Obama: I Don't Begrudge Wall St. CEO Bonuses

By: Stephanie Condon
Topics: Economy

(AP)

In an interview with Bloomberg News, President Obama likened bonuses for Wall Street CEOs to outrageous salaries for athletes, but he said he does not begrudge the bank chiefs for pulling in such hefty sums.

"I, like most of the American people, don't begrudge people success or wealth," Mr. Obama said. "That is part of the free-market system."

JP Morgan Chase CEO Jamie Dimon was awarded a bonus of around $16 million for 2009 after leading the company to profit through the financial crisis. Goldman Sachs Group CEO Lloyd Blankfein, meanwhile, is getting a $9 million bonus for 2009 after his company's profits soared last year.

Mr. Obama called both Dimon and Blankfein "savvy businessmen" but said they are making "an extraordinary amount of money." Still, he said, "there are some baseball players who are making more than that and don't get to the World Series either, so I'm shocked by that as well."

Both executives are receiving their bonuses in stock rather than cash, something the Obama administration has advocated as a way of ensuring more stability in the banking industry. Receiving a stock bonus, Mr. Obama said, "requires proven performance over a certain period of time as opposed to quarterly earnings."

Analysis from MoneyWatch.com's Jill Schlesinger

Stephanie Condon
Stephanie Condon is a political reporter for CBSNews.com.
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by redwilma February 11, 2010 12:41 AM EST

I'm really mad at the Republicans and Dinos in the Senate who do not support Obama's plans! They are just saying "NO" to everything because they think it will hurt Obama and that will help them, or they feel hostage to a constituency who listens to Fox News and Rush Limbaugh! Such Misinformation! And I'm sick of everyone blaming Obama for everything. No one could have done a better job than he has done. No one. And, he can't do anything alone. He NEEDS Congress to back him up. And, he needs people (like us) to speak up for him and for his ideas. So, please stay informed and engaged. Tell Congress we want Obama's plans.

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by JWinATL February 11, 2010 10:08 AM EST: Obama had a supermajority in the Congress and couldn't get his left wing agenda through. The people want jobs. Healthcare is important, to be sure. I have been working for 43 years and plan to retire soon, so it is on my mind. But, let's do it rationally and carefully. If the goal is to insure those who want insurance, let's try to arrange it in a cost-effective manner. I believe it was Joe Biden who talked about "skin in the game." If people don't pay taxes, where is the skin? We need to move to a flat tax (or "fair tax" if they could get the system worked out) so that everyone who lives in the US pays something. Then, I would have no problem with low-cost alternatives being offered. I am just tired of paying, and paying, and paying, and never getting anything back. As a Republican, when I say I will take my Social Security, I get the usual left wing "I thought you didn't want big government!" I don't. I wasn't given a choice whether or not to contribute into it, and contribute I did for 43 years (and into Medicare as long as they have been collecting for it). So, why shouldn't I get paid back?

Honestly!


by shrink_this_government May 1, 2010 12:15 PM EDT: Wow, redwilma, you really don't get what is going on. When a president and congress are fundamentally wrong like they are, I am thankful that they are being stopped. I just hope it lasts long enough to minimize the damage they are doing to our country. Everybody agrees that tax breaks and rebates help stimulate the economy. Why then are they not occurring? Because when the vast majority of those who support him do not pay taxes anyways. For a man who has never really held an actual job or had to run a business to state that people make too much money and wealth needs to be redistributed does not hold an ounce of credibility. Every time he opens his mouth, I am reminded of the Martians in Mars attacks saying "We come in peace" while they are killing people. His lies are as bad and as often.


by CBSisCommunist5 February 10, 2010 7:29 PM EST: He will just tax them. And appoint more CZARS...; Reply to this comment


by cidaia February 10, 2010 6:29 PM EST: "That's part of the free market system"

Really Obama??!!!???

SO is FAILURE, when you SCREW UP.....; Reply to this comment

by curse914 February 10, 2010 4:50 PM EST

by GreatDepression February 10, 2010 4:40 PM EST
lloydbest1

Greed was behind all the previous 37 Recessions and 3 Great Depressions since 1776.

As long as Greed is not Firmly Controlled like in Communist China and Vietnam, you can blame all you want and Greed will come back stronger than ever next time.

=================

I have to disagree. That would be to replace one Aristocracy with another.

Our mixed economic model worked just fine until it was deregulated to the point that it resembled the Gilded Age.

That is not a failure of our form of regulated Capitalism. That is a failure of our Politicians to keep regulations in place that were sound and proven to work.

