The Michigan Daily - michigandaily:cam Tuesday, November 11, 2008 - 3A The Michigan Daily - michigandailycom Tuesday, November11, 2008 - 3A NEWS BRIEFS WASILLA, Alaska Pali blames Bush policies for GOP defeat Alaska Gov. Sarah Palin, amid speculation she'll run for presi- dent in four years, blamed Bush administration policies for the defeat last week of the GOP ticket and prayed she wouldn't miss "an open door" for her next political opportunity. "I'm like, OK, God, if there is an open door for me somewhere, this is what I always pray, I'm like, don't let me miss the open door," Palin said in an interview with Fox News on Monday. "And if there is an open door in '12 or four years later, and if it is something that is going to be good for my fam- ily, for my state, for my nation, an opportunity for me, then I'll plow through that door." In a wide-ranging interview with Fox's Greta Van Susteren, Palin says she neither wanted nor asked for the $150,000-plus ward- robe the Republican Party bank- rolled, and thought the issue was an odd one at the end of the cam- paign, considering "what is going on in the world today." WASHINGTON Obama plans U.S. terror trials to replace Guantanamo President-elect Obama's advis- ers are crafting plans to close the Guantanamo Bay prison and pros- ecute terrorism suspects in the U.S., a plan the Bush administra- tion said yesterday was easier said than done. Under the plan being crafted in- side Obama's camp, some detain- ees would be released and others would be charged in U.S. courts, where they would receive con- stitutional rights and open trials. But, underscoring the difficult de- cisions Obama must make to fulfill his pledge of shutting down Guan- tanamo, the plan could require the creation of a new legal system to handle the classified information inherent in some of the most sen- sitive cases. Many of the about 250 Guan- tanamo detainees are cleared for release, but the Bush administra- tion has not able been to find a country willing to take them. Advisers participating directly in the planning spoke on condition of anonymity because the plans aren't final. WASHINGTON Sen. Feinstein: Don't scalp Obama inauguration tickets The senator overseeing Barack Obama's swearing-in ceremony said yesterday she's writing to Internet sites like eBay asking them not to sell scalped inaugura- tion tickets. Sen. Dianne Feinstein, D-Calif., lso said she's crafting a bill that would make a federal crime of selling tickets to the historic event Jan. 20. Feinstein, who chairs the Joint Congressional Committee on Inau- gural Ceremonies, said she fore- sees overwhelming demand for the 240,000 available tickets and has heard reports they may be sold for as much as $40,000 online. The tickets are supposed to be free to the public and distributed through congressional offices. Lawmakers' offices won't get the tickets until shortly before the inauguration, to try to prevent scalping. In-person pickup will be tequired. BOSTON Amid economic turmoil, Harvard to cut spending Harvard University is consid- eting .spending cuts because the economic slowdown may reduce federal grants and the school's substantial endowment, President Drew Faust said Monday. Harvard's endowment posted an 8.6 percent return and grew to $36.9 billion in the fiscal year that ended June 30. The school, how- ever, lost 12.7 percent on its U.S. tock portfolio and 12.1 percent on its foreign equity portfolio during that time. Faust's spokesman on Monday declined to say much the endowment has lost during the current economic turmoil. - Compiled from Daily wire reports Bush, Obama meet at White Fed's bailout for AIG House to prep for transition swells beyond $150B Bush, Obama families meet for first time WASHINGTON (AP) - All smiles and compliments, Pres- ident-elect Obama and his wife, Michelle, called on President Bush and first lady Laura Bush yesterday in a White House visit that was part political ritual, part practical introduction and a striking symbol of the historic transfer of power to come. The president and Obama talk- ed war and financial crisis. Laura Bush and Michelle Obama talked about raising daughters in the nation's most famous house. Then Obama flew back to Chi- cago to work on setting up the new administration that will take over on Jan. 20. Mrs. Obama went out hunting a new school for the kids, visiting two ofthecapitalcity'sbest-known private schools. If first impressions matter, Obama and his wife displayed one similarity to the super-punctual Bushes, pulling up to the White House's South Portico 11 minutes early. The couples traded warm and easy greetings in the crisp autumn sunshine, with the wives exchanging pleasantries about the fall hues each wore - Mrs. Bush in a brown dress and Mrs. Obama in a red one. While Obama and Bush, in busi- ness suits, proceeded waving and smiling down the White House Colonnade for nearly two hours of private talks, Mrs. Obama and Mrs. Bush had their own agenda: talk of raising children in most unusual circumstances. Mrs. Bush conducted a tour of the living quar- ters of the historic mansion and made