Official: Intel predicts rising Afghan violence

Official: Intel predicts rising Afghan violence

The body of a suspected Taliban militant lies lifeless on the back of a police vehicle with his heavy machine gun after he was killed in a battle with the Afghan forces on the outskirts of Ghazni province west of Kabul, Afghanistan, Thursday, March 26, 2009. Taliban militants attacked a police convoy in central Ghazni province Thursday, wounding six policemen, said regional police spokesman Iqbal Gul Sapan. Four militants were also killed in the clash in Nani village near the provincial capital, he said.

WASHINGTON (AP) -- U.S. intelligence suggests that violence in Afghanistan will rise through 2009 despite the Obama administration's new strategy for combatting the Taliban and shoring up the Afghan government, a top intelligence official said Friday. Violence in Afghanistan has steadily risen for the past three years as the ousted Taliban has staged a comeback, and President Barack Obama on Friday called the situation in the region "increasingly perilous," more than seven years after the Taliban was removed from power in Afghanistan.

The Taliban has re-established control in southern and eastern Afghanistan by providing crude government services and basic security, along with a strong dose of violence to intimidate the population, the official said. It has been able to do so because of insufficient numbers of Afghan, U.S. or NATO forces to counter them, according to U.S. intelligence.

The official spoke to reporters on the condition that his name not be used to more freely discuss the intelligence that was used to shape the newly announced strategy for Pakistan and Afghanistan.

Obama has approved an additional 17,000 American troops for Afghanistan so far this year. On Friday, he announced a plan to send more U.S. troops to train Afghan forces, starting with an additional 4,000, and to increase civilian aid to Pakistan. It is the beginning of a multiyear effort to help stabilize Afghanistan and oust al-Qaida from Pakistan.

The official said the Obama administration wants Pakistan to stop both its active and passive support for the Taliban, which uses the rugged and lawless tribal region on Pakistan's western frontier to train foot soldiers and launch attacks into Afghanistan. He said U.S. intelligence that was shared with the Pakistani government has made its way into the Taliban's hands.

Pakistan has little influence over the tribal area, a result of decades of neglect from the government and the influx of al-Qaida and Taliban militants since the American invasion of Afghanistan in 2001.

The official said the U.S. wants Pakistan to give more assistance in locating and killing al-Qaida leaders believed to be in its western border area and to increase operations against Taliban there as well.

Bank execs vow to work with Obama on recovery plan

Bank execs vow to work with Obama on recovery plan

Bank of America Chief Executive Officer Kenneth Lewis, right, leads the way as chief executives leave the White House in Washington, Friday, March 27, 2009, after a meeting between chief executives and President Barack Obama. From left are: Wells Fargo Chief Executive Officer John Stumpf; Morgan Stanley Chief Executive John Mack; US Bank Chief Executive Officer Richard Davis; and Lewis.

WASHINGTON (AP) -- Top executives of the nation's biggest banks said Friday after meeting with President Barack Obama that they will work with the administration on its economic recovery plans, but want more specifics from the White House. In an interview with CBS News, Obama said his overarching message was this: "Show some restraint. Show that you get that this is a crisis and everybody has to make sacrifices. They agreed and they recognized it. Now, the proof in the pudding is in the eating."

Bankers said an administration proposal to jump-start lending, a problem at the heart of the industry's crisis, is encouraging.

"People are looking at that. It's positive," Morgan Stanley's John Mack told The Associated Press in an interview. "We think it's the right thing to do and now we just need to get the details."

The administration announced a program this week to help banks free themselves of so-called toxic assets. These investments have tied up capital and kept them from resuming more normal lending to consumers and businesses.

The plan calls for the administration to partner with private investors, the Federal Reserve and the Federal Deposit Insurance Corp. to buy as much as $1 trillion in toxic assets from banks. But one concern is whether private investors will participate and whether banks would be willing to sell the assets at the reduced prices they will be offered for them.

Bankers described a positive meeting and pledged to work with Obama on restoring the economy's health.

"We want to see the American recovery," said Robert Kelly, of Bank of New York Mellon Corp.

Obama invited chief executives from the 15 largest banks to the White House to discuss the economy and other issues.

Jamie Dimon of JPMorgan Chase & Co., Vikram Pandit of Citigroup Inc., Ken Lewis of Bank of America Corp., John Stumpf of Wells Fargo & Co., John Koskinen of Freddie Mac and Kenneth Chenault of American Express Co., were among those who attended. Treasury Secretary Timothy Geithner met privately with the CEOs on Thursday night, and sat in on Friday's meeting.

Obama urged the CEOs to deal with their toxic assets. Obama and the executives also discussed the administration's plan to stem the rise in home foreclosures, its proposal for tighter regulation of the financial industry, executive compensation, the financial bailout program and the "importance of recognizing what the American public is going through in this economic crisis," White House press secretary Robert Gibbs said.

Gibbs said Obama generally was pleased with the meeting. It lasted more than an hour.

"The president emphasized that Wall Street needs Main Street and Main Street needs Wall Street," Gibbs told reporters.

He said the president stressed "that he had no agenda beyond working to get a solution, the right solution for our financial system and to get it stabilized and working again for the American people."

The administration also has proposed tighter regulation of the financial system. That includes giving the government broad power to take over major financial institutions that are not banks, such as American International Group, the giant insurer whose collapse would threaten the entire system, administration officials have said.

AIG has received several infusions of federal bailout money, more than $170 billion in all, because the administration says its failure would have far-reaching and devastating consequences around the world.

Gibbs said "it's fair to say that they agreed on the need to update the framework of regulation."

Obama also has announced a program to help millions of homeowners refinance their mortgages to avoid foreclosure.

Friday's meeting capped a period marked by public outrage and Obama's sharp language over Wall Street business practices and $165 million in bonuses that financially struggling AIG paid to some employees.

Obama last week assailed AIG for "recklessness and greed" in its business practices, but he has since toned down his rhetoric. The administration needs industry cooperation for its economic plans to work.

Richard Davis, of U.S. Bancorp, said Obama raised issues that have fueled the public's outrage.

"He's not surprised by it. We reported back to him that we're not surprised either," Davis told the AP.

Nutter Budget Details Plans for Solar-Powered Trash Cans

Nutter Budget Details Plans for Solar-Powered Trash Cans

by KYW's Mike Dunn

Buried in the fine print of Mayor Nutter's budget are plans to save hundreds of thousands of dollars with solar power trash cans.

At the opening of budget hearings, council members were curious about the mayor's plan to save more than eight hundred thousand dollars through one item in the Street Department.

For full story go to: http://www.kyw1060.com/

Sports At Phila. Front Page News; Villanova Students Bound for Boston to Watch Sweet 16

Sports At Phila. Front Page News; Villanova Students Bound for Boston to Watch Sweet 16

by KYW's Kim Glovas

Students from Villanova were lining up early Thursday morning to board buses headed for Boston to watch their beloved Wildcats take on Duke in the NCAA Tournament.

The cheerleaders arrived at the field house around 7:30am to hop on their bus. Megan O'Marra says they're expected to pull in to Boston in early afternoon:

For full story go to: http://www.kyw1060.com/

Council Members Blast Nutter's Proposal to Cut DA Budget

Council Members Blast Nutter's Proposal to Cut DA Budget

by KYW's Mike Dunn

City council members are voicing frustration about one of axes the mayor took to the budget: his decision to cut spending for the district attorney.

On the first day of the budget hearings, amid the larger issues of tax increases, several council members questioned top aides to the mayor about the $4 million cut to the district attorney's office.

For full story go to: http://www.kyw1060.com/

City Council Members Say Their Huge Pension Bumps Aren't Windfalls

City Council Members Say Their Huge Pension Bumps Aren't Windfalls

by KYW's Mike Dunn

Angry members of Philadelphia City Council lashed out at the news media on Thursday, following a published report that examined how much some on City Council are gaining through the lucrative pension program known as "DROP."

