President Obama to Give Yet Another Stern Message to Bank Execs
White House officials say that later today President Obama will have some tough words for bank executives.
Again.
“He's going to have a serious talk with the bankers," National Economic Council director Larry Summers told George Stephanopoulos on This Week yesterday. "The country did incredible things for the banking industry. Those things had to be done to save the economy, but no major bank would be intact, in a position to pay bonuses, if that extraordinary support had not been provided. The bankers need to recognize that. They need to recognize that they've got obligations to the country after all that's been done for them."
Summers said "President Obama is going to be talking with them about what they can do to support enhanced lending to customers across the country. We were there for them. And the banks need to do everything they can to be sure they're there for customers across this country.”
In the Spring, the president told bank execs that he was the only one standing between them and "the pitchforks."
But his stated irritation precedes even that message, of course.
In January, at a meeting with Treasury Secretary Tim Geithner, the president said, "when I saw an article today indicating that Wall Street bankers had given themselves $20 billion worth of bonuses — the same amount of bonuses as they gave themselves in 2004 — at a time when most of these institutions were teetering on collapse and they are asking for taxpayers to help sustain them and when taxpayers find themselves in the difficult position that if they don't provide help that the entire system could come down on top of our heads, that is the height of irresponsibility. It is shameful."
Before that, in 2008, he told Barbara Walters that bank execs should forego their Christmas bonuses.
"I think they should," then-President-elect Obama said. "That's an example of taking responsibility. I think that if you are already worth tens of millions of dollars and you are having to lay off workers, the least you can do is say, 'I'm willing to make some sacrifice as well, because I recognize that there are people who are lot less well off, who are going through some pretty tough times.'"
Mr. Obama said "When people are pulling down hundred billion dollar, hundred million dollar bonuses on Wall Street and taking enormous risks with other people's money, that indicates a sense that you don't have any perspective on what's happening to ordinary Americans. And one of the things I hope my presidency helps to usher in is a, a return to an ethic of responsibility that if you're placed in a position of power, then you've got responsibilities to your workers."
Today, the two areas where President Obama will primarily encourage the bankers to be more active are to give more loans to small businesses and to allow more refinancing and restructuring of mortgages for homeowners.
The president's Homeowner and Stability Plan, unveiled in February, aimed to benefit between seven and nine million families by restructuring or refinancing mortgage to avoid foreclosure. A White House official tells ABC News that more than half million Americans signed up for the program, while financial lenders have moved to refinance or restructure only 30,000 mortgages. Bankers will be told they need to do much more to make this program work.
The president will also express irritation, officials say, with the lavish bonuses these executives are paying themselves this year.
"They're still puzzled why is it that people are mad at the banks," the president told 60 Minutes last night. "Well, let's see. You guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it's gone through in– in decades, and you guys caused the problem. And we've got ten percent unemployment. Why do you think people might be a little frustrated?"
The president said "there is no doubt about" the fact that the bonuses are because of the help of US taxpayers. "And what's most frustrating me right now is you've got these same banks who benefited from taxpayer assistance who are fighting tooth and nail with their lobbyists up on Capitol Hill fighting against financial regulatory reform."
The expected participants include Summers, Geithner, senior White House adviser Valerie Jarrett, chair of the Council of Economic Advisers Dr Christina Romer, and the following executives: Lloyd Blankfein, Chairman and CEO, Goldman Sachs; Ken Chenault, President and CEO, American Express; Richard Davis, Chairman, President, and CEO, US Bancorp; Jamie Dimon, Chairman and CEO, JP Morgan Chase; Richard Fairbank, Chairman and CEO, Capital One; Bob Kelly, Chairman and CEO, Bank of New York Mellon; Ken Lewis, President and CEO, Bank of America; Ron Logue, Chairman and CEO, State Street Bank; John Mack, Chairman and CEO, Morgan Stanley; Dick Parsons, Chairman, Citigroup; Jim Rohr, Chairman and CEO, PNC; and John Stumpf, President and CEO, Wells Fargo.
I guess we'll see if they're listening this time.
- jpt
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Two Points:
The foreclosure rate on adjusted loans is still high. Is not the government again encouraging risky loans, only to blame the lender when they go sour.
