President Obama slams $18B in Wall Street bonuses as 'shameful'

min0 lee · 01-29-2009, 05:55 PM

President Obama slams $18B in Wall Street bonuses as 'shameful'
BY KENNETH R. BROGERS AND MICHAEL MCAULIFF
DAILY NEWS WASHINGTON BUREAU

Thursday, January 29th 2009, 5:33 PM

WASHINGTON - President Obama ripped "shameful" Wall street big shots Thursday afternoon for handing themselves some of their biggest bonuses ever, even while begging for billions from Uncle Sam.

"That is the height of irresponsibility," Obama said at a White House meeting with new Treasury Secretary Tim Geithner, "It is shameful."

Obama was outraged by a report released by New York State Comptroller Tom DiNapoli detailing a $18.4 billion bonus splurge on Wall Street.

The commander in chief said it was especially galling that finance firms gorged themselves with payouts as sweet as they took down in 2004, making 2008 the sixth biggest bonus season ever.

"Part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility," Obama chided.

"I don't think anybody that's opened their 401(k) statement has found out that this was the sixth best year for Wall Street," said white House spokesman Robert Gibbs.

Obama was particularly peeved at the news coming as he's working to push his massive stimulus package through Congress. The House passed the plan Wednesday and the Senate takes it up next week.

"The American people understand that we've got a big hole that we've got to dig ourselves out of, but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up," Obama said.

"There will be time for them to make profits, and there will be time for them to get bonuses. Now's not that time," Obama said.

Vice President Biden went a step farther in an interview with CNBC.

"It just offends the sensibilities," Biden said. "I'd like to throw these guys in the brig, I mean, it's just - I do know what they're thinking and they're thinking the same old thing that got us here, greed. They're thinking take care of 'me.'"

Securtites industry officials declined to comment on Obama's slam, but state Attorney General Andrew Cuomo called it a "breath of fresh air."

"President Obama is exactly right," said Cuomo, who has been reviewing Wall Street bonuses. "I look forward to working with the new administration to ensure that Wall Street wakes up to its new responsibilities."

DOMS · 01-29-2009, 06:03 PM

I hope he takes back the money.

b_reed23 · 01-29-2009, 06:31 PM

Can he do that? I wish he could, but I wonder if it's in his power to do so?

danzik17 · 01-29-2009, 10:14 PM

Quote:

Originally Posted by b_reed23

Can he do that? I wish he could, but I wonder if it's in his power to do so?

No, he probably can't "force" them to do that. What he can to is tell his Treasury secretary that any bank that participated in that is not to receive TARP funds. That will basically force the issue or they go bankrupt.

Little Wing · 01-29-2009, 11:52 PM

Quote:

Originally Posted by DOMS

I hope he takes back the money.

2nd.

DOMS · 01-30-2009, 07:35 PM

Salary caps? It might happen.

One day after President Obama ripped Wall Street executives for their "shameful" decision to hand out $18 billion in bonuses in 2008, Congress may finally have had enough.
"You can't use taxpayer money to pay out $18 billion in bonuses," an angry Sen. Claire McCaskill says.

An angry U.S. senator introduced legislation Friday to cap compensation for employees of any company that accepts federal bailout money.
Under the terms of a bill introduced by Sen. Claire McCaskill, D-Missouri, no employee would be allowed to make more than the president of the United States.

Obama's current annual salary is $400,000.

"We have a bunch of idiots on Wall Street that are kicking sand in the face of the American taxpayer," an enraged McCaskill said on the floor of the Senate. "They don't get it. These people are idiots. You can't use taxpayer money to pay out $18 billion in bonuses."

McCaskill's proposed compensation limit would cover salaries, bonuses and stock options.

On Thursday, Obama said the prospect that some of the $700 billion Wall Street bailout could end up paying for bonuses to managers of struggling financial institutions was "shameful."
The president said it was the "height of irresponsibility" for executives to pay bonuses when their companies were asking for help from Washington.
"The American people understand we've got a big hole that we've got to dig ourselves out of, but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up," Obama added.

McCaskill's proposal comes three days after struggling banking giant Citigroup -- which has taken about $45 billion from the government's Troubled Asset Relief Program -- reversed plans to accept delivery of a $42 million corporate jet. The company changed its mind under Treasury Department prodding.

Former New York Mayor Rudy Giuliani defended corporate bonuses Friday, saying that cutting them also means slashing jobs in the Big Apple.

"If you somehow take that bonus out of the economy, it really will create unemployment," he said on CNN's "American Morning." "It means less spending in restaurants, less spending in department stores, so everything has an impact."

danzik17 · 01-30-2009, 08:11 PM

In response to Guiliani's comment in DOMS' post:

Go fuck yourself scumbag.

DOMS · 01-30-2009, 08:29 PM

Quote:

Originally Posted by danzik17

In response to Guiliani's comment in DOMS' post:

Go fuck yourself scumbag.

I agree with you 100%, but I also understand where he's coming from.

Before he started as the mayor of New York (hereafter referred to as "The Center of the Universe", That Dirty Place for short), the local government was taxing the shit out of companies. Companies then started to leave That Dirty Place due to that. So the government, in it's finite wisdom, decided to recoup the money by raising corp taxes. Thus driving out more companies. Repeat ad nauseum.

