Black Florida congressman apologies for Palin comments

Martina Stewart, CNN

- An African-American congressman from Florida is apologizing for his comment that black and Jewish voters should not support Republican vice presidential nominee Sarah Palin because “anybody toting guns and stripping moose don’t care too much about what they do with Jews and blacks.”

“I regret the comments I made last Tuesday that were not smart and certainly not relevant to hunters or sportsmen,” Rep. Alcee Hastings said in a statement issued Monday.

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House ignores Bush, rejects $700B bailout bill

In a stunning vote that shocked the capital and worldwide markets, the House on Monday defeated a $700 billion emergency rescue for the nation’s financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive without it. The Dow Jones industrials plunged nearly 800 points, the most ever for a single day.

Democratic and Republican leaders alike pledged to try again, though the Democrats said GOP lawmakers needed to provide more votes. Bush huddled with his economic advisers about a next step. The House was to reconvene on Thursday instead of adjourning for the year as planned.

The stock plunge began even before the 228-205 vote to reject the bill was officially announced on the House floor. The decline for the day surpassed the 721-point previous record, on the day after the Sept. 11, 2001, terror attacks, though in percentage terms it was well short of the drops on Black Monday of October 1987 and at the start of the Depression.

In the House chamber, as a digital screen recorded a cascade of “no” votes against the bailout, Democratic Rep. Joe Crowley of New York shouted news of the falling stocks. “Six hundred points!” he yelled, jabbing his thumb downward.

Bush and a host of leading congressional figures had implored the lawmakers to pass the legislation despite howls of protest from their constituents back home. Not enough members were willing to take the political risk just five weeks before an election.

“No” votes came from both the Democratic and Republican sides of the aisle. More than two-thirds of Republicans and 40 percent of Democrats opposed the bill.

The overriding question for congressional leaders was what to do next. Congress has been trying to adjourn so that its members can go out and campaign. “We are ready to continue to work on this,” said Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.

“The legislation may have failed; the crisis is still with us,” said House Speaker Nancy Pelosi, D-Calif., in a news conference after the defeat.

“What happened today cannot stand,” Pelosi said. “We must move forward, and I hope that the markets will take that message.”

At the White House, Bush said, “I’m disappointed in the vote. … We’ve put forth a plan that was big because we’ve got a big problem.” He pledged to keep pressing for a measure that Congress would pass.

Republicans blamed Pelosi’s scathing speech near the close of the debate — which attacked Bush’s economic policies and a “right-wing ideology of anything goes, no supervision, no discipline, no regulation” of financial markets — for the vote’s failure.

“We could have gotten there today had it not been for the partisan speech that the speaker gave on the floor of the House,” Minority Leader John Boehner said. Pelosi’s words, the Ohio Republican said, “poisoned our conference, caused a number of members that we thought we could get, to go south.”

Rep. Roy Blunt, R-Mo., the whip, estimated that Pelosi’s speech changed the minds of a dozen Republicans who might otherwise have supported the plan.

Frank said that was a remarkable accusation by Republicans against Republicans: “Because somebody hurt their feelings, they decided to punish the country.”

The presidential candidates kept close track — from afar.

In Colorado, Democrat Barack Obama said, “Democrats, Republicans, step up to the plate, get it done.”

Republican John McCain spoke with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke before leaving Ohio for a campaign stop in Iowa, a spokeswoman said.

Monday’s action had been preceded by unusually aggressive White House lobbying, and Fratto said that Bush had been making calls to lawmakers until shortly before the vote.

Bush and his economic advisers, as well as congressional leaders in both parties had argued the plan was vital to insulating ordinary Americans from the effects of Wall Street’s bad bets. The version that was up for vote Monday was the product of marathon closed-door negotiations on Capitol Hill over the weekend.

“We’re all worried about losing our jobs,” Rep. Paul Ryan, R-Wis., declared in an impassioned speech in support of the bill before the vote. “Most of us say, ‘I want this thing to pass, but I want you to vote for it — not me.’ ”

With their dire warnings of impending economic doom and their sweeping request for unprecedented sums of money and authority to bail out cash-starved financial firms, Bush and his economic chiefs have focused the attention of world markets on Congress, Ryan added.

“We’re in this moment, and if we fail to do the right thing, Heaven help us,” he said.

The legislation the administration promoted would have allowed the government to buy bad mortgages and other rotten assets held by troubled banks and financial institutions. Getting those debts off their books should bolster those companies’ balance sheets, making them more inclined to lend and easing one of the biggest choke points in the credit crisis. If the plan worked, the thinking went, it would help lift a major weight off the national economy that is already sputtering.

