Monte Paschi probe to widen as Italian election nears

Monte Dei Paschi bank headquarters is pictured in Siena January 25, 2013.

Credit: Reuters/Stefano Rellandini

By Philip Pullella

ROME | Sat Feb 2, 2013 11:23am EST

ROME (Reuters) - A plan by Italy's central bank to use bonds to bail out the troubled Monte Paschi bank can go ahead, a court ruled on Saturday, as a scandal surrounding the world's oldest lender looked likely to widen three weeks before a national election.

Magistrates in three cities investigating the Tuscan bank were poised to issue new summonses for more witnesses to give information next week following testimony by a raft of bankers in the past few days, leading newspapers said.

The bank is under investigation over an opaque series of derivatives and structured finance contracts between 2007 and 2009 that have left it facing losses of 720 million euros and dependant on the state lifeline.

Former prime minister Silvio Berlusconi, leading the centre-right's election charge, has tried to cash in on the bank's woes to attack both his centre-left rivals and outgoing prime minister Mario Monti, whose Treasury approved the Monte Paschi bailout.

A Rome administrative tribunal turned down a request by Italy's leading consumer group, Codacons, for the immediate suspension of the plan by the Bank of Italy to use 3.9 billion euros ($5.34 billion) in bonds to shore up the bank.

The court set a new hearing for February 20.

Tuscany is a traditionally leftist area and Monte Paschi has for decades had close ties to leftist parties such as the Democratic Party, the largest in the center-left opposition coalition.

"We are convinced that the Italian left has much to say about (Monte Paschi) and instead is not saying anything," Angelino Alfano, the center-right's candidate for prime minister, said on Saturday.

"People want clarity and want to know if there is a link between decisions by the Italian left and their disastrous effects on a such a large bank."

BANK SCANDAL A POLITICAL FOOTBALL

Opinion polls suggest the bank scandal has so far had only a slight effect on voting intentions for the February 24-25 election, which the center-left is still expected to win, although its lead is narrowing.

Monte Paschi is accused of having overpaid in a 9 billion euro ($12 billion) purchase of rival Antonveneta in 2007, stretching its finances to the limits, and of having made risky derivatives trades in 2006-2009 aimed at massaging its accounts.

Prosecutors are investigating whether bribes were paid at the time the bank bought Antonveneta. They also suspect fraud was involved in the derivatives deals, which could cost the bank 720 million euros.

The scandal has spread from the rolling hills of Tuscany to the skyscraper that houses the European Central Bank (ECB) in Frankfurt.

ECB head Mario Draghi was Bank of Italy governor at the time of Monte Paschi's risky operations and has been accused of lax oversight on his watch.

Despite being deeply concerned by Monte Paschi as long ago as 2009 and having specific and growing doubts about its operations and accounts, the Bank of Italy revealed that it did not summon the bank's management until late 2011 and applied no sanctions until after the executives stepped down last year.

Mario Borghezio, an outspoken member of the European parliament for the Northern League, said he had submitted a question to the European Commission on whether Draghi was now fit to become the supervisor for the entire euro zone.

After the court hearing on Saturday, Codacons called on the central bank's governor to resign and for an administrator to be appointed to run Monte Paschi.

Codacons has accused Bank of Italy supervisors of failing in their oversight when Monte Paschi undertook the complicated derivatives operations.

It had asked the court to block the central bank's plans to issue so-called Monti bonds to cover the losses run up by Monte Paschi. It is also suing the central bank for 3.9 billion euro ($5.34 billion), the same amount of bonds it wants blocked.

In a statement, the Bank of Italy said it would release the court documents concerning the bond issue ahead of the February 20 hearing and rejected Codacons' accusations as "unfounded and presumptuous". ($1 = 0.7301 euros)

(Additional reporting by Antonella Cinelli, Paolo Biondi and Gavin Jones; writing by Philip Pullella, editing by William Hardy)

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TV networks to staff: watch what you tweet on Election Day

People vote at Holy Cross School during the U.S. presidential election in Indianapolis, Indiana, November 6, 2012.