introductions to the army of residence staff who look after first families. Michelle Obama had toured the White House before with daugh- ters Malia, who is 10, and Sasha, who is 7. But the two women had never met. The 43rd president and the man who will be the 44th - and first black - commander in chief met alone in the Oval office, with no handlers or staff. It was Obama's first time in the storied work- space, even though he had been to the White House previously for events. Neither the Bushes nor the Obamas spoke to reporters, and details about their meetings were few. Obamaspokesman Robert Gibbs said the two men "talked exten- sively" about the economic situa- tion and foreign policy. "Obviously the topics that came up are what you've seen and heard about in the news recently and about what a number of transition officials spoke about on the Sunday (TV talk) shows," he said. Topics included "the need to get the economy back on track," Gibbs said, and "what's going on in the auto industry." The discussion on the auto industry wasn't limited to just one of the nation's three larg- est car makers, he said. "It was a discussion about the broad health of the industry, and they also spoke about the housing industry and foreclosures." As for Obama's first glimpse of the Oval Office: "He said it was a very, very nice office," Gibbs said. White House press secre- tary Dana Perino said that Bush described the meeting as "con- structive, relaxed and friendly," covering problems at home and abroad, and that he personally pledged a smooth transition. Bush gave Obama a sneak peek at White House highlights, such as the Lin- coln Bedroom and the president's office in the residence, after their hour-plus in the Oval Office. Such White House meetings have a history going back decades. President-elect Barack Obama and President George W. Bush met at the White House for the first time yesterday. They are discussions that can range wherever the two men choose, whether focused on spe- cific issues, how best to make deci- sions, the extraordinary resources that accompany any American president, the special weight of the office or even the secrets about the building that few people are privy to. It's also a chance to establish personal rapport between near- strangers, though that is by no means guaranteed. Michelle Obama arrived in Washington before her husband and stayed awhile after left, check- ing out schools. In the morning, she visited Georgetown Day School. Then in the late afternoon she toured Sidwell Friends School, which Chelsea Clinton attended when her parents were in the White House. The Obamas' children now attenda private school in Chicago.. At the White House, while Bush and Obama talked, parallel confabs went on all around the building. Bush chief of staff Josh Bolten and Obama transition manager John Podesta, himself a former White House chief of staff under President Clinton, held their own talks after standing off to the side togetherinthe Rose Gardenwatch- ing their bosses walk by. Obama's likely White House press secre- tary, Gibbs, got a glimpse of the West Wing digs he probably will occupy - including a fancy bank of television screens on one wall. Outside, crowds built through- out the day with people pressing their noses through the fencing around the White House complex in hopes of getting a glimpse of the first family to be. Street vendors operating nearby were already stocked with Obama-related mer- chandise. Obama traveled the streets of Washington and up the White House drive in a motorcade upgraded from campaign mode to full-blown presidential level. There were the two identicalblack, heavily armored limousines - one a decoy - like those Bush rides in, only without the seal or flying flags. There was also a hazardous materials truck, a communications vehicle and an ominous-looking, armed-to-the-teeth counterassault team filling the seats of an open- windowed Suburban. Obama's staff, most in suits, remarked they had needed to buy "grown-up clothes" that better befitted a White House visit than the smart casual look they had adopted for the campaign plane. Even the entourage's ever-cheer- ful luggage handler donned a coat and tie for the day, though he didn't come along to the White House. And there was one small but unmistakable sign that it will be Obama who will be in charge before too long: He put his left hand on Bush's back as they went inside the building from Obama's motorcade, as if he was guiding the president into his own house. Later, as he sat on his plane wait- ing for takeoff, he was heard to say into his cell phone: "I'm not going to be spending too much time in Washington over the next several weeks." These White House sessions hare designed to putthe presidency above politics, temporarily at least. This year's took place less than a week after Election Day, giving less time than usual for raw campaign words to fade. But both Bush and Obama have set a tone of graciousness and cooperation that has surprised - and pleased - many observers. Obamahas shownno inclination for gloating. And Bush has been notably generous in