Also, I saw your spot on GMA with Stephanopoulos’ first morning. If Fox is all Republican, ABC is all Democratic. What a love-fest with Alexrod. Not ONE contrary view presented. NOT ONE.
Posted by: R Perkinson | December 14, 2009, 7:20 am 7:20 am
Let alan Greenspan and Ben Bernanke cut intrest rates to prop up wall street, and make it hard to make a profit cut our sallaries with your Czar and now treat us like children. You will probably go home boohooing.
Posted by: earl | December 14, 2009, 7:28 am 7:28 am
America did not elect a President, America elected a little kid who gets angery when someone disagrees with him, or asks him hard questions.
The lask of experience is beginning to reveal it’s ugly head.
Step down Mr. President, you are in over your head and damaging what America is, a Country of hard working individuals, who just want Government to build intrastructure and protect us from harm with a strong military.
Posted by: mlimberg | December 14, 2009, 7:29 am 7:29 am
Why are bankers the only ones who need to control the payments they make to their executives? Why isn’t BaRoke going after movie executives for outlandish pay to hollywood stars? What about government executives for lavish trips and dinners (Nancy Pelosi)? All of this scrutiny is aimed at throwing off the American public to the fact that after one year, BaRoke hasn’t done ANYTHING for this country except bankrupt us with more government spending. Stop the lies and deceptions. Try some real tax breaks BaRoke and maybe we’ll start the job engine again.
Posted by: Mickey | December 14, 2009, 7:31 am 7:31 am
Stern message?
whoa…that will set them straight.
Posted by: Joe | December 14, 2009, 7:34 am 7:34 am
Stern messages to U.S. bankers? Here’s a novel idea: why doesn’t President Obama give a stern message to the country intent on building a nuclear bomb, Iran, rather than being “stern” with people who, may be greedy on some level, but who do actually work for the majority of the money that they earn? Being “stern” with people whom the weak and lazy (ironically the same people who voted for Pres. Obama) seems to be nothing more than a political ploy to maintain the support of bumper-sticker Democrats. Give me a break.
Posted by: David | December 14, 2009, 7:35 am 7:35 am
B. Hussein Obama, the king of unintended consequences.
When you interrupt capitalism and the free market by bailing out poorly run companies, this is what happens. But then again, he’s a community organizer not a leader.
Posted by: J | December 14, 2009, 7:37 am 7:37 am
The idea that the bankers will respond to a stern message is silly. They will continue to steal whenever and wherever they can and fools like the above commenters will continue to facilitate the thefts by frothing their racism into the public arena.
Posted by: Carl Caster | December 14, 2009, 7:38 am 7:38 am
On this subject, I happen to agree with Obama! If he have the toughness to reign in the bankers, I will change my support to him!!!
Posted by: emenot | December 14, 2009, 7:40 am 7:40 am
Racism….yes, that is the reason that hard-working people feel disillusioned with the direction that the current President is taking this country. Sounds like another good bumper sticker.
Posted by: David | December 14, 2009, 7:42 am 7:42 am
Why don’t the people that think that the state of our economy is due to “greedy” bankers open an Economics book? Free market economies are cyclical and self-correcting!!!!!!! Pure greed will only lead to failures of those institutions competing in a free-market economy in the long run.
Posted by: David | December 14, 2009, 7:46 am 7:46 am
It’s time to let the pitchforks take over. President Obama, please stand aside. These guys don’t get it.
Posted by: William Goodwin | December 14, 2009, 8:00 am 8:00 am
All the banks want to do is rip us off and continue their gravy train. The President was caught between a rock and a hard place. Either bail the bankers out and allow the economy to totally collapse or bail out the banks. The President made the right choice for the American people. Americans like to complain and point fingers and criticize The President even when they don’t have a clue. Yet, what other choices were there?
Posted by: Robert | December 14, 2009, 8:01 am 8:01 am
The President will slap their wrists for being too habitually arrogant, but he certainly won’t address the underlying fraud/theft of the fractional reserve banking system, which creates money out of 90% nothing and allows the resulting imbalance and inflation to fall on the backs of the people. Merest window dressing, just in time for Christmas.
