White House Press Office

Presidential Nominations Sent to the Senate
Release Time: 
For Immediate Release

NOMINATIONS SENT TO THE SENATE:

Jamie A. Hainsworth, of Rhode Island, to be United States Marshal for the District of Rhode Island for the term of four years, vice Steven Gerard O'Donnell, resigned.

Louise W. Kelton, of Tennessee, to be United States Marshal for the Middle District of Tennessee for the term of four years, vice Denny Wade King, term expired.

Stephanie Marie Rose, of Iowa, to be United States District Judge for the Southern District of Iowa, vice Robert W. Pratt, retiring.

Michael P. Shea, of Connecticut, to be United States District Judge for the District of Connecticut, vice Christopher Droney, elevated.


President Obama Nominates Two to Serve on the US District Court
Release Time: 
For Immediate Release

WASHINGTON, DC – Today, President Obama nominated Stephanie Marie Rose and Michael P. Shea to serve on the United States District Court.

"These individuals have demonstrated the talent, expertise, and fair-mindedness Americans expect and deserve from their judicial system," said President Obama.  "I am grateful for their willingness to serve and confident that they will apply the law with the utmost impartiality and integrity."

Stephanie Marie Rose: Nominee for the United States District Court for the Southern District of Iowa
Stephanie Marie Rose currently serves as the United States Attorney for the Northern District of Iowa, a position she has held since 2009.  Prior to her confirmation by the Senate, Rose spent over twelve years working in the same office as an Assistant United States Attorney, serving as Deputy Criminal Chief from 2008 to 2009.  During her tenure in the United States Attorney’s Office, she has investigated and prosecuted more than 800 federal criminal cases. She has also done pro bono work as a Court Appointed Special Advocate for abused and neglected children and as a volunteer lawyer representing domestic violence victims.  Rose received her B.A. in 1994 and her J.D. in 1996, both from the University of Iowa.

Michael P. Shea: Nominee for the United States District Court for the District of Connecticut
Michael P. Shea has been a partner at the law firm of Day Pitney LLP in Hartford, Connecticut since 2003, where he has represented individuals, non-profits, and corporations in a broad range of civil and criminal cases.  He currently serves as Chair of the firm’s Appellate Practice Group and has argued twenty civil and criminal appeals in both state and federal courts.  Prior to joining Day Pitney as an associate in 1998, Shea worked as an associate at Cleary, Gottlieb, Steen & Hamilton LLP in both its Washington, D.C. and Brussels offices.  Shea began his legal career as a law clerk to the Honorable James Buckley of the United States Court of Appeals for the District of Columbia Circuit from 1993 to 1994.  He received his J.D. in 1993 from Yale Law School and his B.A. summa cum laude in 1989 from Amherst College.


Statement by the President on Syria
Release Time: 
For Immediate Release

Thirty years after his father massacred tens of thousands of innocent Syrian men, women, and children in Hama, Bashar al-Assad has demonstrated a similar disdain for human life and dignity.  Yesterday the Syrian government murdered hundreds of Syrian citizens, including women and children, in Homs through shelling and other indiscriminate violence, and Syrian forces continue to prevent hundreds of injured civilians from seeking medical help.  These brutal killings take place at a time when so many Syrians are also marking a deeply meaningful day for their faith.  I strongly condemn the Syrian government’s unspeakable assault against the people of Homs and I offer my deepest sympathy to those who have lost loved ones.  Assad must halt his campaign of killing and crimes against his own people now.  He must step aside and allow a democratic transition to proceed immediately.

The Syrian people demonstrated in large numbers across Syria yesterday to participate in peaceful protests commemorating the 30th anniversary of the Hama massacre.  They labeled the protests, “We are Sorry, Hama – Forgive Us.”  We owe it to the victims of Hama and Homs to learn one lesson: that cruelty must be confronted for the sake of justice and human dignity. Every government has the responsibility to protect its citizens, and any government that brutalizes and massacres its people does not deserve to govern. The Syrian regime’s policy of maintaining power by terrorizing its people only indicates its inherent weakness and inevitable collapse.  Assad has no right to lead Syria, and has lost all legitimacy with his people and the international community.

The international community must work to protect the Syrian people from this abhorrent brutality.  Earlier this week, our Arab partners called on UN Security Council members to take action to support a political solution to the crisis in Syria and stop Assad’s “killing machine.”  The Council now has an opportunity to stand against the Assad regime’s relentless brutality and to demonstrate that it is a credible advocate for the universal rights that are written into the UN Charter.

We must work with the Syrian people toward building a brighter future for Syria.  A Syria without Assad could be a Syria in which all Syrians are subject to the rule of law and where minorities are able to exercise their legitimate rights and uphold their identities and traditions while acting as fully enfranchised citizens in a unified republic.  The United States and our international partners support the Syrian people in achieving their aspirations and will continue to assist the Syrian people toward that goal.  We will help because we stand for principles that include universal rights for all people and just political and economic reform.  The suffering citizens of Syria must know: we are with you, and the Assad regime must come to an end.

 

 

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Presidential Nominations and Withdrawals Sent to the Senate
Release Time: 
For Immediate Release

NOMINATIONS SENT TO THE SENATE:

Michael A. Botticelli, of Massachusetts, to be Deputy Director of National Drug Control Policy, vice A. Thomas McLellan.

Christy L. Romero, of Virginia, to be Special Inspector General for the Troubled Asset Relief Program, vice Neil M. Barofsky, resigned.

WITHDRAWALS SENT TO THE SENATE:

Alan D. Bersin, of California, to be Commissioner of Customs, Department of Homeland Security, vice W. Ralph Basham, which was sent to the Senate on January 26, 2011.

John D. Podesta, of the District of Columbia, to be a Member of the Board of Directors of the Corporation for National and Community Service for a term expiring October 6, 2014, vice Alan D. Solomont, resigned, which was sent to the Senate on January 26, 2011.


Statement by the President on Passage of the STOCK Act
Release Time: 
For Immediate Release

In my State of the Union Address, I laid out a blueprint for an economy built to last, where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules – especially those of us who have been sent here to serve the American people.

Last week, I called on Congress to pass a bill that makes clear that Members of Congress may not engage in insider trading.  No one should be able to trade stocks based on nonpublic information gleaned on Capitol Hill. So I’m pleased the Senate took bipartisan action to pass the STOCK Act. I urge the House of Representatives to pass this bill, and I will sign it right away. 

And while this is an important step to rebuild the trust between Washington and the American people, there is much more work to be done, like prohibiting elected officials from owning stocks in industries they impact, and prohibiting people who bundle campaign contributions for Congress from lobbying Congress, an idea that has bipartisan support outside of Washington.  These are straightforward proposals that will help eliminate the corrosive influence of money in politics.


First Lady & Dr. Biden Announce “Joining Forces Community Challenge" finalists from across the country
Release Time: 
For Immediate Release

From more than 300 submissions, 20 finalists recognized for displaying exemplary support to military families and veterans

Challenge winners to be announced this Spring, based on input from Tom Brokaw, J.R. Martinez, Sloan D. Gibson, Mayor Julian Castro and Deanie Dempsey

Public encouraged to vote for the “The People’s Choice Winner” at
http://joiningforces.challenge.gov/

WASHINGTON—First Lady Michelle Obama and Dr. Jill Biden today announced 20 finalists as part of the Joining Forces Community Challenge, an effort to recognize and celebrate citizens, communities, and organizations who have demonstrated a deep commitment to service by improving the lives of military families and veterans.  Mrs. Obama and Dr. Biden are inspired by the outstanding work of all the submissions and hope that celebrating them will encourage others to follow their lead and continue to raise awareness about the military family experience.

Since the launch of the Community Challenge last July, hundreds of submissions were received in three months, all of which captured innovative ways Americans have stepped up to show their gratitude and support for our military families. The 20 finalists are profiled at  http://joiningforces.challenge.gov/. The public is encouraged to participate in this Challenge by voting for their favorite submission to be the People’s Choice Winner, which will be announced on March 16, 2012. 

Five additional winners will be chosen with input from a panel of distinguished judges, including:

• Tom Brokaw, NBC News Special Correspondent and author of five bestsellers including The Greatest Generation;
• J.R. Martinez, Iraq war veteran, motivational speaker and winner of season 13 of Dancing with the Stars,
• Sloan D. Gibson, President and CEO, United Service Organizations (USO);
• Julian Castro – Mayor of San Antonio, one of the nation’s largest military communities; and
• Deanie Dempsey, military family advocate and wife of General Martin Dempsey, Chairman of the Joint Chiefs of Staff.

This Spring, the First Lady and Dr. Biden will honor the 20 Joining Forces Community Challenge finalists at the White House where the five winners will be announced.

“Jill and I have asked organizations large and small to direct some of their efforts toward our troops and their families, and today we’re thrilled to congratulate 20 groups who are doing just that,” said First Lady Michelle Obama.  “These organizations are doing what they do best: providing financial assistance for scholarships and child care, working to build self-esteem in military teens, offering free photo sessions for military families, and so much more.  Creative ideas like these can be replicated in communities all across the country, and we can’t wait to see what Americans come up with next.”

“As Second Lady, I have had the tremendous honor of visiting with service members and military families and learning about the many acts of kindness taking place all across the country in their communities to support them,” said Dr. Jill Biden. “All of the submissions for the Joining Forces Community Challenge demonstrate exactly the spirit of service and dedication we see everywhere we go.  We hope that the great work of these organizations inspire more Americans to take on similar efforts to support military families in their own communities.”

The First Lady and Dr. Biden launched Joining Forces last year as a way to encourage all Americans to support our troops and serve our nation’s military families. For more information and to find opportunities to serve, go to www.joiningforces.gov.

The 20 Joining Forces Community Challenge finalists include:

ARIZONA
Pat Tillman Foundation, Tempe, AZ
The foundation invests in military veterans and spouses nationwide by granting scholarships through the Tillman Military Scholars program. The scholarship funds cover tuition, fees as well as other related costs, including housing and child care. In 2002, Pat Tillman put his NFL career with the Arizona Cardinals on hold in order to serve his country. Started by Pat Tillman’s friends and family after his death in 2004 while serving in Afghanistan, the foundation has provided more than $2.2 million in financial support.


CALIFORNIA
The Sisterhood of the Traveling BDUs, Clovis, CA
The Sisterhood of the Traveling BDUs (a “Battle Dress Uniform” worn by members of the armed forces) was founded by two California teenagers whose fathers had deployed to Afghanistan. Realizing how important that sisterly support was, the young girls created this organization to support military girls, particularly those 13 to 18 years of age, who experience the deployment of a parent. The project aims to create a network of social bonds between military girls to build self-esteem, encourage leadership and increase community support.

Rebuild Hope, Menlo Park, CA
Rebuild Hope provides services to veterans and caregivers to help with their transition back to civilian life. The organization provides financial assistance, counseling and referrals to organizations that offer pro bono care to veterans and caregivers in a variety of areas, including legal, mental health, and debt management.

New Directions, Los Angeles, CA
New Directions provides comprehensive services to homeless and disabled veterans, including substance abuse treatment, counseling and job training in Los Angeles County, home to the nation’s largest homeless military veterans population. The organization serves more than 600 veterans each year.

The Soldiers Project‐Sacramento, Sacramento, CA
The Soldiers Project-Sacramento provides free psychological services for active duty military, veterans of the wars in Iraq and Afghanistan, as well as their family members. The Soldiers Project-Sacramento is an all-volunteer group of about 40 licensed clinicians who have provided more than 500 hours of free, individual treatment since the beginning of 2011.


COLORADO
Project Sanctuary, Parker, CO
In an effort to decrease military veteran suicide rates and the effects of deployment on children, Project Sanctuary was created to provide recreational activities in the Rocky Mountains of Colorado, to help military families reconnect following deployments. Follow-up support beyond the retreat is also provided and includes support to families with housing, job placement and veterans’ assistance.


FLORIDA
Birdies for the Brave, Ponte Vedra Beach, FL 
Birdies for the Brave is a military outreach initiative supported by the PGA TOUR and corporate partners to raise funds for military homefront groups that provide programs and services for wounded warriors and military families. Birdies for the Brave was originally created by TOUR player Phil Mickelson and his wife, Amy, to support troops injured during combat.


GEORGIA
The Landings Military Family Relief Fund, Savannah, GA
The Landings Military Family Relief Fund was created by a group of Red Cross Volunteers living in The Landings to provide financial support to military families during every day emergencies when a family member is deployed. The financial assistance is administered through the Red Cross.


ILLINOIS
Operation Homelink, Chicago, IL
To connect deployed service members to their families, Operation Homelink provides refurbished computers to spouses or parents of deployed troops. The organization has provided more than 2,500 computers nationwide and is expanding to include laptop donations to wounded warriors.


MARYLAND
Give an Hour, Bethesda, MD
Give an Hour, founded by a Washington D.C.-based psychologist, aims to develop a national network of volunteer providers to respond to acute and chronic societal conditions. Their current focus is on mental health services for military service members, their families and people in communities affected by Iraq and Afghanistan.

Luke's Wings, Rockville, MD
Luke’s Wings supports the families of wounded warriors through airplane tickets and travel arrangements to the families of the service members. The nationwide organization may also partner with local hotels or other activities nearby for the family to access for the duration of the wounded warriors’ recovery. Co-founder Sarah Wingfield, a then-Washington Redskins football team ambassador, helped start the organization after meeting “Luke,” a wounded warrior who was recovering at Walter Reed Army Medical Center.


MASSACHUSETTS
Brides Across America, Georgetown, MA
Brides Across America is a national charitable organization that provides wedding gowns to qualified military brides. Founder Heidi Janson wanted to ensure those serving our nation could have the wedding they deserve. Since its founding in 2007, more than 5,000 wedding gowns have been donated to support troops and their families.


MINNESOTA
Defending the Blue Line, Hastings, MN
Defending the Blue Line works to ensure that children of military members have access to participate in hockey, through free equipment, hockey camps, special events and financial assistance toward association and other hockey-related costs. Founded by two Minnesota National Guard members in 2009, more than $500,000 has benefited military families across the United States.

GreenCare for Troops, New Prague, MN
GreenCare for Troops was established by a wounded warrior who, after surviving an almost deadly attack, pledged to dedicate his life to improving the lives of veterans.  This project was created to provide free lawn and landscape services for military families nationwide. The nationwide program is coordinated by Project EverGreen that connects local green industry professionals with military families.

Armed Forces Service Center, St. Paul, MN
The Armed Forces Service Center is a 24-7 “all free” lounge staffed by volunteers at the Minneapolis/St. Paul International Airport, for active-duty military personnel, their dependents, activated reservists and national guardsmen, and other members of the uniformed services. The Center was founded in 1970 by Maggie Purdum after her son was killed in action in Vietnam as appreciation for all who have served.


MISSOURI
Trees for Troops, Chesterfield, MO
Trees for Troops provides thousands of military families in the United States and overseas with Christmas trees. The Christmas SPIRIT Foundation, working with its partner FedEx, has delivered more than 100,000 trees through the Trees for Troops program since beginning in 2005.


NORTH CAROLINA
Canines for Veterans, Wilmington, NC
Through its program – Canines for Veterans – Canines for Service has provided highly-skilled service dogs for wounded warriors. Launched in 2008, the national program works with military prisoners at the Naval Consolidated Brig Charleston who train rescue dogs as service dogs for wounded and injured veterans.

Hearts Apart, Wilmington, NC
Hearts Apart provides soon-to-be deployed service members with a professional photo session with their spouses and children to keep families connected while military families are separated. Photographs are waterproof and printed on durable cards that fit in a uniform pocket.


UTAH
City of Richfield, Utah
The city of Richfield, Utah, has supported its local Army National Guard Unit through four deployments since Sept. 11, 2001. A resource guide provided to military families as family member’s deployed, a city utility abatement program for the duration of a deployment and a community covenant that details the commitment the city will make toward its service members and their families are some of the programs and services provided.


WASHINGTON
Our Family for Families First Foundation, Lake Stevens, WA
Our Family for Families First Foundation supports military families pursuing higher education by supporting children of military service members through scholarships and military spouses through grants and assistance identifying educational opportunities.


President Obama Signs Alaska Disaster Declaration
Release Time: 
For Immediate Release

The President today declared a major disaster exists in the State of Alaska and ordered Federal aid to supplement state and local recovery efforts in the area affected by a severe storm during the period of November 15-17, 2011. 

Federal funding is available to state and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storm in the Kenai Peninsula Borough.

Federal funding is also available on a cost-sharing basis for hazard mitigation measures statewide. 

W. Craig Fugate, Administrator, Federal Emergency Management Agency (FEMA), Department of Homeland Security, named Willie G. Nunn as the Federal Coordinating Officer for federal recovery operations in the affected area. 

FEMA said additional designations may be made at a later date if requested by the state and warranted by the results of further damage assessments.

FOR FURTHER INFORMATION MEDIA SHOULD CONTACT:  FEMA NEWS DESK AT (202) 646-3272 OR FEMA-NEWS-DESK@DHS.GOV


Remarks by the First Lady at Let's Move Food Access Event
Release Time: 
For Immediate Release

Northgate Gonzalez Market Site
Inglewood, California

9:19 A.M. PST

MRS. OBAMA:  Thank you.  Good morning, Inglewood, yes!  (Applause.)  It’s good to say that, right?  It’s good to be here.  You all rest yourselves.

I am more than thrilled to be here with all of you today.  And thank you for having me, because I know having me in your neighborhood is a little disruptive.  (Laughter.)  So thank you for putting up with it.

