A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / White House Courts Investors

By Daniel Politi 

The New York Times leads with the Obama administration’s busy Sunday, when officials went on a charm offensive to try to convince private investors to participate in the government’s long-awaited effort to remove troubled assets from banks’ balance sheets. Treasury Secretary Timothy Geithner will officially unveil the plan’s details today, but officials were already out in full force yesterday to motivate private investors to take the handsome government subsidies and buy up the troubled assets. The Washington Post leads with key administration officials making it pretty clear that the White House isn’t too happy about the idea of recovering bonuses through taxes. Although some of the administration’s top economic officials were careful to emphasize that the public has a right to feel angry about the bonuses, they said it’s not a good idea to use the tax code to target a small group of people.

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / Obama Demands a Refund

By Daniel Politi

The New York Times and Washington Post lead with, and everyone else fronts, the continuing fallout from the $165 million in bonuses that American International Group handed out to employees who were at least partly responsible for the insurance giant’s fall from grace. President Obama ordered his administration to “pursue every legal avenue to block these bonuses” that started to go out Friday. Separately, New York Attorney General Andrew Cuomo said he would subpoena the company to find out details about the bonuses and their recipients.

 

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / Geithner to Europe: Let the Money Flow

By Daniel Politi

The New York Times leads with a look at how fraud prosecutions will be coming soon to a courtroom near you. Attorneys general across the country have started to get the ball rolling, and the federal government is expected to get in on the action soon. The Washington Post leads with the Obama administration’s call to boost the International Monetary Fund’s war chest, which also came with a push to get other countries, particularly in Europe, to boost their stimulus spending. Treasury Secretary Timothy Geithner said Congress will be asked to approve $100 billion more to the IMF’s fund to help struggling nations.

 

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / The First Major Stock Rally of 2009

By Daniel Politi

The Wall Street Journal banners and the New York Times leads with news that Bernard Madoff is expected to plead guilty tomorrow to 11 felony charges and will likely spend the rest of his life in prison. Prosecutors say Madoff began operating what may be the largest fraud in Wall Street’s history as early as the 1980s. Ten days before he was arrested, Madoff sent statements to clients claiming to have a total of $64.8 billion, far more than the $50 billion the disgraced financier originally confessed to losing. The Washington Post leads with the first major stock market rally of 2009 that came after Citigroup reported some surprising good news and Federal Reserve Chairman Ben Bernanke called for reforms in the financial system. Citigroup announced it was profitable in the first two months of the year, and its shares surged 38 percent. The Dow Jones industrial average increased 5.8 percent, the biggest gain since Nov. 21.

 

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / Obama Faces Opposition From Democrats

By Daniel Politi

The Washington Post leads with a look at how the Obama administration is seeking to put more restrictions on free trade even as world commerce takes a plunge this year because of the global economic crisis. The administration plans to take a harder line on domestic and social issues not only when signing new trade deals but also in determining whether existing agreements will be honored. The New York Times leads with Democratic congressional leaders opposing some of the priorities that President Obama set forth in his budget. Key Democrats are questioning Obama’s plan to reduce tax deductions for the wealthiest Americans, cut agriculture subsidies, and reduce spending on Medicare, Medicaid, and Social Security, among other issues.

 

A SUMMARY OF WHAT’S IN THE MAJOR U.S. NEWSPAPERS / We All Fall Down

By Daniel Politi

The Washington Post leads with a new World Bank report that warned the global economy will fall into a recession for the first time since World War II as world trade suffers its steepest plunge in 80 years. The crisis will put a dent in poverty-fighting efforts, and multilateral lenders don’t have enough money to help developing nations get through the downturn. The World Bank called on developed nations to dedicate 0.7 percent of whatever they spend on stimulus programs toward a Vulnerability Fund to help developing countries. The New York Times leads with a look at how the dollar is increasing in value, a good thing for the United States that appears to be making the crisis worse in other countries. The dollar has risen 13 percent against major currencies in the last year and “has once again been affirmed as the global reserve currency,” declares the paper. The Wall Street Journal leads its world-wide newsbox with word that the White House will push world leaders to increase government spending to deal with the global downturn. The move could cause tensions with European governments that think overhauling financial regulation should be the first priority.