Sam Stein: McCain and sour grapes

Democrats are growing increasingly frustrated with the brash political attacks Sen. John McCain has launched against Barack Obama in the weeks since the new president took office. No one expected the Arizona Republican to be a legislative ally for this administration. But it was widely assumed that Obama's overtures to McCain in the weeks after the election would dull some of the hard feelings between the two. Now, they are realizing, it has not.

"He is bitter and really angry," Bob Shrum said of McCain in an interview on Friday. "He is angry at the press, which he thinks is unfair. He is angry at Obama and angry at the voters. He has gone from being an angry old candidate to being an angry old defeated candidate."

Indeed, during the debate over the economic stimulus package it was McCain, as often as Senate Minority Leader Mitch McConnell, who spearheaded the opposition. The Arizona Republican denounced the proposal as pure pork on the Senate floor and introduced an alternative measure comprised nearly entirely of tax cuts.

On Sunday, McCain wouldn't let the fight die, even with the legislation through Congress. Appearing on CNN, he described the $787 billion measure as "generational theft" and said that the bill's authors should "start over now and sit down together."

Meanwhile, appearing on ABC's This Week, Sen. Lindsey Graham -- McCain's chief ally in the Senate -- said of the process by which the stimulus was forged: "If this is going to be bipartisanship, the country is screwed."

That two Republicans Senators who consider themselves prudent compromisers would forcefully condemn the president's top legislative priority is noteworthy in and of itself. That it comes after President Obama made overt gestures of reconciliation to both McCain and Graham raises questions as to just how long it will take for this era of post-partisanship to arrive.

Not to mention that, as other observers pointed out, McCain isn't being entirely consistent.

"During the Senate debate, 36 of the Senate Republicans voted for an alternative that would have cut taxes over the next decade by $2.5 trillion, [and] reduced the top marginal race to 25 percent," said the Atlantic's Ron Brownstein on "Meet the Press." "For John McCain -- who voted for that alternative of a $2.5 trillion tax cut over the next decade -- to talk about generational theft, I mean, pot meet kettle."

Love in the White House

Gay couples protest all over the US

SAN FRANCISCO (AP) — Same-sex couples seeking to wed showed up at marriage license counters nationwide Thursday to highlight a right they don't have in 48 states, part of an annual protest that took on renewed urgency given recent election setbacks.

In San Francisco, where same-sex marriage was legal for nearly five months last year before California voters approved a ban, many couples who came to City Hall had already tied the knot but wanted to express their gratitude and to show they're still part of the fight.

"All of our marriages are under the cloud of Proposition 8," said Stuart Gaffney, 45, referring to California's ballot initiative banning gay marriage. "Equality is an unfinished business in California."

In Las Vegas, couples gathered outside the downtown marriage bureau with signs that read "Don't hate my love" and "No laws on love." In New York, activists wore signs that said "Just Not Married." They were turned away empty-handed in both places when they asked for marriage licenses.

"We could get married in Massachusetts or Connecticut, but we'll wait a little and see what happens in New York," Matt Flanders, 37, of Brooklyn, said after he and his partner, Will Jennings, 29, participated in the protest in Manhattan. "It's a matter of principle. This is our home, and we should be able to get married where we live, where our friends are."

The protests around Valentine's Day, part of the 12th annual Freedom to Marry Day, were considered especially important this year because they come after the November passage of Proposition 8. The measure has prompted protests, lawsuits and questions about the direction of the gay rights movement.

"A lot of people feel a sense of determination and regret over having been too complacent or quiet before, so there is a commitment to, `Never again, we have to take action,'" said Evan Wolfson, a civil rights lawyer who conceived Freedom to Marry Day. "In that sense, California was a terrific energizer and wake-up call."

Currently, gay marriage is legal only in Massachusetts and Connecticut, while 30 states have gay marriage bans in their constitutions. Gay rights activists are pressing lawmakers in New Jersey, New York and Vermont to take up bills that would legalize same-sex marriage in those states.

Jennifer Pizer, director of the marriage project at gay rights legal group Lambda Legal, said the disappointing outcome of the California election has created momentum in other parts of the country.

Hawaii's House of Representatives, for example, voted 33-17 Thursday to allow same-sex civil unions. The legislation now goes before the state's Senate Judiciary Committee, where the vote is split among six senators, with one undecided. A tie vote would kill the civil union measure for the year.

