Bankers Pledge Cooperation with Obama

By Lindsay Chin

In Washington, thirteen chief executives met and pledged to cooperate with the administration’s efforts to shore up the banking industry and broader economy. Administration officials and bankers spent considerable time addressing the more charged issue of executive pay. Both sides addressed the fact that they must defuse Americans’ anger with the industry is the White House is to gain more public support for its recovery program. The concern began when millions of dollars in bonuses paid by companies such as American International Group. American International Group was the largest insurance company in the United States before it suddenly collapsed in September of 2008. The company was bailed out by the Federal Reserve and rescue packages amounted to $150 billion dollars. Many Americans were outraged by the $165 million in bonuses paid out on Marsh 15th. American International Group’s chief executive said that he had asked employees making more than $100,000 a year and who had shared in the bonus payout to give half the money back due to the public and political disgust at the whole idea. The President stated that the industry needs to show that they get it on the compensation issue. And at least two bank executives, Lloyd C. Blankfein of Goldman Sachs and Kenneth I. Chenault of American Express asked the president to provide a pathway for them to pay back the taxpayer money that their companies have received. Many companies are doing their best to help the economy. Many economists are unswayed by the crashing economy and so should Americans.

Source 1, Source 2, Source 3