The Michigan Daily - michigandaily.com
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Friday, November 14, 2008 - 3A
S The Michigan Daily - michigandailycom Friday, November 14, 2008- 3A
NEWS BRIEFS
WASHINGTON
Despite dismal job
reports, Dow
closes up 552
The nation's financial pic-
ture grew darker yesterday, a day
markedbybreathtakingnumbers: a
quarter-trillion-dollar budget defi-
cit for a single month and projec-
tions of up to $1 trillion for a year,
a half-million new applications for
unemployment benefits and a 900-
point swing on Wall Street.
There was some good news,
with the stock market rallying
from near its lows for the year to
its third-biggest point gain ever.
But analysts predicted that the
steady drumbeat of gloomy statis-
tics would only get worse in com-
ingmonths as the country endures
what could be the worst downturn
since the severe 1981-82 recession.
The initial costs of the govern-
ment's economic bailout efforts
sent the U.S. budget deficit for
October soaring to a record $237.2
billion, putting it on track to reach
the once-unfathomable sum of $1
trillion for the year.
WASHINGTON
Officials expect 1
million for Obama's
inauguration
President-elect Barack Obama's
inauguration is expected to draw
1 million-plus to the capital, and
already some lawmakers have
stopped taking ticket requests and
hotels have booked up.
Some people are bartering on
Craigslist for places to stay for
the Jan. 20 ceremony when the
Illinois senator takes the oath of
office. They are offering cash or
even help with dishes for residents
willing to open up their homes.
The National Park Service,
which is planning for an inaugu-
ral crowd of at least 1 million, will
clear more viewing space along
the Pennsylvania Avenue parade
route. Jumbo TV screens will line
the National Mall so people can
watch the inauguration and pa-
rade, park service spokesman Da-
vid Barna said Thursday.
The District of Columbia's del-
egate, Eleanor Holmes Norton, is
urging planners to use arenas and
stadiums to help with overflow
crowds wanting to view the cer-
emonies on big-screen TVs. She is
also urging churches to hold view-
ing parties.
WASHINGTON
Dems seek support
for auto bailout
Senate Democrats pressed ahead
yesterday with plans to vote next
week on a $25 billion emergency
loan plan for U.S. carmakers as the
auto industry and business groups
readied a lobbying onslaught to
overcome GOP opposition.
Senior Democr ats are drafting
legislation that would carve out
part of the $700 billion Wall Street
bailout for loans to the three major
U.S. auto companies in exchange
for a government ownership stake
in the companies.
They hope to push the measure
through during a postelection ses-
sion of Congress that begins Mon-
day. General Motors Corp., Ford
Motor Co. and Chrysler LLC are
lobbying feverishly for Congress
to approve the aid, citing an eco-
nomic downturn that has choked
off sales and frozen credit.
But the idea is running into
resistance from Republicans and
President George W. Bush, who are
reluctant to back any additional
money for the struggling industry.
House GOP leader John Boehner
of Ohio issued a statement yester-
day promising to oppose any new
auto industry loans.
KABUL, Afghanistan
Attack on U.S.
convoy kills 21
A suicide bomber rammed his
car into a U.S. military convoy as
it was passing through a crowded
market in eastern Afghanistan on
yesterday, killing at least 20 civil-
ians and an American soldier, offi-
cials said.
The attack outside Jalalabad,
the capital of the eastern Nan-
garhar province, also wounded 74
civilians, said Ajmal Pardes, a pro-
vincial health official.
Separately, an explosion in
southern Afghanistan on Wednes-
day killed two NATO soldiers, the
military alliance said in a state-
ment, without disclosing the sol-
diers nationalities.
- Compiled from
Daily wire reports
Banks say they're using
$700 bil. bailout for loans
Granholm cuts
Mideast trip short
Barn
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for up t
k bailouts go to Zubrow and executives with
Goldman Sachs Group Inc., Bank
eowners facing of America Corp. and Wells Fargo
foreclosure & Co. told the committee that
none of the $75 billion they have
received collectively from the
SHINGTON (AP) - Some government is being used to pay
nation's largest banks shar- salaries or bonuses.
he $700 billion government "The committee has asked
of the financial industry whether (bailout) funds would be
o assure lawmakers yester- spenton executive compensation,"
ey are using the money to said Jon Campbell, regional bank-
more loans and help finan- ing president for Wells Fargo & Co.
trapped homeowners avoid in his testimony. "The answer is
sure. no. Wells Fargo doesn't need the
y L. Zubrow, chief risk offi- government investment to pay for
:h JP Morgan Chase & Co., bonuses or compensation."
e Senate Banking Commit- Some of the executives said
at a portion of the $25 bil- bonuses this year will be lower
apital infusion it received because of the economic down-
the Treasury Department turn.
ing deployed to "expand the "Employee compensation
f credit" and to assist with will be dramatically affected by
ng residential mortgages changes in the overall economic
o 400,000 families. and financial environment and our
performance for the full year, but
it certainly will not increase as a
result of receiving TARP (Trou-
bled Asset Relief Program) funds,"
said Gregory Palm, general coun-
sel for Goldman Sachs.
Bank of America's board has
decided that this year's bonus
compensation pool will be reduced
by more than 50 percent, Anne
Finucane, a marketing and cor-
porate affairs executive, told the
committee.