In Utah, where a constitutional amendment approved by voters in 2004 prohibits same-sex unions, five gay and lesbian couples applied for marriage licenses in Salt Lake City on Thursday. County Clerk Sherrie Swensen said she could recall only one other gay couple asking to get married over the last 18 years.

In Maine and Minnesota on Thursday, dozens of proponents of gay marriage gathered outside the statehouses to lobby for bills that would legalize same-sex marriage in those states. Under a black and white banner that read "Legalize Love," Minnesota lawmakers vowed to push the bill as far as they can.

State Sen. Scott Dibble, a Minneapolis Democrat who is one of the few openly gay members of the Legislature, said the country's economic woes showed the need for couples to support each other. But gay couples can't get many of the benefits of marriage that might make things easier, he said.

"Those with strong families more than anyone are going to be able to rely on each other," Dibble said. "So why does our own government try to stop that from happening? Why does our own government try to stop us from trying to take care of each other?"

Troy Smith, 41, and his partner of six years, Justin Gibson, 26, were among the 15 couples waiting with tourists outside the marriage bureau in downtown Las Vegas. Smith, a coordinator at a local wedding chapel, said he's constantly faced with the reality of Nevada's constitutional ban on gay marriage.

"I sell it every day, but I can't buy it myself," he said, adding that he often sees couples rushing to the altar after knowing each other for hours. "It just about breaks my heart. It's not fair."

The California Supreme Court is scheduled to hear oral arguments next month on whether to uphold Proposition 8 and on the validity of the estimated 18,000 same-sex marriages sanctioned in the state between June and November. The court could render a decision as early as June.

Obama "faith based" office presents wider agenda, more inclusive

WASHINGTON – Declaring that "there is a force for good greater than government," President Barack Obama on Thursday established a White House office of faith-based initiatives with a broader mission than the one overseen by his Republican predecessor.

Obama said the new office, which he created by executive order, would reach out to organizations that provide help "no matter their religious or political beliefs."

Obama said the office would work with nonprofit organizations "both secular and faith-based" and would help them determine how to make a bigger impact in their cities, learn their obligations under the law and cut through government red tape.

In a time of economic crisis, the president said, it was important for the government to help distressed Americans but added that "the change that Americans are looking for will not come from government alone."

Obama said the top priority of the White House Office of Faith-Based and Neighborhood Partnerships will be "making community groups an integral part of our economy recovery and poverty a burden fewer have to bear when recovery is complete."

To lead the office, Obama appointed Joshua DuBois, a 26-year-old Pentecostal minister who headed religious outreach for Obama's Senate office and his presidential campaign. He also named 25 religious and secular leaders to a new advisory board.

"The big picture is that President Obama believes faith-based and smaller secular neighborhood organizations can play a role in American renewal. They can work with the federal government to address big problems," DuBois said in an interview with The Associated Press. "We're also going to make sure we have a keener eye toward the separation of church and state."

Obama said the office would also work to reach out overseas "to foster interfaith dialogue with leaders and scholars around the world."

Obama's order expanded and redefined a similar office established by President George W. Bush. Focused primarily on faith-based initiatives, the Bush office sparked constitutional questions about whether the separation of church and state would be preserved, particularly if groups receiving tax dollars sought to hire on the basis of religion.

Before signing the order at the White House, Obama told the annual National Prayer Breakfast that the program would not show favoritism to any religious group and would adhere to a strict separation of church and state.

Addressing the gathering of lawmakers, dignitaries and world leaders, Obama spoke of how faith has often been a divisive tool, responsible for war and prejudice. But, he said, "there is no religion whose central tenet is hate."

"There is no god who condones taking the life of an innocent human being," he said, and all religions teach people to love and care for one another. That is the common ground underlying the faith-based office, he said.

In personal terms, Obama talked about the role of faith in his life, from his Muslim-born father and a mother skeptical of organized religion to his own embrace of Christianity as a young man.

"In a world that grows smaller by the day, perhaps we can begin to crowd out the destructive forces of zealotry and make room for the healing power of understanding," he said. "This is my hope. This is my prayer."

Dogged throughout the presidential campaign by rumors that he was a Muslim, Obama described his background in a household that wasn't religious.