For full story go to: http://www.kyw1060.com/

Suburban Pa. Counties Around Philadelphia Nix a Sales Tax Hike

Suburban Pa. Counties Around Philadelphia Nix a Sales Tax Hike

by KYW's David Madden

Officials in Philadelphia's suburbs insist they have no desire to increase the sales tax in those Pennsylvania counties from 6 percent to 7 percent as Philadelphia ponders upping its own sales tax levy from 7 to 8 percent.

And the city won't ask, either, despite a mistaken statement to that effect on Wednesday from Mayor Nutter's chief of staff during a daylong budget hearing.

For full story go to: http://www.kyw1060.com/

Accused Killer of Phila. Police Officer Pawlowski Will Stand Trial

Accused Killer of Phila. Police Officer Pawlowski Will Stand Trial

by KYW's Tony Hanson

Some of the alleged details of the murder of Philadelphia police officer John Pawlowski on February 13th came to light on Thursday during a preliminary hearing for the man accused of pulling the trigger.

Rasheed Scruggs, 33, has been ordered held for trial for the murder of Officer Pawlowski.

And after hearing the evidence, the judge spoke directly to the defendant, calling him a "domestic urban terrorist" who ambushed officers responding to a 911 call for help.

For full story go to: http://www.kyw1060.com/

Tejada gets year probation for misleading Congress

Tejada gets year probation for misleading Congress

Houston Astros baseball shortstop Miguel Tejada heads into federal court in Washington, Thursday, March 26, 2009, for sentencing on charges of lying to Congress about performance-enhancers in baseball.

WASHINGTON (AP) -- The prosecutor's words were delivered in the matter known as "The United States of America vs. Miguel O. Tejada," spoken during Thursday's 23-minute hearing in which the Houston Astros shortstop was sentenced to one year of probation for misleading Congress. The message - famous or not, you must tell the truth - also could be interpreted as a warning to another baseball star, Roger Clemens.

His case, involving sworn testimony to the House of Representatives, is currently before a grand jury in the very same federal courthouse where Tejada appeared.

"People have to know that when Congress asks questions, it's serious business," Assistant U.S. Attorney Steven Durham told the court. "And if you don't tell the truth - and we can prove you haven't told the truth - then there will be accountability."

Congress referred Tejada to the Justice Department in January 2008, a little more than a year before it asked that Clemens be investigated to determine whether he lied when saying he never used performance-enhancing drugs.

Tejada was the All-Star sitting in court this day, his chin resting on his right hand while Durham talked. Tejada was the past American League MVP receiving his punishment after pleading guilty last month and admitting he withheld information about an ex-teammate's use of performance-enhancing drugs when questioned in 2005 by congressional investigators.

"I take full responsibility for not answering the question," Tejada told U.S. Magistrate Judge Alan Kay.

Standing at a lectern facing Kay, Tejada spoke softly for less than a minute, the talented hands he normally uses to grip a bat or field ground balls stuffed in the pant pockets of his pinstriped, three-piece suit.

He apologized to Congress, to the court, to baseball fans - "especially the kids" - and added: "I learned a very important lesson."

Tejada is the first high-profile player convicted of a crime stemming from baseball's steroids era.

"What people are not entitled to do, your honor, is to provide untruthful or dishonest answers. No one has that right," Durham told the court. "Not the people who are well-known - and not the people who are unknown."

Tejada faced up to a year imprisonment and a fine up to $100,000. But Kay followed the recommendation of prosecutors who said he deserved a lighter punishment, issuing a sentence of probation, 100 hours of community service and a $5,000 fine. Kay waived drug testing often required of other convicts on probation and said he wouldn't restrict the player's travel.

The plea deal is unlikely to affect Tejada's immigration status because green card-holders are not normally deportable unless the maximum possible sentence is more than one year in prison.

It was noted that the fine should not be a hardship for Tejada, entering the final season of a $72 million, six-year contract with the Astros.

"I have no doubt of your sincerity, that you regret your actions," Kay told Tejada. "I commend you to follow the rules and conditions that have been set by the court and make sure you don't get in trouble again."

Mark Tuohey, one of three lawyers accompanying Tejada, told the court: "He realizes that in his profession he is, among other things, a role model."

Tejada has acknowledged he bought human growth hormone while playing for the Oakland Athletics, but said he threw the drugs away without using them, and prosecutors said during his February plea hearing they had no evidence to contradict that.

Tejada's case has its roots in the March 17, 2005, congressional hearings on steroids in baseball at which Mark McGwire refused "to talk about the past," and Rafael Palmeiro - then Tejada's teammate with the Baltimore Orioles - jutted a finger toward lawmakers and denied using drugs.

Palmeiro was suspended by baseball later that year after failing a drug test. That House panel looked into whether Palmeiro should be investigated for perjury; he said the positive test must have been caused by a tainted B-12 vitamin injection given to him by Tejada.

That led investigators to Tejada, who was questioned at a Baltimore hotel. He was not under oath, but court documents say he was advised "of the importance of providing truthful answers."

"If Congress or a representative of Congress asks somebody a question in their official capacity, that question must be answered truthfully. There are no options to prevaricate or withhold the truth or parts of the truth," Durham said Thursday.

"Sometimes the truth is quite unflattering," the prosecutor noted. "Sometimes it's embarrassing to people. But it is not optional."

According to court documents, Tejada told congressional staff "he had no knowledge of other players using or even talking about steroids or other banned substances." But in former Senate Majority Leader George Mitchell's 2007 report on drug use in baseball, Oakland outfielder Adam Piatt is cited saying he discussed steroid use with Tejada and provided Tejada with testosterone and HGH. The report included copies of checks allegedly written by Tejada to Piatt.

That all led to Thursday.

Tejada flew to Washington from Florida on Wednesday night, leaving his team's spring training camp long enough to spend 1 1/2 hours in a courthouse. The Astros had a day off Thursday, so Tejada didn't miss an exhibition game or even a workout.

"We're happy that this issue is resolved," Astros general manager Ed Wade said in a statement issued by the team. "Miguel can now focus on baseball and direct all of his energy toward being a key member of the Astros. It was resolved the way Miguel and his representatives believed it would be, and we can now all move forward."

Tejada is batting .257 with one homer and three RBIs in 35 at-bats for the Astros in Grapefruit League action. He also played for the Dominican Republic team that flopped in the World Baseball Classic with a surprising first-round exit.

Tejada didn't stop to take questions on his way out Thursday, saying only, "Yes," when a reporter asked if he was relieved.

"He's looking forward," Tuohey said, "to playing ball."

Baptist preacher runs again for office he bilked

Baptist preacher runs again for office he bilked

The Rev. Henry J. Lyons preaches at the First Baptist Institutional Church Sunday afternoon, Nov. 30, 2003, in Lakeland, Fla. Lyons, the ousted former president of a national organization of black Baptist churches is running for the position again, a decade after he was sent to prison for stealing millions of dollars from the group.

NASHVILLE, Tenn. (AP) -- The ousted former president of a national organization of black Baptist churches is running for the position again, a decade after he was sent to prison for stealing millions of dollars from the group. The Rev. Henry J. Lyons was forced out as leader of the National Baptist Convention USA in 1999 after an investigation revealed he abused his power in the convention to steal about $4 million. He used the money to buy luxury homes and jewelry, and to support his mistresses.

Lyons currently serves as pastor of New Salem Missionary Baptist Church in Tampa, Fla., and lost a bid to become president of the convention's Florida chapter in 2007.

Lyons is running against one other candidate, the Rev. Julius R. Scruggs, pastor of First Missionary Baptist Church, in Huntsville, Ala., who also serves as vice president at large for the convention. The election takes place in September.

Aldon Morris, a professor of sociology at Northwestern University, who's written extensively about the convention, says Lyons faces an uphill battle and he doesn't expect him to win.