This killed the corporate environment in That Dirty Place. That's what he walked into and he had to fix it by being corp friendly. It may have stayed with him.

Much like Chris Rock said about O.J. killing his wife, "I'm not saying that I agree with him, I'm just saying I understand."

01-29-2009, 05:55 PM	#1
min0 lee Senior Member Elite Member Join Date: Oct 2004 Location: The Bronx, NYC Posts: 38,792 Photos: 542	President Obama slams $18B in Wall Street bonuses as 'shameful' President Obama slams $18B in Wall Street bonuses as 'shameful' BY KENNETH R. BROGERS AND MICHAEL MCAULIFF DAILY NEWS WASHINGTON BUREAU Thursday, January 29th 2009, 5:33 PM WASHINGTON - President Obama ripped "shameful" Wall street big shots Thursday afternoon for handing themselves some of their biggest bonuses ever, even while begging for billions from Uncle Sam. "That is the height of irresponsibility," Obama said at a White House meeting with new Treasury Secretary Tim Geithner, "It is shameful." Obama was outraged by a report released by New York State Comptroller Tom DiNapoli detailing a $18.4 billion bonus splurge on Wall Street. The commander in chief said it was especially galling that finance firms gorged themselves with payouts as sweet as they took down in 2004, making 2008 the sixth biggest bonus season ever. "Part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility," Obama chided. "I don't think anybody that's opened their 401(k) statement has found out that this was the sixth best year for Wall Street," said white House spokesman Robert Gibbs. Obama was particularly peeved at the news coming as he's working to push his massive stimulus package through Congress. The House passed the plan Wednesday and the Senate takes it up next week. "The American people understand that we've got a big hole that we've got to dig ourselves out of, but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up," Obama said. "There will be time for them to make profits, and there will be time for them to get bonuses. Now's not that time," Obama said. Vice President Biden went a step farther in an interview with CNBC. "It just offends the sensibilities," Biden said. "I'd like to throw these guys in the brig, I mean, it's just - I do know what they're thinking and they're thinking the same old thing that got us here, greed. They're thinking take care of 'me.'" Securtites industry officials declined to comment on Obama's slam, but state Attorney General Andrew Cuomo called it a "breath of fresh air." "President Obama is exactly right," said Cuomo, who has been reviewing Wall Street bonuses. "I look forward to working with the new administration to ensure that Wall Street wakes up to its new responsibilities." How To Do The Perfect Bench Press Rep Bodybuilding and Lifting Weights, the Difference ironmagazine-frapper

01-29-2009, 06:31 PM	#3
b_reed23 this is why I'm hot! Elite Member Join Date: Jan 2005 Location: West Tennessee Posts: 5,348 Photos: 39	Can he do that? I wish he could, but I wonder if it's in his power to do so? My Journal!

01-30-2009, 08:11 PM	#7
danzik17 Gender: MALE Elite Member Join Date: Oct 2005 Location: Connecticut Posts: 3,072	In response to Guiliani's comment in DOMS' post: Go fuck yourself scumbag. Ron Paul 2012 Journal: danzik17's Log - 4-6 Week Strength/Bulk Journal: Sub 10% by April <old>

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01-29-2009, 06:03 PM	#2
DOMS Metrosexual Join Date: Jul 2004 Posts: 22,092 Photos: 1	I hope he takes back the money.

01-30-2009, 07:35 PM	#6
DOMS Metrosexual Join Date: Jul 2004 Posts: 22,092 Photos: 1	Salary caps? It might happen. One day after President Obama ripped Wall Street executives for their "shameful" decision to hand out $18 billion in bonuses in 2008, Congress may finally have had enough. "You can't use taxpayer money to pay out $18 billion in bonuses," an angry Sen. Claire McCaskill says. An angry U.S. senator introduced legislation Friday to cap compensation for employees of any company that accepts federal bailout money. Under the terms of a bill introduced by Sen. Claire McCaskill, D-Missouri, no employee would be allowed to make more than the president of the United States. Obama's current annual salary is $400,000. "We have a bunch of idiots on Wall Street that are kicking sand in the face of the American taxpayer," an enraged McCaskill said on the floor of the Senate. "They don't get it. These people are idiots. You can't use taxpayer money to pay out $18 billion in bonuses." McCaskill's proposed compensation limit would cover salaries, bonuses and stock options. On Thursday, Obama said the prospect that some of the $700 billion Wall Street bailout could end up paying for bonuses to managers of struggling financial institutions was "shameful." The president said it was the "height of irresponsibility" for executives to pay bonuses when their companies were asking for help from Washington. "The American people understand we've got a big hole that we've got to dig ourselves out of, but they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up," Obama added. McCaskill's proposal comes three days after struggling banking giant Citigroup -- which has taken about $45 billion from the government's Troubled Asset Relief Program -- reversed plans to accept delivery of a $42 million corporate jet. The company changed its mind under Treasury Department prodding. Former New York Mayor Rudy Giuliani defended corporate bonuses Friday, saying that cutting them also means slashing jobs in the Big Apple. "If you somehow take that bonus out of the economy, it really will create unemployment," he said on CNN's "American Morning." "It means less spending in restaurants, less spending in department stores, so everything has an impact."