By BEN FELLER, Associated Press Writer AP - 2 hours 7 minutes ago
WASHINGTON - President Barack Obama issued a withering critique Thursday of Wall Street corporate behavior, calling it "the height of irresponsibility" for employees to be paid more than $18 billion in bonuses last year while their crumbling financial sector received a bailout from taxpayers. "It is shameful," Obama said from the Oval Office. "And 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."
The president's comments, made with new Treasury Secretary Timothy Geithner at his side, came in swift response to a report that employees of the New York financial world garnered an estimated $18.4 billion in bonuses last year. The figure, from the New York state comptroller, drew prominent news coverage.
Yet Obama's stand also came just one day after he surrounded himself with well-paid chief executives at the White House. He had pulled in those business leaders and hailed them for being on the "front lines in seeing the enormous problems in our economy right now."
The executives who appeared with Obama are not leaders of the Wall Street financial companies that the president targeted, but rather heads of such well-known manufacturing and technology giants as IBM, Motorola, Xerox and Corning. Still, they get paid handsomely.
Most of those who stood with Obama earned a total 2007 compensation package of between $8 million and $21 million, according to a review by The Associated Press. Those calculations include the executives' salary, bonus pay, incentives, perks, the estimated value of stock holdings and other compensation.
Lashing out at Wall Street bonuses, Obama said the public dislikes the idea of helping the financial sector dig out of a hole, only to see it get bigger because of lavish spending. The comptroller's report found such bonuses were down 44 percent, but at about the same level they were during the boom time of 2004.
Vice President Joe Biden also chimed in, saying the level of bonuses "offends the sensibilities."
"I mean, I'd like to throw these guys in the brig," Biden said in an interview with CNBC.
Obama said he and Geithner will speak directly to Wall Street leaders about the bonuses, which threaten to undermine public support for more government intervention as the economy keeps reeling.
The House just approved an economic stimulus plan that would cost taxpayers more than $800 billion; the Senate is considering its own version.
Separately, Congress passed a $700 billion plan last year to shore up the financial sector, one that drew howls of criticism about a lack of transparency.
Said Obama about Wall Street leaders: "There will be time for them to make profits, and there will be time for them to get bonuses. Now is not that time."
Obama said Geithner has already had to step in to stop one company from taking delivery of a new corporate jet it planned to buy even after receiving billions of dollars of support from the government. That bank, Citigroup, canceled the deal earlier this week.
Obama's strong words overshadowed the other part of his message, that he wants to roll out, in the coming weeks, new plans to regulate Wall Street and get more credit flowing to consumers again. The president considers such steps to work in tandem with the economic stimulus measures unfolding in Congress.
One idea under consideration by the Obama administration is the creation of a "bad bank" that could take over soured debt, like defaulting mortgages, that have corroded the balance sheets of banks and helped choke off lending. The president did not discuss that proposal or any others.
The administration may seek approval from Congress for another round of money, perhaps hundreds of billions of dollars, to help banks get out of trouble and get credit flowing again. But in his CNBC interview, Biden said any moves depend first on how the remaining $350 billion in financial-sector bailout money is spent.
"It's got to be transparent, it's got to be accountable," Biden said. "Once we do that and see whether or not we can get this system kick-started, the credit system flowing more, that's when we'll make the judgment whether or not anything else is necessary."
Really very shameful, and most are Harvard business graduates, same same like our ministers. So Harvard teaches them to pay themselves well first hor.
Originally posted by angel7030:Really very shameful, and most are Harvard business graduates, same same like our ministers. So Harvard teaches them to pay themselves well first hor.
they are too greedy, may be our multi million dollar ministers can employ these to join them huh, they same same greedy
Originally posted by Fantagf:
they are too greedy, may be our multi million dollar ministers can employ these to join them huh, they same same greedy
yalor, most of our ministers are govt scholars sent to harvard to take their master or PhD, and mind me, we paid them to go too, then they come back and still get high pay and some even spend lavishly in their vacation...Les Miserable peoples!!!! KONG XI fark CHoy!!
Originally posted by angel7030:
yalor, most of our ministers are govt scholars sent to harvard to take their master or PhD, and mind me, we paid them to go too, then they come back and still get high pay and some even spend lavishly in their vacation...Les Miserable peoples!!!! KONG XI fark CHoy!!
they live $, eat $, think $, breathe $, drive $, bathe $, drink $, sick $, enjoy $
those are under the corporate sector?
i wonder what he really thinks of our govt.
Originally posted by alwaysdisturbed:those are under the corporate sector?
i wonder what he really thinks of our govt.
obama too busy with US to think of our tiny island's despots
All bullshit rhetoric. Does anyone really think that Obama will actually punish the people who funded and put him into power?