I want to start by thanking Mayor Butts and Mayor Villaraigosa for their terrific work serving the people of L.A., and for their leadership and for their friendship and support.  I am so glad that they took the time out of their busy schedules to be here today.

I also have to recognize and thank Dr. Ross and the California Endowment for their outstanding leadership in building healthy communities and bringing fresh food to areas in need all across this state.  It’s been just truly a privilege and a joy to work with the endowment and to work with Dr. Ross.  He’s a smart guy.  He’s a funny guy.  And he does what he says he’s going to do.  And that’s always refreshing.  Yes, indeed.  (Laughter.)  They’ve really set the standard on this issue, and we’re just grateful for everything that they’ve done.

And finally, I want to thank Oscar for that kind introduction, but more importantly for what he and his family are doing here in this community and across the state of California.  The story is so inspiring on so many different levels.  But the story of Northgate and the new Northgate Gonzales Market that is being built here is the story that we want to tell in cities and towns across America.  This is the story.  This is what it’s all about.  It’s a story about bringing fresh, healthy, affordable food into communities that need it most.  It’s a story about creating jobs, about revitalizing neighborhoods.  And it’s a story -- the story, like the Northgate story -- that don’t just sell healthy food, but they also promote healthy lifestyles by helping their customers make the decisions that are right for their families.

And that’s more than just owning a store.  That’s being a responsible member of the community.  That’s like being family.  And that’s what you would hope for the institutions that come into our community.  Again, this is the story that we want to tell, and that’s why I’m here, and that’s why I’m glad so much of the country and the world will hear this story.

And that’s also why, last spring, as part of Let’s Move, we brought together nonprofit organizations and grocery stores large and small.  That was just a year ago that we pulled these folks together, and now we’re celebrating the second anniversary of Let’s Move in just a couple of weeks.  And when we brought these people together, we asked them one simple question.  We said, “What can we do together to get fresh food into every community in our country?”  Not just some of them, but every community.  What can we do if we put all our resources and energy to this task?  And within a couple of months -- it didn’t take that long -- we had our answer. 

Companies ranging from small local grocers to major national chains agreed to build or expand 1,500 stores in underserved areas in our country.

And the Fresh Works Fund -- which is, again, a coalition of companies and nonprofits including the California Endowment, but so many others -- they agreed to dedicate $200 million to support these efforts. 

And this all is on top of what the Healthy Food Financing Initiative that the Obama administration started back in 2010.  So there’s been a lot of coming together around this issue.

And with support from these programs, soon, this warehouse we sit in -- I mean, they dressed it up really nicely, it’s pretty impressive -- but this will be home to a brand new, fully stocked grocery store.  And thousands -- thousands of families will be able to buy fresh fruit right in their own community. 

And it sounds like a very simple thing, but there are too many communities that don’t have this kind of privilege.  And I’m here today because I believe that every family in our country should have access to healthy food, because we can’t solve this problem if they don’t.  You can’t look a parent in the face and tell them to feed their child better or healthier if they don’t have access to those resources.  It’s not fair.  If a parent wants to pack a piece of fruit in their child’s lunch, if they want to pick up a head of lettuce to make a salad, they shouldn’t have to get on a bus and go for hours into another community to make that happen.  They shouldn’t have to pay for an expensive taxicab ride to get to another neighborhood just to make that simple act happen, something that so many Americans take for granted.

Instead, they should have a retailer, like Northgate, right in their own community.  Again, it sounds so simple -- a place that sells healthy food at reasonable prices so that they can feed their families in the same way that so many people can and the way that they want to.

That’s how we solve this problem, one community, one household at a time, because when families have access to fresh food, that means that kids can get better nutrition.  It’s as simple as that.  And when kids have better nutrition, they grow up to be healthier.  Simple as that.  And when healthy kids become healthy adults, they’re less likely to suffer from conditions like diabetes, heart disease, cancer -- conditions that cost our economy billions of dollars every year.  All preventable.  All preventable.  And when those kids take those healthy eating habits that they learned at childhood and we think about what they do with that knowledge, that can affect not just what they eat today but what they feed their own children years from now.

So let’s not be mistaken at any level.  When we bring healthy food into our communities, we’re not just making this generation of kids healthier, but we’re working on the next and the next and the next.  We don’t want our kids to struggle in the ways that we do.  And they won’t if they have the information and if we as parents and communities, we have the information and we’re passing that on.

So I am so proud of what we’re all doing together.  This is that simple thing.  You take what appears to be a tough problem and you bring a little hope to it.  And then you bring people together and you come up with smart, common-sense solutions, and then you do the hard work.  And people respond.  And lo and behold, it benefits our children.  And that’s all that we want to do.  In the end, we are doing this for our children.

So this work is inspiring.  And I want to be traveling around the country and going to projects like these all over the country, just shining the light on what we can do together when we are focused on what matters most:  our children.

So I want to congratulate all of you, all of the employees.  You guys are making this happen.  Do not underestimate the power of the service that you provide, creating a home in so many ways for your neighbors and your families and your friends.  We are so incredibly proud of all of you.  And I look forward to working with you in the months and the years ahead.

Thank you so much.  Congratulations.  (Applause.)
    
END          
9:28 A.M. PST


Statement by the Press Secretary on H.R. 3237
Release Time: 
For Immediate Release

On Wednesday, February 1, 2012, the President signed into law:

H.R. 3237, the "SOAR Technical Corrections Act," which clarifies and makes technical corrections to provisions of the Scholarships for Opportunity and Results (SOAR) Act, which provides scholarships to certain students in District of Columbia schools.


President Obama Signs Utah Disaster Declaration
Release Time: 
For Immediate Release

The President today declared a major disaster exists in the State of Utah and ordered Federal aid to supplement state and local recovery efforts in the area affected by a severe storm during the period of November 30 to December 1, 2011.

Federal funding is available to state and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storm in Davis County.

Federal funding is also available on a cost-sharing basis for hazard mitigation measures statewide.

W. Craig Fugate, Administrator, Federal Emergency Management Agency (FEMA), Department of Homeland Security, named Gary R. Stanley as the Federal Coordinating Officer for federal recovery operations in the affected area. 

FEMA said additional designations may be made at a later date if requested by the state and warranted by the results of further damage assessments.


Press Briefing by Press Secretary Jay Carney and Secretary of Housing and Urban Development Shaun Donovan, 2/1/12
Release Time: 
For Immediate Release
Location: 
James S. Brady Press Briefing Room

1:22 P.M. EST

        MR. CARNEY:  Thank you all for being here, ladies and gentlemen.  Today, as you probably noticed when you closely watched the President's remarks earlier, is all about the initiatives he's put forward to help responsible homeowners.  I have with me here today the Secretary of Housing and Urban Development, Shaun Donovan, who is spearheading these initiatives for the President and can describe them to you in detail and take your questions about them.

        And with that, I turn it over to the Secretary.

        SECRETARY DONOVAN:  Thanks, Jay.

        Obviously we'll just be brief here and leave plenty of time for your questions about the specifics.  There were a number of pieces to what the President talked about today, but most importantly, he talked about middle-class families who have been playing by the rules, doing everything right, paying their mortgages on time, and have not been able to benefit from record-low interest rates.

        Through strong administrative action, as part of our We Can't Wait efforts across the administration, last fall we took very important steps to open up refinancing for Fannie Mae and Freddie Mac borrowers who are underwater.  But today we still have too many families who may live next door to a family that, just like them, is paying their bills on time with their mortgage, and only because they have a Fannie Mae or a Freddie Mac or an FHA mortgage, they've been able to lower their bills by an average of $3,000, and as a result help not only themselves, their neighborhood, but also the economy more broadly.  And yet we have other families who are in exactly the same position, been responsible, and yet because they don't have a Fannie Mae or a Freddie Mac or an FHA mortgage, have been unable to benefit from the lowest interest rates in half a century.

        As the President said in his State of the Union, we need to get back to American values that are about everybody being responsible, playing by the same set of rules, and everybody having a fair shake if they're doing the right thing and being responsible.  That's what fundamentally this announcement was about today -- was making sure that those families, any family that's doing the right thing, can benefit from the record-low interest rates that we have today.

        The second main point that he made was about needing strong, clear rules of the road for how our mortgage system is going to operate going forward.  And so he announced a Homeowner Bill of Rights that will make sure that when a family is making the single-most important economic decision of their lives, purchasing a home, that they will get fair, simple, transparent treatment.  No hidden fees; clear explanation on a single, short form of what they are signing up for, without conflicts of interest.  And not only when they buy their home but as they pay their mortgage over time, as a mortgage is what we call serviced by an institution after they bought that home, that they can expect to be treated fairly and transparently as well.  

        No more lost paperwork while they are trying to get help.  No more getting a foreclosure notice while they’re negotiating with their servicer because they’ve lost their job or had a medical emergency, and a very clear right of appeal where they may be going through a foreclosure if they’ve been treated wrongly or wrongly foreclosed on.

        Those are the simple, straightforward principles that were in that Homeowner Bill of Rights, and that was the other major piece of what the President talked about this morning.

        He also mentioned that there are other pieces, but I will leave those to any questions or comments you may have.

        MR. CARNEY:  So let’s take questions for Shaun.  

        Julie.

        Q    Thank you.  Is there anything in the plan that the President outlined today that actually requires the banks that hold these loans to go along with this?  Or is the administration just hoping that by sort of creating these more favorable conditions that they’ll be compelled to do that?

        SECRETARY DONOVAN:  Well, in the end -- and this was very important -- what the President wants to do is give families the choice, to put the power in their hands to make a decision.  A family that’s holding a loan that isn’t a Fannie Mae or Freddie Mac loan or an FHA loan has the choice to pre-pay that loan.  They could pay off that loan.  But they can’t refinance today.  So the bank will have nothing -- will have no ability to say no to homeowners.  If we get this bill passed, if we get this program established, families would have the power in their own hands to get a new loan and therefore pay off their existing loan, and servicers could not say no to that.  There’s no way that they could stop that family from being able to refinance.

        Q    That would apply to all banks?

        SECRETARY DONOVAN:  That’s correct.  What is holding back those families from refinancing is they don’t have an option to refinance their loan today because they are underwater.  And by giving them that option, by giving them that path, it would allow them to do that.  And banks could not stop that, because loans are prepayable.  Every family has the ability, if they can pay off a loan, to do that.

        Q    I wanted to ask about the FHA, which is already facing record losses.  Running this program, would it require some movement of government resources to sort of bolster the FHA to make that possible?

        SECRETARY DONOVAN:  Let me take that question on two levels. First of all, there is broad recognition, economists on all sides of the political spectrum have recognized that a broad-scale refinancing effort is one of the most important things that we can do not only for families and for the housing market but also for the economy more broadly -- that for the average family, $3,000 more a year in their pocket every year they pay their mortgage is like a significant tax cut and would boost consumer spending.  

        It also has the effect of making it easier, obviously, for families to pay their mortgages and therefore reduces defaults, reduces foreclosures and helps to lift house prices as a result.
        And so there’s broad recognition that this would be good for the housing market and good for the economy.  

        And by the way, Fannie Mae and Freddie Mac and FHA, because of the scale of their portfolios that we already hold, improvements in the housing market would be dramatically good for the taxpayer as well, because it improves the value of all the investments that we already have.  So on a broad basis, the primary reason we’ve proposed this is because this is smart economic and housing policy.

        Specifically, though, as I’ve said before, the President just doesn’t think it’s right that a family that is doing the right thing arbitrarily -- because they happen to have a mortgage that isn’t a Fannie Mae or Freddie Mac or an FHA mortgage -- doesn’t have the ability to benefit.  And so what we have designed here is a smart, cost-effective plan to be able to give those families access.

        And I want to give you three specific ways that we would ensure that this would not harm the FHA or taxpayers.  First of all, this is only available to homeowners that are current on their mortgages.  So these are families -- just think about it, the crisis that we’ve been through, these are families that are underwater, and yet through all of that have done the right thing and paid their bills.  So first of all, these are safe homeowners.  Second, you reduce their payments by up to $3,000 a year.  They become even safer homeowners.

        Second, we’ve proposed a source to fully pay for any potential defaults that we believe would come.  We believe the total net cost is about $5 to $10 billion in total, which would be offset by the bank fee that the President has proposed.  And frankly, we believe, as he said this morning, those who are responsible for this crisis should also be responsible for making sure that the damage is repaired.  And the very institutions that made many of these mortgages that caused much of the damage that we’re trying to repair ought to participate in helping to solve it, and we think the bank fee is a good source to do that.

        And then third, and finally, we’ve designed this in a way to make sure that FHA would be protected by proposing a completely separate insurance fund, separate from all of the other loans that FHA has made.  It would be a standalone, firewalled off from the reserves for the other portion of FHA, and designed in a way that the very riskiest mortgages, the most deeply underwater, those with the riskiest borrowers would not be able to come into the program without actions by the institutions that currently hold them to make them safer loans.   

        So all of those give me confidence that not only we would protect the FHA, but, frankly, this would be good for taxpayers broadly because it would help to improve the value of current investments of FHA and the GSEs.

        MR. CARNEY:  Jake.

        Q    Mr. Secretary, wasn’t it two years ago that the administration first proposed a bank fee?  Am I right about that? January 2010?

        SECRETARY DONOVAN:  I believe that’s correct.  

        Q    This is the same type of bank fee that you’re talking about?

        SECRETARY DONOVAN:  As you will see in the budget, it continues to be a proposal that the President believes is the right thing to do.  I think, broadly speaking, we believe this is the right housing policy.  If Congress believes that there are other ways that we should look at paying for this, I think we would be open to discussions -- as the President has done in other situations, we are open to having a discussion with Congress about the best way to make sure the cost of this is covered.  

        What we will ensure, though -- and that’s the principle of the bank fee -- is that there should be a contribution from those who have contributed to this crisis to make sure that the cost of this is fully covered.

        Q    I just wonder if you couldn’t get it through a Democratic House and Senate why you think now it would be more -- it would have a better chance of making it through Congress.

        SECRETARY DONOVAN:  I’m the housing secretary; I’m going to leave the politics and the discussions about what’s possible in Congress on that to others.

        MR. CARNEY:  Norah.

        Q    Why not let the housing market run its course and hit bottom, as some have suggested?

        SECRETARY DONOVAN:  Well, put yourself in the shoes of a family that the President described this morning.  You’ve done everything right, you’ve paid your mortgage -- whether you’re in Florida or Nevada, California, or right there in Falls Church, Virginia.  You’ve done everything right, and because of the irresponsibility of others -- financial institutions, investors, others -- you’ve seen the value of your major financial asset drop by 25 percent, to take Falls Church -- by two-thirds or 75 percent, to take Las Vegas.  And you know that if somebody else loses their home next door to you, as soon as that foreclosure sign goes up, your own home loses $5,000 to $10,000 in value.  

        And so what we've seen is, particularly in the hardest-hit communities, a spiral of declining prices because of the number of properties that are coming onto the market.  And there's no question, if you look at the fundamental economics in the housing market, by all standard measures, we've reached a level of prices that is supported by the fundamental economics.  And so the great risk here for families, for neighborhoods, is that we let that spiral continue and continue to harm families and neighborhoods in a dramatic way.     

        The second thing I would say is we should not sit on our hands when we know we can help those families to be able to refinance, to do better and to help the economy, and we have evidence that things that we have done have actually made a difference.  And one of the things I would point to in the President's proposal today, we have efforts that we call neighborhood stabilization and others that we announced today that try to take this shadow inventory, the number of homes that are sitting vacant in neighborhoods that have been hard hit that are dragging down everybody's property values -- we want to make sure that there are options for those homes to be renovated and to be returned to use, oftentimes as rental housing.  Because in many of these markets, it's a smarter thing for the market and for the neighborhood to convert those to rental housing.

        And when we step back and look creatively at what we could do, what we realized is that between just FHA, Fannie Mae and Freddie Mac, we control close to half of all the bank-owned properties in the country, and that we could be more creative working with local communities, working with for-profit companies, working with local officials, to try to make sure that those homes aren’t contributing to the problem, aren’t sitting on the market vacant, but could be converted to rental, could be renovated, could put construction workers back to work.

        All of those things are steps that have been effective already.  On average, where we’ve made those investments, we’ve seen 75 percent of those neighborhoods, we’ve seen the vacancy rates decline.  And two-thirds of those neighborhoods we’ve seen the house prices rise relative to surrounding communities.

        So we have tools that we know work, and we’re not going to sit on our hands watching middle-class homeowners who’ve done the right thing and played by the rules get hurt by a strategy that says simply we’re going to stand by and watch them suffer.

        Q    But you may be asked -- you may have to sit on your hands because Congress has said that this plan is dead on arrival.  You couldn’t get a bank levy passed, as Jake pointed out, two years ago when Democrats controlled the House and the Senate.  Why shouldn’t this proposal today, in an election year, not look like just an effort, a politically motivated effort to reach out to homeowners in key battleground states that just also happen to have big mortgage foreclosure issues, like Nevada, Arizona, Florida, et cetera?

        SECRETARY DONOVAN:  I’m going to leave the election-year politics to others.  Let me talk about the facts here and the economics and the housing issues --

        Q    If you don’t want to talk about the politics, then what’s to say that any of this is actually going to help anybody when Congress is not going to approve it?