Credit: Reuters/Aaron Bernstein

By Lisa Richwine

LOS ANGELES | Tue Nov 6, 2012 9:00am EST

LOS ANGELES (Reuters) - U.S. television networks face a new challenge in covering this year's excruciatingly close presidential election: prevent closely guarded exit poll results from leaking onto Twitter, Facebook and other social media platforms.

The major TV news networks agreed to shield early exit poll data suggesting who is leading in a state until the state's polls close. That means no tweeting exit polls, posting on Facebook, or re-tweeting figures reported by others.

"We will not either project or characterize a race until all the polls are scheduled to have closed in that state," said Sheldon Gawiser, director of elections for NBC News.

Election officials worry that leaks could discourage people from voting if they think the race in their state is already decided, depressing the vote count and distorting the results. In 1985, Congress extracted a promise from the major TV networks to refrain from using exit polls to project a winner in a particular state, or to characterize who is leading, while voting continues in that area.

The closeness of this year's election between President Barack Obama and Republican challenger Mitt Romney has focused attention on key battleground states - such as Ohio, Virginia and Florida - and what their exit polls might signal about who will win the White House.

It has resurrected memories of the disputed 2000 election between Republican George W. Bush and Democrat Al Gore - some media outlets projected a Gore victory in Florida while polls in the western part of the state remained open. The networks later pulled back, leaving doubt about who won and leading to a month of recounts and court battles.

If early results become public, "it can be a real problem," said Jeff Berkowitz, a Republican strategist who runs Berkowitz Public Affairs. "For somebody who's got seven things on their list to do that day, and if they're already being told the election is over, are they really going to prioritize voting over the other six?"

Exit poll data is collected by New Jersey-based Edison Media Research on behalf of the National Election Pool, a consortium of Walt Disney Co's ABC, News Corp's Fox, Time Warner Inc's CNN, Comcast Corp's NBC, CBS Corp's CBS and the Associated Press. The media companies use the findings to help them call results in each state, and to inform post-election analysis.

Reuters is not a member of the consortium and collects exit data with market research firm Ipsos. The news organization will not share any exit data before polls close, a Thomson Reuters Corp spokeswoman said.

Smaller news outlets and Internet blogs are not bound by the commitment made by members of the National Election Pool, and could post any exit poll numbers they get their hands on.

In 2004, for example, The Drudge Report posted early results that favored John Kerry. U.S. stocks dipped, and Kerry eventually lost the race, highlighting that early and incomplete results can prove wrong. A representative for The Drudge Report could not immediately be reached by e-mail.

There is no evidence that exit poll results influence voters, but the rise of social media means any leaked data could spread like wildfire.

After leaks in past elections, the big TV networks have taken steps to keep a tighter lid on information. While some findings previously were available as early as 1 p.m. Eastern time, news staff are not to be given an initial look until 5 p.m. - still two hours before the earliest poll closings.

Following a template used in the last three elections, six analysts - one from each news organization in the National Election Pool - will be locked in a "quarantine room" from 11 a.m. to 5 p.m. Eastern time on Tuesday with no phone or e-mail access, Gawiser said. They will conduct preliminary analysis of the data before it is released to staff at the news outlets.

"They cannot talk to us. We don't know anything about it. We can't see any of these data until five o'clock," Gawiser said.

These kinds of restrictions helped keep exit data under wraps in 2008, when Obama defeated John McCain. The race also was not as close as in the two previous elections, or indeed this year's vote, reducing demand for early information.

This year, the tight race and prevalence of social media increases the risk that data will spread quickly if it leaks, said Tom Rosenstiel, director of the Pew Research Center's Project for Excellence in Journalism.

"If that were to happen today, with Internet penetration and the speed of social media, that (data) would be known pretty widely," he said.