Originally posted by freedomclub:All bullshit rhetoric. Does anyone really think that Obama will actually punish the people who funded and put him into power?
Originally posted by pearlie27:
Well, at least he knows what is shameful whereas our leaders are shameless themselves!
i agree. our greedy money minded ministers will never say such to high earning power people. ta men xiang qian $ gan!
Originally posted by pearlie27:
Well, at least he knows what is shameful whereas our leaders are shameless themselves!
Or perhaps US leaders are so good at bold-faced lying that they've even managed to fool you people.
Let's see what actions Obama take against the rich people, or I might add, the lack of action.
shall not judge him so severely. i adopt the wait and see approach to gauge.
Originally posted by freedomclub:All bullshit rhetoric. Does anyone really think that Obama will actually punish the people who funded and put him into power?
This is a mentality born out of Singapore. Why would there be a need to "Punish"
These are private corporate decision. And Human Greed.
And why would you be so jealous over this Guy -- Obama...You are not being explioted by him or any millionaire in Wall Street. You are directly explioted by PAP govt with their zillion dollar salary.
Originally posted by Fantagf:
obama too busy with US to think of our tiny island's despots
i think all the more they will wonder how the phark they get such paychecks.
Originally posted by alwaysdisturbed:i think all the more they will wonder how the phark they get such paychecks.
If obama is the president or pm of sg, he will ask for freeze in salaries for the greedy despots, autocrats
freeze for what. straightaway ask them to tender.
tender? great suggestion. check if they pay their taxes.
most bankers are shameful lot.
remember how DBS shed 900staff when they still are making profits. Their CEO got diagnose cancer, do we really care? he can quit for all we care.
remember how SIA shed their staff during the SARS crisis when they record first quaterly lost. at least this time SIA is showing some form of restraint.
How Mr thain of ML spent 1.2million USD on his tiolet renovation, when ML is receiving bailout money.
How automakers CEO, take private jet to whitehouse to beg for money from the govt?
how AIG spent hundreds thousands of dollars on sales conference when the govt giving bailout money to save their ass.
these crisis is like a reset button, the speed of the economic growth has hang the world growth to a halt and recession. we need to reset. how i wish the someone in american can take the lead to prosecute some of the top bankers and make them pay for their mistake.
Well he isn't putting a cap on executive privileges, so what is the point of calling them a shameful lot if you're gonna allow the continuation of golden parachutes.
Originally posted by reyes:most bankers are shameful lot.
remember how DBS shed 900staff when they still are making profits. Their CEO got diagnose cancer, do we really care? he can quit for all we care.
remember how SIA shed their staff during the SARS crisis when they record first quaterly lost. at least this time SIA is showing some form of restraint.
How Mr thain of ML spent 1.2million USD on his tiolet renovation, when ML is receiving bailout money.
How automakers CEO, take private jet to whitehouse to beg for money from the govt?
how AIG spent hundreds thousands of dollars on sales conference when the govt giving bailout money to save their ass.
these crisis is like a reset button, the speed of the economic growth has hang the world growth to a halt and recession. we need to reset. how i wish the someone in american can take the lead to prosecute some of the top bankers and make them pay for their mistake.
. . . . . . and Singapore Press Holdings retrenched staff when making profits.
Singapore Press Holdings, DBS, SIA are partially govt controlled or rather LKY controlling these. With such ruling party no wonder these govt controlled businesses are heartless
Well he isn't putting a cap on executive privileges, so what is the point of calling them a shameful lot if you're gonna allow the continuation of golden parachutes.
shameful is becoz these financial institution are received bailout money while continue to dishing out bonus.
maybe our Min. manpower and NTUC can advice thm how to restructure their pay, AWS,.......since most of the workers from financial instituition claim, bonus are part of their pay.
If their company is doing badly, cant really understand why they deserve the bonus. retain talent? wow, it that same talent pool that got them into this shithole isnt it?
. . . and Singapore Press Holdings retrenched staff when making profits.Singapore Press Holdings, DBS, SIA are partially govt controlled or rather LKY controlling these. With such ruling party no wonder these govt controlled businesses are heartless
right! coz CEO pay is peg with company profits. most of the shares of these GLC are own by big hedge fund. which has the veto power to throw CEO or directors out of the board. so to further their career, they have to sacrifice the workers!
capitalism!
Originally posted by reyes:right! coz CEO pay is peg with company profits. most of the shares of these GLC are own by big hedge fund. which has the veto power to throw CEO or directors out of the board. so to further their career, they have to sacrifice the workers!
capitalism!
pap style
Originally posted by Fantagf:pap style
u mean pap smear checking style, wee!! me went for the test liao, cervix ok, fully operation and healthy
SS angel,
if you wish to be promoted , please come out with drugs to cure the toxic banks.