White House Defends Billions To Banks

[sabra]

Source: CBS News/AP

Bipartisan Congressional Criticism Aimed At Possible Use Of Funds To Reward Executives

(AP) Under fire from Democrats and Republicans alike, the White House on Thursday defended giving billions of taxpayer dollars to banks that plan to use some of the money to reward shareholders and executives - or even buy other banks.

Ed Lazear, chairman of the Council of Economic Advisers, said the government is keeping close tabs on the way banks use bailout dollars to "make sure that there are not abuses." But he said that normal activities of banks, such as paying performance-related salaries or distributing dividends or even purchasing other banks are allowed under the law Congress passed creating the bailout program.

...

"That's almost like a gun at their heads, so that they know that they have to start making money to be able to do that," White House press secretary Dana Perino said. She noted that "not only rich people get dividend payments," which can form a significant portion of income for retirees and mutual funds.

"I want to make sure people understand that a lot of people could suffer if they don't have dividend payments," Perino said.

On executive pay, she said that participating banks are complying with the law's requirements. Under the law, an executive who receives a bonus based on false financial statements must repay it. The law also says that "golden parachutes" are not available for the top five executives of a company.

"I'm not here to defend Wall Street," Perino said. "I'm not here to defend their pay practices. But this is the law as it was set out, that was passed by Congress."

Read more: http://www.cbsnews.com/stories/2008/10/30/national/main4558528.shtml?tag=topHome;topStories

[ixion]

1. "this is the law as it was set out"

so for all of those who said we should trust the BFEE, I offer this as evidence to the contrary.

This is what the BFEE wanted, and it's what they got. :grr:

[tech3149]

2. Yea, we all believe the "Tiny Dancer of Deception" Perino

These jerks haven't learned that our BS detector is at maximum sensitivity. We just ain't buyin' it anymore.

[McCamy Taylor]

3. This is real easy. No more than $X in dividends to any individual.

That means that small shareholders will get a little and big shareholders will get a little too. And no bank gets to buy another bank. If a bank tries to buy a bank with taxpayer money, the taxpayers own it and that bank is just managing it and the second bank will be allowed to buy it from the taxpayers later. And the CEOs can kiss the taxpayer's ass if they want bonuses. I think we could arrange something like for every X that the company pays back of the billions they get, the CEO gets some small percentage of that as a bonus, just to encourage them to repay their debt to the taxpayer.

It is time that America stops being a fascist state that is run by the business idiots who can not even keep the economy sound. They do not deserve a bailout. We, the taxpayers, deserve to have our economy fixed. If we have to apply some money to the banking system to do it, then so be it. But the greedy, short sighted bankers should get nothing but a second round of public investigative hearings modeled on the Pecora Hearings. Hah! Boy, are they going to love that. Rip Phil Gramm a new one. Make him learn the mean of the word "whiner".

[formercia]

4. They were hoping to rape the Social Security funds

but when Junior's scam to privatize it fell through, he made it up to the boys.

Some consolation prize. They only get 700 Billion instead of 900 Billion. I guess that's the discount for a lump-sum payment.