by Christi Parsons
President Barack Obama says his team is preparing a new strategy for reviving the American financial system, and promised to make sure that corporate executives don't drain public money intended to spur the economy.
"We'll ensure that CEOs are not draining funds that should be advancing our recovery," Obama said in his weekly radio address this morning. "And we will insist on unprecedented transparency, rigorous oversight and clear accountability, so taxpayers know how their money is being spent and whether it is achieving results."
Treasury Secretary Timothy Geithner will soon lay out a new plan focused on getting credit flowing and lowering the cost of mortgages, Obama said.
Geithner is also expected to address the question of corporate bonuses, a sore subject with the Obama administration lately. After hearing word that Wall Street executives had doled out nearly $20 billion in bonuses in 2008, Obama expressed outrage at what he called "the height of irresponsibility" and suggested there might be repercussions.
While the issue of executive compension may be part of Obama's plan to rescue the financial markets in some fashion, the Washington Post reports this morning that the administration isn't likely to impose tougher restrictions in executive pay, out of fear that harsh limits could discourage some firms from seeking aid.
Even so, Obama appears intent on continuing his campaign of shaming the executives who approve payouts.
"While I'm committed to doing what it takes to maintain the flow of credit, the American people will not excuse or tolerate such arrogance and greed," he said in this morning. "The road to recovery demands that we all act responsibly, from Main Street to Washington to Wall Street."
Comments
Kinda funny how Rudy G. came out in defense of this. While the people at the heart of the problem recieved the same amount in bonuses as they did in 2004, the little people are losing their jobs. They say they need to pay these people to keep them. Even though without our tax dollars they would be out of a job. If we let these companies fail where would they go? They'ld be selling shoes or something. If America suffers because of them, they certainly can do a little suffering themselves.
Posted by: bill r. | January 31, 2009 8:09 AM
Evidently Obama is not ashamed of his own Treasury Secretary, Tim Geithner, who didn't pay his taxes.
Or ashamed of another cabinet member, Tom Daschle. ABC News has revealed how Daschle, who suddenly became a millionaire after leaving the senate, is an even bigger tax cheat than Geithner.
Shame? Perhaps Obama should forgo his $100 a pound wagyu steak dinners, and make sure he and his cabinet set the right example, before he starts criticizing others.
Posted by: "Dissent is Patriotic" | January 31, 2009 9:07 AM
Oh, "Dissent is Patriotic"--JUST GET OVER THE FACT THAT THE DEMOCRATIC REPUBLICAN PARTY BECAME THE WHIG PARTY AND SYSTEMATICALLY LOOTED THIS COUNTRY IN EVERY WAY POSSIBLE RIGHT AFTER THAT.
IT TOOK US OVER A HUNDRED YEARS TO WAKE THE BLANKETY BLANK UP.
You up yet? Okay--here's the deal:
1. It was non-mad-cow steak hors d'oeuvres, not dinner--that's how you get non-patriotic repugnican greed heads' attentions;
2. These CEOS got a bailout--and then, with NO credit available to anyone despite that having BEEN the reason for the bailout--they are STILL liquidating funds and shipping them overseas to tax havens.
3. Every person who lost money to these crooks needs to be made whole--by selling the assets of these crooks.
Posted by: Lots of elderly people I know lost their savings. That's 2 x in 30 years | January 31, 2009 9:45 AM
"Publicly held" companies including banks--and by publicly held, I'd include publicly bailed out in the definition, not just publicly traded--should be made to put "executive compensation" including options up to a vote of the shareholders (similarly broadly defined).
No more "compensation committees" packed by CEO's with their back-scratching buddies.
Posted by: ornery | January 31, 2009 10:10 AM
Tightening of the belt only applies to the little people. Why, if they were to give up their bonuses they wouldn't be able to afford those Italian loafers and the trips to the Cayman Islands to visit their money. Talk about tax dodgers!
Posted by: lochnessmonster | January 31, 2009 11:05 AM
Call me a cynic or call me Mr. Tin Foil Hat.....but I could be easily convinced that this bubble was part of a master plan to steal the US Treasury and taxpayers blind.
The perps who created this problem are getting tons of free money, no one has been held accountable, and not one has had to explain where the funds went.
Posted by: Thomas | January 31, 2009 12:57 PM
Thomas, I've said the same thing before.
It's not hard to create a panic. The master short sellers are very good at it.
We all know Bush was all about "starve the beast".
When their party knew they were going to lose big time, why not start a panic, end the game of musical chairs?
With Paulson and Kash & Karry in control, they could make sure they and their friends were the only ones left with a chair.
Biggest bank heist in history.
Posted by: ornery | January 31, 2009 6:48 PM
Has anyone considered the possibility of giving each American or American head of household Up to a million dollars so that they can pay off there mortgages, pay off their debt and maybe have enough to start a small business or at least get medical insurance for their family?
This option seems to make as much or more sense than turning over billions of dollars that the American people who were suppose to benefit from will have to pay back. The way it is looking is that The taxpayers will have to pay it back but not benefit from it, at least not in time to save their homes, businesses, or even sick family members.
