In it, but not of it. TPM DC

AIG's plan to pay out $165 million in bonuses to its disgraced Financial Products unit is prompting some surprising unity on Capitol Hill: Democrats and Republicans in Congress are taking a forward-leaning approach to holding AIG accountable to the taxpayers, while the Obama administration appears to be caught a few steps behind.

The current controversy began on Saturday with a letter from AIG CEO Edward Liddy to Treasury Secretary Tim Geithner. Liddy's missive has been quoted frequently, but it's hard to get the full picture of AIG's commitment to its own enrichment without reading the complete version -- TPMDC's copy is viewable here.

Lawmakers from both ends of the ideological spectrum are seething at Liddy's argument to Geithner that "we cannot attract and retain the best and brightest talent to lead and staff the AIG businesses ... if employees believe that their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury."

House Financial Services Committee Chairman Barney Frank (D-MA) told NBC today that firings may be necessary at AIG, whether or not the company's 2008 bonuses can be legally withheld. Meanwhile, Richard Shelby (R-AL), Frank's frequent night-and-day opposite on financial issues and the senior Republican on the Senate Banking Committee, was telling ABC the exact same thing.

"You're rewarding failure. A lot of these people should be fired, not awarded a bonus," Shelby said.

So where is the Obama administration? So far, the president and his advisers have shared Congress' keen sense of outrage but remained a few steps behind lawmakers on the fast-moving push to deny AIG its bonuses.

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The DSCC has just sent out a press release against former Rep. Rob Simmons (R-CT), who has declared his candidacy against Chris Dodd in 2010. And one thing is clear: Democrats are going to keep running against George W. Bush for years to come.

The statement begins with a Simmons quote from 2004: "I am a big fan of the president's and I am quite proud to be a Republican, and agree with him on many issues." The rest of the release then goes on to link Simmons to Tom DeLay and Jack Abramoff, on top of the George W. Bush link.

Simmons held his House seat for three terms, but then lost re-election by a margin of 83 votes out of over 240,000, in the big Democratic year of 2006. A recent Quinnipiac poll gave him a 43%-42% edge over Dodd. So expect the Dems to make this race about Bush as much they can -- after all, it sure worked across the whole country in 2006 and 2008.

Full DSCC statement after the jump.

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Ed Rendell told RNN-TV, a regional cable news channel in the Northeast, that he has in fact tried to talk GOP Senator Arlen Specter into switching to the Democrats -- oh, and so have some other important people, who Rendell probably shouldn't have mentioned.

"We've tried," said Rendell. "Myself, Senator Casey, Vice President Biden have tried to talk him into it, but he's bound and determined to stay a Republican."

When asked for comment by RNN-TV, Specter's office pointed them to an interview he gave recently where he said he was "prepared to run as a Republican," and did not directly confirm or deny that Specter has been approached by Joe Biden, Ed Rendell or Bob Casey about switching parties.

Late Update: Here's the relevant clip from Rendell's interview with RNN's Andrew Whitman:

More of the interview will run tonight at 6 p.m. ET.

Obama To Use Campaign Infrastructure To Build Support For Budget President Obama and the Democratic National Committee will be leveraging Obama's 13-million name e-mail list in order to mobilize support for Obama's budget proposal. From the Washington Post: "Aides familiar with the plan said it is an unprecedented attempt to transfer the grass-roots energy built during the presidential campaign into an effort to sway Congress."

Obama's Day Ahead President Obama and Treasury Sec. Tim Geithner will be meeting at 11:25 a.m. ET with small business owners and community leaders. Obama and Geithner will deliver remarks to the group and members of Congress at 12 p.m. ET. At 2 p.m. ET, Obama will speak at the Department of Veterans Affairs.

Biden's Day Ahead Vice President Biden will be speaking this afternoon at the International Association of Fire Fighters 2009 Legislative Conference. In the evening, Biden will attend an event for the Democratic National Committee, where he will be speaking.

Obama To Roll Out Small Business Aid Plan At their White House event today, President Obama and Sec. Geithner will announce plan to help small business. The plan will include lower small-business lending fees, as well as an increase on the government guarantees for some Small Business Administration loans, and other steps aimed at unlocking the credit markets.

Poll: Economy Is Top Issue, And Unemployment Is Top Economic Issue A new CNN poll finds 36% of Americans saying unemployment is the single most important economic issue -- compared to 13% last April, when the biggest economic issue during a time of rising gas prices was inflation. Overall, 63% say the economy is their top concern.

Simmons Running Against Dodd Former Rep. Rob Simmons (R-CT) has announced that he is running for Senate against Chris Dodd in 2010. Simmons lost re-election by less than 100 votes in the 2006 Democratic wave, but a recent Quinnipiac poll gave him a 43%-42% edge over the embattled Dodd.

GOP Spending Big In Special Election For Gillibrand's House Seat The Hill reports that the Republicans are investing heavily in the special election for Kirsten Gillibrand's former House seat, where the polls are showing just a small lead for GOP candidate Jim Tedisco (after he'd previously held a much larger one). In all, 82 members of the GOP conference have agreed to donate to Tedisco's campaign, and both John Boehner and Eric Cantor have held fundraisers for him.

