Obama Calls For Oversight In Bank Bailout as Execs Continue Flamboyant Spending

February 2, 2009

US (ChattahBox) – In a measure that many US citizens have been crying out for since the beginning of the bailout, President Obama has called for greater oversight when dealing with companies seeking government aid.

Obama has been opened about his critical views of the way banks have mishandled bailout money, and was one of many political figures outraged over executives doling out large bonuses as employees lost jobs, and banks went further under the crashing financial waves.

“The banks, because of mismanagement, because of huge risk-taking, are now in a very vulnerable position,” he said in a recent NBC interview.

The solution, he believes, is increased government oversight into what is being done with the billions of dollars set to try and save institutions from the economic crisis, although he has commented that “some banks won’t make it”.

“If a bank or a financial institution is getting relief then they’ve got to abide by certain conditions.”

More details are set to be released next week.

You’d think the financial execs would have learned something from the experience of their automaker counterparts in Detroit, who stirred up a storm of criticism when they flew in private jets to panhandle for federal bailout money.  But bailout beneficiary, Citigroup, only backed off plans to purchase a new $50 million corporate jet after receiving criticism from the president.

Officials were quick to ratchet up pressure on the bankers to back off big bonuses, including Senate Banking Committee chair Christopher J. Dodd, D-Conn, threatened to haul offending executives before the committee for grilling.

New York Attorney General Andrew Cuomo has already issued subpoenas to probe the issuance of more than $4 billion in bonuses by former Merrill Lynch executive John Thain shortly before the company was acquired by Bank of America, which has received $45 billion in equity investment from the government.

Thain himself has become a poster boy for flamboyant spending while the economy burns, including a million-dollar-plus re-do of his office that included a $35,000 commode. He has since promised to refund the expenditures to Bank of America.


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