Tim Geithner: Wall Street's Anger Toward President Obama Is 'Inexplicable'

WASHINGTON -- Treasury Secretary Tim Geithner says he is baffled that Wall Street continues to oppose President Obama, even though administration officials bailed the financial industry out of the mess they created. In a speech on Wednesday, Geithner also commented on the growing protests around the country, saying he feels "sympathy" for Americans who are frustrated.

Geithner appeared at the Washington Ideas Forum in Washington, D.C. on Wednesday, in a discussion moderated by Atlantic Editor-in-Chief James Bennet.

Bennet asked Geithner why Wall Street continues to fight Obama, even though "[n]o one has been a greater direct beneficiary than the financial community of the policies of this administration."

"You saved their companies, by and large, you saved their jobs, you even saved their bonuses. And they cannot stand this president now -- even people who supported him four years ago. Why? What explains that?" asked Bennet.

"I think it's inexplicable," responded Geithner. "People resent when they need help. It's a natural thing. They resent the huge amount of public anger they've been subjected to because they caused the crisis."

Despite the unprecedented bailout it received from taxpayers, the financial services industry consistently opposes Obama on issues such as taxes and regulations.

In recent months, Obama supporters have been trying to convince Wall Street executives that this administration has been friendly to them -- and is still worthy of their campaign donations in 2012.

"They sometimes claim that was created by us -- that anger -- which I think is a deeply unfair judgment," said Geithner. "They react to what is pretty modest, common-sense observations about this system as if they're deep affronts to the dignity of the profession, and I don't understand why they're so sensitive. They ask me all the time, why can't you heal that for us?" he added. "And I say to them -- I think, reasonably -- 'That's something you've got to earn back yourself. We can't do that for you.'"

"Do you feel any sympathy for the Occupy Wall Street movement?" Bennet asked later in the discussion.

"No, I feel a lot of sympathy for what you might describe as a general sense among Americans as to whether we've lost the sense of possibility -- and whether after a pretty bad lost decade ... followed by a devastating crisis [and a] huge loss of faith in public institutions, people do wonder whether we have the ability to do things that can help the average sense of opportunity in the country. And I definitely sympathize with that," he said.

"That's why I think those of us in Washington carry such a huge burden. No, we're not just trying to clean up a huge mess, we have to try to figure out how to do that at the same time we're trying to restore faith in public institutions. That's an essential thing to do, because we're having a terrible debate, a huge debate, an important debate about what is the role of government in the economy and society as a whole. What we need to do is restore some basic confidence so that the government is able to perform those critical functions that the market can't provide."

Earlier in the day at the Ideas Forum, White House Chief of Staff Bill Daley also commented on the Occupy Wall Street movement, saying, "I don't know if it's helpful. I wouldn't characterize it that way. Look it: People express their opinions. In the new social network world, they can do it pretty effectively outside the normal way, historically, people have done it. So whether it's helpful to us, or helpful for people to understand in the political system that there are a lot of people out there concerned about the economy -- I know the focus is on Wall Street, but it's a broader discussion that we're having."

During a Joint Economic Committee hearing on Tuesday, Federal Reserve Chairman Ben Bernanke was asked about the protests as well. In response, he said that he "sympathize[s]" with Americans who are discouraged.

"I would just say very generally, I think people are quite unhappy with the state of the economy and what’s happening," he said. "They blame, with some justification, the problems in the financial sector for getting us into this mess, and they’re dissatisfied with the policy response here in Washington. And at some level, I can’t blame them."

Earlier on the Huffington Post:

 

 

Comments

[eclub]

11:07 PM on 11/08/2011

How is it that every single person President Obama appoint to key posts have the same type of outlook, not really a progressive, or Main Street person, but a Wall Street type, yet he appears to claim that he is one of "us"? How can it be that every policy is so tame and lame that it bolsters Wall Street, and does nothing for Main Street, yet it is looked as not to be deliberate? Just how is this possible? You look in the administration, and there is no Howard Dean type. I submit that all actions by this administration is deliberate, all of it, and God help us.

[peter777]

09:06 AM on 10/09/2011

Wall Streeters are anti-Obama because they are basically fascists who want the entire country turned over to the financial and corporate elite.

[Eddie Breslin]

02:19 PM on 10/08/2011

How the f#ck is Tim Geithner now pretending to be some sort of Wall Street outsider "sympathizing" with the protesters??.. He was the goddamn chairman of the NY Federal Reserve Bank until he went to DC with Obama in 2008!!

