Obama Versus the "Fat Cats"

(CBS)

President Obama has ratcheted up his rhetoric against Wall Street just as some of the nation's top bankers head to the White House for what looks increasingly likely to be a tense and combative meeting.

In an interview with "60 Minutes" correspondent Steve Kroft, the president went after what he called the "fat cat bankers on Wall Street." He said bankers have not shown "a lot of shame" about their behavior and outsized compensation despite the bank bailouts and economic downturn.

After stating that the financial crisis was "caused in part by completely irresponsible actions on Wall Street," Mr. Obama suggested that some banks paid TARP bailout money back to the government specifically to free themselves from government-mandated constraints on executive compensation.

"I think in some cases that was a motivation," said Mr. Obama. "Which I think tells me that the people on Wall Street still don't get it. They don't get it. They're still puzzled, why is it that people are mad at the banks?"

"Well, let's see," continued the president. "You guys are drawing down $10, $20 million bonuses after America went through the worst economic year that it's gone through in decades, and you guys caused the problem. And we've got ten percent unemployment. Why do you think people might be a little frustrated?"


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He went on to say there is a Wall Street culture that feels "it's always making good decisions, and if it's not, then it's somebody else's fault."

Mr. Obama, who is pushing a "targeted jobs package" to address the lagging employment rate, meets Monday with some of the very people who he seemed to be targeting in the interview.

More from President Obama on "60 Minutes":

Transcript: President Obama, Part 1
Transcript: President Obama, Part 2
Obama Versus the "Fat Cats"
Obama: Gatecrashers Lapse "Won't Happen Again"
Obama: Senate Will Pass Health Bill by Christmas
Web Extra: Afghanistan and Pakistan
Web Extra: What Pakistan Must Do
Web Extra: Why This War?
Web Extra: His Biggest Frustration
Web Extra: Unfinished Business
Web Extra: The Party Crashers

Among those traveling to the White House for the meeting are Goldman Sachs' Lloyd Blankfein, JPMorgan Chase's Jamie Dimon and Bank of America's Ken Lewis. Bank of America repaid its $45 billion in TARP money just last week.

The meeting could be awkward, to say the least. Even before the president channeled populist anger in the "60 Minutes" interview, a source close to a top bank C.E.O.s told CBSNews.com that the banker is feeling "buyer's remorse" about Mr. Obama, who, the source suggested, was unfairly demonizing Wall Street.

On Friday, against the wishes of many on Wall Street, the House passed "the most ambitious restructuring of federal financial regulations since the New Deal." Mr. Obama immediately lauded the bill, which will have to be reconciled with a Senate version.

Large banks have been lobbying against the legislation and broadly against efforts to increase regulation of Wall Street. Their efforts have come to the consternation of White House officials already upset with banks for what they see as an insufficient willingness to increase lending levels.

"For them to be complaining about serious regulation directed at making sure this never happens again is wrong," White House economic adviser Larry Summers said on CNN Sunday. "For $300 million to be spent on lobbyists trying to gut serious efforts at financial reform is not how this country should be operating. For firms that have benefited from taxpayer support to be complaining about the government burdening them is, frankly, a bit rich."

There is some question as to whether Mr. Obama and the White House are more bark than bite on the issue. In a recently-released Rolling Stone article, Matt Taibbi complains that Mr. Obama, in building his economic team, shipped "even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place." (Taibbi's piece has its critics.)

Still, Wall Street bankers don't seem to see Mr. Obama as someone who "proceeded to sell [Americans] out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside," as Taibbi puts it. (Or, if they do, they're not saying so.) They seem to see him more as someone who is ginning up potentially-dangerous populist anger for political reasons, and who is pushing through regulations that will hamper their ability to drive the American economy.

The president doesn't seem all that intent on changing their mind.

"…unfortunately this is like the guy who has dynamite strapped around him and his finger on the button," Mr. Obama said on "60 Minutes" in reference to the unpopular decision to bail the banks out in the first place. "You know, you gotta kind of talk him down because all of us could go."


