Huffington: Bank Bailouts Could Be Obama's "Achilles' Heel"

(CBS)

In spite of President Obama's insistence Wednesday night that he is not interested in running banks, liberal commentator Arianna Huffington said the money the administration is pouring into the banking sector could be "the Achilles' heel of this administration."

Administration officials "have really treated the very people who got us to where we are with kid gloves," Huffington told Katie Couric during our special CBSNews.com Webcast following Mr. Obama's prime time news conference.

Banks have been able to wield powerful influence in Washington, in spite of their dependence on government handouts, Huffington said, by attempting to de-rail bankruptcy legislation that would help consumers. Moreover, she said, banks continue to raise credit card rates to astronomical levels.

The administration has said it is willing to hand more money to those banks deemed vulnerable by government "stress tests."

"The idea that we're going to give them more money even though... their lending is down shows the goals behind this program have not really been fulfilled," Huffington said.

She said that Citi must be taken into temporary receivership.

"Everything else is simply delaying the inevitable at tremendous cost to the taxpayer and the public," Huffington said.

You can watch the video below:

Obama's First 100 Days

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CBSNews.com's 100 Days Webcast With Katie Couric:

• Watch The Full Webcast


• Huffington: Bank Bailouts Could Be Obama's "Achilles' Heel"


• Valerie Jarrett Defends Obama On CIA Memos


• Republicans Ponder: What Next?


• Americans Sound Off On Obama's 100 Days


Recap, Analysis & Reaction:

• Photos: 100 Pictures For 100 Days


• Timeline: The Obama Presidency Day By Day


• Steve Chaggaris: 100 Days In, A Presidency Still Undefined


• Brian Montopoli: What Has Obama Meant For Black America?


• Marc Ambinder: Grading Obama's First 100 Days


• Mark Knoller: 100 Days By The Numbers


• Lara Logan: New President To Be Tested By Old Enemies


• Declan McCullagh: Obama's Transparency Vow Receives Mixed Reviews


• Jessica Derschowitz: The "Obama Effect" In Pop Culture


• Around The Web: What The Media Are Saying


• Chart: 100 Days In The Stock Market


• Word Cloud: President Obama's Words
• Polls: Obama | Race Relations | Torture | Same Sex Marriage | Our Poll, Your Questions | Video: Polling Director
• Complete 100 Days Coverage

[sorrybroke53]

I have always considered my debts priority. But I have been tortured for being responsible in paying my debts. I have been loan sharked to the max by out of control interest rate increases,deceit,and fees for no reason other then the credit card aka Banks making something up for their reason for tacking on fees! I am now so sick of this that I am considering what I would of never done...Im so frustrated at the lies of these thieves! I am just not going to pay credit cards intill Mr.Obama decides to get it right! not giving them 9 months to screw us over royal!!!! I will pay when the banks get real and not any sooner, America if you are facing my dilema we need to ban together before this gets worse after all we do need food and water,and paying them everything you have its hard to do that! Actually I have went without a lot to pay the loan sharks...And they dont care even if I should of been a Valued customer...I hung in there as long as I could thats why IM sorry and Broke1 I didnt get any bail out...I just auctioned everything to keep up with them and I lost this battle.Thanks Mr.Bush and Mr.Obama for all your help for the middle class Thanks for turning my life up side down!!!