Skip to comments.Obama chides banks' "audacity" for fighting fee
Posted on 01/16/2010 3:34:14 AM PST by Cheap_Hessian
WASHINGTON (Reuters) - President Barack Obama on Saturday slammed Wall Street's "audacity" for fighting a bailout fee he wants to slap on financial firms and said his Republican opponents had sided with big banks.
With Obama's popularity hovering around 50 percent and congressional elections in November, the White House wants to cast itself alongside ordinary Americans while branding Republicans as the party for the rich.
"Like clockwork, the banks and politicians who curry their favor are already trying to stop this fee from going into effect," Obama said in his weekly radio and Internet address.
"We're not going to let Wall Street take the money and run. We're going to pass this fee into law," Obama vowed after proposing a levy to raise up to $117 billion over the next 10 years to recoup projected losses on a taxpayer bank bailout.
A number of the banks have already repaid capital they received under the $700 billion bailout, called the Troubled Asset Relief Program, which was conceived in 2008 by Obama's predecessor, Republican George W Bush.
(Excerpt) Read more at reuters.com ...
There AREN'T any "Rich" any more, you dumb ****.
You're being optimistic.
“banks and politicians “
You bet they are trying to stop it.
The natives are restless and this is just more kindling for the bonfire
What I would like to be hearing instead.
“We’re not going to let Washinton take the money and run. We’re going to pass this tax cut into law,”
Just on this one segment of the Worst President in the History of the U.S latest scheme.
BTW, I heard that the Fed made a larger profit than chevron 30+ Billion I think.
How did that happen? and do you know the connection between the Tarp bailout and the FED?
Poop rolls downhill. But those at the bottom never see it coming. They don't want to see it.
I had a conversation yesterday with some coworkers about the banking crisis and these latest moves toward destruction of our economy - way of life - by their hero zero and his friends like Barney Frank and others in THEIR party.
ALL of these coworkers get their news from NPR and CNN by the way.
They were unanimous in blaming corporations and especially the banks and believed these “taxes” were justified and good.
I asked them how they will like it when the banking system in this country collapses and they won’t be able to get their money out of the banks or pay for goods and services, etc, and their savings will disappear. I mentioned that in the Great Depression, that is exactly what happened to millions of Americans...and it can happen again.
I said, didn’t they believe we should be helping banks to be more PROFITABLE rather than making them become less profitable through higher taxes which will only be passed on to consumers or which will just aid in bringing more banks into closure.
They had NO CLUE - NONE - about the potential danger our nation’s banking system is now in nor about the fact that it is these “EVIL” banks and these “EVIL” and “GREEDY” corporations who provide the JOBS that enable people to pay for homes, cars, food, clothing, etc.
And these are VERY intelligent people!
At the end of the discussion, I just said, “I can’t believe how ignorant you all are.”
And walked away.
National Propaganda Radio is the number one enemy of truth in this country and needs to be SHUT DOWN!
Say you are a bank. Why not let 0bama impose his fees, and when your customers complain about their increased fees, tell them to go blame 0bama.
Remove tax payer funding and it will collapse like a house of cards.
Has it been challenged in the courts recently?
Exactly. That goal should be part of the contract with America that the Repubs are putting together - but am sure it won’t be.
Let me help you to the extent that I can. I am going to operate under the assumption that they at least have email accounts.
The author of this blog is a liberal. He is also the one who researched and wrote all three parts to this article. In those areas where there are comments, he is “liberalamerican”
You can read about his vote in 2008 Presidential election: http://thestrangedeathofliberalamerica.com/i-voted-two-days-ago.html
These two in depth articles are from the Village Voice magazine (a well known liberal publication):
These explain how Fannie Mae & Freddie Mac mortages became entangled with the stock market in the U.S. and now, around the world.
Btw, you’ll start to notice the same names popping up from one crisis to another. Now, a couple of them are in the new administration, as well.
Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone... Dems Ignored Warnings
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted.
Unfortunately, these warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
The White House released this list of attempts by President Bush to reform Freddie Mae and Freddie Mac since he took office in 2001.
Unfortunately, Congress did not act on the president’s warnings:
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (”Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to “not take [the financial market’s] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07)
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
“Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08)
“[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that and Congress is making progress on this is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
“Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
In 2005— Senator John McCain partnered with three other Senate Republicans to reform the governments involvement in lending.
Democrats blocked this reform, too.
More... Not only did democrats not act on these warnings but Barack Obama put one of the major Sub-Prime Slime players on his campaign as finance chairperson.
UPDATE: The media is not reporting that the failed financial institutions are big Obama donors.
It didn’t go anyplace. Probably because this is what would happen to administration officials when they would go up on Capitol Hill and plead for more regulation:
http://stuckon-stupid.com/2008/09/28/the-democrats-coverup-of-the-fannie-mae-freddie-mac-crisis/ This is actual video from those occasions. It’s about 8 1/2 minutes long. Note at the end of the video an interview from former President Clinton (from Fall of 2008) in which he says the Republicans were prevented from tightening up the standards ....by Democrats. When then Senator Obama was running for president, he either was mistaken or outright lying when he said this crisis happened because the previous administration DEREGULATED too much and let these outfits run wild. In fact, the opposite is true, as Clinton confirms in the interview. And if, now President Obama repeats it, and misleading the public, it would seem that it’s just a case of passing the blame. This video has been mysteriously pulled from American YouTube servers (prolly because Google execs are Obama advisors), but it’s still available routed via Canadian You Tube servers:
Why did were the Fannie Mae board members so interested in keeping the status quo? Money. Like, Michael Jordan-type money. http://findarticles.com/p/articles/mi_m1282/is_11_58/ai_n16740556 (four page article) Byron York of the National Review is one of the few journalists who has been reporting on this for years.