"I think there's significant numbers of leaders in the group across the county who feel it's fine to forgive, but why have a leader with this sort of baggage?" Morris said. "The organization was very embarrassed by the charges against him. He certainly left it in bad shape."

But Lyons isn't without supporters. The Rev. Darin Freeman, pastor of Metropolitan Baptist Church in Charleston, W.Va., praised Lyons for reducing the convention's debt by two-thirds in four years and skillfully handling divisions between churches of different sizes.

"Smaller churches around the country felt like they were equal with megachurches," Freeman said. "A local pastor of 300 is equal to a pastor of 30 or a pastor of 3,000. All of us have a say."

Lyons didn't respond to several attempts by the The Associated Press to reach him by phone. But he told The Tennessean newspaper in Nashville that while he damaged the convention's reputation, he's a changed man who deserves a second chance as president.

"The shame of it I don't believe it will ever go away. There's nothing I can do about it," he said.

Current president the Rev. Dr. William J. Shaw can't seek a third five-year term under convention rules.

Lyons' downfall came after his wife Deborah set fire to a $700,000 waterfront home he co-owned with a mistress, and the resulting investigation revealed he'd stolen money from the organization. The Lyonses have since divorced.

Lyons was convicted of racketeering and grand theft in 1999. He resigned as president of the National Baptist Convention and pleaded guilty to federal charges of tax evasion, fraud and making false statements.

Scruggs, who hopes to increase church participation in convention activities if elected, declined to say much about Lyons' candidacy.

"I prefer building on the present and the future and being as positive as possible and really don't want to go back to that era and talk about those negatives," he said.

Obama seizes bully pulpit online to pitch budget

Obama seizes bully pulpit online to pitch budget

President Barack Obama holds an 'Open For Questions' town hall style meeting in the East Room of the White House in Washington, Thursday, March 26, 2009. It was the first online town hall done in the White House.

WASHINGTON (AP) -- President Barack Obama seized the bully pulpit Thursday and reprised the best of his acclaimed campaign skills in an unprecedented Internet town hall from the White House - a direct sales pitch for Americans to get behind his $3.6 trillion budget and be patient as he tries to right the tottering economy.

After an opening statement and declaring, "This isn't about me, it's about you," Obama took up a microphone and strolled the ornate East Room, playing to an audience of 100 invited guests and what the White House said were an estimated 67,000 people watching him in cyberspace.

The event capped a concerted Obama recent public relations foray in support of his young administration's assault on the country's twin crises in the economy and financial system, including two in-person town hall meetings in California and an appearance on Jay Leno's "Tonight Show." On Tuesday Obama held a nationally televised news conference, also in the East Room, calling on an unusual mix of reporters in an apparent attempt to shake up the focus of questioning.

Obama explained he had called the first-of-its-kind online town hall meeting as an "an important step" toward creating a broader avenue for information about his administration. Spokesman Robert Gibbs said there would be more such events.

Timing, of course, was key. Obama was beamed out through cyberspace a day after the House Budget Committee adopted a spending and revenue plan that broadly matched his massive $3.6 trillion outline even while seeking to reel back on deficit projections.

In a forum that gave him an essentially passive audience, Obama said the budget would put the country on a path to "a recovery that will be measured by whether it lasts, whether it endures; by whether we build our economy on a solid foundation instead of an overheated housing market or maxed-out credit cards or the sleight of hand on Wall Street; whether we build an economy in which prosperity is broadly shared."

Obama's Republican opposition - which he pointedly did not mention Thursday - has fought his budget proposal, broadly declaring it a spending recipe for national bankruptcy.

Not surprisingly, the Internet questioning dovetailed with the president's key projects: universal health care, improved education, energy independence and the range of promises made in the White House campaign.

At times flashing his broad smile and at others determined and serious, Obama drew on his own experiences with the American health care system to empathize with one questioner who supported his goal of universal coverage.

He threw bouquets of praise to nurses who helped the family when his daughter Sasha was stricken with meningitis and returned with vigor to a recounting of the experience of watching his fatally ill mother argue with an insurance company to pay what it owed her for ovarian cancer treatment.

In a lighter moment, Obama noted there had been heavy support for a question about legalizing marijuana as a means of boosting the economy and creating jobs.

"The answer is, no, I don't think that is a good strategy to grow our economy," he quipped. The in-house audience tittered.

The president did not make news, but ran smoothly through answers to questions posed to him on the White House Web site and chosen according to rankings by respondents. A moderator read Obama some of the questions and other questions were displayed on monitors in the room.

And with more than 100,000 questions submitted for the forum, it gave the administration a significant number of e-mail addresses for future outreach and the next campaign.

The economy dominated, allowing Obama to sell his agenda for putting the country on a sounder footing in the midst of the worst economic downturn in decades and a financial crisis unmatched since the 1930s.

One questioner asked why the U.S. did not adopt a European-style government-sponsored health care system.

Because, Obama responded, he believed the best way forward was to build on the current system that relies heavily on employer plans rather than scrap what has existed for generations and largely has met the need of a majority of Americans.

Nevertheless, he said, any overhaul must cope with the country's institutions that aren't easily transformed, specifically pointing to Medicare and Medicaid, as well as the millions of Americans who are uninsured.

Detroit automakers, he said, must evolve or face extinction. He promised more help to the struggling industry but demanded a new way of doing business.

"A lot of it's going to depend on their (the auto industry's) willingness to make some pretty drastic changes. And some of those are still going to be painful," he said.

As reflected in the Internet questioning, housing was near the top of American concerns, prompting Obama to urge mortgage refinancing for the 40 percent of American homeowners that he said were eligible under his programs. Mortgage rates have hit record lows.

Obama appeared off balance only once, in an exchange with Bonnee Breese, a Philadelphia high school teacher in the East Room audience who questioned the president about charter schools and his efforts to improve the national teaching corps.

"OK, so you've been teaching for 15 years," Obama said at one point, directly addressing Breese and laughing. "I'll bet you'll admit that during those 15 years there have been a couple of teachers that you've met - you don't have to say their names - who you would not put your child in their classroom. See? Right? You're not saying anything. You're taking the Fifth."

Obama was clearly teasing Breese, who turned her head away, seemingly in embarrassment or disagreement.

Sources: More US troops for Afghan war

Sources: More US troops for Afghan war

WASHINGTON (AP) -- Concerned about the faltering war in Afghanistan, President Barack Obama plans to dispatch thousands more military and civilian trainers on top of the 17,000 fresh combat troops he's already ordered, people familiar with the forthcoming plan said Thursday.

Obama also will call for increasing aid to neighboring Pakistan as long as its leaders confront militants in the border region. The president plans to lay out his revamped strategy for Afghanistan and Pakistan on Friday.

Several sources told The Associated Press the strategy includes 20 recommendations for countering a persistent insurgency that spans the two countries' border, including sending 4,000 military trainers to try to increase the size of the Afghan army.

"It is an integrated military-civilian strategy," Secretary of State Hillary Rodham Clinton told reporters in Monterrey, Mexico. "We are convinced that the most critical underpinning of any success we hope to achieve, along with the people and government of Afghanistan, will be looking at where civilian trainers, aid workers, technical assistance of all kinds can be best utilized."

Clinton declined to go into details to avoid pre-empting Obama's announcement.

White House press secretary Robert Gibbs also would not discuss specifics of the plan, but said Obama is beginning to discuss its findings with members of Congress and others. Obama's top military advisers briefed key lawmakers Thursday.

In broad terms, Obama will define U.S. objectives as eliminating the threat from al-Qaida to undermine or topple U.S.-backed elected governments or to launch attacks on the United States, its interests and allies, the sources said.

They described the recommendations on condition of anonymity because the final wording was not complete. The new plan identified al-Qaida as the target in a larger network of insurgents who threaten U.S. and allied forces in Afghanistan, often from sanctuaries across the border in Pakistan.