"I had a father who was born a Muslim but became an atheist, grandparents who were non-practicing Methodists and Baptists, and a mother who was skeptical of organized religion, even as she was the kindest, most spiritual person I've ever known. She was the one who taught me as a child to love, and to understand, and to do unto others as I would want done," he said.

Obama's advisers want to be certain tax dollars sent to the faith-based social service groups are used for secular purposes, such as feeding the hungry or housing the homeless, and not for religious evangelism. The administration doesn't want to be perceived as managing the groups yet seeks transparency and accountability.

Obama pledged during the campaign to allow taxpayer-funded religious institutions to hire and fire based on religion — but only for the activities run on private funding.

Obama on Thursday asked White House lawyers and the Justice Department to write a policy that would allow that.

"There is a pretty clear lack of legal clarity and data in this area. This mechanism allows us to explore those areas on a case-by-case basis and find out exactly where things are," DuBois said.

One question is whether the faith-based office will issue grants under the Bush rules while the hiring policy is worked out.

Exxon Mobil sets record profits for 2008

They set record profits while we paid record prices. What's up with that?



HOUSTON – Exxon Mobil Corp. on Friday reported a profit of $45.2 billion for 2008, breaking its own record for a U.S. company, even as its fourth-quarter earnings fell 33 percent from a year ago.

The previous record for annual profit was $40.6 billion, which the world's largest publicly traded oil company set in 2007.

The extraordinary full-year profit wasn't a surprise given crude's triple-digit price for much of 2008, peaking near an unheard of $150 a barrel in July. Since then, however, prices have fallen roughly 70 percent amid a deepening global economic crisis.

In the fourth quarter alone crude tumbled 60 percent, prompting spending and job cuts in an industry that was reporting robust, often record, profits as recently as last summer.

With piles of cash and diversified operations, the majors like Exxon Mobil have fared better than many smaller oil and gas companies, but Friday's results show no one is completely insulated from the ongoing malaise.

Irving, Texas-based Exxon said net income slid sharply to $7.8 billion, or $1.55 a share, in the October-December period. That compared with $11.7 billion, or $2.13 a share, in the same period a year ago, when Exxon set a U.S. record for quarterly profit. It has since topped that mark twice, first in last year's second quarter and then with earnings of $14.83 billion in the third quarter.

Revenue in the most-recent quarter fell 27 percent to $84.7 billion.

Both the per-share and revenue results topped Wall Street forecasts. On average, analysts expected the company to earn $1.45 a share in the latest quarter on revenue of $69.1 billion, according to Thomson Reuters.

Shares rose $1.52, or 2 percent, to $78.52 in early trading.

The nation's second largest oil company, Chevron Corp., reported profits of $4.9 billion for the fourth quarter, though revenues slid 26 percent with oil prices in sharp decline.

It earned $2.44 per share in the three months ended Dec. 31. Like Exxon, Chevron easily beat expectations of analysts, who were looking for profits of $1.81 per share.

The industry went into retrenchment toward the end of the year with demand falling.

As expected, Exxon Mobil's bottom line took a beating from its exploration and production, or upstream, arm, where net income fell 31 percent to $5.6 billion. The culprit: lower crude prices, which the company said decreased earnings by $3.2 billion in the fourth quarter alone.

The company, which produces about 3 percent of the world's oil, said overall output fell 3 percent in the most-recent period, a troubling trend in previous quarters. Exxon, which generates more than two-thirds of its earnings from oil and gas production, said production-sharing contracts and OPEC quotas contributed to its lower output.

Results were better at its refining and marketing unit, where earnings rose 6 percent to $2.4 billion as higher margins overcame costs related to last summer's hurricanes and other factors.

The company's chemical division also took a hit, posting net income of $155 million versus $1.1 billion a year ago. Results were hurt by lower volumes and margins and hurricane-repair costs.

Exxon Mobil said it bought 119 million shares of its common stock in the quarter at a cost of $8.8 billion. Roughly $8 billion of that amount was dedicated to reducing the number of shares outstanding; the balance was used to offset shares issued as part of the company's benefit plans.

Exxon said it spent $26.1 billion on capital and exploration projects last year, up 25 percent from 2007. Its earnings release provided no information about its planned spending for 2009.