        SECRETARY DONOVAN:  So that’s the question I was going to try to answer.  When the President, last fall, said that there were steps that we needed to take to help Fannie Mae and Freddie Mac borrowers refinance, there was bipartisan support in Congress to do that.  Senators Boxer and Isaacson introduced a bill, and I think you will see broad support across the political spectrum to do this.  And just look at the community of economists and other housing analysts, from Mark Zandi and Martin Feldstein on the right to a whole range of economists that are more on the left -- this is one of the things that folks believe is the most important step that we can take.  

        And, by the way, we’re not just depending on Congress.  Most of the steps that the President discussed today, whether it’s the steps with properties -- the REO properties that I talked about in the shadow inventory -- those are steps that we can take on our own.  The steps that we’ve already taken to help Fannie Mae and Freddie Mac borrowers refinance, steps that we will take as part of this to help FHA borrowers refinance, the Homeowner Bill of Rights -- and I could go on -- all of these are steps that we can take and we are taking, because we can’t wait for Congress on these.

        Q    Okay, sorry, last one.  And then the President held up a sheet of paper today and said, this is what a form should look like.  When is that going to happen when someone gets a mortgage, they can just fill out one sheet of paper?  Or is that an empty promise?

        SECRETARY DONOVAN:  Well, now that the CFPB has a director and has taken on its full powers, it is moving forward quickly to issue those forms.  And let me be clear about this --

        Q    -- can get a mortgage with one sheet of paper?

        SECRETARY DONOVAN:  Miraculous, isn’t it?  Look, I have -- one of the things I recognize -- and this is an important thing about the CFPB that I think has been missed in all the discussion -- before the CFPB, there were eight different federal agencies, including HUD, that had authority over the home-buying process and the mortgage process.  By consolidating those -- and specifically both HUD and the Fed had control over those forms that you sign, and there were conflicting rules that we had, and that’s one of the things that led to these forms being far more complicated than they should be.  

        The CFPB is simplifying and making more understandable this process, partly by consolidating the authority of conflicting agencies into a single entity.  And I think this is one of those things that is good for homeowners, but it’s also good for lenders.  And it is one of those things that brings together a broad spectrum on the right and the left for things that we can do to simplify and improve the mortgage process.

        Q    Mr. Secretary, to follow up on Norah’s point, in October, the We Can’t Wait stuff -- how many homeowners have you helped, then, with Fannie and Freddie mortgages since October when the President said he was going to move?

        SECRETARY DONOVAN:  So, in total, since -- and the program is called HARP -- since it was first introduced in 2009, it’s helped close to a million homeowners refinance.  The changes that the President called for and that were then implemented later in -- or there were specific details released later in the fall, those changes began to go into effect just in December.

        Q    The ones from October of 2011?

        SECRETARY DONOVAN:  That’s right, the ones -- so to be clear, he gave his jobs speech and called on his administration to work with Fannie Mae and Freddie Mac to make changes.  We worked on those through the fall and they were implemented, started in December.  And so already there are tens of thousands of homeowners that have closed on those loans.  But again, they’ve only been in place for a few weeks at this point where folks can actually get those loans.

        Q    Well, when the President announced that first plan in February of 2009, three years ago this month, he promised I think it was up to 9 million people to stave off foreclosure.  You just said he's helped up to 1 million people.  So why should the American people have confidence that this is now the fourth or fifth plan you've had, this one is actually going to work?

        SECRETARY DONOVAN:  So to be clear, the HARP portion of it, the hope was that it would help 4 million to 5 million homeowners.  That was one portion of it.  And as the President said this morning, while we've made significant steps, we've made real progress.  Just to take one example, nearly 5 million families have had their mortgages modified since the President took office.  Foreclosures are down by almost 50 percent, the number of people entering foreclosure down by almost 50 percent. So we've made progress.

        But as the President also said this morning, we're not satisfied.  We've been disappointed that we've haven’t been able to reach more people.  And frankly, specifically on this refinancing program, what we found after we rolled it out is that there were many barriers out in the market to more people being able to participate.  We fixed the problems on their first liens, but many of them had second loans, and frankly, lenders were unwilling to let those families refinance because of the second lien.  So we went out and negotiated with those lenders and we got their approval to automatically resubordinate those loans.  That was an important step.

        Mortgage insurers that were standing in the way of those families being able to -- so there's a whole series of barriers out in the market.  And I would just say, frankly, one of the problems we had is our mortgage system got so complex, there were so many different players, that that very complexity that led to the crash also made it harder to fix.  We went out and negotiated with all those, we made steps, and they've all agreed to make changes to allow more families to refinance.  

        And what that means is that there are now about 11 million additional families just with Fannie Mae or Freddie Mac mortgages who will have the opportunity, if they choose to, to refinance.

        Q    Just a quick -- you were saying at the top that basically to make the President's plan work you're going to tell financial institutions that they can't say no to refinancing.  How do you actually -- how does the federal government tell private institutions, you can't say no?

        SECRETARY DONOVAN:  You misunderstood.  

        Q    Okay.

        SECRETARY DONOVAN:  Single-family loans in this country are prepayable, so any homeowner already has the right, even if they're -- if you owe $300,000 on your house and it's a $250,000 house and you have $300,000, you can go and pay off your mortgage today -- right?  The issue is they can't get a new $300,000 loan.  
        So what this plan would do, the way it breaks through this barrier for these families is to allow them to refinance that loan, to get a new loan that allows them to pay off their existing loan.  There's nothing the existing lender can do today -- we're not changing this at all -- the existing lender today can't stand in the way of a family paying off their existing loan.

        Q    You're saying if they have $300,000 laying around to pay it off -- or how do they do that?  I don't understand.

        SECRETARY DONOVAN:  They're going to go get a new loan, and that new loan for --

        Q    -- the lender is okay with that, is just going to say, this is the rate you're at right now, it's fine if you just want to change it?

        SECRETARY DONOVAN:  No.  What they would do is they would refinance into a new FHA loan and that would allow them to pay off their old loan.  That's what this plan would do.

        Q    Some analysts in the housing industry have expressed concern that the announcement that the Justice Department is going to set up a residential mortgage-backed securities working group -- seems like a task force -- could actually wind up making banks more skittish.  Is there any concern about that?

        SECRETARY DONOVAN:  Well, what I would say -- and I would draw an analogy to the work that we've been doing in the servicing arena -- the sort of status quo, if you will, is that we have federal enforcement agencies including HUD, state attorneys general, local agencies, private investors all pursuing in disparate, disconnected ways their enforcement actions against the institutions.  And just like on servicing, where the potential outcome is that we could have ended up with 50 different sets of rules in different states around the foreclosure process, these enforcement actions dragging on for a decade or more, what we're trying to do with this task force is to bring together the various pieces that are key to the securitization problems and to coordinate and improve information-sharing across those so that we could get to coordinated solutions.

        So while I believe it will help us reach more significant justice for homeowners and for communities that were harmed, I also think it would have the potential, as the President said in the State of the Union, to turn the page on this era of recklessness faster because of this coordinated action.  

        That's exactly what I think we have been working to achieve in the servicing settlement that we've been discussing.  And in that sense, it will bring certainty and clarity -- to lift the cloud of uncertainty from the market that is holding back lending today -- will help to contribute to lifting that cloud as well by this coordination.

        Q    I understand that would be the impact on the market, but in terms of the impact on the banks and how they're approaching loans, is there any concern that it might have a negative impact or a negative effect?

        SECRETARY DONOVAN:  Well, look, clearly, there needs to be accountability for mistakes that were made.  Where mistakes were made there will be penalties, there will be restitution that needs to be paid to homeowners that were harmed.  There is no question about that.

        But again, on the other side, having a disparate set of actions that are pursued independently, just as they were by the state attorneys general on foreclosure in a disconnected way, leaves a cloud of uncertainty on these institutions.  And we need more clarity.  We need the clear, simple rules of the road to help us here.

        And again, this is part of what the Homeowner Bill of Rights that the President announced today is really aimed at.  No more race to the bottom.  No more institutions falling through the cracks because there are multiple different regulators that have different rules.  A single, clear set of rules about how mortgages are serviced, who's responsible.  

        And frankly, that will not only be good for homeowners and the housing market more broadly, it will also be good for investors because they will now have clarity where they own a mortgage who's in charge on making decisions when a homeowner gets in trouble, what can they expect.  Those clear rules of the road are good for homeowners and communities, but they're also good for investors and markets and institutions.

        MR. CARNEY:  Margaret.

        Q    So there's a provision in this package that is asking banks to write down 140 percent of LTV loans.  Can you explain how that would work and why banks would agree to that when they haven't been ready to jump on principal write-downs to date?  And in terms of the robo-signing agreement, can you tell us what day it will be finalized and whether California will participate?

        SECRETARY DONOVAN:  I'm not going to comment on the specifics that you asked about on the servicing settlement.  All I would say is that we are making good progress there.  I think you know that documents have been shared with the attorneys general.  They are making decisions as we speak.  A number of them have already announced support for it and it will be finalized, I would expect, in the coming days.

        To go to your other question, I mentioned earlier that we want to make sure that we're instituting protections so that the very riskiest loans, institutions need to take responsibility for those and to bear some of the cost of those.  

        In situations where you have a deeply underwater loan, where the house may be worth only half of what the mortgage is, there's increasing evidence that it makes good economic sense for those loans to be written down because it lowers the likelihood of default substantially.  And so in that case, we would work with Congress to set limits like the 140 percent limitation that we've specified that would ensure that we're not taking -- that we are minimizing risk to FHA when we take those loans when they would be refinanced.

        Q    Congress would need to agree to regulate that, essentially. You can't do it administratively and you don't think it will work voluntarily -- it would take an act of Congress?

        SECRETARY DONOVAN:  Well, Congress could give us -- could pass legislation that would give us the ability to set that limit, obviously.  But that is one of the ways that we are looking to make sure that we are protecting the FHA fund in terms of the design of the program.

        The only other thing I would just say is that there are other options for principal reduction as part of this effort that are very important.  One of the things that the record-low interest rates that we have today -- one of the sort of powers that that creates is the ability for a homeowner to choose either -- when they refinance -- to take their savings in lower payments, but also to take their savings and plow it back into paying off their mortgage more quickly.  And almost any homeowner that's below that 140 percent loan-to-value level, if they choose to take their savings and put it into reducing their principal by shortening the length of their loan, almost every one of them, with today's low interest rates, can get back above water, can rebuild their equity in five years.  And that's something that we would want to encourage with this plan.  

        So what we would do -- what we're proposing is that the closing costs for those refinancings would be eliminated where a homeowner chooses to plow their savings back into reducing equity [sic].  And we think that that could be an important part, using the power of the low interest rates today, to help families get back above water more quickly, because, as I said, there is mounting evidence that that principal reduction is an important element of helping there be fewer foreclosures and to help the housing market recover.

        Q    I didn’t understand your answer to Norah’s question.  Can the CFPB create a one-page mortgage on their own in the next few months, or did you say what the timetable would be for that?

        SECRETARY DONOVAN:  You’d have to ask Richard Cordray exactly what the timeline is.  I know -- and our teams have been coordinating -- I know that they’ve already begun work on it.  Obviously the President showed a sample form today in his speech, so they’re well along in working on this.  Elizabeth Warren began work on this even before she left the agency.  So it is well on its way.  I don’t have an exact date for you on when it will be completed.

        MR. CARNEY:  Laura.

        Q    Hi.  Taking sort of a step back, obviously there have been several ideas put forward to try to deal with this problem over the last three years.  And there have been a couple, even, both in this administration and the last administration, that tried to use FHA to refinance people.  And none of them have really worked that well.  So I’m just wondering what is sort of fundamentally different about this program, even if you could get it through Congress, that would suggest this would work when every other effort has had just sort of minimal success?

        SECRETARY DONOVAN:  Well -- and I talked earlier about the fact that while many of these efforts have not reached as many people as we had originally hoped, if you go to talk to any of those more than a million families who’ve had their FHA mortgages modified, for example, through lost mitigation efforts and have been able to stay in their homes, the remaining number of the almost 5 million families that have had them modified through other efforts, if you talk to the 60 percent of African American or Latino homeowners who were able to buy a home last year because of an FHA mortgage, I think it’s fair to say that without FHA, without the programs that we’ve had and the impact that we’ve had, this housing crisis would have been much, much worse.

        We did -- we were successful in pulling this housing market back from the precipice, from 30 straight months of house price declines to house prices actually rising in the first year that the President was in office.  So we have made a real impact, and FHA has been an important part of that and has reached millions of homeowners.  

        So I think it’s fair to say that while not all of those efforts have been successful or reached the families we had hoped, there has been a real impact, and you could go talk to those families about that impact.

        Specifically on this effort, what we’ve seen is that refinancing is something that middle-class homeowners who’ve been paying their bills, have been doing the right thing, fundamentally believe is a choice they want to make -- whether it’s the million homeowners in HARP that have already participated, or the hundreds of thousands of FHA homeowners who have already refinanced their mortgages through our streamlined refinancing program that we haven’t even talked about today.

        So we believe there is great demand -- and frankly, it’s a fundamental fairness issue for families that have played by the rules, done the right thing, paid their bills, to be able to refinance.  And that incentive, being able to save $3,000 a year, on average, is something that we believe families will choose.

        Q    There was great demand for the other programs, and I’m not disputing that the people who did benefit from them were in fact greatly benefited.  But as you’ve said, as the President has said, they did not have the kind of impact that was anticipated. So what I’m trying to understand is should we basically expect similar results this time and it will be maybe modest, but the people it helps, it will be very, very helpful, or do you think it will be bigger?

        SECRETARY DONOVAN:  The barriers that we have run into have been resistance from banks, market barriers.  I talked about a number of them before -- on second liens, on private mortgage insurance.  Those are the types of barriers that have stopped programs from reaching as many homeowners as they could have reached before.

        And again, families will choose and it is up to families to say they want to refinance.  But they can be confident that today, because of the work that this administration has done, working with and pushing the private sector, second liens will be automatically resubordinated.  Private mortgage insurance -- there has been an agreement to transfer that mortgage insurance. That was a major barrier before.  Another barrier was the fees and costs of refinancing, getting an appraisal, for example.  The vast majority of these now could use an automated system for appraisal, which eliminates the cost of a full appraisal.  

        And so, many, many of the barriers that have stood in the way before have been knocked down through the hard work of my staff and many others across the administration to remove those barriers that were there before.

        Q    -- with this proposal.

        SECRETARY DONOVAN:  For this and for the changes that we announced without Congress acting to the HARP program that will allow more Fannie Mae and Freddie Mac borrowers to refinance.

        MR. CARNEY:  Let’s do a couple more and then --

        Q    Chris Arnold, National Public Radio.  To pick that up, I think you had said 11 million homeowners are now potentially eligible for HARP 2, I guess.  When HARP 2 was announced, FHFA was sort of adamant about saying this is only going to reach a million more borrowers.  Are you saying enough of those roadblocks have now been removed without legislation that your estimate is it could be 11 million?

        SECRETARY DONOVAN:  No, to be clear, what we’re talking about is two different things.  How many homeowners are underwater and because of their interest rates could potentially benefit -- that’s the sort of pool of eligible borrowers, versus how many will actually choose to refinance.  Those are two very different things.

        Q    Well, who can actually make it through the system to refinance --

        SECRETARY DONOVAN:  That ultimately choose and get it  refinanced?  So the changes that have already been announced to HARP that have been done through administrative actions as part of our We Can’t Wait efforts would reach -- would make eligible a significant portion of those 11 million.  But there remain additional barriers.  And to be clear, those 11 million are Fannie Mae or Freddie Mac borrowers that are underwater and could benefit from a refinancing.

        There are some additional barriers, particularly for those homeowners that are above water, for example.  They didn’t get some of the same changes that were done for underwater borrowers. We believe that we ought to clear away those remaining barriers to allow that full group of the 11 million at least to be eligible.  That’s one step.  

        But then there are about 3.5 million borrowers who don’t have a Fannie Mae or Freddie Mac or FHA mortgage who, because simply, as I said before, they happen not to have a loan that’s insured or guaranteed by one of those entities they have no ability to refinance today.  And those 3.5 million would be the additional ones that, creating a new pathway, the proposal the President made today would open up as well.

        Q    Do you have an updated estimate of -- if we were saying a million through HARP 2 several months ago, currently, with the changes that have been made, is there an estimate for how many people might be reached now?

        SECRETARY DONOVAN:  This is -- one of the things that was very important to the President in this is the American people, they value choice, they want to be able to choose to refinance their mortgage; they’re stopped from doing that today.  Ultimately, they’re going to make an individual personal decision.  

        Whether they even hear about this program and call their lender, we can’t control completely those choices.  And so what I don’t want to get into is speculation about exactly how many of those homeowners are going to choose to refinance, for whatever their personal reasons may be.

        What I can tell you is what I’ve said earlier, which is here’s the eligible universe that we think ought to have the opportunity -- the President believes ought to have the opportunity.  Because they’ve been playing by the rules, they ought to have the chance to choose that option, and they don’t have that today.  That’s what the legislation would open up.

        Q    Speaking about the eligible homeowners, the ones who have made their notes, who have tried to keep up with their payments, isn’t the big part of the problem the ones who can’t do that?  Isn’t that the big drag on the market, the people who maybe can’t keep up with their payments because they’ve lost a job, can’t refinance because they can’t make their payments?  Is there any program beyond what you’ve discussed already to help those folks?  And isn’t that part of the big drag on the market here?

        SECRETARY DONOVAN:  There’s no question that there are significant challenges for folks that haven’t been able to keep up with their mortgage payments.  And increasingly, as this crisis has progressed, the cause has been less they got a terrible loan product to begin with and more and more the unemployment or underemployment.

