Obama calls $18B in Wall St. bonuses 'shameful'

[dbackjon]

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.

Yet Obama's stand also came just one day after he surrounded himself with well-paid chief executives at the White House. He had pulled in those business leaders and hailed them for being on the "front lines in seeing the enormous problems in our economy right now."

The president said the public dislikes the idea of helping the financial sector dig out of a hole, only to see it get bigger because of lavish spending. The comptroller's report found that Wall Street bonuses were down 44 percent, but still at about the same level as they were during the boom time of 2004.

http://news.yahoo.com/s/ap/20090129/ap_ ... ma_bonuses

[BigApp]

I guess it's not shameful to accept millions of $$$ from Wall Street'ers in the form of campaign contributions and inauguration party donations though, right?

Change.

[catamount man]

I guess it's not shameful to accept millions of $$$ from Wall Street'ers in the form of campaign contributions and inauguration party donations though, right?

Change.

Not to mention all that money he cashed in from Fannie and Freddie, Barney Frank included.

[AZGrizFan]

This is the FIRST thing Obama has said that I 100% agreed with. These fcukers need to be taken out and shot.

[houndawg]

This is the FIRST thing Obama has said that I 100% agreed with. These fcukers need to be taken out and shot.

They should be reclassified as varmits and a bounty paid to whomever brings in a carcass. Double bounty if they're killed with a baseball bat, triple if strangled with their own necktie.

[AshevilleApp]

This is the FIRST thing Obama has said that I 100% agreed with. These fcukers need to be taken out and shot.

It's true. Actions like that will make people more leery of what may be a good suggestion by Congressional Republicans to raise the amount of tax cuts in the stimulus package.

[dbackjon]

This is the FIRST thing Obama has said that I 100% agreed with. These fcukers need to be taken out and shot.

It's true. Actions like that will make people more leery of what may be a good suggestion by Congressional Republicans to raise the amount of tax cuts in the stimulus package.

Yup - they are making it much more difficult for any more stimulus/bailout/tax cuts that would benefit them.

[Wedgebuster]

All they have to do is claim they earned it, and then bless God a few times, and all will be forgiven.

[danefan]

To play a little devil's advocate here - some people really did earn it and not paying some of these bonuses would actually hurt some of these wall streat banks more than paying them actually does.

There are some really talented people who had some incredible foresight and actually made their respective employer a LOT of money this year. Those people, IMO, deserve a bonus - because without them who knows how much worse off some of these banks could have been. And the way the investment banking world works, if you don't pay these bonuses you will lose talented people to other banks and some who form their own hedge funds and the like. And that will hurt their former employer more than just paying out a $10 million bonus.

Now, there are, undoubtedly, some people who received bonuses that most likely did not deserve them. But that doesn't necessarily mean everyone who received a bonus didn't earn it.

[houndawg]

To play a little devil's advocate here - some people really did earn it and not paying some of these bonuses would actually hurt some of these wall streat banks more than paying them actually does.

There are some really talented people who had some incredible foresight and actually made their respective employer a LOT of money this year. Those people, IMO, deserve a bonus - because without them who knows how much worse off some of these banks could have been. And the way the investment banking world works, if you don't pay these bonuses you will lose talented people to other banks and some who form their own hedge funds and the like. And that will hurt their former employer more than just paying out a $10 million bonus.

Now, there are, undoubtedly, some people who received bonuses that most likely did not deserve them. But that doesn't necessarily mean everyone who received a bonus didn't earn it.

Move money from one pile to another and keep some for yourself. Yeah, real talent.

[BigApp]

on Obama's donor list:

Lehman Brothers Executives:
CEO Richard Fuld ($2,300
President Joseph Gregory ($4,600)
dozens of other top Lehman Executives
John Rhea - (over $500,000) Co-Head of Lehman Bros. Global Investment Banking
Mark Gilbert - (over $500,000) Lehman Brothers Senior Executive
Christine Forester - (over $500,000) Lehman Brothers Senior Executive
Theodore Janulis – Bundler (over $100,000) & Lehman Brothers Head of Global Mortgages
Nadja Fidelia – Bundler (over $50,000) & Managing Director of Lehman Brothers

Merrill Lynch:
Stan O'Neil $6,900 (senatorial committee, of which $2300 was returned)
Charles Lewis – Vice Chairman of Merrill Lynch