The written outline of Obama's plan describes a "strategy for success," as opposed to an exit strategy, but the goal is the same: Stability on both sides of the border that would allow a reduction and eventual withdrawal of U.S. combat forces from Afghanistan. To do that, Obama proposes a greatly expanded commitment to improving and enlarging the Afghan army and Pakistan's frontier forces.

The additional 4,000 troops devoted to training and advising the Afghan armed forces would head to Afghanistan this spring and summer. They come on top of about 17,000 combat and support troops Obama wants in place by the end of the summer.

Sen. Carl Levin, chairman of the Senate Armed Services Committee, said the training group is needed because there aren't enough U.S. military advisers there now.

"We've got to increase the size" of the Afghan army more quickly than contemplated, said Levin, D-Mich. "The trainers are the key to that."

Sen. John McCain, R-Ariz., said it seemed like a viable strategy as long as the manpower is there.

"I know we need more than the 17,000," he said.

As a candidate, Obama said the Afghan war should have been the U.S. priority all along, and that the Bush administration wrongly diverted U.S. attention and resources to the war in Iraq. As president, Obama has been under pressure to say how he plans to address the sharp increase in violence in Afghanistan while prodding anti-terrorism ally Pakistan to deal with the militant threat on its soil.

"I'm comfortable that key policy makers on all levels are not minimizing the difficulties and are not missing anything," said Rep. Adam Smith, D-Wash. "What I'm less confident about is that there is a solution to this problem."

He added that Congress cannot shrink from a long-term commitment, including providing money.

A pillar of the strategy for Afghanistan will be greater engagement with local and provincial leaders, as opposed to a focus on the central government, according to officials familiar with the document.

Officials said there will be a directed campaign to focus attention on tribal and provincial leaders across the expansive country. With the bulk of the population living outside urban centers in small, far-flung villages, U.S. officials believe it will be more productive to build support, foster development and break down extremist ties district by district.

The plan will not abandon the central government in Kabul, said officials, but it will also not rely on bolstering efforts to govern from the capital.

Levin said the strategy will identify benchmarks to measure success in Afghanistan. "Uncertainty is not the kind of commitment they need to succeed."

The forthcoming White House review also says the U.S. will add hundreds of civilian advisers to those already in Afghanistan. The so-called civilian surge would concentrate on improving life for ordinary Afghans, and would include experts in agriculture in a country where subsistence farming is the norm. The civilians are also meant to help extend government services and the administration of justice.

The plan notes that the top U.S. general in Afghanistan still wants some 10,000 or 11,000 additional U.S. forces next year, but does not say whether Obama intends to fulfill that request now, sources said. That decision would come by the end of this year.

The plan also broaches dramatically increasing the size of Afghanistan's security forces. It calls for a study to determine the size of the police and military force capable of securing the country. Several defense officials said that could entail doubling the Afghan security force to almost 400,000. However, the strategy review does not recommend any specific figure.

Since 2002, the U.S. has provided about $18 billion for the development and training of Afghanistan's national army and police force. But as of December 2008, only 18 army units and 18 police units were considered fully capable of performing their missions, according to Jacquelyn Williams-Bridgers of the congressional Government Accountability Office. During a House Armed Services Committee hearing Thursday, she said the Defense Department is "critically short" of the numbers of mentors and trainers needed to build up Afghanistan's security forces.

The Obama strategy document deliberately avoids specific numbers and timelines, a senior defense official said. He said the intent is to set goals and a new direction, with specifics of implementation to be worked out in coming months.

The plan strongly backs legislation by Sens. John Kerry, D-Mass., and Richard Lugar, R-Ind., that would triple humanitarian aid to $1.5 billion to Pakistan for five years. The bill had been proposed last year by Vice President Joe Biden when he was a senator.

Kerry, who took over for Biden as chairman of the Senate Foreign Relations Committee, said he also supports placing conditions on military aid to Pakistan. Biden's original bill threatened to cut military funding for Islamabad unless the government did more to fight Taliban forces.

Kerry said he planned to introduce next week an updated version of the measure that would increase the $1.5 billion slightly.

HoopGurlz at Phila. Front Page News

HoopGurlz at Phila. Front Page News

Mark Lewis/ESPN HoopGurlz Maleeka Kynard showed she can score the ball well for Start.

COLUMBUS, Ohio -- There are 13 Division I programs in Ohio and 45 percent of those teams' rosters consist of in-state talent. So, it should come as no surprise that if you look around the girl's basketball landscape in the Buckeye state this year, you'll see some seniors heading to some pretty high profile locations to continue their basketball careers. Ohio State, Stanford, Duke, Illinois, Vanderbilt, USC and Old Dominion along with a host of other college programs have found what they're looking for in Ohio.

The OHSAA State Tournament brought together the season's most successful teams in each classification as well as some of those seniors who will be moving on to college basketball next season. Also on the big stage were some of the state's best young talent, who will have keep the fans and college coaches watching Ohio closely over the next several years.

A few of the underclass standouts:

Point guard Alexis Dobbs led her Hathaway Brown team to the Division III title and demonstrated the speed that will offset her diminutive 5-foot-5 size. Her explosive quickness allows her to penetrate and create her own looks as well as set up her teammates. Her shooting percentage over the two games could have been higher (41 percent) but averaging 10 points and 3.5 assists over both games were keys in the Blazer's title. She's a harassing on-ball defender every possession and utilizes her lateral speed to turn opposing ballhandlers.

Tay'ler Mingo isn't a secret in Ohio, or anywhere else for that matter. Ranked 46th in the ESPN HoopGurlz Super 60, she has all the tools and versatility that will allow her to play at any level. The 5-7 point guard led her Regina teammates to the Division II title and a perfect 27- 0 record, which she played whatever role coach Pat Diulis needed. Her ballhandling allows her to create and score almost at will or penetrate and pitch against defenses that might focus her way. In two games, she averaged 5.5 assists but still managed to chip in an average of 10 points as well. Her aggressive defensive effort is an attractive trait, but she's going to have to take smarter risks to avoid foul trouble.

Wapakoneta forward Heidi Schlegel is a blue collar workhorse who brings one word to mind: efficiency. She simply gets the job done in a textbook manner. The 6-0 forward was one point shy of a double-double (nine points, 13 rebounds) in the semifinal Friday and followed up the next day with a 17-point, 11-rebound effort in a championship loss to Hathaway Brown. There's nothing flashy about the Redskins star or her game except maybe her physical strength. She's willing to mix it up at either end and doesn't hesitate to put a body on opponents. What level that she might play on in the future could be dependent on her athleticism.

Bowling Green has already received a verbal commitment from Berlin Hiland-standout Noelle Yoder. The 5-7 combo guard is fundamental, scrappy and plays with an impressive, focused intensity. Her ball skills make her a threat anytime it touches her hands. She can take it to the rim or she can knock down the 3-pointer. Her 7-of-11 performance in the semifinals included 3-for-5 from long range, making her an ideal fit for Curt Miller and the Falcons in 2010.

Mark Lewis/ESPN HoopGurlzTherany Dunnigan constantly attacks the basket when she has the ball.

One of the more impressive, developing players this past weekend was 6-2 Regina post Therany Dunnigan. Her size, combined with impressive athleticism and strength give her all the tools to be a true power forward at the next level. She has good skills in place on the block and from the elbow. Even more impressive is the effort she gives at both ends of the floor. She attacks the basket with the ball, crashes the boards on every shot and gets in a stance ready to defend on every possession. She shot 11-of-15 combined for both games averaging 12 points and 7.5 rebounds. Lines are forming.

Africentric provided the fans with one of the most exciting halves of basketball in state tournament action. Behind the fourth quarter scoring of 5-10 guard Raven Ferguson, the Nubians overcame a 17-point deficit to take the Division IV crown. Ferguson has good one-on-one skills and likes to create off the dribble. She tends to pull up more than go all the way to the rim, but showed good elevation and a smooth stroke. The biggest area of focus will have to be her consistency and decision making. Prior to the dramatic final period, she was a combined 6-for-27 from the field and forced several looks out of frustration. The tools are in place and with two more years in high school left, there are tremendous possibilities.