Finucane said Bank'of America
originated more than $50 billion
in mortgage loans in the third
quarter of2008 but acknowledged
that "we are lending less than we
were a year ago."
Campbell said Wells Fargo's.
commercial real estate loans are
37 percent above a year ago.
Despite the reassuring words,
lawmakers pressed hard for com-
mitments to more lending.
Governor to return
before auto industry
bailout talks
LANSING (AP) - Gov. Jenni-
fer Granholm heads to the Middle
East today for her seventh over-
seas trade trip, but the failing
domestic auto industry remains
her top concern.
She told reporters yesterday
that she has trimmed her trip to
Israel and Jordan to just seven
days so she "can get back in time
for anything further that might
happen" on possible federal loans
for automakers.
While in the Mideast, she and
development officials plan to meet
with companies in alternative
energy, biotechnology, pharma-
ceuticals, defense and homeland
security.
But Granholm also will be pay-
ing close attention to what's hap-
pening in Washington as domestic
automakers lobby Congress to
approve federal aid, citing an eco-
nomic downturn that has choked
off auto sales and frozen credit.
Senior Democrats are drafting
legislation that would carve out
part of the $700 billion Wall Street
bailout for loansto the three major
U.S. auto companies in exchange
for a government ownership stake
in the companies. They hope to
push the measure through during
a postelection session of Congress
next week.
But the idea is running into
resistance 'from congressional
Republicans and President George.
W. Bush.
Granholm said she didn't see
the need to remove the current
management and appoint and
overseer for the automakers in
return for an estimated $25 billion
in loans, and seemed uncomfort-
able with calls to reopen recently
negotiated labor contracts as part
of any deal.
"Theyhave an entirelynewcon-
tract with the UAW, they've got
new product lines, they've closed
down factories, they've elimi-
nate excess capacity," she said of
the automakers. "They have just
negotiated a contract where they
offloaded all of their health care
costs and gave tiered wages.
"We're not going to look way
in the past. Whether mistakes
were made or not, I'm sure there
were. But the bottom line is now,
that they're in the middle of these
restructuring plans and they
want to lead us to this new energy
future. Let's give them the money
to bridge to that future."
President-elect Barack Obama
discussed with Bush the idea of
appointingsomeone tobein charge
of auto issues as bailout talks con-
tinue. Granholm and former U.S.
Rep. David Bonior of Mount Cle-
mens are both on Obama's Tran-
sition Economic Advisory Board,
but neither has been approached
about being the administration's
auto czar, they said Thursday.
"That's nov something that's
part of any of the discussions that
we've had," said Granholm, who
has been mentioned as a possible
energy secretary. Bonior told the
Obama transition team that he's
not interested in being labor sec-
retary.
Clinton being eyed for Sec. of State
. Sens. Kerry and
Hagel also under
consideration
CHICAGO (AP) - Sen. Hillary
Rodham Clinton is among the
candidates that President-elect
Barack Obama is considering for
secretary of state, according to
two Democratic officials in close
contact with the Obama transi-
tion team.
Clinton, the former first lady
who pushed Obama hard for the
Democratic presidential nomina-
tion, was rumored to be a con-
tender for the job last week, but
the talk died down as party activ-
ists questioned whether she was
best-suited to be the nation's top
diplomat in an Obama adminis-
tration.
The talk resumed in Wash-
ington and elsewhere yesterday,
a day after Obama named sev-
eral former aides to President Bill
Clinton to help run his transition
effort.
The two Democratic officials
who spoke yesterday did so on
the condition of anonymity to
avoid angering Obama and his
staff. Clinton spokesman Philippe
Reines referred questions to the
Obama transition team, which
said ithad no comment.
Other people frequently men-
tioned for the State Department
job are Sen. Chuck Hagel (R-Neb),
Sen. John Kerry, (D-Mass), and
New Mexico's Democratic gover-
nor, Bill Richardson.
In aftermath of financial meltdown,
Oxford students look to Dubai for jobs
OXFORD, England (AP) - Busi- ket, capitalist system, it has also fears he'll probably have to return
ness school students at Oxford prompted some of the best and home to Moscow.
University plan to spend at least brightest at the world's elite It's the same story on the other
one of their breaks in Dubai, not schools to rethink their careers. side of the Atlantic.
just to swap gray skies for sunny Banking jobs that until recent- "There are a lot of people who
ones but to secure something ly were there for the plucking just want to have Goldman Sachs or
more lasting: a job. have all but dried up. Students J.P Morgan on their resume. Now
With job opportunities dwin- are scrambling to assess options people have to really evaluate what
dling in London and other finan- they once would have scorned: they want, and they have tofind out
cial capitals, particularly in teaching, academia, engineering, what their true passions are," said
banking, Oxford's business school manufacturing, the nonprofit and Kevin Tolson, a third-year under-
is organizing a trip to the wealthy public service sectors. graduate at Duke University in
emirate so students can network "Nobody knows where he sees North Carolina.
with companies there. School himself in a year because of the The number of jobs that opened
advisers say the oil-rich Persian markets," said Egor Nikolayev, a up in October in the London finan-
Gulf region is a bright spot in an business school student at Oxford. cial district known as the City
otherwise grim global economy. He said he'd love to work at an - where many Oxford business
As the global financial melt- investment bank in London but school grads typically land - fell
down shakes up the free-mar- thinks that is impossible now and to about 5,400.
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