        And so what I would say about that is two things.  One of the best housing policies is our jobs policy.  The more that we can get the American Jobs Act passed, get the payroll tax extended, all of the steps that the President has been calling for on the jobs front, that will help the housing market.

        Second of all, as I said earlier, we have been able to help close to 5 million families get their mortgages modified.  The number of people falling into foreclosure is down by almost 50 percent today from where it was when the President came into office -- so we are making progress.

        There is more that we can do.  And one of the things that is part of this effort that the President talked about today is another We Can’t Wait action.  Last summer we came out, in FHA and through the HAMP program, and extended the forbearance that we provide.  Basically, if you've got a homeowner who’s lost their job, is looking for a job, obviously paying their mortgage is going to be tough for that stretch while they’re temporarily unemployed.  And so we changed our policies to say we would provide, instead of three or four months of sort of bridge time where we would not require payments, that we were extending that up to 12 months.  

        In fact, today, almost half of unemployment spells are more than six months.  And so it’s a different kind of unemployment we have today.  We had to -- we wanted to adjust our policies.

        What we’ve seen is that we took those executive actions and the rest of the market has followed.  Fannie Mae and Freddie Mac recently announced that they were extending their own forbearance policies to 12 months.  And today, as part of this announcement, Wells Fargo and Bank of America have agreed to extend their forbearance policies to 12 months as well.  That’s an important additional step.

        Second, on Friday, we announced that we were making changes to our modification program to HAMP that would allow more borrowers with secondary debt or credit card or medical bills to participate, and some other changes that would expand the eligibility for that program as well.  

        So we do have efforts -- but I would just come back and -- your question implied that somehow this refinancing issue isn’t a central issue to the problem.  And if you talk to, as I said, economists across the political spectrum, they believe -- and we believe, the President believes -- that broader-scale refinancing is one of the most important steps we can help for these families, to put $3,000 more a year on average into their pockets, but also to help the economy more broadly, because consumer spending is obviously a critical piece of what is going to help accelerate our recovery.

        And so we believe that the announcement today on refinancing is also a critical piece of the puzzle, and in fact is one of the most important things that we can do.

        MR. CARNEY:  Thank you all very much.  I appreciate it.  Thank you, Shaun.

        MR. DONOVAN:  Thank you.

        Q    Jay, you don’t want to take any questions?

        Q    I thought you were going to take questions.

        MR. CARNEY:  Well, you guys can email me.  Real quick, because you have a lot to write about and report on now.

        Jake.

        Q    Can you -- there are reports out about some renovations having to do with the Oval Office.  And can you explain what is true, what is not true?  Is the Oval Office going to have to be vacated for some time?  Does the President, whoever he may be, have to be relocated to the Eisenhower Executive Office Building?

        MR. CARNEY:  Jake, I have a very broad portfolio, but renovations to the campus here are not part of it.  So we refer those questions to the GSA, which handles the renovations and all the work that’s done on the property here.  So I don’t have anything specific for you.  I would just refer you to the GSA.

        Q    Mitt Romney said today that his campaign is not focused on the very poor because they already have an ample safety net.  I guess two things.  One, does the President think that the very poor already have an ample safety net?  And do you have any response more broadly to Romney’s comment?

        MR. CARNEY:  I don’t have a response specifically to any comment like that by a candidate.  The President, for himself, believes that the recession, the great recession, the worst recession since the Great Depression, did harm to Americans of all kinds, and middle-class Americans, lower-income and poor Americans were hit hard by the recession.  And that’s why he’s been focused very aggressively on doing everything he can to grow the economy and create jobs for everyone.  

        But I don’t have anything more on the Republican primary.

        Mark.

        Q    Jay, the Buffett Rule was introduced in the Senate, and I wanted to ask or get you to clarify, does the President believe that the definition of “pay one’s fair share of taxes” is 30 percent of --

        MR. CARNEY:  He said that in the State of the Union.  If you were a -- if you make more than a million dollars --

        Q    If you earned a million dollars or more.

        MR. CARNEY:  As a principle that he would apply to individual tax reform, he believes that the overall principle, as articulated by Warren Buffett, that millionaires, billionaires should not pay a lower effective tax rate than middle-class Americans -- in the case of Mr. Buffett, than his secretary -- and that level, the President believes, as does Mr. Buffett, should be 30 percent.

        Q    And if the Buffett Rule were enacted -- does that mean the President would no longer seek to eliminate the so-called Bush tax cuts for the wealthy?

        MR. CARNEY:  Well, they’re obviously very related because they have to do with federal income tax.  The President’s approach towards overall individual tax reform would be guided in part by the principle established in the Buffett Rule.  

        He has made clear, for many years now, that he favors extending permanently the middle-class tax cuts while letting expire the upper-income Bush tax cuts -- which, I want to make this point, costs -- adds $800 billion over 10 years to our deficit, just the higher-income tax cuts.

        So what an overall tax reform package would look like and what the overall rates would be would be worked out, but those principles would guide it.  And certainly in the President’s position, it remains, absent any action on individual tax reform, that the higher-end -- upper-income Bush tax cuts should expire.

        Q    Does it mean that if a wealthy income earner were paying in excess of 30 percent of Adjusted Gross Income that they are paying more than their fair share?

        MR. CARNEY:  It’s a floor, not a ceiling.  If that wealthy earner owes more, then obviously the wealthy earner, like everyone, should pay his or her taxes.  The 30 percent is a floor.

        Margaret.

        Q    The Egyptian delegation is in Washington.  Among the folks they’re meeting with are some of the national security advisors to the administration.  

        MR. CARNEY:  I think this is a -- not "the" Egyptian delegation, but an Egyptian delegation.

        Q    And so what I want to know is, does the President or the Vice President intend to speak directly with any of them?  And can you give us any update on whether anything concretely, whether the ball has been moved on the sort of diplomatic standoff and where are those discussions about the NGOs?

        MR. CARNEY:  There are no plans to have the President or the Vice President meet with this particular delegation.  The President, as I think we read out, spoke with General Tantawi not that long ago.  And we are very actively engaged diplomatically with the SCAF, Supreme Council of the Armed Forces of Egypt, on the issue of the American citizens who have been told they can’t leave Egypt.  And we continue to work on that, but I don’t any update for you.

        Yes, sir.

        Q    Jay, the Bipartisan Policy Center, collection of Democrats and Republicans -- Chuck Robb and others -- there was a report which talks about the need to, in its view, bolster Gulf allies and undertake Gulf covert activities regarding Iran.  But specifically, it suggests that there be what it calls an increase in rhetoric.  It says, “Through a negotiated settlement, Iran should abandon its nuclear program through negotiations or have its program destroyed militarily by the U.S. or Israel" --  basically suggesting that the "options off the table" statement is not credible.  Do we think that that is a credible --

        MR. CARNEY:  I don’t think it suggests that at all.  I think our President’s policy is very clear.  We are working -- because of the approach he’s taken we have brought together the most comprehensive international consensus that has ever existed with regards to opposing Iran’s refusal to live up to its obligations. It has resulted in the most stringent sanctions regime ever that has had direct and measurable effects on the Iranian economy, and has clearly had an impact on the Iranian regime.

        The President makes clear that he is determined, and it is this administration’s policy that we are determined to prevent Iran from acquiring a nuclear weapon.  He has made clear, and others in the administration including myself have made clear, that we do not exclude any option in ensuring the fulfillment of that policy position.  

        The President strongly believes, as do many of our international partners and allies, that the course we are on is the right course.  It is having significant event, but it should be clear that we do not rule out any options.

        Last one.  Let me go all the way in the back.  Yes, sir.

        Q    A follow-up on the -- about the Situation Room meeting on Afghanistan and Pakistan.  I haven’t seen the readouts for seven months now.  Have that meeting stopped, or you’re not going to --

        MR. CARNEY:  I do apologize, I haven’t looked into that.  There are regular discussions obviously about the implementation of the President’s Afghanistan policy.  I don’t believe for the last several months there has been a President-run AfPak strategy meeting or AfPak implementation meeting, but I will check on that for you.

        Q    There is a report in circulation which says that Pakistan supports the Taliban to come back in power.  What do you have to say about it?

        MR. CARNEY:  I’m sorry, I apologize, I didn’t quite hear.

        Q    There is a report in circulation about -- a NATO and ISAF report which says that Pakistan continues to support Taliban to come back in power.  A BBC report --

        MR. CARNEY:  Well, I don’t really have any comment on that. Obviously we -- and I’m not familiar with the report, frankly.  But the President’s strategy is very clear.  It is driven by the goal to disrupt, dismantle, and ultimately defeat al Qaeda.  It also has its objective to stabilize Afghanistan, to give the Afghan government the breathing room necessary to build up its armed forces, to allow it to gradually take over security lead.  

        We are in the process of that transition as we draw down U.S. forces that were sent in the surge.  That process will result, as articulated by NATO and Lisbon, in the full transfer to Afghan lead by the end of 2014.

        Thank you all very much.

END 2:17 P.M. EST


President Obama Signs Alabama Disaster Declaration
Release Time: 
For Immediate Release

The President today declared a major disaster exists in the State of Alabama and ordered Federal aid to supplement state and local recovery efforts in the area affected by severe storms, tornadoes, straight-line winds, and flooding during the period of January 22-23, 2012.

The President's action makes federal funding available to affected individuals in Chilton and Jefferson Counties.

Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster.

Federal funding is also available on a cost-sharing basis for hazard mitigation measures statewide.

W. Craig Fugate, Administrator, Federal Emergency Management Agency (FEMA), Department of Homeland Security, named Joe M. Girot as the Federal Coordinating Officer for federal recovery operations in the affected area.

FEMA said that damage surveys are continuing in other areas, and more counties and additional forms of assistance may be designated after the assessments are fully completed.

FEMA said that residents and business owners who sustained losses in the designated counties can begin applying for assistance tomorrow by registering online at http://www.DisasterAssistance.gov or by calling 1-800-621-FEMA(3362) or 1-800-462-7585 (TTY) for the hearing and speech impaired.  The toll-free telephone numbers will operate from 7 a.m. to 10 p.m. (local time) seven days a week until further notice. 


Remarks by the President at the National Prayer Breakfast
Release Time: 
For Immediate Release

Washington Hilton
Washington, D.C.

9:10 A.M. EST

THE PRESIDENT:  Thank you.  Please, please, everybody have a seat.  Well, good morning, everybody.  It is good to be with so many friends united in prayer.  And I begin by giving all praise and honor to God for bringing us together here today.

I want to thank our co-chairs Mark and Jeff; to my dear friend, the guy who always has my back, Vice President Biden.  (Applause.)  All the members of Congress –- Joe deserves a hand –- all the members of Congress and my Cabinet who are here today; all the distinguished guests who’ve traveled a long way to be part of this.  I’m not going to be as funny as Eric -- (laughter) -- but I’m grateful that he shared his message with us.  Michelle and I feel truly blessed to be here.

This is my third year coming to this prayer breakfast as President.  As Jeff mentioned, before that, I came as senator.  I have to say, it’s easier coming as President.  (Laughter.)  I don’t have to get here quite as early.  But it’s always been an opportunity that I’ve cherished.  And it’s a chance to step back for a moment, for us to come together as brothers and sisters and seek God’s face together.  At a time when it’s easy to lose ourselves in the rush and clamor of our own lives, or get caught up in the noise and rancor that too often passes as politics today, these moments of prayer slow us down.  They humble us.  They remind us that no matter how much responsibility we have, how fancy our titles, how much power we think we hold, we are imperfect vessels.  We can all benefit from turning to our Creator, listening to Him.  Avoiding phony religiosity, listening to Him.  
    
This is especially important right now, when we’re facing some big challenges as a nation.  Our economy is making progress as we recover from the worst crisis in three generations, but far too many families are still struggling to find work or make the mortgage, pay for college, or, in some cases, even buy food.  Our men and women in uniform have made us safer and more secure, and we were eternally grateful to them, but war and suffering and hardship still remain in too many corners of the globe.  And a lot of those men and women who we celebrate on Veterans Day and Memorial Day come back and find that, when it comes to finding a job or getting the kind of care that they need, we’re not always there the way we need to be.

It’s absolutely true that meeting these challenges requires sound decision-making, requires smart policies.  We know that part of living in a pluralistic society means that our personal religious beliefs alone can’t dictate our response to every challenge we face. 

But in my moments of prayer, I’m reminded that faith and values play an enormous role in motivating us to solve some of our most urgent problems, in keeping us going when we suffer setbacks, and opening our minds and our hearts to the needs of others. 

We can’t leave our values at the door.  If we leave our values at the door, we abandon much of the moral glue that has held our nation together for centuries, and allowed us to become somewhat more perfect a union.  Frederick Douglass, Abraham Lincoln, Jane Addams, Martin Luther King, Jr., Dorothy Day, Abraham Heschel -- the majority of great reformers in American history did their work not just because it was sound policy, or they had done good analysis, or understood how to exercise good politics, but because their faith and their values dictated it, and called for bold action -- sometimes in the face of indifference, sometimes in the face of resistance.

This is no different today for millions of Americans, and it’s certainly not for me.

I wake up each morning and I say a brief prayer, and I spend a little time in scripture and devotion.  And from time to time, friends of mine, some of who are here today, friends like Joel Hunter or T.D. Jakes, will come by the Oval Office or they’ll call on the phone or they’ll send me a email, and we’ll pray together, and they’ll pray for me and my family, and for our country.

But I don’t stop there.  I’d be remiss if I stopped there; if my values were limited to personal moments of prayer or private conversations with pastors or friends.  So instead, I must try -- imperfectly, but I must try -- to make sure those values motivate me as one leader of this great nation.

And so when I talk about our financial institutions playing by the same rules as folks on Main Street, when I talk about making sure insurance companies aren’t discriminating against those who are already sick, or making sure that unscrupulous lenders aren’t taking advantage of the most vulnerable among us, I do so because I genuinely believe it will make the economy stronger for everybody.  But I also do it because I know that far too many neighbors in our country have been hurt and treated unfairly over the last few years, and I believe in God’s command to “love thy neighbor as thyself.”  I know the version of that Golden Rule is found in every major religion and every set of beliefs -– from Hinduism to Islam to Judaism to the writings of Plato. 

And when I talk about shared responsibility, it’s because I genuinely believe that in a time when many folks are struggling, at a time when we have enormous deficits, it’s hard for me to ask seniors on a fixed income, or young people with student loans, or middle-class families who can barely pay the bills to shoulder the burden alone.  And I think to myself, if I’m willing to give something up as somebody who’s been extraordinarily blessed, and give up some of the tax breaks that I enjoy, I actually think that’s going to make economic sense.

But for me as a Christian, it also coincides with Jesus’s teaching that “for unto whom much is given, much shall be required.”  It mirrors the Islamic belief that those who’ve been blessed have an obligation to use those blessings to help others, or the Jewish doctrine of moderation and consideration for others.

When I talk about giving every American a fair shot at opportunity, it’s because I believe that when a young person can afford a college education, or someone who’s been unemployed suddenly has a chance to retrain for a job and regain that sense of dignity and pride, and contributing to the community as well as supporting their families -- that helps us all prosper. 

It means maybe that research lab on the cusp of a lifesaving discovery, or the company looking for skilled workers is going to do a little bit better, and we’ll all do better as a consequence.  It makes economic sense.  But part of that belief comes from my faith in the idea that I am my brother’s keeper and I am my sister’s keeper; that as a country, we rise and fall together.  I’m not an island.  I’m not alone in my success.  I succeed because others succeed with me.

And when I decide to stand up for foreign aid, or prevent atrocities in places like Uganda, or take on issues like human trafficking, it’s not just about strengthening alliances, or promoting democratic values, or projecting American leadership around the world, although it does all those things and it will make us safer and more secure.  It’s also about the biblical call to care for the least of these –- for the poor; for those at the margins of our society. 

To answer the responsibility we’re given in Proverbs to “Speak up for those who cannot speak for themselves, for the rights of all who are destitute.”  And for others, it may reflect the Jewish belief that the highest form of charity is to do our part to help others stand on their own. 

Treating others as you want to be treated.  Requiring much from those who have been given so much.  Living by the principle that we are our brother’s keeper.  Caring for the poor and those in need.  These values are old.  They can be found in many denominations and many faiths, among many believers and among many non-believers.  And they are values that have always made this country great -- when we live up to them; when we don’t just give lip service to them; when we don’t just talk about them one day a year.  And they’re the ones that have defined my own faith journey. 

And today, with as many challenges as we face, these are the values I believe we’re going to have to return to in the hopes that God will buttress our efforts.

Now, we can earnestly seek to see these values lived out in our politics and our policies, and we can earnestly disagree on the best way to achieve these values.  In the words of C.S. Lewis, “Christianity has not, and does not profess to have a detailed political program.  It is meant for all men at all times, and the particular program which suited one place or time would not suit another.” 

Our goal should not be to declare our policies as biblical.  It is God who is infallible, not us.  Michelle reminds me of this often.  (Laughter.)  So instead, it is our hope that people of goodwill can pursue their values and common ground and the common good as best they know how, with respect for each other.  And I have to say that sometimes we talk about respect, but we don’t act with respect towards each other during the course of these debates.

But each and every day, for many in this room, the biblical injunctions are not just words, they are also deeds.  Every single day, in different ways, so many of you are living out your faith in service to others. 