Maleeka Kynard is another small guard who has the speed, quickness and skills to more than make up for what might not be there in size. In past evaluations, she seemed to be creating more opportunities for her teammates than herself, but in Toledo Start's two games in Columbus she was the picture of scoring consistency. Over both games, she connected on 9-of-21 shots, went 5-for-11 from 3-point range and sank 8-of-9 free throws. Pushing the ball constantly and at such an incredible pace does lead to turnovers -- 14 over both semifinal and final games, which were costly, but are a problem easily addressed with maturity and experience.

Mt. Notre Dame combo guard Kathryn Reynolds has some big shoes to fill as the Cougar seniors move on with four straight state titles. The last one might not have come their way, if it were not for some timely play from the 5-7 Reynolds. Over both nights, she was 9-of-18 from the field and hit 3-of-5 3-pointers in the championship game that helped hold off Toledo Start's final run. Her textbook shooting form is balanced with smart, instinctual play and decision making. She can put the ball on the floor and is willing to take a hit while getting to the rim. There's a great maturity and potential to her game that has lots of folks watching.

Mark Lewis/ESPN HoopGurlzAmeryst Alston has a ton of potential.

Canton McKinley may have only been around for the semifinals, but guard Ameryst Alston left an impression on everyone watching. Standing 5-foot-9 with the strength and athleticism of an upperclassman, she handled the ball and the pressure of the state tournament like a seasoned veteran. Her penetration was physical and aggressive and she got deep in the paint almost every time. With four turnovers, she'll need to read the defense better as they rotate on her drives, but she still found a way to rack up four assists on the evening against eventual champion Mt. Notre Dame. There's good form on her shot and a world of potential in her game.

An eye-catching performance off the bench came from 6-1 wing Megan Courtney of Archbishop Alter. While her size may already be in place, she's still on the razor thin side but that's not holding her back at all. Her ballhandling skills are sound and she sees the floor well due to her height. She has an impressive first step and with a long stride drove across the middle several times. Her wingspan makes her imposing on the defensive end and she has the mobility to move with smaller and quicker guards. She has a vertical that will catch your eye as well and a rumor that it might be the result of a just as impressive volleyball resume.

City Council Hearing on Nutter's Budget Quickly Gets Contentious

City Council Hearing on Nutter's Budget Quickly Gets Contentious

by KYW's Mike Dunn

Heated moments came quickly on Wednesday at the start of hearings on Mayor Nutter's new budget.

Nutter chief of staff Clarence Armbrister opened the hearing by spelling out the mayor's philosophy: if Council doesn't okay hikes in sales and property taxes, the mayor will be forced to impose what Armbrister called "devastating" cuts to services:

For full story go to:

http://www.kyw1060.com/

Views & Opinions at Phila. Front Page News "Dow jumps as Obama admin. moves on bad bank assets..."

Views & Opinions at Phila. Front Page News "Dow jumps as Obama admin. moves on bad bank assets..."


Great news. Hopefully all of these efforts will result in this anticipated recovery some say could happen next year.

Clinton: NKorea plan to fire missile 'provocative'

Clinton: NKorea plan to fire missile 'provocative'

U.S. Secretary of State Hillary Rodham Clinton arrives for at a press conference in Mexico City, Wednesday, March 25, 2009. Clinton is in Mexico for a two-day visit.

MEXICO CITY (AP) -- Secretary of State Hillary Rodham Clinton on Wednesday warned North Korea that firing a missile for any purpose would be a "provocative act" that would have consequences. North Korea is loading a rocket on a launch pad in anticipation of the launch of a communications satellite between April 4 and 8, U.S. counterproliferation and intelligence officials said. North Korea announced its intention to launch the satellite in February, but regional powers worry the claim is a cover for the launch of a long-range missile capable of reaching Alaska.

Clinton told reporters during a visit to Mexico City that the U.S. believes the North Korean plan to fire a missile for any purpose would violate a U.N. Security Council resolution barring the country from ballistic activity. She linked a missile launch to the future of talks between the U.S., North Korea and four other nations aimed at ending North Korea's nuclear weapons program.

"We have made it very clear that the North Koreans pursue this pathway at a cost and with consequences to the six-party talks, which we would like to see revived," Clinton said.

"We intend to raise this violation of the Security Council resolution, if it goes forward, in the U.N.," she said. "This provocative action in violation of the U.N. mandate will not go unnoticed and there will be consequences."

National Intelligence Director Dennis Blair said earlier this month that all indications suggest North Korea will in fact launch a satellite. However, North Korea faked a satellite launch in 1998 to cloak a missile development test.

In 2006, North Korea launched a Taepodong-2 that blew up less than a minute into flight.

Both the satellite launch rocket and long-range missile use similar technology, and arms control experts fear even a satellite launch would be a test toward eventually launching a long-range missile.

South Korea, the U.S. and Japan have urged North Korea to refrain from launching a satellite or missile, calling it a violation of the Security Council resolution. North Korea insists it has the right to develop its space program and on Tuesday warned the U.S., Japan and its allies not to interfere with the launch.

In Seoul, officials at South Korea's National Intelligence Service and the Defense Ministry were not available for comment.

South Korea's chief nuclear envoy, Wi Sung-lac, said Wednesday after returning from talks with his Beijing counterparts that a launch would trigger a response.

"If North Korea launches rocket, certain countermeasures are unavoidable," he said. He refused to elaborate, saying the measures, including any sanctions, would be discussed among U.N. Security Council member nations.

It probably won't be clear if the latest launch is a satellite or a missile test until footage can be analyzed after the event; the trajectory of a missile is markedly different from that of a satellite.

Analysts have been watching for signs of a satellite or missile on the launch pad in Musudan-ni, the northeast coastal launch site. Satellite imagery from March 16 showed progress toward mounting a rocket, with a crane hovering over the launch pad, said Christian LeMiere, an editor at Jane's Intelligence Review in London.

LeMiere said that once the rocket is mounted, scientists would need at least a week to fuel and carry out tests before any launch. Images from earlier this month did not indicate the rocket or missile had been mounted, he said.

Saudi women to spurn lingerie shops over salesmen

Saudi women to spurn lingerie shops over salesmen

A Saudi woman holding a child checks out lingerie at a store in Riyadh, Saudi Arabia, Wednesday, March 25, 2009. A group of Saudi woman launched a campaign Tuesday aimed at bringing in female sales personnel at lingerie stores. Only men are allowed to sell underwear in almost all stores in this ultraconservative kingdom, making the experience of shopping for intimate apparel for most women embarrassing.

RIYADH, Saudi Arabia (AP) -- Before her wedding last year, Huda Batterjee went abroad to buy her bridal lingerie - she just couldn't bear the humiliation of discussing her most intimate apparel with a man. She had little choice: there are almost no saleswomen in Saudi Arabia. Now a group of Saudi women - sick of having to deal with male sales staff when buying bras or panties, not to mention frilly negligees or thongs - have launched a campaign this week to boycott lingerie stores until they employ women.

It's an irony of the kingdom's strict segregation of the sexes. Only men are employed as sales staff to keep women from having to deal with male customers or work around men.

But in lingerie stores, that means men are talking to women about bras or thongs, looking them up and down to determine their cup sizes, even rubbing the underwear to show how stains can be washed out.

The result is mortifying for everyone involved - shoppers, salesmen, even the male relatives who accompany the women.

"When I buy underwear in Saudi, some salesmen say, 'This is not the right size for you,'" said Batterjee. "You feel almost taken advantage of. Why is he looking at me in this way?"

So for her wedding trousseau, the 26-year-old went to neighboring Dubai to shop. She now lives in Virginia with her husband.

Heba al-Akki, a businesswoman who supports the boycott, said when she shops for underwear, "I go to a store, pick this, this and that and leave quickly. It's as if I'm buying illegal stuff."

