Romer Pleads With Firms To Not Dole Out Bonuses, Pledges Push On Regulatory Reform

Senior White House economic adviser Christina Romer offered a preemptive plea on Sunday for bailed out Wall Street firms to exercise restraint when it comes to dolling out this year's bonuses. Asked what the president could do to curb the payouts, the chair of the White House Council of Economic Advisers pledged that Obama would "redouble" his efforts at regulatory reform as a means of tackling compensation and other financial practices.

"I sure hope so," Romer told ABC's This Week, when asked if banks would heed Obama's warning not to dole out record bonuses this year (as they are reportedly set to do). "We have had to provide so much support for the financial system. It was the right thing to do for the American people, because we know that when credit stops the economy stops. But we provided extraordinary aid and the idea that as the financial system heals, they just go back to business as usual, is simply outrageous."

The outrage Romer expressed over executive compensation was not a new message from this administration. Host George Stephanopoulos -- noting the exasperated look on Romer's face -- asked what tools the administration had at its disposal.

"What we are going to do is redouble our efforts for financial regulatory reform because that had, in it, sensible things like say on pay so at least the shareholders are minding the store. Sensible things like saying, for heaven's sakes, compensation should be focused on long-term so that you don't have rewards for short-term risk taking," Romer replied. "We simply have to put in place rules of the road so that this system doesn't bring the economy to the edge of collapse like it did a year or so ago."

In a separate appearance on CNN's "State of the Union," Romer was also asked about the plan of bailed-out financial institutions to provide record bonuses to its workers.

"For heaven's sake, people, it does seem really ridiculous," she said.

Comments

[Chise67]

04:25 AM on 01/11/2010

Stop pleading, & start TELLING them that they BETTER not dole out big bonuses! Oh, got beside myself there. I ALMOST forgot Wall St. runs the financial sector, real estate, health care, oil securities, food commodities, weapons manufacturing, the house of representatives, the senate, THE WHITE HOUSE, etc., etc.!!!!!!!!!!! She's not coming across as impotent, she's just actually showing she is!

[sheaintsayin]

03:00 AM on 01/11/2010

I feel badly for Ms Romer, who is coming across as a tad bit impotent in this brief representation of the interview. But, impotent is actually becoming my perception on many things relative to the state of this administration these past few months.

[Conejo]

01:09 AM on 01/11/2010

Ha! Gimme a break! Plead with these crooks to not dole out bonuses? It has about as much chance as an ice cube staying frozen in a bucket of molten gold.

[masanf]

01:02 AM on 01/11/2010

"What we are going to do is redouble our efforts for financial regulatory reform because that had, in it, sensible things like say on pay so at least the shareholders are minding the store."

Please Christine, we all know that you and this path etic administration, and it seems a lot of commenters here, really want to give the government the final say-so over how much these banks can pay in bonuses. Evidently people see absolutely nothing wrong with giving the government that much power.

[timenavagator]

12:22 AM on 01/11/2010

I'm amazed by all of the criticism of Christina Romer over private company bonuses. As if these companies and more didn't hand-out outlandish bonuses during the Bush administration, or ignoring the fact that it's their legal right to do so. If the administration found a way to prevent the paying of bonuses, I'd be reading the same criticism by the same people that the government is interfering with private business. Send in the ringmaster, the clowns are already here.

[masanf]

12:49 AM on 01/11/2010

The federal government has no business telling a private company how much it can pay its employees in bonuses. And the payout of these bonuses happened under more than just the Bush administration, so your gratuituous mention of Bush pegs you as a parti san hac k.

[RDenning]

01:09 AM on 01/11/2010

"If the administration found a way to prevent the paying of bonuses, I'd be reading the same criticism by the same people that the government is interfering with private business." You might hear that criticism but it wouldn't be from the same people. Unconscionable compensation might be legal but legality is not the same as morality. Furthermore, the government could legally tax those bonuses, that is if the administration wanted to and if the millionaires in the Senate gave their permission.

[timenavagator]

01:46 AM on 01/11/2010

I hope you're right on the people posting and I'm sure you're right on the unconscionable compensation. I have yet to meet anyone more agitated than I over the bailouts; how they were drafted, how they were implemented, and the results they've achieved. I believe it amounted to the largest criminal conspiracy in the history of the world. I simply believe that the harsh criticism of Romer is less than fair because she has no legal authority to demand corporate compensation responsibility. I'd like to see every unemployed and homeless person in the county converge on Wall St and just shut it down. Hit these lowlife financial barons where it hurts - in the pocket book. After a couple of weeks of a few million people crowding NY on Wall St maybe that will put the fear of God into them. At least until the National Guard came in and removed everyone. Completely unrealistic, I know, but it sure would make a statement.

[Hedgehogging]

11:59 PM on 01/10/2010

Christina Romer is absolutely 100% powerless!

She'll resign shortly and her dreams and "hopes" for the US will be smashed just like Catherine Austin Fitts and, if she's lucky and ethical enough, she'll go onto to do more important things like Catherine.

But that's assuming a lot about this woman who I don't know--nor want to know.