Just last month, it was inspiring to see thousands of young Christians filling the Georgia Dome at the Passion Conference, to worship the God who sets the captives free and work to end modern slavery.  Since we’ve expanded and strengthened the White House faith-based initiative, we’ve partnered with Catholic Charities to help Americans who are struggling with poverty; worked with organizations like World Vision and American Jewish World Service and Islamic Relief to bring hope to those suffering around the world.  

Colleges across the country have answered our Interfaith Campus Challenge, and students are joined together across religious lines in service to others.  From promoting responsible fatherhood to strengthening adoption, from helping people find jobs to serving our veterans, we’re linking arms with faith-based groups all across the country. 

I think we all understand that these values cannot truly find voice in our politics and our policies unless they find a place in our hearts.  The Bible teaches us to “be doers of the word and not merely hearers.”  We’re required to have a living, breathing, active faith in our own lives.  And each of us is called on to give something of ourselves for the betterment of others -- and to live the truth of our faith not just with words, but with deeds.  

So even as we join the great debates of our age -- how we best put people back to work, how we ensure opportunity for every child, the role of government in protecting this extraordinary planet that God has made for us, how we lessen the occasions of war -- even as we debate these great issues, we must be reminded of the difference that we can make each day in our small interactions, in our personal lives.

As a loving husband, or a supportive parent, or a good neighbor, or a helpful colleague -- in each of these roles, we help bring His kingdom to Earth.  And as important as government policy may be in shaping our world, we are reminded that it’s the cumulative acts of kindness and courage and charity and love, it’s the respect we show each other and the generosity that we share with each other that in our everyday lives will somehow sustain us during these challenging times.  John tells us that, “If anyone has material possessions and sees his brother in need but has no pity on him, how can the love of God be in him?  Dear children, let us not love with words or tongue but with actions and in truth.”

Mark read a letter from Billy Graham, and it took me back to one of the great honors of my life, which was visiting Reverend Graham at his mountaintop retreat in North Carolina, when I was on vacation with my family at a hotel not far away.

And I can still remember winding up the path up a mountain to his home.  Ninety-one years old at the time, facing various health challenges, he welcomed me as he would welcome a family member or a close friend.  This man who had prayed great prayers that inspired a nation, this man who seemed larger than life, greeted me and was as kind and as gentle as could be.

And we had a wonderful conversation.  Before I left, Reverend Graham started praying for me, as he had prayed for so many Presidents before me.  And when he finished praying, I felt the urge to pray for him.  I didn’t really know what to say.  What do you pray for when it comes to the man who has prayed for so many?  But like that verse in Romans, the Holy Spirit interceded when I didn’t know quite what to say.

And so I prayed -- briefly, but I prayed from the heart.  I don’t have the intellectual capacity or the lung capacity of some of my great preacher friends here that have prayed for a long time.  (Laughter.)  But I prayed.  And we ended with an embrace and a warm goodbye.

And I thought about that moment all the way down the mountain, and I’ve thought about it in the many days since.  Because I thought about my own spiritual journey –- growing up in a household that wasn’t particularly religious; going through my own period of doubt and confusion; finding Christ when I wasn’t even looking for him so many years ago; possessing so many shortcomings that have been overcome by the simple grace of God.  And the fact that I would ever be on top of a mountain, saying a prayer for Billy Graham –- a man whose faith had changed the world and that had sustained him through triumphs and tragedies, and movements and milestones –- that simple fact humbled me to my core.

I have fallen on my knees with great regularity since that moment -- asking God for guidance not just in my personal life and my Christian walk, but in the life of this nation and in the values that hold us together and keep us strong.  I know that He will guide us.  He always has, and He always will.  And I pray his richest blessings on each of you in the days ahead.

Thank you very much.  (Applause.)

END              
9:30 A.M. EST


Remarks by the President on Housing
Release Time: 
For Immediate Release

James Lee Community Center
Falls Church, Virginia

11:05 A.M. EST

THE PRESIDENT:  Hello, everybody!  (Applause.)  Thank you so much.  Thank you.  (Applause.)  Thank you so much.  Everybody please have a seat.  Have a seat.  It is great to be back in Falls Church.  (Applause.)  Thank you for having me. 

Last week, in my State of the Union, I laid out my blueprint for an economy that’s built to last.  And I want to assure you I am not going to go over the whole thing again this morning.  (Laughter.)  That was a long speech.  I'm not going to repeat the whole thing.  (Laughter.)  But I do want to talk about some of the issues that I discussed last week because the blueprint we put forward was one that focuses on restoring what have always been this country's greatest strengths -- American manufacturing, American energy, skills and education for American workers so that we can compete with anybody around the world in this 21st century economy, and most importantly, the American values of fairness and responsibility.  Fairness and responsibility.  (Applause.)

Now, we know what happens, because we've just seen it -- what happened when we stray from those values.  We saw what happened over the past decade when we strayed from those values  -- especially when it comes to the massive housing bubble that burst and hurt so many people.  Millions of families who did the right and the responsible thing, folks who shopped for a home that they could afford, secured a mortgage, made their payments each month -- they were hurt badly by the irresponsible actions of other people who weren’t playing by the same rules, weren’t taking the same care, weren’t acting as responsibly.  By lenders who sold loans to people who they knew couldn’t afford the mortgages; and buyers who bought homes they knew they couldn’t afford; and banks that packaged those mortgages up and traded them to reap phantom profits, knowing that they were building a house of cards. 

It was wrong.  It was wrong.  It triggered the worst economic crisis of our lifetimes.  And it has been the single biggest drag on our recovery from a terrible recession.  Crushing debt has kept millions of consumers from spending.  A lack of building demand has kept hundreds of thousands of construction workers idle.  Everybody involved in the home-building business  -- folks who make windows, folks who make carpets -- they've all been impacted.  The challenge is massive in size and in scope, because we've got a multitrillion-dollar housing industry.  And economists can tell you how it’s affected all sorts of statistics, from GDP to consumer confidence.

But what’s at stake is more than just statistics.  It’s personal.  I’ve been saying that this is a make-or-break moment for the middle class.  And this housing crisis struck right at the heart of what it means to be middle class in America:  our homes -- the place where we invest our nest egg, place where we raise our family, the place where we plant roots in a community, the place where we build memories. 

It’s personal.  It affects so much of how people feel about their lives, about their communities, about the country, about the economy.  We need to do everything in our power to repair the damage and make responsible families whole again.  Everything we can.  (Applause.) 

Now, the truth is it’s going to take more time than any of us would like for the housing market to fully recover from this crisis.  This was a big bubble, and when it burst it had a big effect.  Home prices started a pretty steady decline about five years ago.  And government certainly can’t fix the entire problem on its own.  But it is wrong for anybody to suggest that the only option for struggling, responsible homeowners is to sit and wait for the housing market to hit bottom.  (Applause.)  I refuse to accept that, and so do the American people.

There are more than 10 million homeowners across the country right now who, because of an unprecedented decline in home prices that is no fault of their own, owe more on their mortgage than their homes are worth.  It means your mortgage, your house is underwater. 

Here in Falls Church, home values have fallen by about a quarter from their peak.  In places like Las Vegas, more than half of all homeowners are underwater.  More than half.  So it’s going to take a while for those prices to rise again.  But there are actions we can take right now to provide some relief to folks who've been responsible, have done the right thing, and are making their payments on time. 

Already, thanks to the outstanding work, in part, of my Secretary of Housing and Urban Development, Shaun Donovan, who's here today -- (applause) -- yes, there he is, the good-looking guy in the front here.  (Laughter.)  The housing plan we launched a couple years ago has helped nearly 1 million responsible homeowners refinance their mortgages, and they’re saving an average of $300 on their payments each month -- $300 -- which is great.  (Applause.)  

But I’ll be honest -- the programs that we put forward haven’t worked at the scale that we hoped.  Not as many people have taken advantage of it as we wanted.  Mortgage rates are as low as they’ve been in half a century, and when that happens, usually homeowners flock to refinance their mortgages -- so a lot of people take advantage of it and save a lot of money.  But this time too many families haven’t been able to take advantage of the low rates, because falling prices lock them out of the market.  They were underwater; made it more difficult for them to refinance.

Then you’ve got all the fees involved in refinancing.  And a lot of people just said, you know what, even though I’d like to be, obviously, cutting down my monthly payment, the banks just aren’t being real encouraging.

So last year we took aggressive action that allowed more families to participate.  And today we’re doing even more.  This is the main reason I’m here today.  (Applause.)

As I indicated at the State of the Union last week, I am sending Congress a plan that will give every responsible homeowner in America the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates.  (Applause.)  No more red tape.  No more runaround from the banks. And a small fee on the largest financial institutions will make sure it doesn’t add to our deficit.

I want to be clear:  This plan, like the other actions we’ve taken, will not help the neighbors down the street who bought a house they couldn’t afford, and then walked away and left a foreclosed home behind.  It’s not designed for those who’ve acted irresponsibly, but it can help those who’ve acted responsibly.  It’s not going to help those who bought multiple homes just to speculate and flip the house and make a quick buck, but it can help those who’ve acted responsibly.

What this plan will do is help millions of responsible homeowners who make their payments on time but find themselves trapped under falling home values or wrapped up in red tape. 

If you’re ineligible for refinancing just because you’re underwater on your mortgage, through no fault of your own, this plan changes that.  You’ll be able to refinance at a lower rate. You’ll be able to save hundreds of dollars a month that you can put back in your pocket.  Or you can choose those savings to rebuild equity in your homes, which will help most underwater homeowners come back up for air more quickly.

Now, to move this part of my plan, we’re going to need Congress to act.  We’re going to need Congress to act.  I hear some -- (laughter) -- murmuring in the audience here.  We need them to act.  But we’re not just going to wait for Congress.  We’re going to keep building a firewall to prevent the same kinds of abuses that led this crisis -- led to this crisis in the first place.  So there are things we can do administratively that are also going to help responsible homeowners.  (Applause.)

Already, we’ve set up a special task force I asked my Attorney General to establish to investigate the kind of activity banks took when they packaged and sold risky mortgages.  (Applause.)  And that task force is ramping up its work as we speak.  We’re going to keep at it and hold people who broke the law accountable and help restore confidence in the market.  We’re going to speed assistance to homeowners.  And we’re going to turn the page on an era of recklessness that hurt so many hardworking Americans.  (Applause.)

Today, I’m also proposing a Homeowners Bill of Rights -- one straightforward set of common-sense rules of the road that every family knows they can count on when they’re shopping for a mortgage.  No more hidden fees or conflicts of interest.  No more getting the runaround when you call about your loan.  No more fine print that you used to get families to take a deal that is not as good as the one they should have gotten.  New safeguards against inappropriate foreclosures.  New options to avoid foreclosure if you’ve fallen on hardship or a run of bad luck.  (Applause.)  And a new, simple, clear form for new buyers of a home.  (Applause.)

Now, think about it.  This is the most important purchase a family makes.  But how many of you have had to deal with overly complicated mortgage forms and hidden clauses and complex terms? I remember when Michelle and I bought our first condo -- and we're both lawyers.  (Laughter.)  And we’re looking through the forms and kind of holding it up -- (laughter) -- reading it again -- "What does this phrase mean?"  And that’s for two trained lawyers.  The forms, the confusion, the potential for abuse is too great just because the forms were too complicated.

So this is what a mortgage form should look like.  This is it.  (Applause.)  Now that our new consumer watchdog agency is finally running at full steam -- (applause) -- now that Richard Cordray is in as the Director of the Consumer Finance Protection Bureau -- (applause) -- they’re moving forward on important protections like this new, shorter mortgage form.  Simple, not complicated.  Informative, not confusing.  Terms are clear.  Fees are transparent. 

This, by the way, is what some of the folks in Congress are trying to roll back and prevent from happening.

AUDIENCE:  Booo --

THE PRESIDENT:  I guess they like complicated things that confuse consumers and allow them to be cheated.  I prefer actions that are taken to make things simpler and easier to understand for consumers -- (applause) -- so that they can get the best deal possible, especially on the biggest single investment that most people will ever make.  (Applause.) 

Americans making a down payment on their dreams shouldn’t be terrified by pages and pages of fine print.  They should be confident they’re making the right decision for their future. 

There’s more that we’re announcing today.  We’re working to turn more foreclosed homes into rental housing, because as we know and a lot of families know, that empty house or “for sale” sign down the block can bring down the price of homes across the neighborhood.  We’re working to make sure people don’t lose their homes just because they lose their jobs.  These are steps that can make a concrete difference in people’s lives right now.  (Applause.)

As I said earlier, no program or policy will solve all the problems in a multitrillion-dollar housing market.  The heights of the housing bubble reached before it burst, those were unsustainable, and it’s going to take time to fully recover.  That requires everybody to do their part.

As much as our economic challenges were born of eroding home values and portfolio values, they were also born of an erosion of some old-fashioned American values.  An economy that’s built to last, that’s on a firm foundation, so that middle-class families have a sense of security and those who want to get in the middle class can make it if they’re working hard -- that demands responsibility from everyone. 

Government must take responsibility for rules that are fair and fairly enforced.  (Applause.)  Banks and lenders must be held accountable for ending the practices that helped cause this crisis in the first place.  (Applause.)  And all of us have to take responsibility for our own actions -- or lack of action.  (Applause.) 

So I urge Congress to act.  Pass this plan.  Help more families keep their homes.  Help more neighborhoods remain vibrant.  Help keep more dreams defended and alive.  And I promise you that I’ll keep doing everything I can to make the future brighter for this community, for this commonwealth, for this country.

Thank you, everybody.  God bless you.  God bless the United States of America.  Thank you.  (Applause.)

END                                                          
11:24 A.M. EST


Press Briefing by Press Secretary Jay Carney, 2/2/12
Release Time: 
For Immediate Release

James S. Brady Press Briefing Room

See below for an answer to a question (marked with an asterisk) posed in the briefing that required follow up.

* The President asked the Department of Justice to establish a unit within the Financial Fraud Enforcement Task Force, made up of Department of Housing and Urban Development, Securities and Exchange Commission and state Attorneys General, to investigate origination and securitization. Separately, federal enforcement agencies, state Attorneys General and some of the nation’s largest financial institutions continue negotiations to reach a settlement to resolve misconduct in the servicing of home loans.

1:45 P.M. EST

MR. CARNEY: I have no announcements to make at the top, so I will go straight to questions.

Ben Feller.

Q Thanks, Jay. First off, I wanted to ask about Afghanistan. The President has put in motion a plan to withdraw troops and get us down to about 70,000 U.S. troops in Afghanistan by September. Now Secretary Panetta says he envisions an end of combat role towards the middle -- latter part of 2013. How does that affect the pace of withdrawal for the rest of the U.S. troops?

MR. CARNEY: Well, let me step back and clarify your question. Secretary Panetta, on his way to a meeting of fellow defense ministers of NATO in Brussels, spoke with reporters about the consultations he would be having, and in line with the NATO policy set forward in Lisbon with regards to Afghanistan that called for the transfer of security lead to the Afghan security forces by 2014. That is the policy, and it has not changed.

What the meetings the Secretary is involved in now are about is how that transition will unfold and take place, and that will certainly be a subject of serious discussion among heads of state of NATO who are here in Chicago hosted by President Obama in May.

It certainly -- what Secretary Panetta said is that it could happen that the transition to Afghan security lead could be moved up to 2013, but he was not making an announcement about a decision that had been made, simply about the consultations that would be taking place in Brussels and from Brussels forward to Chicago.

Q Well, he said -- he did say “hopefully,” but the mid to latter part of 2013, we’ll be able to make the transition from combat role to training. Before that, we had heard from the President that the combat role would end by 2014. So that’s clearly a change.

MR. CARNEY: Well, again, he said “hopefully,” and it could happen early. Look, our objective -- let’s be clear about the President’s Afghanistan strategy, which included the ramping up of forces substantially in order to implement. Its number-one goal is to disrupt, dismantle and ultimately defeat al Qaeda. U.S. forces are in Afghanistan, as well as the forces of our international partners in ISAF, are in Afghanistan because al Qaeda attacked the United States, and al Qaeda has attacked other countries. Our number-one objective, therefore, is to defeat al Qaeda.

The President’s strategy, working with our NATO allies, has resulted in some significant progress in achieving that goal. I don’t think anybody could dispute that.

Another secondary goal of the policy is to stabilize Afghanistan to allow time for the Afghan security forces to be built up, trained, and develop the capacities to take over security lead. That process has begun. Some sections of Afghanistan have been transferred to Afghan security forces, and it will continue. The pace of it, the point at which full lead is turned over to Afghan forces is going to be a subject of discussion among defense ministers as well as heads of state in Chicago in May.

The operating strategy is still what was articulated in Lisbon, which is the combat lead will shift -- or rather, the lead, combat lead -- I guess you could say combat lead would shift to the Afghan security forces by 2014.

Q At the end of 2014?

MR. CARNEY: By the end of 2014. But that was -- I mean, that is where we are. And what that transition looks like and when -- the discussions about that transition will take place over time. And as Secretary Panetta said, it could happen, and hopefully it will happen that we could do it sooner.

Q Okay. Let me just wrap up on this point with my original question, which is, the President has been on record as withdrawing troops, but the latest we knew was that there would be about 68,000, 70,000 troops by September. Is there any clarity about how fast the rest of the troops will come home?

MR. CARNEY: After September?

Q Yes.

MR. CARNEY: I’m sure that will be a subject of discussion among NATO ministers and heads of state and combat commanders. But I have nothing to announce from here about any changes about the pace, and I think that will be determined in part by how successful the transition is taking place over to Afghan security forces.