Subprime Lenders:
Brad Morrice, former CEO and President New Century Financial $4,600
Steve Boland, a managing director at Countrywide donated the maximum
Andrew Beer, president of Wachovia’s subprime lender Evergreen Investment Partners, maximum
Joseph Azrack, the president of Citigroup Property Investments
Dozens of other Citi Executives heavily contributed.
Eric Schwartz, the co-head of Goldman-Sachs Global Asset Management, helped to raise over $100,000
Robert Wolf, the CEO of UBS Americas, helped raise more than $500,000
Louis Susman, the Chairman of a Citibank Subsidiary, helped raise another $500,000

Other High Profile Financial Executives:

John W. Roberts - (over $500,000) Ariel Capital Management
Richard Leweke – Vice Chairman of Washington Mutual Card Services
Seth Waugh – CEO of Deutsche Bank

Francisco Borges – Over $50,000 Chairman of Landmark Partners a private equity real estate firm.

Michael Froman – Over $200,000 Managing Director of Citigroup
David Heller – Over $200,000 Managing Director of Goldman Sachs
Bruce Heyman - Over $200,000 - Managing Director Goldman Sachs

J. Michael Schell – Over $200,000 Managing Director at Citigroup
Jim Torrey – Over $500,000 Founder of the Torrey Funds – Hedge Funds
Todd Williams – Over $50,000 Managing Director Goldman Sachs & The Real Estate Council
Louis Susman - Over $200,000 Citi Investment Banking

[houndawg]

on Obama's donor list:

Lehman Brothers Executives:
CEO Richard Fuld ($2,300
President Joseph Gregory ($4,600)
dozens of other top Lehman Executives
John Rhea - (over $500,000) Co-Head of Lehman Bros. Global Investment Banking
Mark Gilbert - (over $500,000) Lehman Brothers Senior Executive
Christine Forester - (over $500,000) Lehman Brothers Senior Executive
Theodore Janulis – Bundler (over $100,000) & Lehman Brothers Head of Global Mortgages
Nadja Fidelia – Bundler (over $50,000) & Managing Director of Lehman Brothers

Merrill Lynch:
Stan O'Neil $6,900 (senatorial committee, of which $2300 was returned)
Charles Lewis – Vice Chairman of Merrill Lynch

Subprime Lenders:
Brad Morrice, former CEO and President New Century Financial $4,600
Steve Boland, a managing director at Countrywide donated the maximum
Andrew Beer, president of Wachovia’s subprime lender Evergreen Investment Partners, maximum
Joseph Azrack, the president of Citigroup Property Investments
Dozens of other Citi Executives heavily contributed.
Eric Schwartz, the co-head of Goldman-Sachs Global Asset Management, helped to raise over $100,000
Robert Wolf, the CEO of UBS Americas, helped raise more than $500,000
Louis Susman, the Chairman of a Citibank Subsidiary, helped raise another $500,000

Other High Profile Financial Executives:

John W. Roberts - (over $500,000) Ariel Capital Management
Richard Leweke – Vice Chairman of Washington Mutual Card Services
Seth Waugh – CEO of Deutsche Bank

Francisco Borges – Over $50,000 Chairman of Landmark Partners a private equity real estate firm.

Michael Froman – Over $200,000 Managing Director of Citigroup
David Heller – Over $200,000 Managing Director of Goldman Sachs
Bruce Heyman - Over $200,000 - Managing Director Goldman Sachs

J. Michael Schell – Over $200,000 Managing Director at Citigroup
Jim Torrey – Over $500,000 Founder of the Torrey Funds – Hedge Funds
Todd Williams – Over $50,000 Managing Director Goldman Sachs & The Real Estate Council
Louis Susman - Over $200,000 Citi Investment Banking

That class gives to both sides; sounds like they aren't getting what they wanted this time.

[slycat]

Good for Obama. Who cares if you skip one yearly bonus? These Wall Street are greedy as hell.

[AZGrizFan]

While I'm sure there's some valuable employees on the long list of those receiving bonuses, I read that this years TOTAL bonus payout was the 6th largest EVER on Wall Street. In this economy, with the performance (and failure) of most of the firms on that list, it is truly an embarrassment.

[houndawg]

While I'm sure there's some valuable employees on the long list of those receiving bonuses, I read that this years TOTAL bonus payout was the 6th largest EVER on Wall Street. In this economy, with the performance (and failure) of most of the firms on that list, it is truly an embarrassment.

Robbery is what it truly is.

[AZGrizFan]

While I'm sure there's some valuable employees on the long list of those receiving bonuses, I read that this years TOTAL bonus payout was the 6th largest EVER on Wall Street. In this economy, with the performance (and failure) of most of the firms on that list, it is truly an embarrassment.

Robbery is what it truly is.

Agreed.