| Geithner: We can prevent more bailouts

Geithner:-We-can-prevent-more-bailouts WASHINGTON - Treasury Secretary Timothy Geithner said Thursday that giving the government the power to dismantle mammoth financial firms like Lehman Brothers will prevent future bailouts.

In a House hearing, Geithner refuted angry claims by Republicans that the proposal would create a category of firms deemed so big and influential to the broader economy that they wouldnt be allowed to fail.

The only authority we would have would be to manage their failure, Geithner told the House Financial Services Committee.

The Obama administration and Rep. Barney Frank, the panels chairman, want legislation that would enable federal regulators to identify and monitor big financial firms and step in to wind them down before they collapse.

Regulators have a similar authority with traditional banks but were powerless last year when investment bank Lehman Brothers and insurance giant American International Group teetered on the brink of collapse.

The government allowed Lehman Brothers to fail, helping to trigger the worst financial crisis in seven decades as nervous investors withdrew funds from money markets and credit lines froze. When it came to AIG, the Bush administration decided instead to swoop in with a hefty government bailout.

Frank, D-Mass., and Geithner said the latest proposal would prevent the government from having to decide between doing nothing and a costly rescue.

Without the ability for the government to step in, manage the failure of a large firm and contain the risk of a fire spreading, we are resigned to repeat the experience of last fall, Geithner said.

If the bill passes the House, a list of systemically important companies wouldnt be released to the public. But these firms would eventually have to disclose to investors that theyre under additional constraints.

Rep. Spencer Bachus of Alabama, the top Republican on the panel, said that any identification of a company as too big to fail would imply that the government would step in to rescue it. He also said the plan would put taxpayers on the hook to pay administrative costs of dissolving large firms.

Under the bill, the government would front the money to dismantle a company. If the firm doesnt have enough assets to repay the government, regulators would assess a fee to other firms with more than $10 billion in assets.

For those who believe that those taxpayer losses would be recouped from surviving firms, I would direct their attention to the recent examples of GM, Chrysler, Fannie Mae, Freddie Mac and AIG, Bachus said.

Frank said that had the government had the power to act preemptively in these cases, a bailout might not have been needed.

At least one Democrat, Rep. Luis Gutierrez, said he thought large financial firms should be forced to prepay into an insurance-like fund.

The fund should be set up just in case their behavior — their reckless, dangerous and risky behavior — raises its ugly head again, said Gutierrez, D-Ill.

The Federal Reserve Board agreed with Geithner that the legislation would probably prevent future bailouts. Fed Governor Daniel Tarullo said in prepared remarks that the bill would establish the expectation that shareholders and creditors of the firm will bear losses as a result of the firms failure.

Banks oppose a provision in the bill that puts the Federal Deposit Insurance Corporation in charge of dismantling these failing firms. Banks pay the FDIC to insure deposits, and they dont want their premiums to pay for the FDICs new power.

If our fund is strong and a major nonbank fails, there will be a strong temptation to unfairly raid the bank FDIC fund to pay for it, said Edward Yingling, president of the American Bankers Association, in prepared testimony.

- | Geithner: We can prevent more bailouts |

| Senate tables effort to avert Medicare fee cuts for doctors

Senate-tables-effort-to-avert-Medicare-fee-cuts-for-doctors

WASHINGTON -- Doctors' Medicare fees would be cut 21 percent next year unless some change is approved, and quickly, but Senators sent a strong signal Wednesday that they're reluctant to spend billions on a long-term solution.

Despite a strong effort by the American Medical Association , the Senate rejected a bid to continue debate on a 10-year plan by 13 votes because of concerns it isn't paid for.

James Rohack , the AMA president, said he's "deeply disappointed," and Senate Majority Leader Harry Reid , D- Nev. , vowed he'd pursue a "multi-year fix" after dealing with health care legislation.

Before the end of the year, the change is expected to pass -- because Congress is highly unlikely to put doctors and seniors in a precarious position.