(Reporting By Lisa Richwine; Editing by Ronald Grover and Steve Orlofsky)

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Romney's hedge-fund backers plan to party on election night

1 of 6. Republican presidential nominee Mitt Romney and his wife Ann finish filling out their ballots while voting during the U.S. presidential election in Belmont, Massachusetts November 6, 2012.

Credit: Reuters/Brian Snyder

By Svea Herbst-Bayliss, Katya Wachtel and Lauren Tara LaCapra

BOSTON/NEW YORK | Tue Nov 6, 2012 11:34am EST

BOSTON/NEW YORK (Reuters) - There is one group of voters Mitt Romney should win in a landslide in Tuesday's U.S. presidential election: hedge fund managers.

Most of the best-known hedge fund managers threw their support and, more importantly, their dollars behind the Republican presidential hopeful long ago.

Now, some heavyweights of the $2 trillion industry plan to break out the champagne and party in style Tuesday night as they cheer on their man at events in Boston, New York and even Las Vegas, according to people familiar with the Romney campaign and some of the big contributors.

Julian Robertson, a billionaire hedge fund manager who helped launch the careers of more than a dozen other money managers, will be in Boston, where Romney and his family will be watching the results come in.

Robertson and Romney have known each other for decades, going back to when Romney was running Bain Capital and Robertson's Tiger Management was one of the largest hedge funds around. At the height of Tiger's success, the fund was overseeing more than $20 billion.

Conventional wisdom suggests that if Romney defeats President Barack Obama, he will be less likely to raise taxes on the rich and will ease off on tough regulation of Wall Street. The stock market is expected to rise as a result.

It is a scenario that appeals to many hedge fund managers, many of whom feel Obama has demonized Wall Street and the rich in general while backing tougher regulations on the financial sector.

Joining Robertson in Boston will be other big donors to the Romney campaign, including New York Jets owner Woody Johnson and controversial casino magnate Sheldon Adelson, who has emerged as one of the biggest contributors to Republican candidates this year.

Anthony Scaramucci, founder of investment firm Skybridge Capital, organizer of the popular SALT hedge fund conference in Las Vegas and a long-time Romney supporter, is also heading to Boston. Paul Singer, who runs the $20 billion Elliott Associates hedge fund and has been another strong Romney supporter, was invited to spend the evening in Boston but his plans are unknown.

People familiar with the campaign say Romney's biggest donors and fundraisers will be attending a private party at the Westin Hotel next to the Boston Convention and Exposition Center, where Romney is scheduled to speak after the election results are announced.

PAULSON

But not all of Romney's most loyal backers in the hedge fund world are traveling to Beantown.

A Republican political adviser said less prominent Wall Street fundraisers for Romney will be gathering at Brinkley's Station, a bar and restaurant on Manhattan's Upper East Side. It is unclear who will be attending that event, or what will be on the menu, but Brinkley's features a $23.75 lobster club sandwich and $12 Bloody Marys.

John Paulson, who made billions betting on the collapse of the U.S. housing market, is hosting a small election party at his Upper East Side townhouse. Paulson, whose Paulson & Co hedge funds have endured two rough years, has long been a reliable host for Romney events, throwing parties for the candidate at his summer and regular residences.

Hurricane Sandy, which has caused devastation and hardship throughout the New York metropolitan area, has caused other money managers to alter their election-night plans.

One partner at a New York-based hedge fund with more than $10 billion under management had planned to host a party for both Republicans and Democrats at his Lower Manhattan apartment. But after Sandy hit, the soiree was canceled because there was too much damage to the host's apartment, according to a person who had been invited to the event.

Money manager Jason Ader, who gained prominence as a Wall Street gaming analyst and is backing Romney, had been planning to travel to Las Vegas for an election night "watch party" at the Venetian Resort Hotel Casino.

But in the aftermath of Sandy, Ader says he has decided to stay home. The manager of Ader Investment Management, which provides funding to small hedge funds, "will vote and watch at home with my young kids and educate them about the process and the returns," he said.