Cheney: Obama Putting America At Risk Of Another Attack During his interview today on CNN, former Vice President Dick Cheney blasted the Obama Administration's decisions to undo the previous policies on Guantanamo, waterboarding and other issues. "President Obama campaigned against it all across the country," said Cheney. "And now he is making some choices that, in my mind, will, in fact, raise the risk to the American people of another attack."

No Obama Or Biden Events Today President Obama and Vice President Biden do not have any public events today. Obama has a 3 p.m. meeting on the economy at the Oval Office, which will be closed press.

Summers: AIG Bonuses "Outrageous" -- But Government Cannot Abrogate Contracts Appearing on ABC's This Week, Lawrence Summers denounced the AIG bonuses as "outrageous," and said the White House is doing everything it can to limit the bonuses -- but he also added that there are limits to what can be done. "We are a country of law. There are contracts," said Summers. "The government cannot just abrogate contracts. Every legal step possible to limit those bonuses is being taken by Secretary Geithner and by the Federal Reserve system."

Goolsbee: Administration Doing Everything It Can About AIG Bonuses Appearing on Fox News Sunday, Austan Goolsbee addressed the AIG bonuses. "I don't know why they would follow a policy that's really not sensible, is obviously going to ignite the ire of millions of people, and we've done exactly what we can do to prevent this kind of thing from happening again," said Goolsbee. "I think the root of the problem has been some of the people have things written in their contract that say, 'Look, you sell this much life insurance, you get a bonus of X,' and it's in their contract and that part can't be changed."

Barney Frank Wants To See If AIG Bonuses Are Recoverable -- And To Get Tough On The Executives Appearing on Fox News Sunday, Barney Frank said he wanted to see if the AIG bonuses are recoverable. "We can't just violate law -- legal obligations. I understand that," said Frank. "But I do want to find out at what point these illegal obligations were incurred, who said, and at what point, we're going to give these bonuses no matter what. And I do think it's inappropriate for those people to stay in power at that company."

WaPo: Jarrett High-Powered And Low-Key The Washington Post profiles Valerie Jarrett, and her role as the public liaison for groups wanting to reach President Obama: "Jarrett's ability to navigate the big personalities and even bigger egos in the administration will go a long way toward determining her success, and perhaps the president's, in trying to change the tone of civic discourse and foster more grass-roots influence in Washington."

Biden Raises Big Money For Blanche Lincoln Joe Biden headlined a fundraiser in Arkansas yesterday for Senator Blanche Lincoln, kicking off her re-election bid. The Lincoln campaign told the media that the event brought in about $800,000 a considerable amount in the inexpensive Arkansas media markets.

Americans United Ad: We Want The President And America To Succeed The latest ad from the labor-backed group Americans United For Change, running on national cable and in the D.C. media market, blasts Congressional Republicans for attacking President Obama's budget plan, but failing to have a one of their own:

"Tell the Republicans that Americans won't take No for an answer. Tell them we want our President - and America - to succeed," the announcer says. Note that at this point, the group doesn't even have to directly mention Rush Limbaugh, as they did in prior ads -- the line about wanting the President and America to succeed gets the message across just fine.

Obama Announces Food Safety Appointments In his weekly video address, President Obama announced the appointment of Dr. Margaret Hamburg as the new Commissioner of the Food and Drug Administration, and Dr. Joshua Sharfstein as Principal Deputy Commissioner:

Obama also a announced a new Food Safety Working Group to deal with recent regulatory failures that have resulted in food recalls: "In the end, food safety is something I take seriously, not just as your President, but as a parent."

GOP YouTube: "The Government Doesn't Create Wealth. It Expends Wealth" In the weekly Republican YouTube, Sen. Chuck Grassley (R-IA) goes after the Obama Administration for taxing and spending:

"It's very simple. The government doesn't create wealth. It expends wealth," said Grassley. "No wonder then the public is skeptical about Washington trying to fix the economy with one massive spending bill after another. It's hard to convince taxpayers that more deficit spending is the answer."

Obama Meets With Brazil's Lula da Silva President Obama met at 11 a.m. this morning with Brazilian President Lula da Silva. The topics of their discussion included the upcoming G-20 meeting and the Summits of the Americas, the financial crisis, energy policy and the environment.

Biden Campaigning For Dem Senator Blanche Lincoln Vice President Biden is traveling today to Little Rock Arkansas, where he will attend the kickoff for Senator Blanche Lincoln's (D) 2010 re-election campaign. Biden will be speaking at the event.

WaPo: Obama Blaming Bush The Washington Post points out that President Obama has taken to frequently saying that he has inherited particular problems that he's dealing with, which has Republicans complaining of partisanship. Former Bush press secretary Ari Fleischer claimed to the Post that Obama is doing this because his approval numbers are going down: "His response to that trend is to turn up the blame on George Bush and everything that came before him. And he was the one who talked about getting past partisanship."