First, however, there's going to be a lot of political turmoil as lawmakers sort out all sorts of tough questions.

Should the change be part of the big health care overhaul? Should Congress pass a long-term fix, or simply one that applies for a year or two? Also, how will this be paid for -- since the federal deficit last year hit $1.4 trillion and a lot of lawmakers are reluctant to make it bigger?

Advocates of a strong fix have warned that if the currently scheduled payment system goes into effect, patients would have a harder time finding doctors willing to treat them. "These cuts threaten to disrupt the relationships between people with Medicare and the doctors who care for them," according to Joe Baker , the president of the Medicare Rights Center, a nonprofit, nonpartisan consumer advocacy group based in New York .

Members of Congress agree on this much. "The one thing we have to understand is we are going to make sure that senior citizens have the ability to go to a doctor when they're sick," Reid said. "That's the key. We want to make sure that more doctors take Medicare patients, not less."

Beyond that, solutions to this problem are proving elusive.

Part of the problem involves disagreements over how long a fix is necessary. The Senate Finance Committee , as part of its $829 billion comprehensive health care plan, agreed to increase doctors' payments 0.5 percent next year, at a cost of $10.9 billion .

Sen. Debbie Stabenow , D- Mich. , and others want a 10-year, $246.9 billion plan that would freeze rates during that period, a plan that's been widely praised by the doctors' group and AARP , which represents seniors.

"While short-term fixes have temporarily averted widespread access problems, they have also grown the size of the problem -- and the cost of reform," Rohack said at a Washington news conference. "This bill does away with past budget gimmicks and instead lays the foundation for fiscally honest and responsible repeal of the broken formula."

Skeptics countered that the 10-year fix dramatically adds to the deficit, and that argument doomed the bill Wednesday.

"It just adds almost $250 billion to the deficit, to the debt for the coming years. And I just don't think we can do that anymore," said Sen. Joseph Lieberman , a Connecticut independent who caucuses with the Democrats.

Supporters of the 10-year plan, however, argue that the Finance Committee fix, while less expensive, pushes the problem off for another year, and estimates are that doctors fees would drop 25 percent in 2011.

One solution is to adopt a compromise fix separately from the big health care overhaul, which presumably would make the Medicare change easier to pass. Discussions are under way to do that.

The system Congress is trying to fix comes from a complex formula called the "Sustainable Growth Rate," which is supposed to set the Medicare fees each year. Year after year, though, it falls short of what physicians say is a reasonable payment. In each of the past seven years, Congress has had to enact higher fee schedules.

The problem is expected to grow more acute in the next decade, as more baby boomers retire. Those are the reasons, congressional leaders say, that something will be done.

"It can be one year, two years, four years, 10 years, I don't know. That's got to be worked out," said Senate Finance Committee Chairman Max Baucus , D- Mont. , "The main point is there will not be a reduction in doctors' reimbursement."

ON THE WEB

Senate roll call vote on health care debate

Medicare physicians' fee legislation

Congressional Budget Office analysis of Sustainable Growth Rate

American Medical Association statement on Senate vote

Congressional Budget Office analysis of House health care plan

Text of Finance Committee measure

CBO analysis of Finance Committee bill

House Republican health care proposal

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For more McClatchy politics coverage visit Planet Washington

- | Senate tables effort to avert Medicare fee cuts for doctors |

| Shriver apologizes for breaking cell phone law

Shriver-apologizes-for-breaking-cell-phone-law

SACRAMENTO, Calif. – California first lady Maria Shriver says shes sorry for breaking a state law that requires drivers to use hands-free devices while talking on cell phones.

The celebrity Web site TMZ.com posted two photographs and a video Tuesday showing Shriver holding a phone to her ear while she was behind the wheel. That prompted Gov. Arnold Schwarzenegger to write about it on Twitter, where he said theres going to be swift action.

On Wednesday, Shriver said she will donate her favorite old cell phone to a program that helps domestic violence. She added: Thats my version of swift action with a higher purpose.