The Venetian is owned by Las Vegas Sands Corp, a casino and hotel company that is led by Adelson, and Ader is a board member. The invite for the party promises "remarks" by "special guests." A company spokeswoman declined to comment on the guest list.

Representatives for a number of other prominent Romney supporters in the hedge fund industry, such as Citadel's Kenneth Griffin and Third Point's Dan Loeb, declined to comment on how they plan to spend election night.

Robertson and Griffin have each donated more than $1 million to a Romney-friendly SuperPAC called Restore Our Future, campaign records show.

On the Democratic side, the big election-night parties will be in Chicago, where the Obama campaign is based. Mark Gilbert, a director at Barclays Wealth, the private banking arm of Barclays Plc, plans to attend a big Chicago event, according to a person who knows the Florida-based banker.

The few prominent hedge fund managers backing Obama appear to be taking a low-key approach to election night, especially in New York. A person close to Marc Lasry, founder of Avenue Capital Group, who has hosted fundraisers for Obama in the past, is not planning anything special tonight.

The smaller celebrations from Democratic-leaning money managers may be a reflection of the much larger amount of support Romney is getting from the industry.

But even some who favor Romney say they see no reason to get together with friends to celebrate because they expect Obama to be reelected.

David Hinman, chief investment officer of SW Asset Management, a Newport Beach, California-based investment firm, said in an email: "100 percent Obama wins; no reason to party." (Reporting By Svea Herbst-Bayliss, Katya Wachtel and Lauren Tara LaCapra; additional reporting by Emily Flitter; Editing by Matthew Goldstein, Jennifer Ablan, Martin Howell and John Wallace)

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Romney's hedge-fund backers plan to party on election night

1 of 6. Republican presidential nominee Mitt Romney and his wife Ann finish filling out their ballots while voting during the U.S. presidential election in Belmont, Massachusetts November 6, 2012.

Credit: Reuters/Brian Snyder

By Svea Herbst-Bayliss, Katya Wachtel and Lauren Tara LaCapra

BOSTON/NEW YORK | Tue Nov 6, 2012 11:34am EST

BOSTON/NEW YORK (Reuters) - There is one group of voters Mitt Romney should win in a landslide in Tuesday's U.S. presidential election: hedge fund managers.

Most of the best-known hedge fund managers threw their support and, more importantly, their dollars behind the Republican presidential hopeful long ago.

Now, some heavyweights of the $2 trillion industry plan to break out the champagne and party in style Tuesday night as they cheer on their man at events in Boston, New York and even Las Vegas, according to people familiar with the Romney campaign and some of the big contributors.

Julian Robertson, a billionaire hedge fund manager who helped launch the careers of more than a dozen other money managers, will be in Boston, where Romney and his family will be watching the results come in.

Robertson and Romney have known each other for decades, going back to when Romney was running Bain Capital and Robertson's Tiger Management was one of the largest hedge funds around. At the height of Tiger's success, the fund was overseeing more than $20 billion.

Conventional wisdom suggests that if Romney defeats President Barack Obama, he will be less likely to raise taxes on the rich and will ease off on tough regulation of Wall Street. The stock market is expected to rise as a result.

It is a scenario that appeals to many hedge fund managers, many of whom feel Obama has demonized Wall Street and the rich in general while backing tougher regulations on the financial sector.

Joining Robertson in Boston will be other big donors to the Romney campaign, including New York Jets owner Woody Johnson and controversial casino magnate Sheldon Adelson, who has emerged as one of the biggest contributors to Republican candidates this year.

Anthony Scaramucci, founder of investment firm Skybridge Capital, organizer of the popular SALT hedge fund conference in Las Vegas and a long-time Romney supporter, is also heading to Boston. Paul Singer, who runs the $20 billion Elliott Associates hedge fund and has been another strong Romney supporter, was invited to spend the evening in Boston but his plans are unknown.