It's not easy on the salesmen either.

At one lingerie boutique in a Riyadh mall Wednesday, salesmen blushed when asked about their jobs. All said they back the campaign to hire female sales staff.

"Even in such open regions as the U.S. and Europe, men do not sell underwear to women," said store manager Husam al-Mutayim, a 27-year-old Egyptian. "I don't let any of my female relatives buy underwear from men. It's just too embarrassing."

Mannequins - headless in keeping with a ban on realistic depictions of women - were displayed in the shop window dressed in modest pajamas. Inside, racks held an array of colorful bras, lacy panties and sexy nighties - along with more day-to-day undergarments.

Under Saudi Arabia's strict interpretation of Islamic law, women are required to cover themselves head-to-toe in black robes in public. But in the privacy of their own homes - and bedrooms - they can wear whatever they want, and sexy undergarments are popular.

But buying them is another story. Fitting rooms are banned in the kingdom - the idea of a woman undressing in a public place with men just outside is unthinkable. So a woman is never sure she has chosen the right size until she gets it home.

"I have bras with sizes ranging from 32 to 38 because I can't get to try them on," said Modie Batterjee, Huda's sister and one of the boycott organizers.

Even male relatives get dragged into the embarrassment. Women are allowed to shop without a male relative, but husbands or brothers sometimes insist on coming along - or the women want them there - to ensure salesmen stay respectful.

Modie Batterjee recalls how her husband fled a lingerie store because he could not bear to hear her explain to a salesman that she wanted high-waisted underwear to hold in her tummy after their daughter's birth.

The boycott was launched on Tuesday by about 50 women who gathered in the Red Sea port of Jiddah at the Al-Bidaya Breast-feeding Resource and Women's Awareness Center, which is run by Modie Batterjee.

The aim is to push for implementation of a law that has been on the books since 2006 which says only female staff can be employed in women's apparel stores.

The law has never been put into effect, partly due to hard-liners in the religious establishment who oppose employing women in mixed environments like malls, where religious police are always on the lookout to keep men and women from interacting.

Hiring women would also deprive men of jobs in a country where more than 10 percent of men are unemployed.

"We are raising awareness and calling for the implementation of the law," said Reem Asaad, a finance lecturer at Dar al-Hikma Women's College in Jiddah, who supports the boycott.

The campaign calls on women to shop at the country's few women-only lingerie stores. Usually stand-alone boutiques or located in malls that have women-only sections, these shops have no windows to ensure passing men cannot look in - and giving women the freedom to actually try things on.

How much impact the boycott call will have is unclear. Almost 1,700 people signed an online petition posted by Asaad on the social networking Web site Facebook. A few Saudi papers have written about it, but the campaign depends mostly on word of mouth.

Not all women support the idea. At the Riyadh lingerie shop on Wednesday, one woman - only her eyes visible through the black veil covering her face - said she is suspicious of women-only lingerie shops.

"Bad things happen there," she said.

What might that be?

Women can sneak a picture of you changing with their mobile phones, she replied and refused to give her name.

Reid open to fast-tracking health overhaul

Reid open to fast-tracking health overhaul

Senate Majority Leader Harry Reid of Nev. speaks to reporters about the budget, Tuesday, march 24, 2009, during a news conference on Capitol Hill in Washington Tuesday, March 24, 2009.

WASHINGTON (AP) -- Majority Leader Harry Reid indicated Wednesday he's willing to move sweeping health care legislation through the Senate with a procedural maneuver that would block a GOP filibuster. The prospect of the controversial tactic has already ignited Republicans' ire, and key Senate Democratic chairmen have said they don't want to do it.

Reid, D-Nev., took a different position on a conference call with reporters.

"I think it's something we need to consider," Reid said.

At issue is a so-called reconciliation bill, which could pass with a simple majority of 51 votes and without Democrats fearing a GOP filibuster. Democrats would struggle to gather 60 votes needed to break a filibuster for something as complex as a plan to meet President Barack Obama's goal of overhauling the nation's health care system to cover 48 million uninsured Americans.

Revising health care via reconciliation has been viewed favorably by House Democrats. The House Budget Committee included language providing for the method in its annual budget resolution released Wednesday. Reconciliation is not favored by Senate Budget Committee Chairman Kent Conrad, D-N.D., and was not part of his committee's plan.

White House officials reiterated Wednesday that it's not their preferred method but they don't want to take it off the table.

Senate Finance Committee Chairman Max Baucus, D-Mont., is attempting to write a bipartisan health care bill with his committee's top Republican, Sen. Chuck Grassley, R-Iowa. Baucus has said he doesn't want to resort to reconciliation.

"We have to give this bipartisan effort of Sen. Baucus a shot," Reid said, before enumerating the ways reconciliation could be done: either in a House-Senate conference committee convened to merge the chambers' budget resolutions, or by having the Senate pass a second budget resolution.

"There are a number of different ways that can be accomplished, if in fact we decide we need to do that," Reid said.

Reid also offered a novel proposal for paying for redoing the nation's health system.

He suggested using $646 billion that would be collected under a controversial Obama proposal to auction off greenhouse gas pollution allowances.

"That's exactly how much we need for the first phase of health care reform," Reid said.

Obama wants to use the $646 billion to cover extending his middle-class tax cuts - a $400 tax credit for workers and $800 for couples - beyond 2010. That tax cut for two years was part of the $787 billion stimulus bill Congress passed last month.

Mayor Nutter To Have Task Force Look At Taxes

Mayor Nutter To Have Task Force Look At Taxes

by KYW's Mike Dunn

Just four days after unveiling plans to temporarily raise property and sales taxes, Mayor Nutter on Tuesday launched a task force to examine Philadelphia's entire tax structure.

Mayor Nutter selected a 15-member panel that he says will make a big-picture assessment of Philadelphia's system of taxing residents, non-residents, and businesses:

For full story go to: http://www.kyw1060.com/

Old Mass Grave Found On Main Line

Old Mass Grave Found On Main Line

by KYW\'s David Madden

A long-time mystery is solved on the Main Line, as historians at Immaculata University, with the help of a Penn archeologist, have unearthed a mass grave that dates back to the 1830’s.

Legend has it that 57 Irish workers building a railroad got cholera, and were dumped in what’s now called “Duffy’s Cut”, about a mile from Immaculata. That area is now covered with private homes, and given suburban sprawl for decades. It’s remarkable construction left the area untouched, until now.

For full story go to: http://www.kyw1060.com/

Sports At Phila. Front Page News; Hall of Fame third baseman George Kell dies at 86

Sports At Phila. Front Page News; Hall of Fame third baseman George Kell dies at 86

In this June 5, 1957 file photo, George Kell, Baltimore Orioles, poses in dressing room with ball and bat after rapping out three hits, one a home run, to gain his 2,000th career hit in a baseball game in Kansas City, Mo. Hall of Fame third baseman and longtime broadcaster George Kell died according to a funeral home in Newport, Ark., on Tuesday, March 24, 2009. He was 86. Kell played 14 years in the AL with Philadelphia, Detroit, Boston, Chicago and Baltimore. He hit more than .300 nine times and had a career average of .306. He was selected to play in 10 All-Star games.

LITTLE ROCK, Ark. (AP) -- George Kell, the Hall of Fame third baseman who edged Ted Williams for the 1949 American League batting title and became a Detroit Tigers broadcaster for nearly 40 years, died Tuesday. He was 86. Jackson's Funeral Home in Newport confirmed the death but did not give a cause. The Hall of Fame said he died in his sleep at his home in Swifton. Kell was severely injured in a car crash in 2004 but was able to walk with a cane about six months later.

Kell outlasted Williams for the 1949 batting crown, hitting .34291 while the Boston Red Sox great finished at .34276. Kell played 15 seasons, hitting more than .300 nine times and compiling a career average of .306. He was a 10-time All-Star.