Q Okay. One quick question on the economy. As I’m sure you know, it’s three years to the day the President said in an interview, in talking about the economy, that if I don’t have this done in three years then there’s going to be a one-term proposition. I’m assuming you don’t think it’s done; maybe you do. But does he regret having said that?

MR. CARNEY: Well, no. I think you aptly point out that it was three years ago, and he made that statement at a time -- in a month when I think the economy shed close to 700,000 or 800,000 jobs in the process of shedding 8 million overall; a time during which the economy had recently shrunk in one quarter by 9 percent -- the worst contraction in our economy since the Great Depression.

He has successfully, through the policies he has pursued, changed the direction that we were in when he took office. And while we are not done and won’t be done until every American who wants a job can find a job, and until we have built a foundation for our economy to compete and win in the 21st century, there is no question that -- and I talked about this the other day, the graph, basically the U-shaped graph of unemployment and what it looked like as the President was taking office, inheriting the economy that he had at the time, and what it had begun to look like and the slope upwards once his policies began to take effect.

Q But can’t you see how somebody who took him at his word would think that this deserves to be a one-term proposition?

MR. CARNEY: Well, no, because I think that he made clear that, in that whole interview and I’m sure every interview he gave at the time, that what his primary obligation was, as President, was to stop this cataclysmic decline in the economy that was taking place when he took office. He successfully did that. He, working with Congress, set out -- put into place policies that have led to 22 straight months of private sector job growth, to 10 straight quarters of economic growth instead of contraction. I don’t think anybody who looks at that objectively could suggest that that turnaround hasn’t happened, or that we are finished with the job.

And I think the President has made clear, and will continue to make clear throughout this year, why we need to continue to do the things we can, and the right things, to grow the economy and create jobs; and certainly not go back to the policies that indisputably helped precipitate the situation that we found ourselves in in January of 2009, where the economy was in freefall.

Q Thank you.

MR. CARNEY: Yes, Alister.

Q Jay, just going back to Afghanistan. The statement by the Defense Secretary clearly surprised a number of people. It surprised U.S. lawmakers, it surprised U.S. allies, and it surprised officials in Kabul. I mean, why make the disclosure now?

MR. CARNEY: Well, it’s not -- he was simply discussing -- Secretary Panetta was discussing the consultations he would be having shortly with NATO defense ministers. So I guess the disclosure, if you’re referring to it in that way, which I would take issue with, was going to happen within hours anyway, or a day, because those discussions would take place. All it was was a framing of the kind of conversations that the defense ministers would begin having in Brussels, and that would continue to take place up until May, when the President hosts NATO in Chicago.

Q Okay. And to just clarify, does it mean that U.S. troops will be coming home faster, or be less exposed to harm, than had previously been expected?

MR. CARNEY: Let me just be clear -- as I said in answer to Ben’s question -- this was an assessment of what could happen within the context of the stated policy of NATO, which is to transfer security lead to the Afghan security forces by 2014, and within that frame, within that timeline, the transition will take place. It has already started in some areas of Afghanistan, and troops -- U.S. troops are already -- already coming home, as you know.

So obviously, as time passes and defense ministers, heads of state, combat commanders make decisions about and assessment of how the progress is -- how much progress is being made, what the conditions are like on the ground, adjustments will be made in terms of schedules and timelines. But that’s what Secretary Panetta was referring to, and that discussion will continue, as I said, throughout the spring.

Q Okay, and one little thing. A group of Republican senators are proposing legislation to halt the sequester in 2013 and pay for it with a federal pay freeze. What would the White House say to that?

MR. CARNEY: That should be the legislation that says, “America, we didn’t mean what we said.” Is that the bill that should -- because the whole idea of the sequester was to design it in a way so that nobody, Democrats or Republicans, wanted it to become fact. Therefore they would be compelled to make the tough choices that would lead to the $1.2 minimum -- $1.2 trillion in deficit reduction that had been agreed to.

That remains the case. The sequester is bad policy for a reason -- so that it doesn’t get enacted. But those cuts have to take -- the cuts have to take place. Congress is compelled to make them happen. And this President will obviously sign into a law a balanced approach to making that deficit reduction happen.

But it can’t be that some members of Congress promised to their constituents, promised to America, with the Budget Control Act, look what we’ve done; we’re holding our own feet to the fire, my fellow Americans. And then a few months later decide, we didn’t really mean it, let’s change that. That’s not how it works, and that’s not how it should work. The sequester is onerous for a reason, and the President certainly hopes that Congress will take up the issue again and present him with deficit reduction measures that are balanced in the way that he has outlined and that bipartisan deficit reduction commissions have outlined.

Jake, and then Christi.

Q Two health care issues in the news today. The Susan G. Komen Foundation has decided to stop funding breast cancer screenings at Planned Parenthood; 22 Democratic senators just wrote a letter to the Komen Foundation asking them to change that decision. I’m wondering if the White House or President Obama had an opinion.

MR. CARNEY: Yes, I don’t -- I’ve seen the reports, but I don’t have any comment on it from the White House. These are obviously two private organizations. So I don’t have anything for you on that.

Q And then Speaker Boehner today said that he thought that the rule that HHS recently announced requiring all health insurance to provide contraceptive services, he thought that that rule, which, as you know, aroused the ire of the Catholic Church, among other organizations, is unconstitutional. And I’m wondering why -- without getting into the whole constitutionality, because neither you nor I are attorneys -- why does the Obama administration think it has the right to tell any organization that they have to provide a service, even if that service goes against their religious beliefs?

MR. CARNEY: Well, let’s be clear about what the decision does. First of all, on the constitutionality issue, no, we do not believe -- we obviously believe this is constitutional. But the point of the decision, which was made after careful consideration, and we believe reaches the appropriate balance between religious beliefs and the need to provide -- make services available to women across the country, we want to make sure that women have access to good health care, no matter where they work, and that all women who want access to contraceptives are able to get them without paying a copay every time they go to the pharmacy.

And let’s be clear about -- because there’s been a lot of -- in some of the commentary about it there’s been some misstatements about what it actually does. No individual will be required to use or prescribe contraception. This rule does not force anyone with a religious objection, such as a Catholic doctor, to prescribe or provide contraception. It merely requires that insurance companies provide coverage for contraceptives to patients who want them, which is the recommendation of the non-partisan Institute of Medicine.

And it’s important to note that doctors prescribe contraception for medical and health reasons, including helping to reduce the risk of some cancers.

It’s also important to know -- because I think this has not been clear in some of the commentary -- that the policy maintains the religious-employer exemption: churches are not required -- they’re exempt; other houses of worship are not required -- they’re exempt -- to cover contraception.

So it’s also important to note that as we developed this policy and found what we believe is the appropriate balance, that 28 states -- more than half -- 28 states in the country have laws with contraception coverage mandates. Over half of Americans already live in those 28 states. Several of those states, like North Carolina, New York and California, have identical religious-employer exemptions. Some states, like Colorado, Georgia and Wisconsin have no exemption at all -- no exemption for churches or other houses of worship.

Q As President Obama acknowledged in his comments at the prayer breakfast this morning, there are Catholic charities and other Catholic organizations that are not houses or worship, in which obviously their beliefs are very strongly held; it’s what they do for a living. They believe that life begins at the moment that an egg is fertilized.

MR. CARNEY: Sure. And the policy doesn’t -- does not require any individual to take or provide or prescribe contraception. It is simply -- requires employers to offer insurance coverage that provides that.

Q That provides services that they find morally objectionable.

MR. CARNEY: But the individuals have -- should have the, in our estimation, should have the same rights to have that kind of coverage. It’s an important health issue and it’s also an important financial issue for women across the country.

Again, I just -- as I just made clear to you, 28 states have similar -- similarly require insurance companies to cover contraception. And several states, large ones -- North Carolina, New York and California -- have identical religious-employer exemptions. And some -- Colorado, Georgia and Wisconsin -- have no exemption at all.

So I think the idea that this is something wholly new has not been well explained in some of the coverage. Again, it makes sure that employees -- we’re talking about employers here and employees -- and employees of all different faiths who might work at organizations that are affiliated with a single faith -- we need to make sure that those employees of all different faiths get -- have access to contraception. And that’s why we sought the -- what we believe is an appropriate balance.

Q Can you see why individuals are offended by it and feel like you’re forcing --

MR. CARNEY: Well, we certainly see that there’s disagreement about this. We consulted with a wide range of people in establishing this policy, and finding the balance that was found. And we’re certainly aware of some of the reporting out there. But I think it’s important to note that there hasn’t been a lot of clarity to what the policy actually is, the exemption that exists within it, and what it’s requiring here. It is, again, not requiring any individual to in any way violate his or her conscience; it is not requiring anything but employers -- organizations -- big hospitals and universities, for example -- to offer insurance coverage that includes this service, just like elsewhere.

Christi.

Q My questions actually are on the very same topic. The President this morning talked about making policy decisions within a moral framework, and I just wonder if this one followed that. Did the President -- did he pray about it? Did he talk it over with religious leaders before this decision was rendered?

MR. CARNEY: Well, I don’t -- I haven’t had the discussion about what his own -- whether he himself prayed about it. I just haven’t had that conversation with him. He did consult with some religious leaders about it. And I think that when you talk about making decisions within a moral framework, providing necessary medical services to women across the country is also a decision that falls into that context. And when you seek to find the appropriate balance, which is what we sought here to do, you have to weigh all of these factors, including the need to provide services to women, and obviously the issue of religious belief.

And that’s the balance we found -- a balance that has been found by other -- by states across the country, and that other institutions have successfully dealt with in those states. As you know, we want to continue to work with organizations for the next year as they develop how they’re going to handle this policy. And so we -- this was done with careful consideration. It was not done arbitrarily, it was done absolutely focused on the issues under consideration now.

Q And could you also talk about the response that you’ve gotten since this picked up steam and people became aware of it? Have you heard from interest groups? Have people been calling? What kind of response? And also, this morning, were there any religious leaders who wanted to talk to the President about it?

MR. CARNEY: I didn’t travel with the President to the prayer breakfast, and I didn’t discuss that with him this morning, so I don’t know. But we’re certainly -- we’ve seen media reports, people expressing opinions on a variety of sides of this issue, and I’m sure that some folks have heard from people who believe it’s the right policy and people who disagree with it. But I don’t have anything specific on that for you.

Norah.

Q On Afghanistan, is there any daylight between President Obama and Secretary Panetta?

MR. CARNEY: Not at all.

Q So the President also -- he’s hopeful that by mid-2013 American forces and others can transition from a combat role to a train-and-assist role?

MR. CARNEY: Look, the President made clear that U.S. forces are in Afghanistan to accomplish a mission. And they will not stay in Afghanistan forever, and they will not stay in Afghanistan any longer than is necessary to accomplish that mission. And one of the things he made very clear that he would do if he were elected President and that he has absolutely done since he’s been -- came to office, is clarify exactly what our mission in Afghanistan is. As you know, Norah, because you were --

Q Is this an instance where he and his Secretary are clarifying again with an accelerated timetable?

MR. CARNEY: No, I think that what was made clear back in June when the President talked about the drawdown is that there would be discussions about the transition, the pace and the slope of the drawdown, and the transfer and the time -- how the transfer would unfold to Afghan security lead.

Obviously, within the context of making the full transfer by the end of 2014, you can’t make assessments two years out about how things will look every month along the way. So those assessments are being made.
 
But it is absolutely the case that this President is committed to achieving our mission in Afghanistan and then drawing down U.S. forces. There is no question about that.

And let’s be clear that the policy he inherited was one of neglect in Afghanistan, because of the focus on the war in Iraq, and he made clear as a candidate that he would change that. He would make clear -- he made clear that he would heighten the focus on the real enemy, which was al Qaeda; he has done that. And he has made clear that he would commit resources and make tough decisions to ensure that we were successfully pursuing the right objectives in Afghanistan, and he’s done that. This is all part of that Afghanistan policy.

Q Can you respond then to the criticism, specifically from Mitt Romney, who has said, “Why in the world would you go and give people that you’re fighting and tell them the date you’re pulling out troops? It makes absolutely no sense.”

MR. CARNEY: Well, I’m not going to address specific criticisms from one person. But obviously there are some out there. The President has a very clear, focused, achievable policy with a lot of muscle behind it.

What he does not support is war without end. And I mean that in the temporal sense and in the objective sense. War without a temporal end, like when will this -- how long will we be there and why? And I think that there is -- some of the critics of the President’s very focused strategy in Afghanistan, who have said this when we talked about 2014 and are now saying it again today, supported a policy in Afghanistan under the previous administration that no two people involved in it could explain.

Why were we there? Why were the number of forces that we had there -- why was that number chosen as opposed to fewer or more? What was the objective? It was entirely unclear. And I know you know that because you covered it, and a lot of you did.

This President has been relentlessly focused on what the mission is and achieving it.

Q And then also, just on that, General Petraeus, the head of the CIA, said this morning that he thinks that Secretary Panetta’s comments have been overanalyzed. Would you share that view?

MR. CARNEY: Well, it’s up to you and others to analyze it. I mean, look --

Q No, I mean -- he’s the director of the CIA.

MR. CARNEY: Sure. No, I mean, I don’t know whether -- over-, underanalyzed. This is an important issue, and I think it’s always worth paying attention to, frankly, and it’s far better than some of the issues that sometimes consume us in Washington.

The Secretary of Defense made some comments about a very important policy that the President is implementing, and I think it’s perfectly appropriate to discuss it.

Q And then any opinion about the --

MR. CARNEY: But I would say, as I have said in answer to Ben and Jake and Alister, that the context is important to understand here. This is within the context of the already-stated policy of transferring security lead to the Afghans by 2014. How that transition takes place is what Secretary Panetta will be discussing and is discussing with defense ministers in Brussels, and that conversation will continue right up through May when President Obama hosts his fellow NATO heads of state in Chicago in May.

Q And your opinion on the CBO report yesterday that unemployment would likely be above 9 percent by the election, and also that the deficit again will be over $1 trillion this year, making President Obama the only President to have three years of trillion-plus deficits. How does the President defend that?

MR. CARNEY: Well, made possible in part by the trillion-dollar deficit he inherited from his predecessor, but the --

Q But he’s been in office three years.

MR. CARNEY: Oh, no question, and he came into office with the worst recession since the Great Depression, a catastrophic decline in economic growth and employment, and took measures to reverse that catastrophic situation, and measures that have been successful.

I think -- I don’t have the graph now, but I saw an interesting graph lately about what policies contributed to the deficit that we have now, and I think it’s worth reading -- and maybe we’ll find it for you -- because there’s no question that two massive unpaid tax cuts; two very expensive, unpaid-for wars; expansions in entitlements that were unpaid for, and other programs that were unpaid for that happened prior to this President coming into office were big contributors to the deficit.

It is also true, because of the catastrophic economy that existed in early 2009, that he took measures --

Q He did say -- Ben talked about it -- if he didn’t do it in three years he would be looking at a one-term proposition.

MR. CARNEY: Well, no, he didn’t talk about -- he wasn’t referring to the deficit by itself; he was talking about turning this economy around. And there’s no question that the economy has turned around, after it went down quite dramatically, and it’s now been climbing out of the hole that was dug for 10 straight quarters -- 22 straight months of private sector job growth.

The work is not done. But I think it is important to remember that the deficits that we’re dealing with now, and which we have to address seriously and in a balanced way, were contributed to mightily by the policies of the previous decade. And it’s important to remember that in January of 2001, after President Clinton left office, there were budget surpluses for the first time in a generation, and CBO and others forecasted budget surpluses for as far as the eye could see.

Steve.

Q Thank you. On Iran, what is the White House position on these new financial sanctions that were passed by the Senate Banking Committee this morning?

MR. CARNEY: I’d have to take -- I haven’t seen those new sanctions. But I’m sure we will look at them and have a position for you on them.

Q In general terms, does the administration worry that some of the actions on the sanctions that Congress has taken has to some extent usurped President Obama’s prerogative on foreign policy?

MR. CARNEY: No. I think that we’ve made clear what our position is with regards, for example, to the sanctions that were part of the NDAA and the -- on the Central Bank of Iran, and making sure that we implement these sanctions, which were designed with a goal in mind that we absolutely share, which is further pressuring and isolating the Iranian regime in order to get it to comply with its international obligations. We want to make sure that the implementation of those sanctions is handled in a way that does not inadvertently do any harm to our allies or to the oil markets. But we believe there’s a way to implement them appropriately that achieves the goal that those sanctions have, which is to further isolate and pressure Iran.

Dan.

Q On the contraceptives controversy, Speaker Boehner also called on the administration to reconsider this rule. Is there an ongoing debate about potentially reviewing this again, even though there was extensive review going into the decision?

MR. CARNEY: I think it’s important, the point that you made at the end of your question is the point I was going to begin with, is there was extensive and careful consideration as this policy was developed and the decision was made.

And the issue here is we want to make sure that women, all women, have access to good health care. And the fact is, on average, an American woman uses contraception for 30 years of her life, with the average cost of contraception of $50 per month. So this is both an issue of health as well as economics for women across the country.

And so, in seeking to find the appropriate balance that we believe we found, it was very important to take into consideration the need to make sure that all women had access to good health care. And that’s what we’ve done here.

Q So no debate about whether or not this should be reconsidered?

MR. CARNEY: No, there’s not a debate. I think as was noted initially and I said again earlier, we want to work with organizations for the next year to help them deal with the implementation of the policy, but the decision has been made and it was made after careful consideration.