NYT: Republicans Split On Whether To Offer Budget Alternative The New York Times reports that Congressional Republicans have split on whether they should offer up an alternative budget plan, as opposed to simply criticizing President Obama's $3.6 trillion plan. House Republicans are offering a plan, while the Senate Republicans are not. "The responsibility of the majority is to produce the budget," said Senator Judd Gregg (R-NH), the ranking Republican on the Budget Committee, "and we think it is more constructive to point out how we would improve their budget."

Pelosi: I Am Not Partisan -- And GOP Can't Win On Policy Or Process In an interview with Charlie Rose, Nancy Pelosi denied Republican accusations that she has been an overly partisan leader, explaining that Republicans were invited to contribute ideas for the stimulus bill -- they just didn't win the arguments. "If you can't win on policy, then you go to process," said Pelosi. "If you can't win on process, then you go to personality. And that's how they have decided they would make up stories about me and the rest."

NYT: Bush Policy Institute To Be A Political, Not Academic Institution The New York Times examines the upcoming Bush policy institute at Southern Methodist University, and the battles that the Bush Foundation has had with academics there: "It will proselytize rather than explore: a letter sent to universities bidding for the Bush center stipulated that the institute would, among other things, 'further the domestic and international goals of the Bush administration.' And it will hold itself apart from S.M.U.'s own world of academic inquiry, reporting to the Bush Foundation itself rather than to the university president or provost, as academic institutes -- even presidential ones -- normally do."

Rep. Bill Posey, a freshman Republican from Florida, is now putting forward a bill that should be good news for a particular demographic that cares a whole lot about their issue: Those folks out there who insist that President Obama hasn't offered a birth certificate to prove he's a natural-born U.S. citizen.

CNN reports that Posey has submitted a bill to require all presidential candidates to submit a birth certificate -- which Posey says is needed in order to remove this issue as a reason to question any president's legitimacy.

"Opponents of President Bush used the 2000 election results and the court decisions to question the legitimacy of President Bush to serve as President," Posey said in a statement. "Opponents of President Obama are raising the birth certificate issue as a means of questioning his eligibility to serve as president. Neither of these situations are healthy for our Republic."

Posey's spokesperson told CNN that Posey takes President Obama's word for it that he's a citizen: "This was not meant as an insult to the president. It is simply meant as a way to clarify future election laws and to dispel the issue so we can move on with doing business for the country."

A quick check of the Library of Congress' Thomas site shows the bill does not have any cosponsors yet. But Posey only introduced it on Thursday, so he's just getting started.

With the major proceedings of the Minnesota trial now over -- the closing arguments have been done, and it's now in the three-judge panel's hands -- here are some other news items from the disputed race.

At a brief press conference held after the closing arguments were done, Norm Coleman commended his legal team, and discussed the importance of the issues at hand. "Whatever the outcome is, ultimately we'll get to a conclusion in this," said Norm. "But the bottom line is, people have a right to have their votes be counted."

A reporter asked Norm if he would appeal, in the event that he loses in this court. "Let's deal with this step right now," said Norm. "There are a lot of votes to be counted. There are still a lot of issues to be sorted." He then reiterated that he's not looking forward, but is focused on the issues present right now.

Coleman legal spokesman Ben Ginsberg continued to insist on the inaccuracies in the election system, and kept up the campaign's position that it might not be possible to certify any winner at all.

Ginsberg mentioned a line from Franken lawyer Kevin Hamilton's closing argument that Minnesota's election system works, and is one of the best in the country. "It is indeed," said Ginsberg. "But he really proved our point that as good as the Minnesota system is, it is not finely-calibrated enough to tell who won this election."

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Reader CT Voter notes that John Negroponte, Bush's ambassador to Iraq, and another much esteemed career diplomat--although his tenure as U.S. Ambassador to Honduras came under criticism--didn't have Mideast experience. He'd been at the U.N. dealing with Mideast issues as part of his tenure there but that's not the kind of specific expertise Graham and McCain seem to want. It's all very odd. TPM readers are encouraged, though, to search for more examples of McCain and Graham not asking for regional expertise for a major appointment.

The Democratic National Committee released a "Party of No" clock today that tallies how much time Republicans have spent criticizing President Obama's budget without offering an alternative of their own.

And it's a good thing that there's no limit on how high the clock can go, because Senate GOPers have no intention of ever offering an alternative budget this year. As senior Budget Committee Republican Judd Gregg (NH) tells the Times:

The responsibility of the majority is to produce the budget, and we think it is more constructive to point out how we would improve their budget.

Good plan! Seriously, though, the senators' task may be complicated by their House GOP counterparts, who -- to their credit -- are planning to unveil an alternative budget proposal.

This all may sound like political back-and-forth, but alternative plans put forward by the minority party often get an actual vote; Sen. Jim DeMint's (R-SC) alterna-stimulus, for example, won the support of all but four Republican senators last month.

It's too bad that Senate Republicans aren't prepared to come together on a budget they can believe in ... but perhaps a Democratic senator would be kind enough to submit the House GOP's alterna-budget to a vote in the upper chamber? I'd love to see how many on Minority Leader Mitch McConnell's (R-KY) team would be willing to vote for it.