"I grew up idolizing Stan Musial and George Kell," said Brooks Robinson, another Hall of Fame third baseman from Arkansas. "I played a lot of baseball in Swifton and Newport, where George is from. ... He was a hero to me on and off the field."

Kell played from 1943-1957 with the Philadelphia Athletics, Detroit Tigers, Boston Red Sox, Chicago White Sox and Baltimore Orioles. He topped .300 each year from 1946-53.

After he retired, Kell broadcast Tigers games from 1959 to 1996 - every year except 1964. Longtime Tigers broadcaster Ernie Harwell and Kell became close friends while working together in TV and radio.

"He had a very laid-back style," Harwell told WWJ-AM in Detroit on Tuesday. "He was easygoing and an expert on the game. He brought the field to the booth because he played and played well. He had a conversational style that people took to."

Al Kaline, a Hall of Famer for the Tigers, also was a broadcasting colleague of Kell's.

"George was a great friend and like a big brother to me," Kaline said Tuesday. "When we broadcast together, I was a rookie, and he was a veteran and he was a great mentor to me."

Kell was inducted into the Hall of Fame in 1983 by the Veterans Committee.

"There's no one who loved and respected the game more than George," Hall of Fame president Jeff Idelson said. "Not only was he one of baseball's true legends, but he was a fan, too. He loved coming to Cooperstown and sharing in the camaraderie with his Hall of Fame family."

Kell played for the Tigers when he and Williams waged one of the closest batting races in baseball history.

"I beat him out, but not many people beat him out," Kell said years later. "That's why it was so fascinating. But it happened."

Kell was always proud of the way it happened. Cleveland pitched Bob Lemon in the finale against Detroit, then brought in Hall of Famer Bob Feller in relief. Kell was in the on-deck circle in the ninth inning.

"The manager said he wanted to send a pinch-hitter in for me, but I said, 'I'm not going to sit on a stool and win the batting title,'" Kell told The Associated Press. "What Feller was doing in there in relief on the last day of the season I'll never know. They should have been trying some minor league prospect in there."

The final out was made before Kell had to hit, preserving his slim margin over Williams.

Kell reached the majors in 1943 and hit .268 in 1944, his first full season. He went from Philadelphia to Detroit in 1946. A's manager Connie Mack called Kell to his hotel suite and told him he had been traded to the Tigers.

"Mr. Mack said, 'It's going to be the greatest break you've ever had,'" Kell recalled.

Kell grew up in Swifton and had a unique arrangement that enabled him to live there while broadcasting for the Tigers. He kept an apartment in Little Rock so he could catch flights to games.

"I don't know anybody else who lives 1,000 miles away from their job and gets to commute back and forth," Kell said with a laugh. "The owner said, 'You can live in your beloved Swifton, but don't you dare miss a game.' I had a few close calls, but I didn't miss any."

Fittingly, Kell was joined in the Hall of Fame's 1983 class by Robinson. The two were teammates with Baltimore as Kell's career was winding down and Robinson's was beginning.

"He was a class act through and through," Robinson said. "The crowning moment was when I was inducted into the Hall of Fame in 1983. I went in with my hero, George Kell."

Funeral services will be held Friday at Swifton United Methodist Church.

Survivors include Kell's wife Carolyn, brother Everett "Skeeter" Kell, daughter Terrie Jane Lawrence, five grandchildren, two step-grandchildren, six great-grandchildren and six step-great-grandchildren.

Kell's first wife, Charlene, died in 1991 of cancer after 50 years of marriage. They met as sixth graders in Swifton and were sweethearts at Swifton High School.

Officials seek new power over financial companies

Officials seek new power over financial companies

Treasury Secretary Timothy Geithner, left, and Federal Reserve Chairman Ben Bernanke testify on Capitol Hill in Washington, Tuesday, March 24, 2009, before a House Financial Services Committee hearing on AIG.

WASHINGTON (AP) -- Pointing with dismay to the AIG debacle, the nation's top economic officials argued Tuesday for unprecedented powers to regulate and even take over financial goliaths whose collapse could imperil the entire economy. President Barack Obama agreed and said he hoped "it doesn't take too long to convince Congress."

Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, in a rare joint appearance before a House committee, said the messy federal intervention into American International Group, an insurance giant, demonstrated a need to regulate complex nonbank financial institutions just as banks are now regulated by the Federal Deposit Insurance Corp.

"AIG highlights broad failures of our financial system," Geithner told the House Financial Services Committee. "We must ensure that our country never faces this situation again."

But the two appeared divided over where the authority should reside. Geithner suggested his Treasury Department's powers be expanded. Bernanke was noncommittal, even suggesting the FDIC.

Both officials sought to channel the widespread public outrage over the millions of dollars AIG spent in post-bailout bonuses into support for regulatory overhaul. Geithner was expected to lay out more details on the administration's plan Thursday when he appears again before the committee.

Democrats in the Senate say the administration wants the proposal on taking over non-banks to move separately from the larger financial industry regulatory bill, to get it going more quickly.

At the White House, Obama told reporters, "We are already hard at work in putting forward a detailed proposal. We will work in consultation with members of Congress. That will be just one phase of a broader regulatory framework that we're going to have to put in place to prevent these kinds of crises from happening again."

Rep. Barney Frank, D-Mass., the committee chairman, said that "when nonbank major financial institutions need to be put out of their misery, we need to give somebody the authority to do what the FDIC can do with banks."

The government has given AIG over $180 billion in bailout funds since it first intervened last Sept. 16. The U.S. now owns nearly 80 percent of the giant insurer.

"If a federal agency had had such tools on Sept. 16, they could have been used to put AIG into conservatorship or receivership, unwind it slowly, protect policyholders and impose haircuts on creditors and counterparties as appropriate," Bernanke said.

Both Geithner and Bernanke told the panel they did not become aware of the $165 million in AIG bonuses until March 10, just days before the payments were made. However, lower-level officials at both agencies were aware of the payments.

At the time of the first AIG bailout, Geithner was the president of the New York Fed, which helped oversee the government intervention.

AIG is a globally interconnected colossus, with 74 million customers and operations in more than 130 countries.

"Its failure could have resulted in a 1930s-style global financial and economic meltdown, with catastrophic implications for production, income and jobs," Bernanke told the panel.

Bernanke said it was "highly inappropriate to pay substantial bonuses" in such a situation. He said he had asked that the payments be stopped but was told that they were mandated by contracts.

"I then asked that suit be filed to prevent the payments," he said.

But Bernanke said his legal staff counseled against this action "on the grounds that Connecticut law provides for substantial punitive damages if the suit would fail."

Separately, Connecticut Attorney General Richard Blumenthal said the Fed "never contacted me or my office concerning the applicability of the Connecticut wage law to the AIG bonuses. If the Fed had called, we would have given the green light for litigation blocking these unconscionable bonuses."

Dealings between Congress and Geithner have been tense. But they were a little more relaxed in the afterglow of Monday's nearly 500-point surge in the Dow Jones industrials, though the Dow gave back about 116 points on Tuesday. The rise came in large part in response to the administration's unveiling of a public-private program to buy up to $1 trillion in bad loans and toxic mortgage-related securities clogging bank balance sheets.

Still, there were a few pointed exchanges Tuesday.

Rep. Paul Kanjorski, D-Pa., warned Geithner about any requests by the Obama administration for more taxpayer money to support financial bailouts.

"I assume that you recognize there's not an awful lot of sympathy up here to necessarily provide additional funds - not going on the merits of whether the funds are necessary," he said.

"We recognize it will be extraordinarily difficult," Geithner acknowledged.

Rep. Brad Sherman, D-Calif., told Geithner: "What I fear here is that we are doing a kabuki theater in three acts.

"The first act: Washington tells the American people, `We understand your anger at Wall Street.' In the second act, we nitpick to death any proposal that actually adversely affects Wall Street. And then, in the third act, we bestow another trillion dollars on Wall Street under extremely favorable terms."