Q You’re quite aware that last Sunday in a number of Catholic churches across the country, priests got up and read letters of protest, if you will. Any concern at all that this kind of pushback could grow to sort of a wider extent among the Catholic Church and what the political implications of this could be?

MR. CARNEY: This policy was decided upon based on the merits, based on a balanced consideration of the need to find a balance between religious beliefs, on the one hand, and the need for broad access to important health care on the other for women across the country. This was not a decision about politics.

And we obviously know of and have seen the reports that you mention. I think it’s important also to note that there are a lot of folks out there who support this policy for the very reasons that we have put it forward, which is that this provides an important preventive service for women across the country. And it is not in any way in violation of the conscience clause. It’s not in any way -- does not in any way require any individual to provide or prescribe contraception. And it exempts -- unlike some significantly sized states in this country, it exempts houses of worship and churches from having to abide by the policy.

So that’s the balance we sought and we think we found it.

Q And one quick thing on the economy. Does the President have his own graph, if you will, where he wants to see unemployment by November?

MR. CARNEY: Well, he’s not an economist and he leaves predictions about what those numbers will look like to the economists. He is focused on doing what he can through legislative work with Congress and through executive initiative to move this economy forward, to keep it growing, to keep the recovery moving forward, making sure that it’s creating jobs.

We’ve made some progress and it is -- again, I think as we step back and look at this, as folks will be doing this year, at the context of what has happened since President Obama has been in office, and I think you will see, again, as that chart I keep describing shows, a pretty dramatic change from the situation that this economy was in when the President took office and the situation and the direction of the economy after his policies began to take effect.

He wants to keep that graph moving in the direction it’s been moving now for 10 months -- 10 quarters and 22 months.

Yes, Ed.

Q Jay, yesterday when the President announced his housing policy, he made reference to that it’s not the humane thing to do to just let the market hit bottom. And it was widely seen as a contrast to Mitt Romney, who said that just a couple of months ago, that you have to let it hit bottom. When the President was talking at the prayer breakfast today about the poor and shared responsibility, was there any attempt there to show a contrast to what Mitt Romney had to say yesterday about the poor?

MR. CARNEY: I think if there is any more appropriate place than a prayer breakfast with people of faith to talk about the need to care for the least among us, I can’t think of it. It is certainly a central tenet of the President’s faith and I believe a central tenet of the faiths of everyone in that prayer breakfast that we, individually and as a nation and as a world, need to take care of those who need it most -- need help the most. And I think that was the context in which the President was speaking this morning.

Q He went on to say that he’d be willing to give up tax breaks since he’s wealthy and it makes economic sense, but then he also said, “but for me as a Christian, it also coincides with Jesus’s teaching.” Why did he think it was appropriate in that case to talk about something that is sort of the central tenet now of his campaign, about shared responsibility?

MR. CARNEY: Again, I think if you can’t discuss in a prayer breakfast one of the central tenets of your faith, which is prevalent throughout the New Testament, I think you’re really circumscribing yourself too much. I mean, that is just -- he was explaining how his faith guides him, how his faith guides the decisions he makes as a leader. And I think that’s entirely appropriate in a situation like that. He was not trying to engage in campaigning; he was simply talking about faith and how it affects the decisions he makes.

Q And one last thing on that. Since it was, you said, appropriate for him to do that, why did -- or did he give consideration to talking about this issue we were talking about here, about Catholics being upset about the HHS decision? Since you had faith leaders there -- and it’s not just Catholics who have spoken out, but Mormons and others have said that they have a problem with this -- was there consideration to using that forum to kind of explain this decision and why he does believe it fits into his moral --

MR. CARNEY: Well, I confess I was not involved in working on the remarks. I mean, I think we’ve pretty openly discussed the decision-making progress, the considerations that were taken --

Q The President hasn’t.

MR. CARNEY: Well, he might if he’s asked about it. I think I would just point you to the remarks he made today at the prayer breakfast.

Q And last thing. One of the things the critics are jumping on about that policy is they claim that once you cover contraception it will also include “morning after” drug and it opens the door to abortion. You just had a conference call -- officials of this administration saying on background that that is not true. But I want to give you a chance on the record here -- this being used to say this opens the door to abortion -- can you just flatly close that door and say this does not?

MR. CARNEY: Well, I would cite the experts, both the policy and medical experts, and say yes. I would point you to the facts. I mean, I understand that things get used for -- and misrepresented. But that’s not the case here. And again, this is about providing American women, women across the country, with access to good health care and to the preventive services that the Institute of Medicine, a non-political organization, believes are necessary and required.

Yes.

Q Back on the prayer breakfast. The President said that -- he cited some of the legislation, the major pieces of legislation he’s pursued -- financial institutions playing by the rules, insurance companies insuring those who are already sick, going after unscrupulous lenders. And he said, in addition to doing that because it’s best for the economy, he believes in God’s command to love thy neighbor as they love themselves. But is the implication of that that those who opposed those very controversial policies somehow fall outside the Judeo tradition -- Christian tradition?

MR. CARNEY: He’s talking about what guides him in making the decisions, as I just explained to Ed, within the context of a faith gathering, a prayer breakfast. So it was appropriate -- I mean, I think some of his critics out there suggest that he doesn’t talk about his faith often enough or very often, and within this context he did because it was appropriate at the National Prayer Breakfast. And he is influenced and informed by his faith.

Q But would you allow that a spiritual feeling of compassion towards one’s fellow man can be interpreted in different ways, but --

MR. CARNEY: Of course.

Q And when he quoted Proverbs -- “We speak up for those who cannot speak for themselves,” for the rights who are all -- “for all who are destitute,” following up on Ed’s question, is that a direct reference, or somehow an allusion to what Mitt Romney said the other day?

MR. CARNEY: I would be -- that would suggest that every conversation that was held in any house of worship in the last week that contained within it one of the central tenets of the New Testament about helping the least among us would have a political context.

Q Yes, but we’re talking in a political context here.

MR. CARNEY: But again, I’m saying that this President was simply explaining how his faith guides him. It was not a political event.

Q And finally, just -- as a matter of -- where is -- administration policy on Afghanistan, you said “combat lead should shift to Afghan security forces by the end of 2014,” which leaves open the possibility that there will be NATO and U.S. forces in a combat role for how long?

MR. CARNEY: Well, potentially for -- until that time when -- full security lead is actually the phrase that we use here -- until that transfer takes place. Which could -- which, as designated by NATO at Lisbon, will be accomplished by the end of 2014.

What -- the context of this conversation was the -- were the remark -- was the remarks that Secretary Panetta made that certainly laid out the possibility that it could be earlier than that. But the policy is by the end of 2014.

Q But the word “lead” does not preclude combat participation by U.S. forces, right?

MR. CARNEY: Well, no. And I think it’s important -- Iraq is a helpful reference point in this -- the transfer of security lead does not mean full removal of forces, and we’ve been clear about that -- necessarily. And the disposition of U.S. and NATO forces beyond 2014 will be up to the -- if forces might stay, part of that would be up to the Afghan government and whether or not they invite forces to stay, as was the case in Iraq.

And obviously -- and I remember trying to clarify this within the context of Iraq when we ended our combat mission and Iraqi forces took security lead -- the U.S. forces that were still there, the many thousands of U.S. forces that were still there were highly trained, skilled forces, combat-trained forces, who could and did, when necessary, participate in combat missions.

But the lead is a designation that’s important here in terms of how much presence you have and how much engagement you have in combat.

Q Thank you.

MR. CARNEY: Yes.

Q Jay, what’s the view here of the status of the investigation into the Fast and Furious gun-walking case -- the administration’s investigation of it, Justice Department? And what is your response to the growing Republican calls for Eric Holder to resign or for the President to can him?

MR. CARNEY: Well, look, I think the politicization of this -- or the politization of this is pretty apparent. The Attorney General spent the last five hours testifying in front of Congress. I would refer you to the Department of Justice for any questions regarding his testimony. But broadly speaking, fighting criminal activity along the Southwest border, including the illegal trafficking of guns to Mexico, remains a priority of this administration.

The Attorney General has also made clear that he takes the allegations that have been raised very seriously, and that is why he asked the Inspector General of the Justice Department to investigate this matter. It is also why you saw the department cooperating with congressional investigators, including producing thousands of pages of documents and the Attorney General making his sixth appearance on the Hill to discuss this. So any suggestion that we haven’t been cooperative with Congress, after six appearances testifying, I think doesn’t comport with the facts.

Q And the calls for him to resign or for the President to fire him -- does the President stand by him fully?

MR. CARNEY: He absolutely stands by the Attorney General; thinks he’s doing an excellent job.

Q Is that a new investigation --

MR. CARNEY: I’m going to get to you. I’m going to work around here.

Kate, did you have a question?

Q -- we’ve got evidence of ongoing bribery in the Justice Department. It’s only a $20 million bribe. So perhaps I thought you might be interested in that.

MR. CARNEY: Go ahead, Kate.

Q On Afghanistan, yesterday Secretary Panetta said, “We all went in together and we’ll all go out together.” So I’m wondering, did the President direct Secretary Panetta to, when he goes to make the case to France not to leave Afghanistan early, is that part of the --

MR. CARNEY: Well, I’m not going to get into conversations between the President and the Secretary of Defense. I think he was making a broad statement about the fact that we work very closely with our NATO allies in Afghanistan.

Q Is it correct, though, to say that that -- reading between the lines what he’s talking about is bringing France back into the fold, that they shouldn’t --

MR. CARNEY: I leave the interpretation up to you.

Julia.

Q Thanks, Jay. I just wanted to follow up on two units that the President announced during his State of the Union address and see if you had any more details on the Trade Enforcement Unit, what agency that would fall under, whether it would be specifically focused toward China. And then also -- have to read this one -- a residential mortgage-backed securities working group, and how that may be working in alignment with or separately from the work done by the states’ attorneys general focusing on banks with a (inaudible) foreclosure practices?

MR. CARNEY: Okay, I’m going to attempt to get this right. (Laughter.) On the unit dealing with mortgage-backed securities, they are working with the state attorneys general. And part of the idea of creating this unit was to combine focus and resources in the investigation of these matters that has to do with the servicing of -- I hope I get this right -- the servicing of mortgages.*

The trade enforcement task force, obviously think it was, as we’ve described and the President mentioned, China is part of it. It was -- one of the issues that we have in our relations with China is fair trade practices. But it’s not limited to China, as I understand it.

Q Does it fall under a specific agency as it exists? I remember asking about this around the time of the State of the Union and that wasn’t clear at that point.

MR. CARNEY: I will probably have to get back to you on that because I don’t want to give you the wrong answer. Thanks.

Yes.

Q Jay, so what you’re saying is that there was nothing inartful or off-message said by the Secretary of Defense when he was in Europe?

MR. CARNEY: He’s an artful man. It wasn’t -- again, he was simply discussing the consultations he was about to have with his fellow defense ministers, and talking about what could be the case, depending on conditions on the ground in Afghanistan and the discussions with our partners and allies in ISAF and NATO.

So that’s really -- to the extent that General Petraeus -- I think that’s what General Petraeus was probably referring to when he talks about them being overblown. Again, this was --

Q Overanalyzed.

MR. CARNEY: -- overanalyzed. There’s I think not as much there as some people seem to think.

Q Can I follow on that?

MR. CARNEY: Let him finish, then I’ll get to you.

Q And then when it comes to the HHS birth control decision -- so hospitals, schools and universities, all of these -- their statuses change because of this decision. Does that somehow limit their freedom of expression -- employers who are designated as such, but have religious affiliation?

MR. CARNEY: Well, first of all, again, as I pointed out, there are -- there’s different treatment of this already in different states. In some states -- the three I named that have no exemption whatsoever -- so this will change for those states in terms of the churches and houses of worship. What we’re talking here is about employers and employees, not about institutions and employees, and not -- we’re not asking individuals -- it does not in any way require individuals to provide or prescribe contraceptives in contravention to their beliefs. It simply requires that insurance companies provide that coverage to women who work for those institutions, and again, women of all faiths.

So that is the balance that we sought. I hope that answers your question.

Q Did the President seek the endorsement of Donald Trump? (Laughter.)

MR. CARNEY: I’m not going to comb over that question. (Laughter.) The -- that’s good, right? (Laughter.) It just -- there’s a danger in speaking off the cuff. But, no -- (laughter) -- I think the --

Q Or off the top of your head. (Laughter.)

MR. CARNEY: I need you up here.

Q Don’t just brush this off. (Laughter.)

MR. CARNEY: You guys are pretty good. Look, the only comment I’ll have on that, beyond the one I just made, is the -- I think the President gave his views about Mr. Trump at the dinner that many of you attended last spring. (Laughter.)

Q Thank you.

MR. CARNEY: Keith.

Q You said that Secretary Panetta sort of suggested something that would be possible, but in fact what he said is that this is actually the goal of the United States, is by mid-2013 to late 2013, to end the combat role. And that’s what really was news about this. So the question is, is that U.S. policy, that it’s the goal to end combat participation by then?

MR. CARNEY: Keith, I appreciate the question. Our goal is to execute the mission -- disrupt, dismantle, ultimately defeat al Qaeda; give the Afghan government the breathing room to help build up Afghan security forces so that they can take security lead in the country. The policy, not just of this administration and the United States but of NATO, is for that transfer to full Afghan security lead to take place by the end of 2014. That is a policy decision made back at Lisbon, and what has been clear ever since Lisbon, and which -- and what the President made clear in his speech in June, is that we will obviously be evaluating the transition and how it takes place -- the slope and pace of the drawdown of forces and the transfer of territory to Afghan security forces along the way.

So it is certainly our goal -- I guess unlike some folks, the President does not believe that U.S. troops should stay in Afghanistan for the sake of staying; they should stay there to fulfill their mission, and then he will bring them home. And so I think that within the context of transfer by the end of 2014, it is certainly possible, and, if possible, therefore desirable to have that transition take place earlier. But it is not an announcement of a new policy.

Yes, Lesley.

Q Jay, you mentioned that --

MR. CARNEY: Last one. Yes.

Q You mentioned that some of the President’s critics have suggested that he doesn’t talk about his faith very much or very often, so why would -- he did go into it quite a bit today; he mentioned --

MR. CARNEY: Well, I think he has at the National Prayer Breakfast, and I think that’s what I was saying, is that this is an environment where he has in the past, and he certainly felt comfortable talking about it today. And I just -- I’ve seen some of that criticism from some folks about him discussing his faith.

But I think this is an appropriate environment, a National Prayer Breakfast, a gathering of men and women of faith. And so he felt very comfortable discussing how his faith influences his world view and the decisions that he makes.

Q Did he have any political considerations?

MR. CARNEY: No, he did not. Thanks very much.

END
2:35 P.M EST


Statement by the Press Secretary on Aerial Bombardments in Southern Kordofan and Blue Nile States
Release Time: 
For Immediate Release

The United States strongly condemns the bombing by the Sudanese Armed Forces of civilian populations in Southern Kordofan and Blue Nile States in Sudan.  Aerial attacks on civilian targets are unjustified and unacceptable.  Such attacks are a violation of international law and compound the ongoing crisis in these areas. 

We continue to be deeply concerned by the ongoing fighting and lack of humanitarian access in Southern Kordofan and Blue Nile States in Sudan, which is causing tremendous human suffering, death, and displacement.  In particular, we urge the Sudanese government to grant immediate and unconditional humanitarian access to civilian populations in need in these areas.  More than 500,000 people are affected by this conflict, and without humanitarian access by March, the situation in Southern Kordofan and Blue Nile will reach Stage 4 of a humanitarian emergency, one step short of full-scale famine.  We believe that this conflict can only be resolved by dialogue, not through violence, and we encourage all parties to negotiate a peaceful settlement.


Remarks by the First Lady at a DNC Event -- Los Angeles, CA
Release Time: 
For Immediate Release
Location: 
Private Residence, Los Angeles, California

1:18 P.M. PST

        MRS. OBAMA:  All right!  (Applause.)  All right, this is some good stuff.  This really is.  (Applause.)  Wow.  Thank you all so much.  Please, rest yourselves, because you obviously have been working hard already.  (Laughter.)

        Wow, the power of women -- and a few brave men, too.  (Laughter.)  It's a good thing.  Thank you so much.  It is such a pleasure and an honor to be here with so many fabulous, fabulous women.  And you all brothers are okay, too -- the men -- men are good, men are good.  (Laughter.)

        I want to start by thanking Mattie for that very kind introduction.  But, more importantly, she and Michael have -- they have been with us from the way beginning; the "Barack Obama Who?" beginning; the Barack -- what?  You want me to write a check for that guy?  (Laughter.)  They were there from the very start, and they have not just been supporters but they have been friends, they have been our encouragers, they have been the handful of people who kind of keep us grounded in ways that I don't think they even really understand.  So I want to take this time to just give them a shoutout of love, because they are just amazing people.  Thank you.  Thank you, guys.  Thank you for opening up your home.  (Applause.) 

        I've been in L.A. for a couple of days, doing a few things, but today we had a wonderful event with your wonderful mayor, in Inglewood.  And it was a true privilege.  I mean, that's something that -- I know we come here to raise money, but it is so important for us to get out in the neighborhoods and to focus on what's going on on the ground.  (Applause.)  Thank you, mayor.  Thank you for your leadership, thank you for your service, and thank you for taking time to be here with me today.  It means a lot.