Posted by: tom j. | December 14, 2009, 8:04 am 8:04 am
Ok flash memory ROM tea-party people here is Jan. 2010 with Pres. Mcain:
The Stimulus was not passed. In response to budget shortfalls 29 states cut thier budgets by over 50 percent, mostly affecting education and police service. For the first time, the US school attendance rate drops below 30 percent. This mixed with a crime wave from former homeownwers and state workers has caused a second Great Depression. The administration also decided not to help the last bastion of US manufacturing, the auto industry. The economy of the Midwest collapses. Martial law is declared as Michigan, Ohio, and Northern Indiana burn. For Wall Street things could not be better- 60 percent foreclosures and 45 auto reposessions have filled thier coffers to the brink. Plus prefrential treatment by the government now allows them to pay 0 taxes. On the International Front Mcain followed through with his campaign promise to bomb Iran. The attack on the reactors caused fallout to hit the Gulf States and Saudi Arabia. Diplomatic and military ties are cut with the US and they side with Iran. Two carriers and 4000 troops are lost in the first month of combat. Russia joins the battle determined to see the destruction of the US navy. With a global oil embargo on the US, the country teeters on civil war. Mcain and Palin go into hiding, but still shout “Stay the course”. The US military mutunies and goes after Mcain.
I could go on, but this was the future, do not make this happen in 2012.
Posted by: X | December 14, 2009, 8:08 am 8:08 am
As far as acting like fat cats and “not
getting it”, you Mr. Obama can take your
own advice.
Posted by: wis134 | December 14, 2009, 8:20 am 8:20 am
Obama, I am disappointed in you.
You get stern with the private sector, yet show no restrain with congress for being allowed to dig ourselves in to $14 Trillion in debt.
Your Trillion dollar stimulus didn’t prevent anything, just piled on the debt.
This country can’t afford you any more.
Posted by: Democrat Dave | December 14, 2009, 8:30 am 8:30 am
mlimberg: as much as I love your comment, the
President is not a little kid: He is not the youngest
president ever, John F Kennedy was.
Temper tantrums are very closely related to something
called “upbringing”. It is not cute in children and even less in adults.
Maybe looking into the situation of the country would have helped make a decision if it was worth pursuing
the highest post in the land.
Posted by: 2smart4u | December 14, 2009, 8:31 am 8:31 am
A “Stern Message”…
As in Andy Stern, SEIU? How many times has he visited the White House?
Posted by: The Audacity of Copenhagen | December 14, 2009, 8:38 am 8:38 am
Job growth and expanding pay hikes? No
not the private sector, but the government. When everyone is tightening
their belts, the number of government
workers making almost double what people make in the private sector and the number
of people making over $100,000 a year
has exploded. Benefit packages are about
$40,000 on top of that. The new spending
package that was just passed allows for
double digit budget increases for them
while Social Security recipients won’t
get an increase this year because of
no inflation. You want to talk about
fat cats and people that don’t get it,
look at these morons we entrust as our
leaders. Just ridiculous.
Posted by: wis134 | December 14, 2009, 8:41 am 8:41 am
This is a stern warning!!!Wink Wink
And don’t forget to donate to my campaign for 2012. Love, Obama
Obama is going to scold the same fatcats that donated heavily to him and help put him in the White House.
Stern warning to Obama.
The American people ain’t buying it anymore.
Posted by: kyle | December 14, 2009, 8:45 am 8:45 am
Obama is angry with Wall Street and bankers. That’s why he filled his administration with them I guess.
He’s upset about the huge bonuses?
So Obama signed a bill that allowed huge bonuses–Obama didn’t bother to read it first.
What a hypocrite.
Posted by: hank | December 14, 2009, 8:48 am 8:48 am
Obama and Goldman Sachs—Best friends.
Posted by: millie | December 14, 2009, 8:52 am 8:52 am
30% of people think USA headed in the right direction.
I’m thinking a big chunk of that is Obama’s ultra rich friends on Wall Street and in Hollywood, the poor that are enslaved and dependent, and those who will support anything Obama does no matter what.
Posted by: larry | December 14, 2009, 8:58 am 8:58 am
The bankers caused this???? I thought it was George W. Bush??? I know it’s someone’s fault. It couldn’t be Obama’s fault. HE HASN’T DONE ANYTHING.