People familiar with the campaign say Romney's biggest donors and fundraisers will be attending a private party at the Westin Hotel next to the Boston Convention and Exposition Center, where Romney is scheduled to speak after the election results are announced.

PAULSON

But not all of Romney's most loyal backers in the hedge fund world are traveling to Beantown.

A Republican political adviser said less prominent Wall Street fundraisers for Romney will be gathering at Brinkley's Station, a bar and restaurant on Manhattan's Upper East Side. It is unclear who will be attending that event, or what will be on the menu, but Brinkley's features a $23.75 lobster club sandwich and $12 Bloody Marys.

John Paulson, who made billions betting on the collapse of the U.S. housing market, is hosting a small election party at his Upper East Side townhouse. Paulson, whose Paulson & Co hedge funds have endured two rough years, has long been a reliable host for Romney events, throwing parties for the candidate at his summer and regular residences.

Hurricane Sandy, which has caused devastation and hardship throughout the New York metropolitan area, has caused other money managers to alter their election-night plans.

One partner at a New York-based hedge fund with more than $10 billion under management had planned to host a party for both Republicans and Democrats at his Lower Manhattan apartment. But after Sandy hit, the soiree was canceled because there was too much damage to the host's apartment, according to a person who had been invited to the event.

Money manager Jason Ader, who gained prominence as a Wall Street gaming analyst and is backing Romney, had been planning to travel to Las Vegas for an election night "watch party" at the Venetian Resort Hotel Casino.

But in the aftermath of Sandy, Ader says he has decided to stay home. The manager of Ader Investment Management, which provides funding to small hedge funds, "will vote and watch at home with my young kids and educate them about the process and the returns," he said.

The Venetian is owned by Las Vegas Sands Corp, a casino and hotel company that is led by Adelson, and Ader is a board member. The invite for the party promises "remarks" by "special guests." A company spokeswoman declined to comment on the guest list.

Representatives for a number of other prominent Romney supporters in the hedge fund industry, such as Citadel's Kenneth Griffin and Third Point's Dan Loeb, declined to comment on how they plan to spend election night.

Robertson and Griffin have each donated more than $1 million to a Romney-friendly SuperPAC called Restore Our Future, campaign records show.

On the Democratic side, the big election-night parties will be in Chicago, where the Obama campaign is based. Mark Gilbert, a director at Barclays Wealth, the private banking arm of Barclays Plc, plans to attend a big Chicago event, according to a person who knows the Florida-based banker.

The few prominent hedge fund managers backing Obama appear to be taking a low-key approach to election night, especially in New York. A person close to Marc Lasry, founder of Avenue Capital Group, who has hosted fundraisers for Obama in the past, is not planning anything special tonight.

The smaller celebrations from Democratic-leaning money managers may be a reflection of the much larger amount of support Romney is getting from the industry.

But even some who favor Romney say they see no reason to get together with friends to celebrate because they expect Obama to be reelected.

David Hinman, chief investment officer of SW Asset Management, a Newport Beach, California-based investment firm, said in an email: "100 percent Obama wins; no reason to party." (Reporting By Svea Herbst-Bayliss, Katya Wachtel and Lauren Tara LaCapra; additional reporting by Emily Flitter; Editing by Matthew Goldstein, Jennifer Ablan, Martin Howell and John Wallace)

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S&P up more than 1 percent on Election Day

1 of 6. Traders work on the floor of the New York Stock Exchange November 5, 2012.

Credit: Reuters/Chip East

NEW YORK | Tue Nov 6, 2012 12:15pm EST

NEW YORK (Reuters) - Stocks extended gains on Tuesday, with both the Dow and the S&P 500 up more than 1 percent, as voters chose the next president.

The Dow Jones industrial average .DJI was up 169.58 points, or 1.29 percent, at 13,282.02. The Standard & Poor's 500 Index .SPX was up 14.96 points, or 1.06 percent, at 1,432.22. The Nasdaq Composite Index .IXIC was up 21.82 points, or 0.73 percent, at 3,021.48.