This whole notion of exploding the underwriting standards, began within the first year of the first Clinton administration. And that is also when the cautionary warnings started over the wisdom of using taxpayer revenue to secure these loans: http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260
It continued throughout both Clinton terms, and penalties for worried banks were increased: http://findarticles.com/p/articles/mi_m1355/is_n19_v86/ai_15779827?tag=rbxcra.2.a.11 . This article is even more detailed: http://findarticles.com/p/articles/mi_m1282/is_n25_v45/ai_14779796 (six pages)
As a young lawyer and community organizer, Barack Obama was a participant, and not some sideline actor in forcing banks to make these loans.
http://www.suntimes.com/news/politics/obama/700499,CST-NWS-Obama-law17.article Seems kinda strange to see him act innocent in all of this, right now. Isn’t it?
It’s also pretty strange seeing him holler at those rotten Wall Street scoundrels. Because THEY are the ones who put him in office:
http://www.opensecrets.org/pres08/sectors.php?sector=F and http://www.opensecrets.org/pres08/select.php?ind=F07
Along with that other group of miscreants, lobbyists. They, TOO, put him in office: http://www.opensecrets.org/pres08/sectors.php?sector=K But what about those real estate speculators? http://www.opensecrets.org/pres08/select.php?ind=F10 When the president is lecturing about risky stock market profit-takers, do you think he means those hedge fund operators? http://www.opensecrets.org/pres08/select.php?ind=F27 All of this information and more is easily researched at www.opensecrets.org When you hear the president on his bully pulpit, bitching about “greed is what caused this” he’s right. He’s trying to leave us with the impression that it was Republican greed that caused this mess. Which you now know is completely wrong. He shouldn’t be in the White House. He should be in Hollywood thanking the Academy for the Oscar he deserves for this performance!
Had enough yet? We’ll don’t get any bright ideas about this new administration coming in and cleaning up. Because, we now have the foxes guarding the henhouse. Of Fannie & Freddie fame, Raines was an advisor to his campaign, Johnson was in charge of the VP search team (until the press found out), and Gorelick was on the stort list to be named Attorney General, before Eric Holder was named. Btw, if Gorelick sounds familiar to you, she should. She is the one who created the invisible “wall” between the CIA and FBI, preventing them from sharing info with each other (regarding terrorism) during the Clinton administration. She was on the 9/11 committee that found the existence of that “wall” was a contributing factor to the attacks on Sept. 11, 2001. Because of these facts in her background, she was not going to be confirmed by the Senate for AG, thus was taken off the short list.
Larry Summers (one of the later culprits in the securitizing the bad loans), is on Obama’s staff. Timothy Geithner, our hapless Treasury Secretary, was in charge of the New York branch of the Federal Reserve Bank, which was supposed to be overseeing all these shenanigans! Because that is where all this crap happened...Wall Street is in New York!
Remember that Bernie Madoff character? The one that ripped off people and charities to the tune of 50 billion dollars, wiping out the entire investments of many? Here are his campaign contributions:
my sweetie was a far left wingnut when I met him. A good guy, but completely misguided and wrong. Educational administrator, member of the NEA. His sister succeeded MO at Public Allies! meh And HE had Bill Ayers at grad school. double-meh
He’s now prolly more conservative than I am.
Just Friday evening he told me on the phone how MAD he was. Not at me, but at the educational establishment (especially in grad school) over all the lies he’d been fed over the years.
Did Hugo Chavez write this for him?
Yes, I basically knew all of what you have referenced but not put together in one post like what you have given me.
I don’t think it will change the minds of those I love and work with who are still koolaid drinkers because I don’t think they will read it all.
But if they WOULD read it, I believe they would disavow the Democratic Party forever and stop listening to the nonsense on NPR.
Heck, I might just turn them into Free Republic readers!!!
I don’t think that could ever happen....but wonders never cease.
P.S. Jamie Gorelick is THE number one non-elected Democrat that I would nominate for arrest and imprisonment for her participation in the massive coverup of the Clinton administration’s responsibility for the 911 attacks on this country.
Obama says the people’s money... you and I will never see that money again, we knew it when they stole it from us.
Now collecting the fee from banks calling it the people’s money... we will never see that money either.
So after I loan you the money with interest to fix up and sale your house, and you pay it back with interest, also means I can come back later and tell you “by the way I some of your profit too”.
I don't think it ever has been. Considering the mood of federal courts these days they would rule it free speech. But it is not free speech since you and I are forced to pay for it.
The most important way to be educated is to read things you disagree with, as well as things you agree with. If one remains in an echo chamber, you simply stay stupid.
I make it a point to visit liberal blogs every day. That is, in fact, how I found the liberal site where the first few links come from.
If they want to keep abreast of what is going on now, in real time, link them to:
He was so pissed of at McCain that he too, voted for Obama. He has almost daily updates, on what the banks, real estate markets, stock markets are doing each day to separate us from our money.
My 24 year old son has it as his home page! LOL
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