Obama: CEOs Must Stop "Draining" Bailout Funds (VIDEO)

Obama continued his criticisms of Wall Street bonuses in his weekly address Saturday following his strong comments this week about the amount of money handed out in bonuses being "the height of irresponsibility."

From the Tribune's Swamp blog:

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."

WATCH Weekly address

According to Bloomberg News, Treasury Secretary Tim Geithner will make a statement on bonuses sometime this week.

In his weekly address Obama also announced that he will be unveiling a new bailout spending plan soon. And despite his strong criticisms of CEO bonuses, The Washington Post reports that the administration has finished drafting the central elements of the plan, and that it is not likely to impose tougher restrictions on executive pay:

In finalizing the plan, officials have made a policy decision that could dismay lawmakers. The administration is likely to refrain from imposing tougher restrictions on executive compensation at most firms receiving government aid but instead retain looser requirements initially included in the Treasury's $700 billion rescue program, a source familiar with the deliberations said. Officials are concerned that harsh limits could discourage some firms from asking for aid.

Comments

[tanocaye]

LA Times front page this week, that state workers will be forced to have 2 days unpaid work furlough, and that Obama told CEOs 'shame on you'. State workers penalized, CEOs 'chastized'? And now, despite his promise that there will be accountability, apparently it won't be built into the language. Where is the equity in this? Why not penalize the CEOs, given that almost everyone else is being penalized? If the economic situation is truly as problematic as Obama describes, if he truly is going to represent 'us', certainly these CEOs who have authorized bonuses as they were seeking bailout, need to be held accountable. Is he truly representing us, or is he saying the right thing while actually protecting the money grabbers. Who else, if not the president, who supposedly represents 'us', to truly take this on - and thereby really push us forward, rather than act as though nothing really can be done about it. If the CEOs have just done this, with the positions and supposed responsibility they presumably excercise, it is truly foolhardy to pretend that this anonymous shaming will make any difference. It looks very much like a cover. Let's get serious. Enough of these mixed messages.

[egal]

Punish them accordingly. For every dollar of taxpayer money they spend, they need to show why it was necessary. For every dollar that isnt, they need to give us five dollars back. And not in "investments", either. And out of their private funds first. If the government can force soldiers to give up all of their current money and possessions due to clerical mistakes the government made, then it can darn well take every penny rich CEOs have because the government gave it to them without demanding proper accountability.

[brit prof]

The government should not be requesting bankers to do X and Y. This is PUBLIC money. Make a list of what can and can't be spent on. It's not hard Mr. President.

[canuckgirl]

It is about time that the regulatory bodies that look into companies wrong doings investigate the companies more closely. There has been some investigations into this type of thing but not enough.

The salaries these executives make is ridiculously high. I call it corporate greed.

The big mega companies virtually can get away with whatever they want in America and they have.
Some CEO have gone to jail for doing wrong but not enough of them.

Tough regulatory bodies should scrutinize these companies more carefully.

Many employees of these companies have lost their jobs, shareholders have lost their money and
many investors have too.

Enough is enough I say. I hear many States in America will go bankrupt - wonder why, eh?

[PhilipTaylor]

The Good News: We can solve a significant problem, Correct the $30 to $65 Trillion Credit Default Swaps is for the government to declare all CDS null/void.
__________­__________­__________­_______

The Bad News is $1,140 Trillion in Toxic Paper exists Worldwide ($400-$600 Trillion in the US) when America's GDP was only $14 Trillion, so 45+ years to grow out of this.

The government does NOT realize the vast majority of unrecognized losses in Banking System are PERMANENT. They are not going to recover for decade(s) as money was taken out in FEES the Bankers doled out in salaries/bonuses and paid in dividends.

The Bankers took FEES worth 10 to 30 years of "2004-2006 level Hyper-Inflation in Housing." They assumed Housing Appreciation Rate in 2004-2006 would extend 10-30 years and STOLE Fees equivalent to that Future Value, and lined their pockets.

The Hyper-Inflation Bubble burst and housing is dropping back to late 1980's level! So Bank Recovery is decades away.

Banks are "SO Bankrupt" that it will take $Hundred of Trillions to save them from their Greed!

We must not bankrupt America to save these Corrupt/Ignorant Bankers as we do not have enough Equity to print all that money needed and it will ruin America, creating Massive Dollar Inflation!

THE KIND THINK TO DO IS LET THEM FOLLOW THE RESULTS OF THEIR GREED TO WHEREVER IT LEADS! NO MORE BAILOUTS OF THESE CORRUPT BANKS!

[SteveDenver]

$70 billion has been called a "bailout," but high-paid bankers have treated the funds like a "nest egg."
Why wasn't the banking industry handled as the auto industry? More begging, more plans, more scrutiny, pledges to reduce their mega millions to $1 in a sign of good faith.

