Obama and McCain agree: bailout shouldn't reward CEOs
As Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson try to persuade Congress to pass a $700 billion bailout quickly, the men vying to be the next president continue to raise concerns and agreed today on one priority -- Wall Street CEOs shouldn't make out like bandits.
"It is wrong to ask teachers and farmers and small business owners to fill the gas tanks of the helicopters of Wall Street tycoons," Republican John McCain told reporters in Michigan this afternoon. "The senior leaders of any firm that is bailed out should not be making more than the highest paid government official."
McCain said inaction is not an option, but told reporters in Michigan that, "$700 billion is a staggering and unprecedented figure...a $10,000 contribution per household."
He declined to say, however, which of his requirements for the bailout -- more transparency on which firms get helped, an independent oversight board, no excessive CEO pay, a cost recovery method, and no earmarks -- would be a deal-breaker for him.
Democrat Barack Obama said in Florida that there are reports that "some CEOs may refuse to cooperate with this plan if they have to forgo multi-million-dollar salaries."
"I cannot imagine a position more selfish and greedy at a time of national crisis," he told reporters. "And I would like to speak directly to those CEOs right now: Do not make that mistake. You are stewards for workers and communities all across our country who have put their trust in you. With the enormous rewards you have reaped come responsibilities, and we expect and demand that you to live up to them. This plan cannot be a welfare program for Wall Street executives."
McCain and Obama also agree that there needs to be more oversight of how the bailout works, not just giving unprecedented power to Paulson.
Obama also called for more help for "innocent homeowners who are facing foreclosure," possibly through the federal government buying mortgages directly instead of just taking questionable mortgage-backed securities off the hands of Wall Street firms and banks.
And he called for another economic stimulus package to help Main Street and struggling families.
Chris Dodd and his fellow Dems are responsible for this mess. They failed to regulate Fannie Mae and Freddie Mac when the Republicans, including John McCain, wanted to. Now, they are playing politics with the bailout. Dodd was number one on the Fannie Mae and Freddie Mac campaign donation list and Obama was two.
The Bush Adminstration shouldn't expect action on its proposed bailout for Wall Street to be any faster than its own action in the wake of Katrina.
Sterling Greenwood
Aspen Free Press
Amazing, looks like a Democrat and Republican can actually agree on something!
I like how Obama took some time to think out his response to this crisis. McCain seemed to just respond immediately without any thought. Then again that is a very conservative way of thinking... from the gut (thank you Mr Colbert).
And Bush wants this plan to be approved "right away" so that these fat cat executives can run away with millions before anyone can make sure they don't!
goverment should stay out of it, you should all pull your money out of the bank and hide it under your mattresses. let the super whealthy ceo`s and board members whom created this mess pay for it out of there own pockets.
Andy, the employees of Fannie and Freddie donated to Obama. The actual LOBBYISTS for Fannie and Freddie gave over $169K to McCain, and $16K to Obama. Don't go throwing out half-truths! I guess you believe every story the Republicans feed you?
I can't believe that the government is going to bail out this mess. What about the fat ceo's that are supposed to be running this thing. What about small buisiness owner's like myself who are struggling to make ends meet in the wake of the houseing crunch. It amazes me how we as Americans, let these greedy politicians run this country. Are we to believe that because they are filthy rich they can run this country for the 90% of us who are not. We need big change. The kind of change we might fear. This country is amazing and we as a nation have to elect the best canidate for the job. The problem with that is that everthing you read is biased by only clips of information. We need to research for ourselves to find the truth. Then one wonders, who wrote the information my mind wants to believe. We need honesty and truth. Not what the majority needs to hear to sway the vote. Wake up Americans and take back your country!! United We Stand.
This is all the Democrats' fault. Even though the Republicans controlled the White House, Congress and the courts, the Democrats did nothing to stop the Republicans from letting this happen. For shame.
The Republicans have been carefully crafting this scenario since they took over Congress in 1994 with Gingrich's "Contract on America". It can't be undone in the year and a half since the Democrats have had control of Congress, even if they wanted to (which, apparently, they didn't). The damage was already done.
CHRIS DODD 2 MONTHS AGO SAID FANNY AND FREDDIE WERE IN GREAT SHAPE ,AMAZING WHAT TWO HOUNDRED GRAND WILL BUY.. BARRY FRANK IS ALSO IN THE TANK. THESE GUYS ARE PART OF THE SAME CREW UNDER CLINTON THAT FORCED THE BANKS TO MAKE THESE LOAN TO PEOPLE WHO COULDN'T PAY AND DOOMED THEM TO FAIL..................SORRY GUYS, BUT THAT'S THE PURE TRUTH.
