White House Lashes Out at Bankers

White House Lashes Out at Bankers

online.wsj.com

President Barack Obama and his economic team lashed out at Wall Street, with the president calling bankers "fat cats" who "don't get it," in a move that could escalate tensions with the nation's biggest bankers ahead of a meeting with industry representatives.

Mr. Obama, speaking on the eve of Monday's meeting with the heads of top banks at the White House, said he would try to persuade bankers to free up more credit to businesses, with the aim of helping boost job growth.

(visit the link for the full news article)

Few highlights from the article:

"I did not run for office to be helping out a bunch of fat cat bankers on Wall Street," Mr. Obama said in an interview to be broadcast on CBS's "60 Minutes" program Sunday evening, according to excerpts made available ahead of the program.

Relations between the banking industry and the White House began frosty and have deteriorated in recent weeks, with large banks lobbying against legislation that would toughen financial-market regulations and administration officials frustrated by some banks' continued payment of high bonuses and their reluctance to lend.

Mr. Obama reiterated that frustration in the interview, noting that some banks have continued to award bonuses and restrict lending while many Americans struggle with unemployment. "Some people on Wall Street still don't get it," he said.

White House economic adviser Larry Summers also voiced aggravation with Wall Street on Sunday. "Here is what I think they don't get…It was their irresponsible risk-taking in many cases that brought the economy to collapse," Mr. Summers, who chairs the National Economic Council, said on CNN's "State of the Union."

"And they don't get in some cases that they wouldn't be where they are today, and they certainly would not be paying the bonuses they are paying today, if their government hadn't taken extraordinary actions."

Mr. Summers criticized big banks for opposing a bill in Congress that would tighten regulatory controls over the financial industry. Banks and their lobbyists have said that the measure -- a version of which was passed by the House on Friday -- would duplicate existing rules in some cases, were overly broad in others, and would be costly to enforce.

"For them to be complaining about serious regulation directed at making sure this never happens again is wrong. For $300 million to be spent on lobbyists trying to gut serious efforts at financial reform is not how this country should be operating," Mr. Summers said. "For firms that have benefited from taxpayer support to be complaining about the government burdening them is, frankly, a bit rich."

Large banks, from J.P. Morgan Chase & Co. to Citigroup Inc., have lobbied against parts of the White House's proposed changes to financial- market rules, angering White House officials. The banks have argued that the bill would penalize them for being large, through tougher capital requirements and higher fees, and would give the government greater authority to either seize large companies or order them to decrease their size.

Meanwhile, many small businesses are complaining that they cannot get access to credit, and many government officials believe that banks' reluctance to lend is preventing the economy from rebounding more quickly. But the White House could be criticized for meddling too much in the private business of banks if they were to direct lenders to make specific loans, particularly at a time when regulators are requiring banks to write off certain delinquent loans.

That is a welcome change from the otherwise bankers @ss kissing politicians. What are your views should Govt. force banks on these issues or just let it run wild? Has any previous administration taken such harsher legislations against bankers?

online.wsj.com
(visit the link for the full news article)

The most glaring irony in this is who helped the bankers WITH all of our tax-payer dollars to BEGIN with?

Oh, that's right, the same folks expressing "faux" outrage that their masters have done as they please with the booty they plundered from the masses with their help.

More facades to keep the sleeping giant pacified...

reply to post by December_Rain


Is nothing but a pony show, as we know by now is the JP Morgans and Goldman Sach in the nation they ones that runs our government.

Perhaps Obama is just getting tired of the manipulation, but we know also that he will do what he is told to do, end of the story.

Originally posted by DimensionalDetective
The most glaring irony in this is who helped the bankers WITH all of our tax-payer dollars to BEGIN with?

Oh, that's right, the same folks expressing "faux" outrage that their masters have done as they please with the booty they plundered from the masses with their help.

More facades to keep the sleeping giant pacified...

Exactly.. more laughable tough talk from the chronically lying puppet that will result in zero action... that loser has no credibility. I have more respect for my garbage man... when he says the trash will be taken care of, it gets done.

So has any previous administration taken any legislative action against Banking industry?

reply to post by DimensionalDetective


agree, star...
just look at the cadre of schmoozers that Obama re-installed into financial positions...Mr Larry Summers heads the list of TopLevel 'Elites'...

they've all been part of the seizure of gov't by the 'finance Guild', for the past 2 election cycles (Bush)... a few even from the Clinton era.

nothing is changing with the recent Obama rhetoric,,,its only 'tough talk leading up to the 'Show'

Laughable.

One set of corrupt, self serving, morally bankrupt criminals showing disdain for another group of corrupt, self serving, morally bankrupt criminals.

Why would anyone loan money to a bunch of lazy unemployed whiners? Please Mr. Banker loan me some money. I promise to pay you back when McDonalds starts hiring again.
John McCain might be a brain dead moron who is two minutes away from a massive stroke but he was right when he said, "the bank bailout was nothing more than generational theft".
Bush made the coffin and Obama drove in the nails. Both are equally at fault.