[Space Walker]

If you believe the CEO's are solely responsible for our present economic climate, then the media has done its job in hiding the truth from you and using these greedy men as the scapegoats in hiding the "real" culprits.

[doubting]

It will be interesting to see whether Obama has any power over Wall Street. Perhaps his comments are an attempt to calm the masses.

[ShamusDaedal]

Obama's power must come from the Congress, and they could do it but it will take guts to face down campaign contributers:

Corporations are an artificial creation of law. They exist at the suffrage of the government and are subject to rules laid down by government. So:

Match the control of “minimum wages” with controls on “maximum” wages. Those obscene multibillion dollar salaries and bonuses far over the rational levels just give money that could go to both workers and the shareholders. There’s a stimulus for you when money gets into the hands of people who will spend it.

Social Security is fed by the “payroll tax” and everyone pays something out of wages. If there’s not enough money from that, why not just levy the tax on ALL gross income? Then not only the lowest brackets would be hit the hardest.

Oh, should we make someone making “only” 5 million bucks struggle along with “only” a measly 2 0r 3 million?

And don’t call those amounts “hard earned”. Construction or mining or logging or farming or ditch digging or house cleaning jobs are hard work. Using the mind is not easy either, but are the services of a hedge fund guy or stock dealer or corporate lawyer really worth thousands of times more than those of teachers, most health care professionals, or social service workers? Give me a break!

[movecenter]

I hope this is not true. It would be very disappointing, as well as weaken Obama's credibility to make the tough decisions he touted during his inaugural speech.

[LemonMeringue]

Only 2 people had the guts to speak out about this when it might have made a difference:

Ralph Nader and Dennis Kucinich

Obama is wrong, wrong, wrong to allow more stealing, and wrong not to take back the money that was just stolen from us.

[NoCents]

Obama is trying to facilitate dem and rep to hel the country. Unfortunately they are playing "hard ball" instead of cooperating for the future of their children and mankind.

He gives in. Hopefully he will cut the losses short. Not sure he did not know bailout, tax cuts to rich and Drones do not work already?

[Tiggy]

The whole not asking for help was the very excuse that Paulson rendered when he issued funds with NO restrictions and no accountability. Same dance to a different song....we are about to be scr**** again. With all that money, please provide some petro. jelly to ease the pain of the royal fuc**** we are about to experience.

[kerry63]

Don't need to cap salaries. We are suppose to have a progressive tax system. Tax anything over $400,000 at 95%.

[Haditup2here]

Even if they tax those making above $300,000 at 50%, that would improve the income distribution. Right now it is 35% which is only 10% than people in the third income bracket making $31,000-$77,000.

Think about it, 25% for $31,000 compared to 35% for $300,000. It is an utter disgrace.

[NoCents]

Not only improve Income Distribution, it would make the payment of all this debt equal.

Right now the Rich get rich and all this debt will be paid back by the poor?

[nycusa05]

Found an interesting site anaylizing Obama's presidency. So thought I would share with people
http://www.thebarackobamawatch.com/

[research]

Don't waste your time. Pure smear site.

[ultramanjones]

Yeah whoever is editing that sight acts like he knows everything and gives every move Obama makes a D, F or A. Strange range. Comments like "the package should have more tax relief and less spending" are given as arguments for his opinion of the plan. Got news for ya bro, that's not an argument that's an opinion. An opinion spoon fed straight from talk radio blowhards.

[ExxonMcBushCo]

virus spam

flagged.

[LemonMeringue]

How dumb do you think we are?

[protagonia]

nycusa05 wants to share his disease with us because nycusa05 is a troII, a paid shill with a dishonest agenda.

A neo con who is as close to Christ as a sow's ear is to a purse.

[harriettubman]

Claire McCaskill has it right by wanting to cap those CEO salaries at $400,000. Obama should too. No more whining, excuses or freebies. Americans have had enough with this bailout mess.

[LemonMeringue]

Please write your Senators and Congressmen to demand they support McCaskill on limiting CEO salaries.

Time to hold their feet to the fire. They gave that money away - OUR money.

[struwwwel]

Do it as in Bolivia: the president has the highest salery in the whole country, and that one is determined by congressional law. Do you think congress would be so bold as to propose a law giving the president a multi-million dollar salery? Do you think the president at the time will be so bold as to sign that bill into law?

[Joan Bartos]

Does the utter stupidity of these washed-up Republican has -beens ever end? Gee, Andy, Nixon and Kissinger wore nice suits and ties when they were ordering the bombing of innocent Vietnamese and Cambodians! They may not have respected human lives and suffering, but by God they never forgot their suits and ties in the White House, did they? Same for Reagan and Bush! Kill all the innocent people you want in the name of promoting democracy, but never disrespect the office by not wearing a suit and a tie! Thank God those towering figures of respectability had their priorities straight!