HEY Posted by mb YOU BETTER GO FOR AN EYE EXAM OBAMA WAS #2 ON THE LIST AFTER DODD......................MCCAIN WAS WAY TOWARDS THE BOTTOM OF THE LIST.
Since 2006, the federally sponsored mortgage giant Freddie Mac has paid at least $345,000 to John McCain's campaign manager Rick Davis. Davis was charged with the task of promoting home ownership while at the same time counter efforts of the government to impose tighter loan regulations. This is considered as one of the cause of the current major meltdown financial crisis in the country since the 1930s economic depression.
Although the previous arrangement had terminated, Rick Davis himself approached Freddie Mac in 2006 and asked for a new consulting arrangement. As a result, Davis's Washington, D.C. based lobbying firm known as Davis & Manafort received $15,000 a month from Freddie Mac until last month. The arrangement was approved by Hollis McLoughlin, Freddie Mac's vice president for external relations. Davis being a campaign Manager and a potential Chief of Staff for the next President it was felt you couldn't say no.
Despite of this new revelation, it is not ideal for Davis to voluntary or be requested to step aside at this time, six weeks before the general election.
Let the banks fail. Why should the US Taxpayers pay for the sins of the overzealous bankers and ignorant mortgage holders, many of whom should not have qualified. (Many are entiled immigrants, including illegal.)
Maybe the country needs to learn a tough lesson again. I doubt the liberals could stomach that.
How about a John Kerry bailout plan, since his wife is the wealthiest in the US Senate?
Andy, you sound just like a Republican "counter-intelligence" agent of the Karl Rove mold, spreading misinformation. Republicans have been the driving force behind the deregulation of the financial markets that have landed us in this mess. And John McCain has been one of the their strongest supporters of such deregulation. McCain has changed his position on deregulation only in the last week, once he *finally* realized the mess that his and the Republicans' policies have gotten us into. Up to and including last Monday, he was still saying saying that "the fundamentals of the Economy are strong"(?!). Now he is suddenly a born-again a pro-regulation populist!
There should be no bailout. The bailout interferes with a capitalist economy. It's unabashed greed that started this mess. The SEC granted 3 of 5 of these tanking monetary giants an inordinate amount of borrow power beyond their assets. Wall street needs a culling.
I come to agree with both Mccain and Obama on what to do with these million dollars CEOs.As for the bailout well,it is the only solution is there right now considering the weight of this debt and it is time for a top layera(a commission) to hold the leash so the dog wont run off.
From what I've heard, neither Senator is planning to vote on the bailout. Talk is cheap. There is only one effective way for these men to express their opinion on this issue and that is to do the job they were sent to do as Senators.
As reported by the Washington Post, NY Times and WSJ:
As Fannie Mae’s CEO (1999 to 2003), Franklin Raines pulled in over $90 Million, mostly in bonuses. He was sued by the SEC and OFHEO to recover $50 Million in bonuses due to Enron-like accounting practices overstating their earnings by $10.6 Billion. Franklin took “early retirement”, paid a hefty fine and forfeited stock options valued at $15.6 Million. He is now Obama’s economic advisor for housing policy.
Jamie Gorelick was vice-chairperson at Fannie. In 1998, she received a bonus of $779,625 amidst a scandal where signatures were falsified on accounting transactions to meet earning targets. She is a leading candidate for Attorney General if Obama is elected president.
Jim Johnson was Raines’ predecessor at Fannie. He resigned from Obama’s VP selection committee after revelations he accepted a sweetheart loan from Countrywide Financial while Fannie’s CEO.
As taxpayers, we are now liable for failures in a $5.2 Trillion loan portfolio to include $780 Billion in high-risk “Alt-A” and sub-prime loans. These are Friends of Barack we can ill afford!
In contrast, John McCain warned of the coming mortgage crisis as he pressed in 2005 for regulatory reform of Fannie Mae and Freddie Mac.
And Massachusetts, you’re not off the hook either. Your Representative Barney Frank (D-MA) is Fannie Mae’s patron saint and fought these reform attempts tooth and nail. In 2003, Frank rejected Bush administration and Congressional Republican efforts for the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. Under the plan a new agency would have been created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry. "These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis," Frank said. He added, "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." He remains blind to the whole fiasco.
As a foreigner, I think the bailout should not be done.
There is no reason the US people should pay because the bankers' greedy.
Barny Frank is an idiot and I believe the people of Massachusetts should foot the bill for the financial bailout.
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