If the the members of United States Government are afraid that the average American who put them in office might (oh my gosh) miss use the money. What is the worry? They will still have to pay it back in taxes just the same. The difference is that Americans will benefit before it is to late.
Or is it to much to ask that our Government put trust in the very citizens whose backs and hopes are breaking? After all we put our trust in you.
If the average "Joe six pack" steals as little as $5,000.00 then he is defintly going to prison. Of course that person is just a simple citizen suffering through harsh economic times and would probably be considered poor and insignificant. Whereas a rich American CEO can hide behind the corporate veil, steal money, hoard, theft by deception misfeasance, malfeasance and overall bad faith business practice. Yet nobody seems to be able to do anything to stop him/her.
Not even "The Smartest man on the hill" who wrote the bail out bill. By the way he has ownership in banks. I quote this from 60 minutes. It seems he isn't the crowned "Smartest man on the hill" after all or he was either remiss or deliberite in not putting specific legally binding requirements on the use of the enormous bail out bill that was past to stimulate our economy and give aide quickly to the American citizens so as to save their homes and family and of course to Stimulate the economy.
I wrote a grant once for a mere $15,000.00 and had to sign documents swearing to use the funds for the specified purpose or suffer penalties that included jail.
Don't worry though, even the criminal in jail who stole only a few thousand will pay back the money he stole and taxes on the billions these corporate crooks are holding hostage, hoarding etc. While the small time crook is jail These People will be free to live in luxury and make money on the money that the taxpayers are paying for, suffering for.
Even the banks who are sheepishly saying (paraphrase) "Well, we are committed to the spirit of the bill allowing the bail out money to be loaned out to help the economy." have established requirements that make it impossible to get a loan. Requirements (guidelines) such as, you have to have near to perfect credit, show that 40% to 60% of your income is free, prove that you have a job that has probably gone overseas so that big business can get even bigger tax credits cheap labor but still charge the American people the same or higher price for the same item that was formerly produced in the US when they were providing American jobs.
The audacity of the bankers/lending institutions/wall street Insurance companies to say "they had to pay the billions of dollars in bonuses to keep quality people. If these so called quality CEO(s) were of such high quality then WHY HAVE THEY PUT OUR ECONOMY IN SUCH DIRE STRAIGHTS WHICH NOW REQUIRES A BAIL OUT IN THE FIRST PLACE.
It seems that common sense should dictate here and these so called high Quality incompetent nuts if not crooks should be fired the money should be recouped with penalties theat include fines and jail time and let them feel what it is like to sink or swim. It is after all what they are, in a sense, telling the people of America to do by hoarding the money and making it impossible to qualifty for a loan in this economic crises.
If this money is not returned and or used for the purpose the majority of Americans supported the bill for then more taxes will have to be heaved on the American Taxpayer for generations to come.
If nothing is done to the recepiants of the $840 billion dollar bail out, it's the same as rewarding these incompetent high quality worthless boobs with billions of dollars. Letting them keep their jobs will allow them to be in the unconscionalbe position to sink our Country again.
I beilieve that if those responsible for these decietful and probably criminal acts get away with this unbelievable assault on the American people they will be able to do it again. Only next time they will be better schooled a have a broader base of support because they got away with it the first time.
What will it matter the little people will suffer the debt and pay for their greed, as I said before, through taxes for generations to come.
What made our Government after learning what these institutions had been eager cooperating participants in (most likely the architects of) to think that these unscroupulous CEO(S) could be trusted with a roll of quarters let alone to be trusted to receive billions of dollars.
The trust should have gone to the Americans citizens who are dying for this country, who are trying to survive in this country. Moore to the point why wasn't it even considered?
Giving the American people the money to pay off there mortgages, loans, credit cards saves the banks, making them "whole" as well as the taxpayer and stimulates the economy, at a fraction of what has already been put in their greedy hands. No need to set up costly oversight committees. Jobs will be created by small businesses, people can return to their homes. After all we are going to have to pay back the money one way or another. This way we are more likely to survive quickly.
To Thomas in the previous comment be assured that many people are beginning to think as you suspect.
However, I do not believe President Obama has had anything to do with this disaster. I put the blame and suspicion squarely on the shoulders of the outgoing administration who couldn't even look the public in the eye as they left the white house and a broken America.
Not to worry though they will sleep warm at night, they have billions of dollars to keep them warm and safe and probably pardons for any and all illegal actions or complacency.
Good luck President Obama and God bless you, your, family and our country. Our trust is in you now. I pray you trust us before it is to late economically for American Citizens.
Sincerely,
Wife, Mother of three children,
Linda Pollack
Posted by: Linda Pollack | February 1, 2009 12:30 PM
Great! But this doesn't mean that we will not see again greed people who try to become rich without the hard working way.
Posted by: Michale | February 1, 2009 3:42 PM
Obama make statement that company's CEOs must stop draining funds that will helpful to them and their company in this time of recession.
Posted by: cartucho r4i | November 14, 2009 7:18 AM