President Obama has attacked financial bonuses and promised an investigation on the use of government bailout funds
WASHINGTON - President Barack Obama has lambasted Wall Street for handing out "shameful" bonus payments in the midst of the worst financial crisis since World War II. Obama also assured there would be investigations into whether tax payers' bailout money was used to line the pockets of Wall Street bankers.
Obama referred to a report by New York State Comptroller Thomas DiNapoli, which found bonus payments in 2008 were as strong as they had been in 2004, with New York financial brokerages losing $35 billion last year but paying out $18.4 billion in bonuses.
"That is the height of irresponsibility," said Obama. "It is shameful."
"The American people understand that we have a big hole that we have to dig ourselves out of," said Obama. "But they do not like the idea that people [financial firm executives] are digging a bigger hole, even as they are being asked to fill it up."
The first element of Obama's economic programme began its journey through Congress last week with the House of Representatives approving an $819 billion economic stimulus package. The plan, combining tax cuts a spending splurge in multiple areas, is now subject to Senate approval.
More on Regulation
Dealers must simplify if there is "no coherent rationale" to structures
Scrapping of test means investor status will not tip offshore funds into Dodd-Frank regime
Minenna of Italy's market regulator warns of serious unintended consequences
Vickers "surprised" by bank's loss of enthusiasm given its support in 2012
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.