For the full year, Exxon Mobil's massive profit amounted to $8.69 a share, versus $7.28 a share a year ago.

Obama calls $18 Billion in Wall Street Bonuses "Shameful"

WASHINGTON – President Barack Obama issued a withering critique Thursday of Wall Street corporate behavior, calling it "the height of irresponsibility" for employees to be paid more than $18 billion in bonuses last year while their crumbling financial sector received a bailout from taxpayers. "It is shameful," Obama said from the Oval Office. "And part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint, and show some discipline, and show some sense of responsibility."

The president's comments, made with new Treasury Secretary Timothy Geithner at his side, came in swift response to a report that employees of the New York financial world garnered an estimated $18.4 billion in bonuses last year. The figure, from the New York state comptroller, drew prominent news coverage.

Yet Obama's stand also came just one day after he surrounded himself with well-paid chief executives at the White House. He had pulled in those business leaders and hailed them for being on the "front lines in seeing the enormous problems in our economy right now."

The president said the public dislikes the idea of helping the financial sector dig out of a hole, only to see it get bigger because of lavish spending. The comptroller's report found that Wall Street bonuses were down 44 percent, but still at about the same level as they were during the boom time of 2004.

Obama said he and Geithner will speak directly to Wall Street leaders about the bonuses, which threaten to undermine public support for more government intervention as the economy keeps reeling.

The House just approved an economic stimulus plan that would cost taxpayers more than $800 billion; the Senate is considering its own version.

Separately, Congress also passed a $700 billion plan last year to shore up the financial sector, one that drew howls of criticism about a lack of transparency.

"We're going to be having conversations as this process moves forward directly with these folks on Wall Street to underscore that they have to start acting in a more responsible fashion if we are to, together, get this economy rolling again," Obama said.

"There will be time for them to make profits, and there will be time for them to get bonuses," Obama said. "Now is not that time."

Obama said Geithner has already had to step in to stop one company from taking delivery of a new corporate jet it planned to buy even after receiving billions of dollars of support from the government. That bank, Citigroup, canceled the deal earlier this week.

Obama's strong words overshadowed the other part of his message, that he wants to roll out, in the coming weeks, new plans to regulate Wall Street and get more credit flowing to consumers again. The president considers such steps to work in tandem with the economic stimulus measures unfolding in Congress.

One idea under consideration by the Obama administration is the creation of a "bad bank" that could take over the soured debt, like defaulting mortgages, that have corroded the balance sheets of banks and helped choke off lending. The president did not talk about that proposal or any others.

Obama tells Citigroup to "fix it"

The high-flying execs at Citigroup caved under pressure from President Obama and decided today to abandon plans for a luxurious new $50 million corporate jet from France.
The bank used TARP funds to purchase a new corporate jet for executives.

The decision came 24 hours after the banking giant, which was rescued by a $45 billion taxpayer lifeline, defended buying the state-of-the-art Dassault Falcon 7X -- one of nine to be flying in U.S. skies -- as a smart business deal.

The jet, the epitome of corporate prestige and privilege, can carry 12 passengers in elegant comfort.

ABC News has learned that on Monday officials of the Obama administration called Citigroup about the company's new $50 million corporate jet and told execs to "fix it."

Earlier on Monday, White House spokesman Robert Gibbs said made it clear ABC News asked him about the jet that the president disapproved of the deal.

"The president said this during the transition, as it related to the auto companies using private jets: [He] doesn't believe that's the best use of money at this point," Gibbs said.

The company today issued a statement saying, "We have no intent to take delivery of any new aircraft."

Citigroup had argued it was selling two of its four other planes to pay for this one, that the new jet would be more efficient and, besides, it had already signed a contract for the jet. Breaking that deal would cost the bank millions in penalties.

The Citigroup air fleet will now shrink from four jets and a helicopter to two planes.

Citigroup was apparently not deterred from shopping for a new jet despite the outrage that erupted when Detroit's auto barons used private jets to fly into Washington to plead for handouts. The giant carmakers later got rid of their jets after being granted a $17 billion financial lifeline in taxpayer cash.

And this week, ousted Merrill Lynch CEO John Thain said he would personally cough up the $1 million he spent on remodeling his office after his brokerage was rescued with billions in taxpayer cash.