Peter Morici: Obama Fails to Stem Bonus Abuse

[highplainsdem]

http://www.thestreet.com/story/10658633/1/obama-fails-to-stem-bonus-abuse.html

Wall Street leaders argue the bonuses were earned, much like jewel thieves refer to a big heist snatched from an impenetrable safe.

Wall Street has kept its mischief legal by salting the pockets of politicians running for Congress and president, and by making certain that key policymakers at the Treasury and Federal Reserve are faithful Goldman Sachs alumni.

Those bonuses were made possible by billions in taxpayer-financed funds from the Troubled Asset Relief Program and nearly $2 trillion in loans from the Federal Reserve and through the Federal Deposit Insurance Corp.

-snip-

The fallout is a dramatic drop in the interest paid by banks for private capital too. Retirees suddenly found certificates of deposit that once paid 4% or 5% interest now pay 2% or 3%.

Essentially, Treasury Chief Timothy Geithner and Fed Chairman Ben Bernanke are taxing grandma to subsidize Goldman Sachs and finance huge big paydays for bankers who hatched the greatest financial calamity in 80 years.

-snip-

Americans should expect better but won't get it as long as Obama has the audacity to hope voters will look the other way.

[OHdem10]

1. Never expect a New Democrat to do anything that would upset

Wall Street.