(Reporting By Angela Moon; Editing by Kenneth Barry)

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Obama and Romney tied three days before election

1 of 15. David Ewing hangs a piece of campaign literature on a door knob as he canvasses for U.S. President Barack Obama in Portsmouth, New Hampshire November 3, 2012.

Credit: Reuters/Jessica Rinaldi

By Jeff Mason

WASHINGTON | Sun Nov 4, 2012 4:55am EST

WASHINGTON (Reuters) - President Barack Obama and Republican challenger Mitt Romney remain essentially tied in the race for the White House with razor thin margins in four key swing states, according to a Reuters/Ipsos daily tracking poll released on Saturday.

Three days before the November 6 election, both men are neck and neck in Ohio, Florida, Virginia and Colorado, the poll showed.

Nationally, the electorate is divided. Of likely voters polled, 47 percent said they would back Obama, the Democratic incumbent, while 46 percent said they would back Romney, the former Massachusetts governor.

The results fall within the polls' credibility interval, a tool used to account for statistical variation in Internet-based polls.

The two men have been locked in a tight race for weeks. Both are doing final campaign swings over the weekend, trying to sway a small group of remaining undecided voters and to encourage their supporters to get to the polls.

A handful of states that traditionally swing between voting for Republican and Democratic presidential candidates will determine who wins the White House. All of them are close.

In one of the biggest prizes of the election - Ohio - Obama has a very slight lead over Romney with 46 percent compared to 45 percent support among likely voters, the poll showed.

In Florida, another big prize, they are tied at 47 percent.

In Virginia, Obama leads Romney 48 percent to 45 percent among likely voters. In Colorado, Romney leads Obama 47 percent to 45 percent.

"It's really going to come down to the wire," said Ipsos pollster Julia Clark, adding that Obama still had a better likelihood of winning the 270 state electoral votes needed to secure victory.

But with the data tight in the swing states for both candidates, she added: "I don't think we can count any of them in the bag yet."

"The electoral map does favor Obama," Clark said. "It's just so on a razor's edge."

The precision of the Reuters/Ipsos online polls is measured using a credibility interval, which in the case of the national poll is plus or minus 3.4 percentage points for likely voters.

(The Reuters/Ipsos database is now public and searchable here: www.tinyurl.com/reuterspoll)

(Editing by Alistair Bell and Jackie Frank)

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Obama, Romney virtually tied eight days before U.S. election

1 of 11. U.S. President Barack Obama jogs into a campaign rally in Las Vegas, Nevada October 24, 2012. Obama is on a two-day, eight state, campaign swing.

Credit: Reuters/Kevin Lamarque

WASHINGTON | Mon Oct 29, 2012 12:51pm EDT

WASHINGTON (Reuters) - President Barack Obama and Republican challenger Mitt Romney were virtually tied in a Reuters/Ipsos tracking poll released on Monday, with the Democrat leading by a single percentage point eight days before the November 6 U.S. presidential election.

Obama leads Romney 48 percent to 47 percent, a 1 percentage point drop for Obama and 1 percentage point rise for Romney from Sunday's tracking poll - still within the daily online survey's 3.9 percentage point credibility interval for likely voters.

"This is all movement around the middle," said Ipsos pollster Julia Clark. "It basically underlines the closeness of the race. I don't think it's going to be too different until the election."

The poll showed that 22 percent of registered voters said they had taken part in early or absentee voting. Among that group, 58 percent said they voted for Obama and 39 percent said they voted for Romney.

The precision of Reuters/Ipsos online polls is measured using a credibility interval. Among the 806 likely voters surveyed, the credibility interval is plus or minus 3.9 percentage points.