Geithner made it clear he believes the treasury secretary should be granted broad powers - after consultation with Federal Reserve officials - to take control of a major financial institution and run it. The treasury chief is an official of the administration, unlike the FDIC, which is an independent regulatory agency.

AIG has become a symbol of reckless risk-taking on Wall Street. The bonuses came even as AIG reported a stunning $62 billion fourth-quarter loss, the biggest in U.S. corporate history. The government has bailed out AIG four times, to the tune of more than $180 billion altogether.

New York Attorney General Andrew Cuomo said Monday that 15 employees who received some of the largest bonuses from AIG have agreed to return the money, totaling about $50 million.

The House last week voted overwhelmingly to slap 90 percent taxes on the largest bonuses. But Republicans in the Senate are blocking similar legislation, and White House reaction to the legislation has been tepid at best.

Senate Majority Leader Harry Reid, D-Nev., told reporters on Tuesday Democrats were considering other alternatives.

"The issue is not over," he said.

But House Majority Leader Steny Hoyer, D-Md., said, "If the money is returned, the legislation may no longer be necessary."

Senate Republican Leader Mitch McConnell said Geithner should get credit for trying to fix the financial system.

"That's the real issue. And at least he's grappling with that," McConnell said.

Obama claims gains in fight against economic woes

Obama claims gains in fight against economic woes

President Barack Obama speaks during a news conference, Tuesday, March 24, 2009, in the East Room of the White House in Washington.

WASHINGTON (AP) -- President Barack Obama claimed early progress Tuesday night in his dogged campaign to lead the nation out of economic chaos and declared that despite obstacles ahead, "we're moving in the right direction." At the second prime-time news conference of his presidency, Obama also toned down his criticism of bonuses to executives at bailed-out AIG, and shot back at Republican critics of his budget.

In office for 64 tumultuous days, Obama cast his budget - now under review in Congress - as essential if the economy is to recover. The tax and spending plan "is inseparable from this recovery because it is what lays the foundation for a secure and lasting prosperity," he said.

The news conference, lasting a bit under an hour, came at a pivotal, early moment in Obama's young presidency. Democrats in Congress are readying budget proposals that will largely determine how much of his first-term agenda will be passed, Treasury Secretary Timothy Geithner is churning out near-daily proposals to solve the nation's economic crisis and the administration is struggling with public and congressional outrage over bonuses paid to executives of bailed-out AIG. Additionally, Obama departs next week for his first European trip as commander in chief, with the global economy a major focus.

Flexible on some points, Obama was unyielding on others. Pressed on why he seemed to delay before condemning the AIG bonuses, Obama said, "It took us a couple of days because I like to know what I'm talking about before I speak."

The news conference was dominated by questions about the economy. Obama defended the steps his administration has taken to counter the recession and an unprecedented credit crisis. He said teachers and others have jobs today because of the economic stimulus measure that Congress passed, and the nation is "beginning to see signs of increased sales and stabilized housing prices for the first time in a long time."

He said full-fledged recovery is months away, and he added, "It will take patience."

At the same time, he said, "we're in a better place because of the decisions that we made."

Obama put in a plug for the request Geithner made to Congress earlier in the day for extraordinary authority to take over failing companies like American International Group Inc., much as the Federal Deposit Insurance Corp. now does for banks.

"It is precisely because of the lack of this authority" that AIG's problems threatened to bring down the entire U.S. economy, he said. Top Democrats in Congress reacted positively to the proposal, although it is not clear when legislation might be considered.

Obama has been vocal in his unhappiness over the $165 million in retention bonuses paid to executives at AIG, although his favorable reference to business men and women seeking profits was a new twist.

"Bankers and executives on Wall Street need to realize that enriching themselves on the taxpayers' dime is inexcusable, that the days of outsized rewards and reckless speculation that puts us all at risk have to be over," he said.

"At the same time, the rest of us can't afford to demonize every investor or entrepreneur who seeks to make a profit. That drive is what has always fueled our prosperity, and it is what will ultimately get these banks lending and our economy moving once more," he said.

The president opened the news conference with a prepared statement read from a teleprompter, turning the event's opening moments into a brief speech delivered to a nationwide TV audience in addition to the roomful of reporters.

He said his administration was taking steps to make sure banks have money to lend "even if the economy gets worse."

Obama said he did not feel the government should call on Americans to make sacrifices beyond those imposed by the recession and credit crisis. "Folks are sacrificing left and right ... across the board, people are making adjustments large and small," he said.

Obama was quick with a retort when asked about Republican criticism of his budget, with its huge projected deficits.

"First of all," he said he inherited a deficit of over $1 trillion from his predecessor. And secondly, he said the Republicans have yet to offer an alternative to his own tax and spending plan.

Obama has emphasized a desire to cut projected deficits in half by the end of his current term, although recent estimates make it appear almost impossible barring an extraordinary series of events.

Given concern in Congress over the red ink, Senate Democrats are drafting a separate budget plan that assumes Obama's proposed middle class tax cut expires after two years - the sort of sleight of hand that other administrations of both parties have used in the past.

While Congress' budget does not go to the White House for a president's signature, the White House traditionally seeks to influence its provisions. Obama restated his objectives Tuesday night - health care overhaul, a new energy policy and more money for education and deficit control.

Obama stepped to the microphone one day after his administration unveiled a plan to melt the credit freeze by helping banks shed bad loans. Under the proposal, the government will finance the purchase by private investors of as much as $1 trillion of the $2 trillion in bad assets still held by the nation's banks, in the hopes of freeing banks to begin lending more freely and churn up economic activity.

The proposal led to a huge stock rally on Monday, though stocks slipped back somewhat on Tuesday as Wall Street digested all the information.

Obama also is preparing for a European trip next week that includes a London summit on the global economic crisis, while, away from the economy, an announcement is expected by Friday on a revamped U.S. strategy for Afghanistan and Pakistan.

The president took particular care to defend the $3.6 trillion budget proposal that includes his ambitious, all-at-once agenda of increased health care coverage, higher education spending and a new "cap-and-trade" system on greenhouse gases emissions. The blueprint starts its journey through Congress this week, and is encountering opposition and demands for big spending reductions from fellow Democrats as well as Republicans.

On Wednesday, Obama is heading to Capitol Hill to lobby Senate Democrats.

Senate GOP leader Mitch McConnell emphasized Republican criticism of the president's proposed budget as an over-spending, over-taxing disaster. A Congressional Budget Office analysis released last Friday estimates Obama's budget would generate deficits totaling $9.3 trillion over the next decade

"If these plans are carried out, we run the risk of looking like a Third World country," said McConnell, R-Ky.

Obama's job approval rating is 63 percent, according to Gallup polling. That number has been relatively stable recently, down from the 68 percent when the president took office mostly on a loss of support among Republicans.

Obama has been in near-constant motion since he assumed the presidency just over two months ago. This week has assumed an especially feverish pitch.

Police Identify Pathmark Shooting Suspect

Police Identify Pathmark Shooting Suspect

by KYW's Jim Melwert

Philadelphia police have identified a suspect in the robbery and shooting at a grocery store in Wynnefield Heights.

Police said 29-year-old Jermaine Goodman was doing some grocery shopping for his sickly grandmother Sunday afternoon at the Pathmark on Monument Avenue. He paid for several items, they say, but tried to shoplift dental floss and cologne. He was spotted by a security guard, and after Goodman fled into the parking lot, Philadelphia police Lieutenant John Walker said he came back to the guard, and was led into the security room in the store.

For full story go to: http://www.kyw1060.com/

Captain in Coatesville Fire Dept. Arrested for 2 Arsons

Captain in Coatesville Fire Dept. Arrested for 2 Arsons

by KYW's Jim Melwert

A former high ranking member of the Coatesville Fire Department has been arrested on charges of setting two fires in the arson-plagued city.

37-year-old Robert Tracey, Jr. is charged with intentionally setting the blazes late Friday night.

For full story go to: http://www.kyw1060.com/