Posted by: Jim | December 14, 2009, 9:11 am 9:11 am
Mr. President:
BANKS Got USA, You and US into This, so Don’t Ask, Tell Them No Foreclosures for a Year AND accept any monthly mortgage payment over 50% of the home buyer’s regular payment. It’s only humane that those struggling to pay their mortgages be given this chance to survive financially and keep the greatest investment any family can make: A Home of their own in which to Live!
In the usual “The House Never Loses” mind-set, Bank CEOs and their well placed lobbyists choosing to “cut off their noses to spite their faces,” have decided that Americans will lose their homes before the Banking Institutions will make any adjustment to the new post Bush League economic reality facing our Nation and working families. Time for “We the People” to put Family before CITI and admonish Supreme Court for proclaiming “Corporations are individuals.” They Are NOT, but our children are!
Thanks to Conservatives (and the 1886 Supreme Court interpretation of the 14th Amendment), the “Land of the Free” is blessed with a lucrative institutionalized corporate structure that is anti-individual. Our top-heavy wealthy Nation ranks 37th in the world as a health & medical care provider for its citizens. 37th! And so it shall be until “We the People” vote, “ENOUGH,” repeatedly! Buyer Beware: Wall Street Conservatives and Banking Institutions who have delivered unto us this second coming of “The Great Depression,” still sail on ships kept afloat by Our Money, leaving “We the People” bobbing up and down in our personal sea of RED.
So instead of continuing to bailout out those who monthly gouge our personal family budget, Let’s Stop our flow of money from reaching the Board rooms & yachts of Banker’s schemes, by putting it in the vaults of CREDIT UNIONS.
Just peacefully walk into banks all over America, and close your accounts. Take out your money so you can redistribute the painful red ink, by moving Your Money to greener local pastures, away from International Banks who have purchased other Banks using Our Money.
Mr. President it’s time to take our money from the TAKERS and deposit it in our Community’s CREDIT UNIONS. When millions of Our Money move from the coffers of BofA, CITI & Wells Fargo, “Change we can Believe in” will naturally follow. Then see, How Green the Valley will be for American families and for our USA.
Marcello Rollando
A Reasonable Voice for a Rebirth of Our Humanity,
Freedoms, Honesty and the Rule of Law
Posted by: Marcello Rollando | December 14, 2009, 9:40 am 9:40 am
That’s like a father lecturing his son…..who promptly ignores the old man, and goes about doing everything he should NOT do!
Posted by: Rick McDaniel | December 14, 2009, 9:54 am 9:54 am
I’m sure the banker at shaking in their boots at this little man…. the only thing holding up this president are the enablers and hiders of real news at ABC, CBS, and NBC.
Obama Job Approval Falls to New Low at 44%…
Posted by: welcome to Obamaville, Co fastest growing homeless community | December 14, 2009, 9:57 am 9:57 am
Top 10 Senate recipients of campaign donations from Lobbyists for the 2010 election cycle:
Harry Reid (D-NV) – $289,028
Charles Schumer (D-NY) – $171,670
Byron Dorgan (D-ND) – $170,177
Patty Murray (D-WA) – $154,192
Kirsten Gillibrand (D-NY) – $135,949
Arlen Specter (D-PA) – $133,560
Blanche Lincoln (D-AK) – $126,285
Daniel Inouye (D-HI) – $119,173
Richard Burr (R-NC) – $105,299
Chris Dodd (D-CT) – $87,800
And who were the lobbyists representing?
Banks, Wall Street, Pharma, Unions?
Posted by: The Audacity of Copenhagen | December 14, 2009, 10:25 am 10:25 am
Obama is a fool. He is hanging HUGE legislation over the bank’s heads, will be increasing their taxes, and making their business less and less profitable… all the while saying DO MORE.
Mr. President, you are the one PREVENTING them from lending. You’re scaring the *%#$ out of America’s businesses. THAT’S WHY they’re not hiring or lending. They’re afraid of what you’re doing.
Here’s a tip: STOP doing it and reduce corporate taxes. You will see a flood of hiring and lending. DUH!
Posted by: Ster | December 14, 2009, 10:59 am 10:59 am
Rasmussen poll: Obama approval down to 44%.
LOL!
Sinking like the Titanic!
