Huffington: Bank Bailouts Could Be Obama's "Achilles' Heel"
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: Proud But Not Content
- Obama Urges Swine Flu "Contingency Plans"
- Obama: Info Gained Doesn't Justify Torture
- Obama: "I Don't Want To Run Auto Companies"
- Obama's "Enchanted" Answer
- Obama Hints At Change To "State Secrets" Privilege
- 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
- 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
Obama's Press Conference:
CBSNews.com's 100 Days Webcast With Katie Couric:
Recap, Analysis & Reaction: