Obama: Wall Street Bonuses "Shameful" (VIDEO)

President Barack Obama responded Thursday to a front page story in the New York Times which reported that Wall Street handed out $18.4 billion in bonuses for the year, calling the payments "outrageous"

From the AP:

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.

WATCH Obama discuss the bonuses.

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From the Times' article on Wall Street bonuses:

Despite crippling losses, multibillion-dollar bailouts and the passing of some of the most prominent names in the business, employees at financial companies in New York, the now-diminished world capital of capital, collected an estimated $18.4 billion in bonuses for the year.

That was the sixth-largest haul on record, according to a report released Wednesday by the New York State comptroller.

While the payouts paled next to the riches of recent years, Wall Street workers still took home about as much as they did in 2004, when the Dow Jones industrial average was flying above 10,000, on its way to a record high.

Some bankers took home millions last year even as their employers lost billions.

Keep reading.

Comments

[CarmenJ]

Perhaps this is an "over simplified" possible solution, but why not tax the fire out of these monster bonuses...

[research]

90% over 1 Million dollars top income tax bracket.

[Joseroncal]

I'd like to know whether or not the money we doled out to the banks included any preconditions regarding bonuses. If not, then, sorry folks, but we the government are stakeholders, and the boards, the CEOs and executives are running the show.

Banks are not lending any of the bailout money, but it's my impression that this was the intent for giving them the bailout money in the first place (if, in fact, preconditions to do so were actually included). I'm not sure what the stipulations are regarding the next chunk that's slated for corporations. But I do know that when you give out freebies without a watchdog and clear rules of engagement, corporations will waste taxpayers' money and return like Oliver Twist with, "Please sir, may I have some more?"

This sudden outburst over Wall Street bonuses seems like too little too late and however it shakes out, it isn't likely to do much to get the economy moving or put people back to work. Let's put this in perspective. Whether warranted or not, bonuses are just the tip of the iceberg. I'd like to know how much more of the taxpayer bailout dollars have been squandered and where.

This comment was posted by Jose Roncal, co-author of "The Big Gamble: Are You Investing or Speculating?" - For more information, visit www.financialspeculation.com

[research]

Shameful!

What does that make the 643T$ derivatives Debt the Banksters ran up?

[firstandlast]

Obama's references:

http://granitegrok.com/pix/ObamaReferences.jpg

[research]

You gop lost, can't handle it, can you?

[research]

FDR the Banks.

[davism97]

I agree the Wall street bonuses are shameful but let's put the blame where it belongs. Our government should have been specific about how this money could be spent BEFORE forking it out no strings attached.

[nooch1980]

The Noz called it months ago... http://www.thenoz.wordpress.com

[lollylolly]

There, now I've said it: Shameful!

Tim, - give our Wall Street buddies 2 trillion.

[CaptainHowdy]

Two weeks and the Big O has already "lost the plot".

If these bonuses are so damned "shameful"... THEN DO SOMETHING ABOUT IT!

You're the President of the United States, after all.

Sigh...

[Outraged9]

If you are sick about it, like me, write your senator to have them return it. I posted links to our senators' email addresses and a template letter here: http://returnthebonus.com/

[Selbourne]

Republicans,
WALL STREET BONUS ABUSES
The Economist Magazine has described the Wall Street Bonus system as "the bonus racket". That's what we are talking about here. It's infantile to try to confuse the issue with other alleged abuses. Do you have a response on this issue.
If the bonus system is a racket, maybe it should be treated as a conspiracy to loot the companies just before they went broke. Perhaps this should be pursued under anti racketeering laws.
Any lawyers reading this may care to comment.

[LeoKovalensky]

Isn't it shameful and irresponsible to spend $900 Billion of the taxpayer's money (money that is stolen, not earned) on Democratic pet projects and wet dreams, without even asking?

[research]

No it's not.

It's shameful to have spent those 3 trillion on the Iraq war crime

and the pitiful attempt to pay off the bankers 643T$ gambling debts.

Every single one of the democratic "Pork" projects helps real Americans.

If wasting money on war and bankers gambling will work,

think how much better real Americans getting the money will work.

[CaptainHowdy]

Get real... BOTH are shameful.

[Vee]

Democrat pet projects are for American people so they can get jobs, get educated, paid decent salaries & get some retirement. Republicans wet dreams are spending taxpayers money for wars, for chenney's & bush's pals, for CEOs decorating projects, bridge to nowhere in Alaska, road from Steven's Alaskan house to his favorite restaurant, that's where republicans have their priorities.

So safe your moronic fake blabber..., republican party is the party of irrelevance. Go back to school & get yourself a decent education, start with learning some common sense!!!

[LeoKovalensky]

First of all, you should calm down with all the hyperbolic rhetoric. Secondly, you shouldn't childishly assume that I am a Republican just because I question this "stimulus" package.

Do you consider it "common sense" to be able to talk like you know what is in this raw deal package without even reading its contents? If so, then I agree that I don't have any.

No long-term and stable jobs outside of DOT construction will be created with this monstrosity. Do all of us a favor and read all 700 pages of the bill before you go commenting on it.

Now, get back to your petty jabs about education to people you don't even know, because I'm sure it helps out your self-confidence.

[chargerman]

What about the Shameful people who lobby the government and then not pay their taxes. How about Daschle as the poster boy for greed. He is shameful and yet President Obama supports Daschle. Is this the best person you can find for the job?

[CBLF]

Wall street bonuses shameful? Let's talk shameful Mr. President. At this point in our Nations history, any wasteful spending by our Government is shameful. How much of the taxpayers money was spent on the latest inauguration? How much of the tax payers money will be spent to redecorate 1600 PA Ave? How much of the tax payers money is spent on corporate and commercial jets to ferry Government employees to and from work? You wanna work in DC, live there. How much of the tax payers money is spent on cars and insurance for Government employees? How about that cushy retirement Government employees have? As a tax payer I am forced to pay SS that has been used and abused to the breaking point. Will it be there for me? I have no choice, have to pay into it, but the Government knows it's a huge loss, so they live off the tax payer for the rest of their retired lives. This list of shamefulness is starting to make my head ache. Oh, let us not forget the stimulus package, give money to the banks so they have money to loan? Don't the banks need employed people that can pay back the loans?

[adamsmith3]

Politicians complaining of irresponsibility with the taxpayers money.....talk about the pot calling the kettle black. Greedy CEOs and presidents who approve of sloppily-written and poorly conceived 850 billion dollar legislation are one and the same. Maybe he should scold his Treasury Secretary for the 400 thousand dollar bonus he received upon parting from the Federal Reserve. I agree with him wholeheartedly that huge bonuses USING TAXPAYER MONEY is completely outrageous. If it is their OWN money though, it's done of his gosh-darn business and none of yours either. They are a private company and it's up to them how they compensate their talent (or lack thereof). If they do it in an absurd fashion to where it hurts their company and creates disgruntled workers, they won't be successful and perhaps fail. But then, if they fail, the people in Washington who hate them will for some reason pick them back up so that they can stick it in their eye and attempt to control them.