the plant.

Democrats call it the Employee Free Choice Act (EFCA; store that one in your cranial RAM as you'll hear it often). Republicans and employers call it "card check." (Ditto.) Right now, in a vote to decide whether a plant will have a union, workers have the right to a secret ballot. (See amazing Teamsters news release below.) The unions and their supporters want a simple nonsecret card where workers could check "yes" or "no," likely in the presence of a persuasive union official.

Unions claim elections are costly and time-consuming, allowing employers to make a case against voting yes. Employers say two union officials showing up at a worker's door, asking him to....

Text of VP Biden's once-top-secret union speech (except still no cameras)

Vice President Joe Biden, who's been touting the Obama administration's commitment to government transparency so much that he couldn't remember the recovery.gov website name last week, gave a speech to the AFL-CIO's Executive Council today where few working people can afford to go -- the newly-redecorated Fontainebleu Hotel in Miami Beach. (Discount rooms available now online for $399 -- each night.)

And the vice president's appearance brought a whole new level of opacity to transparency.

The vice president's remarks were originally closed to all media. Outcry. According to some sources, the VP's office felt the pressure and agreed to allow a pool of print reporters and the usual White House transcript. But still no cameras for a replayable video record of remarks to one of the administration's largest group of supporters who want the card-check legislation passed (suspending secret ballots on union affiliations).

Then the questions, stoked as always by idle, bored reporters barred from the scene. Whose idea was the closed session? The union said the VP. The VP said the union. The union then said it was a joint decision. Play it safe.

Here's a Biden quote: "Mr. President, you know, you go home with them that brung you to the dance. Well, you all brought me to the dance a long time ago. And it's time we start dancing, man. It's time we start dancing. (Applause.)"

So you can easily understand why the Democratic administration would want to keep such hugely embarrassing comments secret. Say what?

That (Applause.) line appears at the end of many, many paragraphs. They love the guy, according to the transcript, which we're publishing below in its entirety. How embarrassing for a new Democratic presidency to be seen as popular among labor leaders.

This is the transcript that nobody would have given a fig about. Except the Triple-A league move of a rookie White House. Even the most scatter-brained teenager quickly figures out, it's the closed room door that makes parents most want to enter.

-- Andrew Malcolm

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Photo: Fontainebleau Hotel