his comments since the election. On a practical - and sober - level, Obama is taking office with the economy in deep turmoil and two wars that are far from won, among other problems. Comity aside, there are plenty of tension points. Bushand Obamamet asthe main transition news of the day was the Democratic team's preparations to rescind many of the incumbent's executive orders. Podesta said Obama's aides were poring over all of them and will make such rever- sals among the new president's first acts. "We need to get off the course that the Bush administration has set," Podesta said, delivering a con- crete rebuke of Bush only about 24 hours before the two men sat down together. Obama spokeswoman Stepha- nie Cutter said in a statement that Obama "will honor the com- mitment he made during the campaign to review all execu- tive orders, but this process has not yet begun and no decisions have been made. The President- elect has pledged to run an open and inclusive government, so before he makes any decisions on potential executive or legisla- tive actions, he will be conferring with congressional leaders on both sides of the aisle, as well as interested groups." AIG lost $24.5 billion in third quarter WASHINGTON (AP) - When the government offered an emer- gency. loan to insurer American International Group in September, eyebrows shot up at the $85 billion price tag. Now it looks like pocket change. The size of the AIG lifeline swelled to more than $150 bil- lion on Monday, a record for a private company. But the head of the broader financial rescue pack- age was cool to other companies reaching for a piece of the bailout pie. The new AIG package includes a $40 billion chunk of the $700 bil- lion financial bailout. It's the first time money from the big rescue bill has goneto any company other than a bank. General Motors, Ford and Chrysler, burning through cash and bleeding jobs, are prodding the government for more help. The leaders of the House and Senate have urged Treasury Secretary Henry Paulson to get some of the $700 billion to the Big Three. The automakers, covering all their options, are also pushing to get help as part of a new, multi- billion-dollar stimulus package for the economy if Democrats push it through Congress when a lame-duck session convenes next week. President-elect Barack Obama has said his transition team would explore options to provide relief to the auto industry, and President Bush's press secretary said Mon- day the White House would "lis- ten to" Congress if they try to help automakers. Any money would be on top of the $25 billion in loans that Con- gress passed in September to help retool auto plants to build more fuel-efficient vehicles. NeelKashkari, the interim head of the $700 billion bailout pro- gram, was cool to the idea of fun- neling the money to companies beyond banks and AIG. "This morning's action with AIG was a one-off event necessary for financial stability. It is not the establishrant of a new program" he said at a financial conference in New York. In a separate development late Monday, the Fed granted the request of credit card company American Express Co. to become a bank holding company. Although the new status will subject the company to greater regulatory scrutiny, American Express will also gain access to the Fed's emergency lending program. The company, which last month announced plans to slash its global work force, has been hard hit by the credit crisis as even the more affluent consumers the company caters to struggle to pay off their debts. The original Fed loan to AIG was $85 billion, and the Fed added a $38 billion loan in October. But that has not been enough to firm up the company, which is so big and interconnected to other firms that its failure would devastate the economy. Under the new plan, the Fed will provide $60 billion in loans. The Treasury will provide $40Obil- lion to buyup preferred stock. And the government will spend close to $53 billion to buy up mort- 'gage-backed assets and other AIG contracts on debt. Total package: $153 billion. And AIG has also taken advantage of a federal plan to buy up short-term debt routinely issued by compa- nies, known as commercial paper. The $40 billion going to AIG will buy preferred shares of com- pany stock, giving taxpayers an ownership stake. In turn, restric- tions will be placed on executive pay at the firm. The Fed stepped in with an $85 billion loan in September because the company is so big - linked to mutual funds and retirement products held by millions of Americans, not to mention ties to U.S. mortgages - that its fail- ure would have devastated the economy. "The bailout continues, and essentially exemplifies the notion of 'too big to fail,' said Anthony Sabino, a professor of law and business at St. John's University. "But the question must be asked: Where does it end?" AIG also came under fire for spending hundreds of thou- sands of dollars on a California retreat just days after the Fed loan was announced in Septem- ber. In other bailout news Mon- day, mortgage finance company Fannie Mae said it may have to tap a $100 billion