Originally posted by marg6043
reply to post by December_Rain

 

Is nothing but a pony show, as we know by now is the JP Morgans and Goldman Sach in the nation they ones that runs our government.

Perhaps Obama is just getting tired of the manipulation, but we know also that he will do what he is told to do, end of the story.

I concur, this is just another Dog and Pony show. The Dog has his head up the ass of the Pony and the Pony has his head up the Dogs ass, and we all have front row seats to the greatest obscene criminal story planet earth has ever seen, Godfather has nothing on these "Super Criminals"


Sailor

I laughed so hard when I read this post. Ok mr.president say how evil we are while we F**k them in the you no what. It is almost like some kind of sick sexual game. Just how stupid do they think we are? when the worm turns for the people in power I hope they find a better hole then sadam did because I truly think they will stand trial for the crimes that are being commited against the american people. And dare I say the people of the world. When leaders of third world countries have to go hide they can do it I would love to see how these guys will hide from the us military.

"Mr. Obama reiterated that frustration in the interview, noting that some banks have continued to award bonuses and restrict lending while many Americans struggle with unemployment. "Some people on Wall Street still don't get it," he said."

El Presidente is not a very good liar, is he now? If he really wanted these banks to lend money to the American public, the Federal Government could have just taken that $700 billion in bail out funds and lended it directly to Americans at very low interest rates. Of course, this would make too much sense.

By giving the money to the banks instead, they set up a "fall guy" so to speak, who can run off with the cash and kickback a "cut" to the politicians who made this possible. Instead of the current White House occupant going after innocent civilians in Afghanistan and elsewhere, maybe he should be going after guilty parties in a country he proclaims to care so much about.

Kind of makes you wonder whose side this guy is really on.

Originally posted by December_Rain
So has any previous administration taken any legislative action against Banking industry?

Somehow everyone seems to have avoided this query..so it''s safe to assume no previous administration has tried to enact stricter legislatives on bankers. In that case kudos to Obama

reply to post by December_Rain


Yes, when the Saving and Loans failed in the eighties, rules were changed and action was taken to prevent future failures. And there was a commision and also an investigation into what happened and who was responsible. This was done while Ronald Reagan was president.

However, deregulation and bad lending caused the crisis in the first place, sound familiar, but at least they tried to fix it. This is what they need to be doing now, but all we hear is talk and no action.

[edit on 13-12-2009 by amaranth]

[edit on 13-12-2009 by amaranth]

[edit on 13-12-2009 by amaranth]

[edit on 13-12-2009 by amaranth]

I think it is harder to take action now, as lobbyists basically own our government and no one will do anything to the banks or to Wall Street, because they give politicians so much money. It did not used to be like this, and there was a time when the our government was not owned by lobbyists. Lobbyists donate more to political campaigns than we do, and no politician is going to voluntarily give up campaign donations.

That is why I think this will never change, where is the motivation for Congress to change the campaign finance rules, and who is going to change rules, when the end is result is that they would be voting away their ability to raise money from corporations. I had hoped that Obama would change this, as he did talk about ending the influence of lobbyists, but it is just the same old stuff and business as usual.


[edit on 14-12-2009 by amaranth]

President Barack Obama and his economic team lashed out at Wall Street....

His economic team is Wall Street. Larry Summers , the team leader , received $135,000 from GS for a one-day visit to their office in April 08

and

when you consider 5 of his top campaign contributors , something doesn't add-up here.


Goldman Sachs - $994,795

Citigroup Inc - $701,290

JPMorgan Chase & Co - $695,132

UBS AG - $543,219

Morgan Stanley - $514,881

Originally posted by DimensionalDetective
The most glaring irony in this is who helped the bankers WITH all of our tax-payer dollars to BEGIN with?

Oh, that's right, the same folks expressing "faux" outrage that their masters have done as they please with the booty they plundered from the masses with their help.

More facades to keep the sleeping giant pacified...

EXACTLY!!!!

All I hear is BLAH BLAH BLAH BLEE BLAH

I want to SEE some action, I want to SEE the government manhandle these banks... will it happen? I doubt it, I doubt it very much.. this administration just like the last is in the pockets of the Bankers.

Originally posted by December_Rain
So has any previous administration taken any legislative action against Banking industry?

The answer is yes.. Andrew Jackson paid the fed off and told them to GTFO.

Abraham Lincoln stated the green back, later assassinated.

John Kennedy came out with excutive order 11110, started teh Kennedy Dollar and was later assassinated.

Ron paul recently put a bill together to audit the fed.

Just google all this you can find more out about it.

reply to post by December_Rain


Why would the government lash out at their bosses? As usual, this is all for show. The White House pretends to get mad at the bankers to pretend to appease the masses who'll lap it all up hook, line and sinker.

Nothing to see here, folks. Move along for the next circus at your nearest TV set that shows CNN.