Schwarzenegger joked about the incident during a speech Wednesday at a technology conference in San Francisco, saying, Im in big trouble.

He said he couldnt believe his wife was caught on camera three times holding that phone in her hand like in the Stone Age.

Shrivers statement did not say whether she would use a hands-free device in the future. Her office had no further comment.

- | Shriver apologizes for breaking cell phone law |

| Oprah’s personal trainer shares tips recipes

Oprah’s-personal-trainer-shares-tips,-recipes Need a kick to get back on the nutritious track? Has the economy made you turn to fatty comfort foods? Fitness expert and “Best Life Diet” creator Bob Greene — also known as Oprah’s personal trainer — shares his top recipes and simple steps to help people take control of unhealthy emotional eating: 

Add variety to your meal and snack options
Create delicious and easy-to-prepare food combinations that provide fiber, whole grains, crunch and variety to keep you motivated to eat healthy.  

Stock your “stress areas” with healthy snacks
Is the office where you feel the most stress?  Fill your desk with healthy snacks and skip the trip to the vending machine.

Exercise more  
Daily exercise can help to alleviate stress, curb cravings and leave you feeling better!

Choose nutritious, filling foods that crunch
Nutrient-dense, high-fiber, crunchy foods can actually provide great mental and physical satisfaction, aid in satiety and help you get some of your stress out.  

Beef with tomatoes and olives over pastaBob Greene - | Oprah’s personal trainer shares tips recipes |

| NYC fire Samaritan proposes on live TV

NYC-fire-Samaritan-proposes-on-live-TV NEW YORK - A Good Samaritan, shown on video dramatically rescuing a child from a Bronx fire, has moved on to another great moment: proposing marriage on live television.

Horia Cretan got down on one knee Thursday on ABCs Good Morning America. The woman, identified only as Desiree, said yes. Cretan slipped a ring on her finger.

Moments earlier, Cretan recalled being in his store Wednesday and hearing desperate screams.

He rushed outside, saw waves of smoke billowing from a fourth-floor window and used a ladder to get to the fire escape.

A firefighter handed him a limp, unconscious 4-year-old. Using a curtain as a shield from falling debris, Cretan carried the boy to safety.

The child is expected to survive.

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Legal © 2009 MSNBC.com - | NYC fire Samaritan proposes on live TV |

| Mich Robin Hood banker gets year in prison

Mich.-Robin-Hood-banker-gets-year-in-prison DETROIT -A Michigan bank manager who insists she gave the $340,000 she stole over eight years to needy customers was sentenced Tuesday to a year and a day in prison by a judge who declared that her Robin Hood days are long over.
Patricia Keezer, 53, said the embezzling began in 2000, when she would give needy people $2,000 at a time for car repairs, mortgage payments and taxes. Keezer commonly reversed bounced-check charges and other fees when she was a manager of Citizens Bank, formerly known as Republic Bank, in Manchester, 70 miles southwest of Detroit.
I would take other peoples problems and make them my problems, Keezer told the judge. I do have a problem with giving things away.
She repeatedly expressed remorse and said she would accept the death penalty for the crime if it were a possibility and she didnt have a family.
Assistant U.S. Attorney Erin Shaw asked for two years in prison and said Keezers claim of a crime rooted in charity was implausible.
We dont know where the money is. ... It just doesnt add up, Shaw said.
But defense lawyer Raymond Cassar noted theres no trail of luxuries. He asked the judge to sentence Keezer to home confinement.
She didnt use it on herself. She didnt bury it in the ground. She didnt give it to her husband, he said of the missing money. She gave it away. Its believable.
U.S. District Judge Marianne Battani chose to impose the minimum sentence for a convict to earn time off for good behavior.
You are like a modern day Robin Hood, Battani said of the folklore hero who stole from the rich and gave to the poor. Those Robin Hood days are long over.
The embezzlement was discovered a year ago. Authorities say Keezer covered her tracks by preparing false records and disguising the true value of the banks cash by covering stacks of $1 bills with $100 bills during audits.
A bank official who was in the courtroom declined to comment. - | Mich Robin Hood banker gets year in prison |

| 3 sizzling steak recipes for the grill

3-sizzling-steak-recipes-for-the-grill Sometimes, nothing hits the spot like a perfectly grilled steak. Three top U.S. chefs — Chris Schlesinger, executive chef and owner of East Coast Grill in Boston; Jeff Henderson, author of Chef Jeff Cooks; and John Schenk, executive chef of Strip House restaurants — share their recipes for cooking up juicy, flavorful steaks that will wow your taste buds.