(Reporting by Deborah Charles; Editing by Alistair Bell and Will Dunham)

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As election, Sandy draw near, pressure mounts on disaster chief

U.S. President Barack Obama, seated with Federal Emergency Management Agency (FEMA) Administrator William Craig Fugate (R), urges Americans to take safety measures after a briefing about Hurricane Sandy, as it threatens the East Coast, at FEMA headquarters in Washington, October 28, 2012.

Credit: Reuters/Jonathan Ernst

By Mark Felsenthal

WASHINGTON | Mon Oct 29, 2012 5:55pm EDT

WASHINGTON (Reuters) - As Hurricane Sandy bears down on the U.S. East Coast little more than a week before the presidential election, President Barack Obama's fortunes may in part depend on how well a former volunteer firefighter from Florida does his job.

Craig Fugate, a former paramedic and firefighter who rose to become Florida's top emergency management official, heads the Federal Emergency Management Agency and is the man Obama is counting on to bring relief quickly to millions of people expected to be hit by monster storm Sandy.

With the presidential election at hand and closely fought, the stakes are high for Obama to avoid an embarrassment like former President George W. Bush's botched reaction to Hurricane Katrina in 2005.

Much of the pressure is on Fugate, who has earned high marks for his quick and effective response to recent storms. That includes Hurricane Isaac in August, the deadly May 2011 tornadoes that struck Joplin, Missouri, and Hurricane Irene, which lashed the east coast in August 2011.

Fugate, 53, was one of the few people Obama consulted in the White House Situation Room Monday morning for an update on the hurricane's movements and federal response efforts, the White House said.

After the meeting with Fugate and a handful of other officials, Obama delivered a statement from the White House, pleading for patience from the American public but also pledging that his administration will have emergency relief in place - a task that Fugate will have to carry out.

"I'm confident that we're ready, but I think the public needs to prepare for the fact that this is going to take a long time for us to clean up," Obama said.

Obama switched from campaign mode to first-responder-in-chief on Monday, canceling scheduled campaign stops in Florida and Wisconsin and returning to Washington to monitor the storm and the government's response.

Rival Mitt Romney, who is running neck-and-neck with Obama in the polls, also canceled his campaign appearances, "out of sensitivity for the millions of Americans in the path of Hurricane Sandy," his campaign said.

BLANKETS, GENERATORS IN PLACE

The president has declared emergencies in at least eight eastern states and the District of Columbia.

During a conference call with reporters on Monday, Fugate, who wears a goatee and glasses and speaks with a Florida drawl, rattled off an extensive list of the administration's preparations, including getting bottled water, meals, blankets and generators in place. He said the disaster relief fund held $3.6 billion.

"As the storm's coming ashore, we'll be rapidly moving into response operations, as soon as weather conditions permit," he said.

The aggressive response, and the image of a fully engaged commander-in-chief, gives Obama yet another chance to contrast his efforts with the response to Hurricane Katrina.

Former President Bush's FEMA director Michael Brown, a lawyer who owed his job to political connections, resigned shortly after it became clear the government's reaction to the devastating storm was inadequate and poorly planned.

Bush's remark, "Brownie, you're doing a heck of a job," made even as New Orleans residents fled to higher ground to avoid onrushing waters, became a catch-phrase that tarred the Bush presidency with an image of cronyism and still evokes bitter memories.

Fugate told reporters this summer that Katrina taught officials to be in place before the storms hit. Local officials have expressed gratitude to him for help with such delicate problems as how to search for remains.

In the thick of a close election, Obama's turn to crisis management may offer him a chance to rise above the fray of campaigning, a notion he tried to drive home at the briefing on Monday.

"The election will take care of itself next week," he said. "Right now, our No. 1 priority is to make sure that we are saving lives, that our search-and-rescue teams are going to be in place, that people are going to get food, the water, the shelter that they need in case of emergency, and that we respond as quickly as possible to get the economy back on track."

(Additional reporting by Susan Cornwell; Editing by Karey Wutkowski and Cynthia Osterman)

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