Posted by: Ster | December 14, 2009, 11:00 am 11:00 am
“They’re afraid of what you’re doing.”
So while the rest of this weather this storm big business doesn’t have the guts to do what needs to be done help their country. -Typical.
Posted by: Skip | December 14, 2009, 11:15 am 11:15 am
“They need to recognize that they’ve got obligations to the country after all that’s been done for them”
You mean the “bailouts” that some banks were FORCED to take? Banks are moving quickly to pay back govt. “loans” to get Obama off their backs. This does not make the WH happy as it decreases leverage Obama can apply on banks.
“Fat cat bankers”? You mean the ones who donated more to your campaign last year than for any other candidate?
So banks do not want to make questionable loans, yet Obama and cronies are pushing for more. It was the forcing of banks (by the govt.) to make loans to shaky borrowers that lead to much of the financial crisis. Obama, having little sense of history and economics, is doubling-down and is jump-starting the next financial system crisis.
Posted by: tjp612 | December 14, 2009, 12:30 pm 12:30 pm
44% approval among likely voters today. Minus eighteen on the approval index.
I am laughing so hard my sides hurt.
Posted by: Fascist HyenaFascist | December 14, 2009, 12:43 pm 12:43 pm
“Obama, having little sense of history and economics, is doubling-down and is jump-starting the next financial system crisis.”
I don’t know where the consensus is that encouraging banks to make small business loans and companies to start hiring will jump-start another financial crisis, or that these things have anything in common with sub-prime mortgages. But I would agree it’s as ridiculous as claiming that writing mortgages so lower income people could afford to buy a home caused the last one.
Posted by: Skip | December 14, 2009, 1:39 pm 1:39 pm
ahhhh, those wascally right wingers, always fantasy dreaming that 1/01 to 1/09 were great times for America…. if you listen to them carefully, all of America’s problems started 1/20/09…… it’s a fascinating study in denial and guilt.
I can’t wait until Republicans are lauding corporations who leave toxic waste dumps, after all, they’re just doing business, why should they be responsible.
Posted by: Yowsa | December 14, 2009, 1:44 pm 1:44 pm
Obama pulled down royalties of $2.5 million last year for having written (or having had a ghost writer rewrite) two books about his life?
How much of a raise did Michelle get once Obama was a Senator?
How much will Obama receive from Crown Publishing Group to write (or have ghost written for him) a third memoir after his term ends?
Just for comparison, former President Bill Clinton got $15 million for his book, “My Life.”
President Obama sounds a little like a “Fat Cat” himself…
Posted by: Topcat | December 14, 2009, 1:48 pm 1:48 pm
Interesting article posted on 12/9 titled “Obama’s Big Sellout: The president has packed his economic team with Wall Street insiders intent on turning the bailout into an all-out giveaway” by Matt Taibbi. Here’s a snippit:
“Elected in the midst of a crushing economic crisis brought on by a decade of orgiastic deregulation and unchecked greed, Obama had a clear mandate to rein in Wall Street and remake the entire structure of the American economy. What he did instead was ship even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place. This new team of bubble-fattened ex-bankers and laissez-faire intellectuals then proceeded to sell us all out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside.”
So how’s that Hope & Change working for you now?
Posted by: Live! From DC! It's Sat Night! | December 14, 2009, 1:50 pm 1:50 pm
Taibbi on Bob Rubin:
“As Treasury secretary under Clinton, Rubin was the driving force behind two monstrous deregulatory actions that would be primary causes of last year’s financial crisis: the repeal of the Glass-Steagall Act (passed specifically to legalize the Citigroup megamerger) and the deregulation of the derivatives market. Having set that time bomb, Rubin left government to join Citi, which promptly expressed its gratitude by giving him $126 million in compensation over the next eight years …”
Posted by: Live! From DC! It's Sat Night! | December 14, 2009, 1:52 pm 1:52 pm
simple math to explain the ‘right’
Republicans
+ Conservatives
+ Tea Party
——————–
Reactionaries
Posted by: PO'd | December 14, 2009, 1:59 pm 1:59 pm
(or having had a ghost writer rewrite) two books about his life? How much of a raise did Michelle get once Obama was a Senator?
How much will Obama receive from Crown Publishing Group to write (or have ghost written for him) a third memoir after his term ends?