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[Wellnesss]

A very interesting interview. As for me, I agree with the President. These were the work of the banks which caused the crisis. But on the other hand let's not forget about the responsibilities of the government and Central Bank to control all the banks. I liked how the President called the bankers Fat Cats. Earlier I associated it only with the group Fat Cats. Its songs can be found at mp3 music search engine http://www.mp3hounddog.com . But now I will remember the bankers too:)

[stn_sage]

I think Obama's discontent with bankers is less than honest on his part!
So far, he's given them whatever they wanted!
He appointed a bunch of insider lobbyists...which he said he wouldn't do!
And, he appointed a bunch of Wall St regulars like Geithner and Summers.
He gave the Fed and Wall St a huge bailout...AGAINST the public and the better judgment of economists and realists...and now...

He pretends to criticize 'his pals', LMAO, he's simply NOT believable!

[reveal4]

Actually, the President just told about 13,000 Washington lobbyists to take a hike. stn sage...You are simply not believable... anymore.

[citizenusa-2009]

BTW, unless one or more of you bloggers are worth a million or more, you are all too dumb to realize that this President is speaking up and defending YOUR RIGHTS.

Wow,you morons are like the woman whose husband is caught beating her on the front lawn..when the cops try to cuff him, you jump up and defend the man that just broke three of your ribs...no wonder the whole world looks at us and sadly shakes their heads...

[citizenusa-2009]

We've FINALLY elected an official (and the TOP one at that) who truly represents US! You folks don't know what to make of this unusual situation so in your Neanderthal fashion, you are trying to pick it apart to actually see what is happening here. Hello? The man and his administration are TRULY the "smartest guys in the room" and the banks are c.r.a.p.p.i.n.g. themselves.

The banks have gone unchecked for so many years and were allowed to molest the middle class with ease. They never thought the good times would end for them. Well, folks, the party is OVER. Thank God for Obama. All he needs to do now is get us out of those two immoral, stinking Republican fueled wars and he will be President for LIFE!

[deltablue]

You people do realize half, if not more, of Obama's administration is from Wall Street. You do know his campaign, as is true with all American elections for high office, was funded by Wall Street. You are aware Wall Street funds insurgencies around the world. Insurgencies that tend to get out of control to the point the American military is sent in to clean things up so Wall Street and others can move in, set up shop and peddle their products to the unwashed masses. You also realize this has been going on for decades, in both Republican and Democratic administrations. From reading most of these comments, I'm not sure you do. But you should.

[starving1968-1]

Larry Summers and Tim Geithner.

Two out of HUNDREDS (thousands?) of people in the administration, is 1/2 according to you?

[carami6]

all these big banks should fail since they ripped off consumers and giving themselves bonuses

[mikedudical]

I can't believe America has come to this. We have the President politely asking the big Banks he just bailed out to lend money. The small Banks and Credit Unions will be the heroes in all this, assuming they can survive the foreclosure and repossession wave (see: http://www.repofinder.com). Break up the big Banks (a.k.a. Crooks) and let the free market be free.

[ctb4679]

Obama should have got some concessions from banks before he signed off on any money for aid for them. It's a bit late now. Obama needs to learn how to be a good horse trader--how to withhold or cut off something the banks or Republicans want in return for something from them, such as written into the bank aid to loan a percentage of the aid to small business and for mortgage refinances instead of foreclosures, and to get votes from the Republicans. Obama needs new advisors, some old-timers and seasoned people in Washington, and someone with a sharper eye for a deal.

[cbs4111]

This article is well worth reading. The punch line is 1) Obama needs to fire Geithner, and 2) Congress is in the pockets of Wall Street.

http://www.rollingstone.com/politics/story/31234647/obamas_big_sellout/6

[WiseAsOwl]

I don't care what the Repubs did in the past... I don't care what the Dems did in the past... I DO CARE what Obama does now.. and I hope he does the right things... or we're "going down"..... Sure, he's not going to be a factor after the next presidential election, but that doesn't mean he can't really mess things up until then... Dems... it's up to you to put a leash on Obama... For now, the Repubs are pretty powerless...