Reply to this comment


by GreatDepression February 10, 2010 6:13 PM EST: curse914

I stand by my point which you just re-enforced or re-affirmed.

by GreatDepression February 10, 2010 4:36 PM EST

-Knock Knock, my name is Bill Gate from software giant MicroSoft.
-What can I do for you.
-Here is a box with about $10 Millions in Cash for your upcoming Re-Election Campaign. I want you to always rule in favor of Walls Street.
-Please give it to my staff. Ask them for the Bank Routing and Account number so that you do not have to bring another box next time.
-Oh No! C-SPAN is filming us right now and taking a lot of pictures.
-Do not worry, the 5 Conservative Justices of the U.S. Supreme Court decided that this Corruption is perfectly Legal and Constitutional.
-Wow great! I have to go now. I have about 100 more boxes with cash for other key political leaders.
-Thank you for your kind donation and may God help Microsoft earn more profits.

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by curse914 February 10, 2010 4:57 PM EST: It is worse than that. These corporations do not have to let you know they are the ones giving money to any specific candidate. They can still hide the money via nonprofits like the American Future Fund. Otherwise you could choose to boycott said corporations products, and we cant have that sort of "freedom of educated choice"; not in America.

by lloydbest1 February 10, 2010 4:31 PM EST

""I, like most of the American people, don't begrudge people success or wealth," Mr. Obama said. "That is part of the free-market system.""

I have to disagree. It is NOT free market strategy to allow corporations to survive their shockingly bad decisions by virtue of the good graces of the American taxpayer. Nor is it appropriate to use that bailout money (even were it justified) to fatten the pocketbooks of already overcompensated executive level management.

The justification that bailing out many of those firms considered "too big to fail" would prevent our economy from spiraling into a major depression is only partially valid, even from a theoretical standpoint. Although things look a great deal better than a year ago, we have not yet demonstrated the American economy won't suffer another downturn. In any case the defense of bailouts completely sidesteps the most important aspect of "too big to fail". That's to say that anything too big to fail is, by that definition alone, too big to be allowed. These firms should have been broken up years ago. We might not be in the mess we're in today if some of these giants were Bonzai'd in the 80's or 90's.

Please don't get me wrong. Some personal wealth is not only appropriate but striving for it is to be encouraged. The more of us who earn our way and have the talent to make some extra; the more of us who will survive future "oop's" and take pressure off our over stressed social services system. But to wave off those who earn more in a day than you, sir, do in a year....That's absurd - and it's GOT to stop.

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by GreatDepression February 10, 2010 4:40 PM EST: lloydbest1

Greed was behind all the previous 37 Recessions and 3 Great Depressions since 1776.

As long as Greed is not Firmly Controlled like in Communist China and Vietnam, you can blame all you want and Greed will come back stronger than ever next time.


by curse914 February 10, 2010 4:17 PM EST: by TeaPartyPatriot February 10, 2010 3:59 PM EST
It was recently reported that the loony-left d-crat socialists have received TENS OF MILLIONS in campaign contributions from BIG BUSINESS, including banks and other financial institutions - far more than the GOP got.

Evidently, that was money well spent: as with the "Cornhusker Kickback" and the "Louisiana Purchase", the d-crat socialists can be BRIBED into agreeing to ANYTHING, no matter how disgusting.

===============

Are you really trying to make the case that Democrats are the only ones that work for Wall Street? You need to look at the previous four administrations cabinets.

McCain received a third of the money Obama received from the Financial sector. The only argument that could rationally be made from this is that the GOP are 10 dollar ****** and Democrats are "escorts".

And anyone who feels the need to have "patriot" in their name is most likely not a patriot.; Reply to this comment


by infantryman1968 February 10, 2010 4:17 PM EST: Obama: I Don't Begrudge Wall St. CEO Bonuses

LOL

Obama is out there siding with Big Business now!

Change We Can Believe In? Yes We Can!; Reply to this comment

by curse914 February 10, 2010 4:09 PM EST

by GreatDepression February 10, 2010 3:30 PM EST
Sorry, I take this comment back. If the Confederate States were allowed to Separate from the Union, then they would be unfunctional like Haiti and we would have to constantly provide free handouts, Aid and Support to keep them alive.

===================

The Souths economic model was built on slaves (cheap labor) and cotton. The Union threatened the Souths' Aristocracy.

Another war instigated by Class War.

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by GreatDepression February 10, 2010 4:12 PM EST: curse914

(cheap labor)?

I thought it was Totally Free Labor - the Paradise of Capitalism and Lazy people.


by olyboy February 10, 2010 3:29 PM EST: I can't believe that your headline is a direct quote. No one could tell a lie that big and expect to get away with it.; Reply to this comment