government lifeline as early as next year after posting a massive third- quarter loss. Fannie Mae, seized by federal regulators more than two months ago, posted a staggering loss of $13 per share for the July-to-Septem- ber quarter, compared with a loss $1.56 a share, for the same period last year. The company's net worth - what it owns minus what it owes - fell to $9.4 billion at the end of September, from $44.1 billion at the end of last year. If that number turns nega- tive, Fannie Mae said it would be required to tap Treasury for help. The new package for AIG was unveiled as the insurer issued new, bleak quarterly results. It lost $24.5 billion in the third quarter after turning a $3.1 bil- lion profit in the third quarter of 2007. Under the restructuring, AIG also gets easier terms on the Fed loans, reducing the risk AIG will have to sell off assets at firesale prices to pay back the govern- ment. "This is a very big deal for AIG. It essentially plugs two of the big- gest holes that the company had," said Rob Haines, analyst at Cred- itSights. Fed officials expressed con- fidence the money would even- tually be repaid to taxpayers, and presidential press secre- tary Dana Perino said it would also be good for the fragile U.S. economy. The federal help "will allow AIG to continue to restructure themselves in a way that will not hurt the overall economy. AIG is a large, interconnected firm," she said. AIG Chief Executive Edward Liddy called the plan a "win-win." "It sends a strong signal to our policy holders, to govern- ment, to regulators around the world, to our business partners and counterparts that AIG is in fact on the road to recovery," he said. Canada open to auto bailout, watching U.S. NASA: Phoenix mission to Mars has ended Mission lasted five months, cost $475M LOS ANGELES (AP) - NASA yesterday declared an end to the Phoenix mission, some five months after the spacecraft became the first to land in Mars' arctic plains and taste water on another planet. Mission engineers have not heard from the Phoenix lander in over a week. It fell silent shortly after a raging dust storm blocked sunlight from reaching its solar panels. Although ground controllers will direct two satellites orbit- ing Mars to listen for Phoenix for several more weeks, the chances that it will respond are slim. "We are actually ceasingopera- tions, declaring an end of mission operations at this point," said project manager Barry Goldstein of NASA's Jet Propulsion Labo- ratory, which managed the $475 million mission. Phoenix's demise was predicted. Unlike its hardytwinrovercousins Spirit and opportunity, which are approaching their fifth year near the red planet's more hospitable equatorial region, Phoenix's days were numbered from the outset.' With sunlight waning and win- ter encroaching the arctic plains, scientists had said it was a mat- ter of time before Phoenix would freeze to death. Doug McCuistion, who heads the Mars exploration program at NASA headquarters, said people should view Phoenix's end as "an 'Irish wake rather than a funer- al." "It's certainly been a grand adventure," McCuistion said. Since its 'successful landing in May, Phoenix has sent back a bonanza of scientific discover- ies. Its first breakthrough was the confirmation of ice at its landing site. Previous measurements from space suggested there was fro- zen water lurking inches below the surface, but Phoenix became the first robotic probe to touch and taste it by melting icy soil in one of its lab ingtruments. Aid likely depends on whether American gov't steps in TORONTO (AP) - Canada's prime minister said yesterday he's open to providing aid to North America's struggling auto sector and will watch closely what the U.S. government does. Prime Minister Stephen Harp- er said he's prepared to look at options that would help the auto sector. General Motors Corp., Chrysler LLC and Ford Motor Co. all have large operations in Canada. Harper said a failed auto sec- tor would cause a tremendous dislocation in the Canadian econ- omy, but he doesn't want one that would be permanently supported by government and not viable without government help. "We are all aware of the deep problems of some of the major companies in the auto sector. We are also awa e of some of the actions that are taking shape in the United States," Harper said. "The government of Canada will examine all possibilities. We haven't ruled anything out or anything in." Harper made the comments after meeting with provincial leaders about the economy. Ontario Premier Dalton McGuinty said he's looking for cooperation from Harper on a rescue package. McGuinty said he can't compete with U.S. bail- outs. Canada's auto and auto parts sectoremploys morethan120,000 people. The U.S.-based automakers have yet to hear whether they'll get aid from the U.S government. The automakers met with con- gressional leaders last week in hopes of securing financial help. "I know the Americans are looking at certain approaches. We're going to be watching those thingsverycarefullyandobvious- ly developing our own responses here in;Canada," Harper said.