FACTBOX-Issues likely to surface at Obama news conference

Tue Mar 24, 2009 1:11pm EDT
 
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March 24 (Reuters) - President Barack Obama will hold a prime-time news conference on Tuesday to explain his economic strategy to a recession-weary public angry over executive bonuses and concerned about the government's direction.

Here are a few issues he will likely address:

TOXIC DEBT PLAN

The Obama administration hopes to persuade private investors to buy up to $1 trillion in soured bank assets that are blocking lending and exacerbating the recession, but questions remain about how the assets should be priced.

FINANCIAL REGULATORY REFORM

Obama aims to overhaul financial regulations to improve monitoring and managing financial risk and establish a clear process for unwinding troubled non-bank financial firms. Treasury Secretary Timothy Geithner is expected to announce details on Thursday.

AIG BONUSES

Congress is moving to apply punitive taxes to employees of troubled insurer AIG who received $165 million in bonus pay after the company received billions in government bailout money. Obama has said he is angered by the bonuses, but questions remain about why his administration did not do more to prevent them from being paid out in the first place.

AUTO INDUSTRY RESCUE

A White House task force is trying to overhaul the troubled auto industry, but General Motors bondholders have resisted efforts to reduce the company's debt before a deadline at the end of the month.

PUBLIC OPINION

Opinion polls show Obama's approval rating dropping as public anger mounts over the bank bailout. How concerned is he about his declining support?

GEITHNER'S FUTURE

Geithner is under fire for his handling of the economic crisis and the AIG bonuses. Obama has said several times that he has complete confidence in Geithner, who is still working with a skeleton staff.

SELLING THE BUDGET

Obama is facing resistance in Congress to his massive $3.55 trillion budget plan from Republicans and some Democrats who say it is too costly. Last weekend, he enlisted his network of grass-roots volunteers to build public support and pressure wavering lawmakers.  Continued...

 

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