(From Reuters)
Obama seeks budget savings as huge deficits loom
By Richard Cowan and Jeff Mason

WASHINGTON — President Barack Obama, facing criticism over huge budget deficits, will propose on Thursday shaving $17 billion from a 2010 budget that will still hover around $3.5 trillion, administration officials said.

About half of the proposed cuts would come from the defense budget, and a total of 121 programs in areas including education would be trimmed or scrapped, one official told a conference call with reporters.
Even with the spending reductions, the White House's own estimates suggest the deficit will be $1.17 trillion next year. Congressional analysts believe the gap could be $1.4 trillion.

Obama officials said the administration would look for further cuts in the 2010 fiscal year, which starts on October 1.

"This is an important first step but it's not the end of the process," the official told reporters on Wednesday. "We will continue to look for additional savings."

Obama, who has vowed to cut the country's ballooning deficit in half by 2013, was widely panned last month when he challenged agencies to find $100 million in savings. Critics pointed out that was about equal to what the government spends in 13 minutes. go to story


Chrysler won't repay bailout money
An administration official confirms that a $4 billion bridge loan and $3.2 billion in bankruptcy financing won't be paid back by Chrysler following bankruptcy.
By Chris Isidore

NEW YORK (CNNMoney.com) -- Chrysler LLC will not repay U.S. taxpayers more than $7 billion in bailout money it received earlier this year and as part of its bankruptcy filing.

This revelation was buried within Chrysler's bankruptcy filings last week and confirmed by the Obama administration Tuesday. The filings included a list of business assumptions from one of the company's key financial advisors in the bankruptcy case.

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler's operations during bankruptcy. go to story


Obama Hails Allies’ Anti-Terror Efforts
President Expresses Regret Over US Airstrikes That Killed Afghans
AOL NEWS

WASHINGTON (May 6) - President Barack Obama is applauding Pakistan and Afghanistan for their commitment to helping the U.S. fight terrorists holed up in their territory, but he also is cautioning that the path to success is slow and unsure.

“The road ahead will be difficult,” Obama said Wednesday after a series of meetings with Afghan President Hamid Karzai and Pakistani President Asif Ali Zardari that yielded few announced new commitments. “There will be more violence, and there will be setbacks.” go to story

Lawmaker makes push for legal online gambling
By Kevin Freking, Associated Press Writer

WASHINGTON — It's time to regulate gambling on the Internet rather than outlaw it, says Rep. Barney Frank, the chairman of the House Financial Services Committee.

The Massachusetts Democrat introduced a bill Wednesday that is sure to please poker and blackjack players as well as those who like to wager on keno, roulette and other games of chance. But the opposition is formidable and includes conservative groups that view gambling as exploiting the vulnerable, particularly the poor.

Frank's bill would require Internet gambling providers to be licensed by the Treasury Department and regulated to protect children and to ensure the games are fair, the bill states. The department would review criminal and credit histories as well as financial statements as part of the application process.
No similar bill has been proposed in the Senate, and Senate Majority Leader Harry Reid, D-Nev., has said that he opposes Internet gambling, dimming prospects for Frank's legislation. go to story


General Motors tops expectations with a $6 billion loss in the first quarter
By Mark Fightmaster
AOL NEWS

The earnings news isn't great for General Motors (NYSE: GM) this morning, but the company did manage to lose less money than expected. The struggling American automaker announced that it lost $6 billion during the quarter and spent $10.2 billion more cash than it received. Excluding items, GM lost $9.78 per share -- far greater than a year ago when the firm lost 67 cents per share.

Despite results being far worse than a year ago, GM managed to top expectations of a loss of $11.39 per share. GM's quarterly revenue dropped 47% to $22.4 billion from $42.4 billion a year ago. go to story

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