More than a repudiation of Democrats, Frank said, Republicans’ refusal to vote for the bailout was a rejection of their own president.

JULIE HIRSCHFELD DAVIS, AP

No grand jury likely for Gonzales

A report on a Justice Department investigation into the controversial firings of U.S. attorneys is harshly critical of the politically charged dismissals but does not recommend referring the role of former Attorney General Alberto Gonzales to a grand jury for possible criminal charges, according to published reports.

The Washington Post and The New York Times, in Monday editions, said department’s inspector general and Office of Professional Responsibility do recommend, however, that a prosecutor continue to investigate the involvement of lawmakers and the White House in the firings.

Gonzales, a longtime friend and adviser to President Bush, resigned last year after coming under blistering criticism for the dismissals.

Democrats and some of the fired U.S. attorneys maintain that the firings in late 2006 were motivated by politics and not the job performance of the prosecutors.

The Post said that Attorney General Michael Mukasey will appoint a prosecutor to continue the investigation, meaning the matter will continue into the next administration.

According to a source cited by the Times, Kyle Sampson, Gonzales’s former chief of staff and the man who carried out the dismissal of eight prosecutors, is likely to be the target of much of the report’s criticism. The report, the Times said, was expected to indicate that Sampson was working on orders from his higher ups, including Gonzales, Bush’s former top political adviser Karl Rove, and Harriet Miers, a former White House counsel.

During the 18-month probe, investigators poured through thousands of documents and interviewed dozens of people.

The report was to be released Monday.

AP

Congress passes 25 billion loan guarantees to automakers

The US Senate Saturday approved 25 billion dollars in loan guarantees for the financially strapped US auto industry, intended to spark a wave of automotive innovation.

The loan guarantees were included in a continuing resolution that included funding for the US government and the wars in Iraq and Afghanistan.

President George W. Bush has indicated that he intends to sign the bill.

“We’re very pleased Congress has chosen to act at this critical time,” said Greg Martin, director of communications for General Motors Corp’s Washington office.

GM had been subject of much speculation that it could be forced into bankruptcy.

The bill, which was approved by the House of Representatives on Wednesday, are the first loan guarantees for US carmakers since Congress approved a similar 675 million dollar measure for Chrysler Corp. in 1980.

Chrysler Chairman Robert Nardelli, however, said this week the loan guarantees should not be considered a rescue package for struggling carmakers. “This is not a bailout,” he said.

Under provisions of the new legislation, not only US carmakers are eligible for the guarantees but also suppliers and foreign automakers with plants in the United States that are more than 20 years old — Nissan and Honda’s US operations qualify.

Martin said automakers could use the money for projects such as a new engine plant GM has announced it intends to build in Flint, Michigan.

GM Chairman Rick Wagoner spoke of plans to invest 370 million dollars in a new plant, which will be the exclusive site for production of the gasoline engine or “range extender” for the electric Chevrolet Volt, due out in November 2010.

AFP

House seeks presidential pardon for boxing champ

The first black heavyweight champion should be granted a presidential pardon for a racially motivated conviction 75 years ago that blemished his reputation and hurt his boxing career, the House recommended Friday.

Jack Johnson became world heavyweight champion in 1908, sparking a search for a white boxer, dubbed “the Great White Hope,” who could beat him.

In 1913, Johnson was convicted of violating the Mann Act which outlawed the transportation of women across state lines for immoral purposes. Authorities had first unsuccessfully tried to charge Johnson over his relationship with a white woman who later became his wife. They then found another white woman who testified that Johnson had transported her across state lines in violation of the Mann Act.

Johnson fled the country, returning in 1920 to serve nearly one year at Leavenworth. He tried to renew his boxing career after leaving prison, but never regained his title.

The House resolution, passed by voice, states that Johnson paved the way for black athletes to participate and succeed in integrated professional sports and that he was “wronged by a racially motivated conviction prompted by his success in the boxing ring and his relationships with white women.” It urged the president to grant Johnson, who died in 1946, a posthumous pardon.

“He was a victim of the times and we need to set the record straight — clear his name — and recognize him for his groundbreaking contribution to the sport of boxing,” said Rep Peter King, R-N.Y., author of the resolution.

The measure now goes to the Senate, where Republican presidential nominee John McCain, a senator from Arizona, has a companion resolution.

JIM ABRAMS (AP)

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