He's a tax dodging bankster who helped cause the economic crisis, then he helped his bankster friends benefit from government hand-outs and regulatory favoritism under the guise of fixing the crisis, and now he wants to benefit politically from the anger directed towards the people he propped-up financially after it's become clear that the crisis was not, is not and will not be fixed.

[Eserve1]

10:42 PM on 10/06/2011

Wall-Street needs a scape goat.

[anotherbob]

04:14 PM on 10/06/2011

The world economy has been expanding for 500 years on easy to mine supplies of fossil fuels which are becoming ever more difficult and therefore costly to obtain. Nearing the peak of our ability to produce more inexpensive energy we are experiencing the limits of economic growth.

For the 1st world that means contracting economies and a debt crisis since the financial system is based on continued growth in productivity.

The latest round of class warfare that peak energy and wealth has engendered began in the 70's. The lower economic classes have by and large been unaware of the roots of the war against them, content to believe that growth will continue forever if only we drill more or innovate more o rwar and steal more or abort more or automate more or exploit more foreign workers.

The math of a finite resource base is inescapable so the rich are taking what they can and heading for the exits. Behind their walls and security details they expect and are willing to rule a world of chaos, death and disintegrating dreams. Unless the people can force them to relinquish control in favor of a radical redistribution of wealth.

For that to happen the people/masses must accept, for themselves, that a sustainable economic future will mean a life of considerably less consumption on the part of everyone in the 1st world and an attitude of cooperation and mutual well being among all people of the world.

[jhNY]

04:12 PM on 10/06/2011

For the first time possibly ever, I agree with Geithner.

[Bill Roth]

01:27 PM on 10/06/2011

Talk about inexplicable. How is that Geithner and Paulson are not behind bars?

[Bigidea]

01:25 PM on 10/06/2011

Could that be because you are clueless Tim? Obama is a lost opportunity. Partly because he is stuck with guys like you. Time to read some history books Tim. Good luck.

[bhaines213]

01:01 PM on 10/06/2011

I think the reason that the people on Wall Street are unhappy is because they’re such greedy people that no matter how much they have, it’s never enough. They want more money, no don’t want to pay any taxes and on top of that, they want everyone to gush over them and tell them that they’re wonderful. Even the ones who brought their companies go the brink of bankruptcy will never admit that they themselves might be the problem, it’s always someone else’s fault.

[sidecarman]

11:32 AM on 10/06/2011

nationalize the banks. or shut them down

[KayWrites]

11:25 AM on 10/06/2011

"White House Chief of Staff Bill Daley also commented on the Occupy Wall Street movement, saying... 'People express their opinions. In the new social network world, they can do it pretty effectively outside the normal way, historically, people have done it.' "

Is everybody in the Obama administration and in Congress on drugs? I've signed more online petitions than I can count, blogged on more sites than I can remember, and Facebooked myself till I am blue in the face. And so has everyone I know in the progressive community. What has the net effect of that been in Washington? NOTHING. So if it takes occupying Wall Street to get the attention of the cretins who got us in this mess and the idiots in Washington who lick their boots, I say go for it.

[macengr]

11:11 AM on 10/06/2011

Let the summer of 1968 start again!!!! It's time for Occupy Wall Street to move on to and/or include Capitol Hill. Then let's keep it going and include both conventions!!! It's time to take back our country and send all the Wall Street fat cats and their Capitol Hill prostitutes out of town tarred and feathered on rails!!!!!

[macengr]

11:07 AM on 10/06/2011

Where oh where is a good guillotine when we need one?!!!! Geithner, Bernanke and all the fat cats on Wall Street and all the members of Congress who took any $$$$ from anyone on Wall Street or the Koch brothers should be at the head of the line!!!!

[den1953]

10:45 AM on 10/06/2011

The best thing that could happen in the White House is to remove Tim Geithner and Bernake, then replace them with candidates that are not beholden to Wall Street and have a strong economic background like Paul Krugman and get away from traditional Washington politics.......If the money stays in Washington via pay to play politics this nation will remain a country of zombie people with no purpose in life but to serve the wealthy!

[bichn]

10:35 AM on 10/06/2011

We don't want your sympathy, we want your resignation.

[den1953]

10:46 AM on 10/06/2011

F&F