[dantanna]

11:39 PM on 01/10/2010

obama is going to redouble effort to bump up financial regulation? should we take the way he did with health care reform as a guide on how he doubles up? God help us...

[mycommonsense]

10:49 PM on 01/10/2010

Someone put her on a diet. I think she ate the Federal Budget.

[ripples]

10:36 PM on 01/10/2010

Eliot Spitzer, calling Eliot Spitzer - your country needs you, NOW!

[dannyluv]

10:35 PM on 01/10/2010

During the campaign, Obama said "if you see something that needs to change, "MAKE ME", He asked us to speak up and have the whole country speak up. Now he says, "Sit down and take what your given"
I do not see leadership here.

[timenavagator]

12:01 AM on 01/11/2010

In all fairness to the President, his leadership skills may still be in development, but he's made a lot of positive leadership decisions, both big and small. He was elected into a world of hurt left by his predecessor, has to multi-task on several major issues, and has powerful people irrationally criticizing his every move - all in his first year in office...more than most have faced.

More to your point, the "MAKE ME" quote that you cite is, I believe literally that: Make me. Make the Congress draft the needed legislation, put it in front me and I'll sign it - in contrast to his predecessor with whom legislation for (positive) change would not get the pen. In any event, expectation for "instant" change is unrealistic, especially when so much change is needed. After the Democrats gain more seats in Congress in the next election, we will finally see some positive motion. President Obama has a four-year term to effect positive change and I'd like to see him given the opportunity. Sorry for the rant, but I had to get that out.

[RDenning]

12:54 AM on 01/11/2010

You say, "expectation for "instant" change is unrealistic," There is no time to waste. Some things, like climate change, have been ignored too long. Nothing will get done unless the government starts to work for the public good. That cannot happen in our current kleptocracy. I had hope before Obama appointed Geithner and Summers. Those appointments and his performance on health care have convinced me that Obama is just more of the same. He"s not as nutty as the Republicans but he is just as likely to support corporate interests over the common good.

[Noonen]

10:16 PM on 01/10/2010

I thought Romer was head of HR, not a cabinet member

[rssrai]

10:06 PM on 01/10/2010

President Obama should make a speech saying that if the banks screw up again they are on their own. Big banks are going to be gone banks or little bitty banks.

[RDenning]

12:58 AM on 01/11/2010

Yes, another speech'll show 'em. Prosecution may be more effective.

[thepheonix]

09:49 PM on 01/10/2010

Your on pins and needles. That tells me your doing nothing but sitting on your behinds and watching. If you had put as much energy into the economy and jobs that you would have done with the HC and Carbon we would have been coming out of this debacle now. I say get rid of the Dems ASAP. If not, I say a good jobs march on Washington. Maybe when they see the millions of people yelling at them they will get the hint

[blacksmithn]

09:56 PM on 01/10/2010

And replace them with Repubs? The ones responsible for getting us into this mess in the first place?

[thepheonix]

10:17 PM on 01/10/2010

You have another option. Tell me something effective that this Congress has done to create jobs or repair the economy.

[masanf]

12:51 AM on 01/11/2010

Yes you are so right. Only one party is completely 100% responsible for this mess we are in now. Never mind the fact the Dems have been the majority party in Congress for over three years now. It is all the fault of the Republicans. Give me a break.

[IMissAmerica]

09:21 PM on 01/10/2010

No. Please, please banksters, lay it out there for everyone to see. There are a lot of unemployed people in this country and they're about ready to take their anger and their spare time to the streets. Clearly that's what it is going to take for Congress to take action. (forget Obama... his pic is next to the word "Sellout" in the dictionary)

[masanf]

12:52 AM on 01/11/2010

Yeah, and what are these people who are "taking to the streets" going to do about these bonuses? They can't do anything. This is a private company and it has every right to pay its employees the way it sees fit. Are the unemployed going to start lyn ching people over bank bonuses?

[gypsy508]

01:32 AM on 01/11/2010

I don't care about bonuses but I'm ready to lynch any banker over fees.

[Chise67]

04:32 AM on 01/11/2010

Talk, talk, talk! Know why it's always said,"The revolution will not be televised!"? Because there ain't going to be one! Congress could pass legislation on how long the grass in your yard should be cut and all folks would do is grumble about it, then make sure it's the length they're told to cut it. Talk, talk, talk!

[Bunny007]

09:18 PM on 01/10/2010

Ms. Romer---

With all due respect, you should be leading a Brownie troup in making crafts, not this nation in fighting the banking cartels!!

You do not "hope" bankers will hand over money, anymore than you would hope a drunk will hand over his bottle---aint gonna work!!

YOU DEMAND change, by changing the laws and protecting consumers as the first order of business, and this administation hasnt shown us a darn thing, except that they ARE OWNED BY THE BANKING CABAL!

And please, wipe that constant smarmy SMIRK off your face when trying to answer such serious and important questions! We want to see someone who can drive the bus, not be run over by it!!

[VirginiaJeff]

09:23 PM on 01/10/2010

Faved

[denny8844]

09:44 PM on 01/10/2010

Be nice. I did have the same reaction though