        And of course, I want to recognize all the co-chairs and all the host committee people, and everyone here who worked so hard to make this event what is obviously a tremendous success.  Thank you all so much. 

        And finally, I want to thank everyone -- everyone -- for being here this afternoon.  Because the women in this room, the people in this room are busy folks.  And I know there's a reason why you are all here today.  And while you all may love me, it's not just because you like me -- which I hope you do.  (Laughter and applause.)

        But you’re here because you also know that we stand at a fundamental crossroads for our country.  This is serious stuff.  You’re here because you know that in less than a year from today, we're going to make a choice that will impact our lives for decades to come.

        And you’re here because you know that that choice won’t just affect all of us, but more importantly, it's going to affect our children and our grandchildren and the world we leave for them long after we're gone.  And that's why I'm here today.  That’s why I'm going to be out there, working hard.  That's -- we have only just begun.

        You see, as First Lady, I have had the privilege -- and this is a wonderful job -- of traveling all across this country, something that we should all have the privilege and the honor to do.  Because when you do that, you get to meet folks -- folks from all different kinds of backgrounds -- and I get to hear what’s going on in their lives.

        Every day, I hear about how people are struggling to keep it together -- the bills they're trying to pay, the business they're trying to keep afloat.  I hear about how folks are doing everything in their power to make it work, taking the extra shift, or working that extra job; how so many people are saving and sacrificing, not spending a dime on themselves because they desperately want something better for their kids.

        This is our America.  And make no mistake about it, these struggles are not new.  For decades now, middle-class folks have been squeezed from all sides.  While the cost of things like gas and groceries -- tuition -- have continued to rise, people’s paychecks just haven’t kept up.

        So when the economic crisis hit, for far too many families the bottom completely fell out.  Now, over the past three years, your President has worked very hard to dig us out of this mess.  And there has been a lot of progress made.  A lot of progress made.  (Applause.)  What I want you all to remember, if anybody asked:  We have had 22 straight months of private sector job growth.  (Applause.)  And the unemployment rate is now the lowest it’s been in nearly three years.  (Applause.)

        But we know that we still have a very long way to go.  Folks are still struggling.  And your President has been working hard to rebuild our economy based on a vision.  See, a President has to have a vision, and his is one that we all share -- the belief, as my husband says, that hard work should pay off; that responsibility should be rewarded; and that everyone -- everyone -- in this country should get a fair shot, do their fair share, and play by the same rules.  (Applause.)  See, these are basic American values.  They're the values that so many of us were raised with, including myself.  We know these values.  We know who we are.

        My father was a blue-collar city worker; worked at water plant.  My family lived in a little-bitty apartment on the South Side of Chicago.  Neither -- (applause) -- yeah, South Side.  (Laughter and applause.)  Neither of my parents -- I'm sure like many people in this room -- they didn't attend college.  But what my parents did, like so many -- they worked, and they saved, and they sacrificed everything for us.  My mother is still sacrificing her life to be a part of ours.  Because they want so much to have me and my brother to have more than they could ever imagine.

        See, and more than anything else, we have to remember that's what’s at stake -- that fundamental promise that no matter who you are, or how you started out, if you work hard, you can build a decent life for yourself, and yes, an even better life for your kids.  That's what's at stake.

        And on just about every issue -- from health care to education to the economy -- that's the choice we face.

        For example, when we talk about tax cuts for middle-class families, when we talk about unemployment insurance for folks out of work, we're talking about whether people can heat their homes; put a hot meal on the table; put gas in their car so that they can even look for work.  We talk about these issues -- this is about whether folks can afford to own a home, send their kids to college, retire with just a little dignity and security.  It’s about whether people will have more money in their pockets, which means more money in our economy, which in turn means more jobs.

        And that’s what’s at stake.  That is the choice we face.  That's why you're here.

        And if you think, for a minute, about what the Obama administration has done to stand up for the American consumer -- see, I’m talking about families getting hit with those hidden credit card fees; I’m talking about students -- our students, America's students -- drowning in debt; our seniors losing their homes, losing their savings because they were tricked into loans they couldn’t afford, couldn't understand. 

        And that’s why my husband created a new consumer watchdog with just one simple mission, and that is to protect folks from exactly these kind of abuses.  Because when you’ve worked, and you’ve saved, and you've followed the rules, you shouldn’t lose it all to someone looking to make an easy buck.  That is not fair.  That is not right.  And your President is working to do something about that.  That's what's at stake.  (Applause.)

        And what about what we've all done together for our small businesses?  I mean, these are the companies that create two-thirds of all new jobs each year in this country -- two-thirds.  We're talking about the mom who opens up a drycleaners in her neighborhood to help provide for her kids -- that's who we're talking about.  We're talking about the family that's been running that neighborhood diner for generations, or the veteran who launches a startup and pursues that American Dream that he fought so hard for.

        See, it's these folks who work themselves to the bone during the day, and then they head home, pore over the books late into the night, determined to make those numbers add up.  See, for these folks, the small business tax cuts that this administration has passed, that means the difference from these folks hiring new employees or handing out pink slips; it's the difference between them closing their doors for good, or having a place open forever.

        That is the choice we face.

        And how about the very first bill my husband signed into law -- the very first thing he did as President of the United States:  the Lilly Ledbetter Fair Pay Act, to help women get equal pay for equal work.  (Applause.)

        And he did this because he knows what it means when women aren’t treated fairly in the workplace.  See, he watched his own grandmother, woman with a high school education, who worked her way up to become the vice president at a little community bank.  And he saw how hard she worked.  He saw how good she was at her job.  Yet, like so many women, she hit that glass ceiling and watched men no more qualified than she was -- men she had actually trained -- climb that corporate ladder ahead of her.

        So, believe me, Barack, for him, this issue is not abstract.  This is not hypothetical for your President.  He signed this bill because he knows that closing that pay gap can mean the difference between women losing $50, $100, $500 from each check, or having that money to buy gas and groceries, to put school clothes on the backs of their children.

        He did it because when nearly two-thirds of women are breadwinners or co-breadwinners, he knows that women’s success in this economy is the key to families’ success in this economy.  (Applause.)  And he did it because, as he put it, we believe that here in America, there are no second-class citizens in our workplace. 

        That is what’s at stake in this election.

        And let’s talk just a minute about health care.  Just a little second about health care.  (Applause.)  Because last year, we made history together by finally passing health reform.  We did that together.  But now, there are folks actually talking about repealing this reform.  So today, we have to ask ourselves, are we going to stand by and let that happen?  Or are we going to stand up to those insurance companies?  Are we going to let them refuse to cover things like cancer screenings, prenatal care; things that save money, but more importantly, save lives?  Or are we going to stand up for our lives, and the lives of the people we love?  What are we going to do?  (Applause.) 

        Are we going to go back to the days when insurance companies could deny our children coverage because they have a pre-existing condition like cancer, diabetes, even asthma?  Or will we stand up and say that in this country, no one should ever have to choose between going bankrupt or watching their child suffer because they can’t afford a doctor?

        And when our kids get older and they graduate from school, we all know how hard it is for them to find jobs, let alone jobs with insurance.  And that’s why, as part of health reform, kids can now stay on their parents’ insurance until they’re 26 years old.  (Applause.)  And today, that is how 2.5 million of our young people are getting their coverage.

        So will we take that insurance away from our kids?  Or will we say that we don't want our sons and our daughters going without health care when they’re just starting out, trying to build families and careers of their own?  But that is the choice we face.

        And think, for a minute, about what's been done on education.  Think about all the investments your President has made to raise standards and reform our public schools.  I mean, this is about -- (applause) -- yes, it's about improving the circumstances for millions of children in this country.  I mean, these are all our kids we know are sitting in crumbling classrooms; our kids, with so much promise, kids who could be anything they wanted if we just gave them a chance.

        And think about how we've tripled investments for job training at community colleges.  I mean, this is about hundreds of thousands of hard-working folks who are determined to get the skills they need to better their job and better their wages.  I mean, these are the folks who are doing it all.  They’re working full-time, raising kids, but they still make it to class every evening, study late into the night because they desperately want something better for their families.

        And make no mistake about it, this kind of investment in our students and our workers will determine nothing less than the future of this economy.  It will determine whether we’re prepared to make the discoveries and to build the industries that will let us compete with any country, anywhere in the world.  That’s what’s at stake.

        And let us not forget what it meant when my husband appointed those two brilliant Supreme Court Justices -- (applause) -- and for the first time in history, our daughters and our sons watched three women take their seat on our nation’s highest court.  (Applause.)  And let's not forget the impact their decisions will have on our lives for decades to come -- on our privacy and our security; on whether we can speak freely, worship openly and, yes, love whomever we choose.  That’s what’s at stake here.  (Applause.)  That’s the choice we're facing in this election.  That's why you're here.  (Applause.)

        And finally, let’s not forget about all this administration has done to keep our country safe and restore our standing in the world.  (Applause.)  And thanks to our brave men and women in uniform, we finally brought to justice the man behind the 9/11 attacks and so many other horrific acts of terror.  (Applause.)

        My husband ended the war in Iraq, brought our troops home for the holidays.  (Applause.)  And, yes, we are working, now that these wars are coming to a close, to make sure that our veterans and their families get the education, the employment, the benefits that they have earned.  (Applause.)  

        And because my husband ended "don’t ask, don’t tell," never again will our troops have to lie about who they are to serve the country they love.  (Applause.)  Believe me, that is what’s at stake.  That's the choice.  That's what's going on this year.  (Applause.)

        So make no mistake about it, whether it’s health care, whether it's the economy, education, foreign policy, you name it -- I could go on, but we don't have all day.  (Laughter.)  The choice we make will determine nothing less than who we are as a country, but more importantly, who do we want to be.  Who are we?

        Will we be a country where opportunity is limited to a few at the top?  Is that who we are? 

        AUDIENCE:  No!

        MRS. OBAMA:  Or will we be a place where if you work hard, you can get ahead no matter who you are or how you started?  Who are we?  That's what we have to ask ourselves.  (Applause.)  Will we tell folks who’ve done everything right, but are struggling just a little bit -- are we going to tell those folks, tough luck, you’re on your own?  I mean, who are we?

        Or will we honor that fundamental American belief that this country is strongest when we’re all better off?  Who do we want to be?  Will we continue all the change we’ve begun, all the progress that we’ve made, or will we allow everything to just slip away?  What are we going to do?  But that is the choice we face.  See, those are the stakes.

        And, believe me, your President, my husband, he knows this far too well.  He understands these issues, because he’s lived them.  He was raised by a single mother he watched struggle to put herself through school, pay the bills.  And when she needed help, who stepped in?  His grandmother, waking up every morning before dawn to take that bus to the job at a bank.  And even though she was passed over -- clearly faced disappointment -- she didn’t complain.  How many people do we know like that in our lives?  She didn't complain.  She just kept showing up, just kept doing her best.  (Applause.)

        So, believe me, Barack knows what it means when a family struggles.  This isn't a joke to him.  He knows what it means when someone doesn’t have a chance to fulfill their potential, what that does to the spirit.  Those are the experiences that have made him the man, and yes, the President he is today.  And we are blessed to have him.  (Applause.) 

        And I share this with everyone:  It is that -- is what I hear in his voice when he returns home from a long day traveling around the country, and he tells me about the people he’s met.  See, that's what I see in those quiet moments late at night, after the girls have gone to bed, and he is up poring over those letters -- the thousands of letters people send him.  The letter from the woman dying of cancer whose insurance company won’t cover her care; the letter from the father still struggling to pay his family’s bills; the letter from too many young people with so much promise, and so few opportunities.

        And I hear the passion and the determination in his voice.  He says, "You won’t believe what folks are going through."  He says, "Michelle, this is not right.  We have to fix this.  We have so much more to do."

        See, when it comes to the people Barack meets, he has a memory like a steel trap.  (Laughter.)  He might not remember your name, but if he's had a few minutes and a decent conversation, he will never forget your story.  It becomes imprinted on his heart.  And that's what he carries with him every single day -- it is our collections of struggles and hopes and our dreams.

        And that is where he gets his passion.  That is where he gets his toughness and his fight.  And that’s why, when he faces those hard moments, when it seems like all is lost and we're all sweating it, wringing our hands and sweating him -- "Oh, lord, Barack" -- (laughter) -- "What you going to do now?"  "Oh, no!" -- because I've done it, too.  (Laughter.)  Barack Obama never loses sight of the end goal.  He sees it.  (Applause.)  He never lets himself get distracted by all that chatter and noise.  He just keeps moving forward.  (Applause.)

        Because, as I said earlier, he has a vision for this country.  And it is a vision that we all share.  But I have said this before and I will say it again and again -- he cannot do this alone.  He cannot do this alone.  That was never the promise -- never the promise.  I know I didn’t make that promise.  (Laughter.)

        He needs your help.  He needed it then, he needs you now.  He needs you to be fired up.  He needs you to understand like nothing else what is at stake.  So you make those calls.  Look what you've done just in this room.  This has to be multiplied 100-fold.  We need you to register those voters.  He needs you to take your “I’m In” cards, sign them up.  Sign up your friends, your neighbors, and your colleagues.  Do not underestimate the power of that one-on-one connection.  People have to know what this President has done, what's at stake, and what more we have to let -- have left to do.  You have to convince them to join in giving just a little part of their lives each week to this campaign.

        Because we all know that this is not just about one extraordinary man.  Although, I think my husband is very cute, very wonderful.  (Laughter and applause.)  And as it turns out, he can sing.  (Laughter and applause.)  But it was never about Barack Obama.  This election, this presidency was not about Barack Obama.  It's always been -- it always has been about us.  All of us.  All of us coming together for the values we believe in, and the country that we want to be.

        And I’m not going to kid you, this journey is going to be long.  It already has been.  (Laughter.)  There are going to be many twists and turns along the way.  See, but the truth is that’s how change always happens in this country -- always.  The reality is -- and we have to own this -- real change is slow.  Real change does take time.  Real change never happens all at once.  But if we keep showing up, if we keep fighting the good fight, then eventually we will get there.  Because we always do.  We have never moved backwards -- never.  There has never been a point in time when we moved backwards.  Maybe it won't happen in our lifetimes, but maybe it will happen in our children’s lifetime, maybe it will happen in our grandchildren’s lifetimes.

        Because in the end, that’s what this is about.  In the end, we are not fighting these battles for ourselves.  It's not about us.  We are fighting them for our sons and our daughters.  We're fighting them for our grandsons and our granddaughters.  (Applause.)  We’re fighting for the world we want to leave for them.  This is about them, it's not about us.  (Applause.)

        And I am in this not just as a mother who wants to leave a legacy for my girls.  I’m in this as a citizen who knows what we can do together to change this country for the better.  Because the truth is that no matter what happens, my girls will be fine.  See, they're blessed.  My girls will have plenty of advantages and opportunities in their lives, and that's probably true for so many of your kids as well.

        But I think the last few years have shown us the truth of what Barack has always said:  that if any child in this country is left behind, then that matters to all of us, even if she is not our daughter, even if he is not our son.  (Applause.)  If any family in this country struggles, then we cannot be fully content with our own family’s good fortune, because that is not who we are.  (Applause.)

        In the end, we cannot separate our individual story from the broader American story.  That is not who we are.  Because we know that in this country, we rise and we fall together.  And we know that if we make the right choices, if we have the right priorities, we can ensure that everyone gets a fair shake, that everyone has a chance to get ahead.  That is what's at stake.

        So it's time for us to get moving.  It is time for us to get to work.  We don't have time to be tired, or disappointed, or complacent.  We don't have time.  So I have one last question:  Are you in?

        AUDIENCE:  Yes!  (Applause.)

        MRS. OBAMA:  No, no, are you in?

        AUDIENCE:  Yes!  (Applause.) 

        MRS. OBAMA:  Are you ready for this?  Because I am in, and I am so fired up.  (Applause.)  I hope you all are ready to go.  We've got work to do.  We've got a vision to create.  We've got more people who need help.  We've got more kids who need work done.  And I am looking forward to getting out there, and I need every single one of you just as passionate today as you will be in 10 months.

        You all -- thank you all so much.  Thank you for having our backs.  God bless you all.  (Applause.)
 
END 1:45 P.M. PST


President Obama Nominates Two to Serve as US Marshals
Release Time: 
For Immediate Release

WASHINGTON, DC – Today, President Obama nominated Jamie A. Hainsworth and Louise W. Kelton to serve as United States Marshals.

"These dedicated law enforcement officials have devoted their careers to serving and protecting the American people, distinguishing themselves as the best and brightest at every turn," President Obama said. "I am grateful for their service and honored to nominate them as United States Marshals."

Jamie A. Hainsworth: Nominee for United States Marshal for the District of Rhode Island
Jamie A. Hainsworth serves as the law enforcement liaison and victim advocate for Mothers Against Drunk Driving Rhode Island. Prior to his service with MADD, he spent his law enforcement career with the Gloucester Police Department.  He joined the force in 1979 and rose through the ranks to the Chief of Police position in 1999, a position he held until 2010.  He received his undergraduate degree from Roger Williams University in Rhode Island. 

Louise W. Kelton: Nominee for United States Marshal for the Middle District of Tennessee
Louise W. Kelton has spent her entire law enforcement career with the Metropolitan Nashville Police Department in Nashville, Tennessee.  She joined the force in 1980, and has risen through the ranks to her current position as a Deputy Chief.  She received her undergraduate degree from Tennessee State University and earned a Master of Science degree in Public Service Management from Cumberland University in Lebanon, Tennessee.



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