Romer: Big Bank Bonuses ‘Outrageous’

By Jacqueline Klingebiel

Jan 10, 2010 12:05pm

With big banks poised to hand out record bonuses this year, the President’s top economist told me she is hopeful that financial institutions will show some restraint, but with a shake of her head, she indicated she’s not that hopeful. Dr. Christina Romer, Chair of the White House Council of Economic Advisers said, “We've provided extraordinary aid, and the — and the idea that, as the financial system heals, they just go back to business as usual is — is simply outrageous.”

Romer said the administration would redouble its efforts on financial regulatory reform that would give shareholders more say in setting executive compensation.  “For heaven's sakes, compensation should be focused on — on long term, so that you don't have rewards for short-term risk-taking. And we just simply have to put in place rules of the road so that this system doesn't bring the economy to the edge of collapse like it did a year or so ago.”

Watch Video HERE:

- George Stephanopoulos

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