Lime-soaked, cumin-crusted grilled skirt steak with green olive-chile relishChris Schlesinger - | 3 sizzling steak recipes for the grill |

| Clinton initiative raises more than $8 billion

Clinton-initiative-raises-more-than-$8-billion NEW YORK - The Clinton Global Initiative gathered more than $8 billion in pledges at this years summit, surprising its organizers who had worried that the recession would lower the level of support.

The philanthropic effort started by former President Bill Clinton aims to tap wealthy donors for funds to try to solve some of the worlds most pressing problems, from poverty to climate change.

We were concerned, and we actually came into this CGI with more sponsorships than we had last year, under adverse circumstances, Clinton said on Friday at the closing session of the four-day summit.

The meeting brought together heads of state, financial leaders, corporate bosses and rights activists looking to deal with issues in education, health, energy and the empowerment of women.

Celebrities Bono, Brad Pitt and Quincy Jones turned out for the summit. The politicians included President Barack Obama and leaders of Argentina and Rwanda. Also in attendance was the managing director of the International Monetary Fund.

Ahead of the event CGI Chief Executive Robert Harrison guessed that the value of the programs to be unveiled would be less than the $8 billion worth of commitments made in 2008 but more pledges of action than the 250 commitments last year.

The fifth annual summit this year saw 282 pledges of action with a value of more than $8 billion.

The new commitments include plans to increase female employment in Africa, expand micro-insurance and distribute vaccines that would prevent cervical cancer.

Chief executives from Exxon Mobil Corp, Dow Chemical, Wal-Mart Stores Inc., Coca-Cola Co., Goldman Sachs Group Inc. and Kraft Foods helped the 2009 summit see more participation from companies than in any prior year, Clinton said.

Clinton started the Clinton Global Initiative to bring together the public and private sector to discuss solutions to problems in four areas — climate change, poverty, global health and education.

Hillary Clinton speaks on hunger
In the closing address, Clintons wife, Secretary of State Hillary Rodham Clinton, outlined steps to deal with world hunger in the closing address.

She spoke about a new approach from the Obama administration in dealing with hunger issues — a food security initiative that attempts to help people around the world grow, buy and sell the food they need instead of focusing primarily on emergency food aid in times of crisis.

Food security is not just about food, but it is all about security, economic security, environmental security, even national security, she told attendees. Massive hunger poses a threat to the stability of governments, societies and borders.

Since 2007, there have been food riots in more than 60 countries, she said.

Mrs. Clinton said the new approach would include working with countries to implement plans that would help them improve their agriculture as well as plans that would invest in infrastructure and technology that would make farming more productive and selling agricultural produce easier.

She said the efforts also would focus on women, who comprise the majority of the worlds farmers.

After she spoke, Bill Clinton lauded the program, saying he and other presidents had erred in focusing on emergency food aid and moving away from agricultural development to deal with global hunger.

One of the mistakes that I and all my predecessors made when we stopped helping people feed themselves from 1981 forward, is we forgot the dignity element of being able to feed yourself, he said.

This is a big deal, and it can change Americas relations with people all over the world.

Fridays conference closing was a family affair, with the entire former first family present.

Hillary and Bill Clinton came into the session together, followed by daughter Chelsea Clinton. In introducing his wife, Clinton described her as the best public servant our family has produced.

Hillary Clinton returned the praise, expressing her pride in her husband for what he has accomplished through the conference.

- | Clinton initiative raises more than $8 billion |