Posted by: Topcat
I don’t know, you brought it up, provide the info,
or are you doing the usual fringe rightwing ‘what ifs’ routine
Posted by: Yowsa | December 14, 2009, 2:03 pm 2:03 pm
“…that 1/01 to 1/09 were great times for America.”
Unemployment between 4-6.7% under Bush. After the bursting of the tech bubble and the 9/11 attacks, Bush lowered tax rates across-the-board for individuals and investors.
For five years the stock market rallied without interruption — the longest bull market without a correction in post-WWII history — while the economy expanded for six years, a bit longer than the average post-war recovery cycle.
But, you remember things as being awful under Bush, don’t you? You are so darn happy to live with that silver lining of “fun”employment and the super-cali-socialistic government takeover of private businesses under Obama.
Since Obama took office, I’ve had three family members lose their jobs, good engineering and insurance jobs.
I’ve seen my college educated nieces and nephews take minimum wage jobs and have to into their parents’ home in order to begin paying off their college loans and help pay their parents’ mortgage.
The young are feeling it and they are beginning to see what a big mistake Obama is. Obama should have won American Idol and not the presidency.
Posted by: Guarino | December 14, 2009, 2:07 pm 2:07 pm
“For five years the stock market rallied without interruption — the longest bull market without a correction in post-WWII history”
I guess we should all be impressed that they put off the inevitable crash for so long. Bush created few jobs and because of the housing bubble the DOW was riding on fake numbers.
Posted by: Skip | December 14, 2009, 2:14 pm 2:14 pm
Skipster, how many jobs has Obama created or “saved”? Now, don’t include all the fake districts…
Posted by: The Audacity of Copenhagen | December 14, 2009, 2:38 pm 2:38 pm
He’s right to give them warning. On this I actually agree with him. But it was the democrats who demanded the banks give loans to those who had no business owning a home.
However, when regular small businesses and people with stellar credit histories cannot get a loan, there is a massive problem.
Small businesses can’t hire. And they won’t with Washington mucking around in HC reform, talking about Cap N Tax, etc.
Obama and the banks are both at fault. Like the great depression, history will look back on Obama as doing all the wrong things during an economic earth quake, just like the bankers did in the great depression by tightening the money supply by tightening credit.
The terrible problem is being exacerbated by all the bad actors in this play. Just tell the banks they will lose their “bank” status if they don’t start lending to small businesses and home owners. They’re trading, not lending, with money from the fed at 0% and tarp money.
Remove their FDIC protected status and tell the public none of the money in this bank is insured, and let the free markets take care of those so called “bad” actors.
If they’re not lending like a bank, they don’t get the “protected” bank status.
It’s not that complicated. Only WASHINGTON makes it more complicated than it has to be.
Posted by: No One Important | December 14, 2009, 2:47 pm 2:47 pm
From the Press-Citizen (Iowa):
“The University of Iowa has directed $33.4 million in stimulus money to the salaries of employees taking early retirement or otherwise leaving the university by June 30. Iowa State University will use $5.9 million and the University of Northern Iowa $3.6 million on the salaries and benefits of employees who took early retirements.”
Posted by: The Audacity of Copenhagen | December 14, 2009, 2:51 pm 2:51 pm
“how many jobs has Obama created or “saved”?”
I’m not going to claim that Obama has created lots of jobs yet but the comparison is disproportional. It’s kind of like pointing out at the end of the first quarter that quarterback Obama hasn’t scored as many job points as quarterback Bush did in the previous two entire games.
Posted by: Skip | December 14, 2009, 3:23 pm 3:23 pm
Since Obama took office, I’ve had three family members lose their jobs, good engineering and insurance jobs.
___________________________________
The economy was already in free-fall collapse when Obama took office. If you think there is a simple button anyone can push to immediately reverse this, you’re in dreamland.
There was a world-wide economic meltdown during the last of the Bush administration.
Posted by: tierra | December 14, 2009, 3:37 pm 3:37 pm
the fact is that America ended up better after Clinton than after Bush, and it will again end up better after Obama’s 8 years ..
no amount of far right nonsense will change that
Posted by: Mr. Tony | December 14, 2009, 4:11 pm 4:11 pm