President Barack Obama speaks about the economy as Treasury Secretary Tim Geithner looks on in the Oval Office of the White House in Washington, Thursday, Jan. 29, 2009. (AP Photo/Charles Dharapak)
WASHINGTON " President Barack Obama issued a withering critique Thursday of Wall Street corporate behavior, calling it "the height of irresponsibility" for employees to be paid more than $18 billion in bonuses last year while the crumbling financial sector received a bailout from taxpayers.
"It is shameful," Obama said from the Oval Office. "And part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint, and show some discipline, and show some sense of responsibility."
The president's comments, made with new Treasury Secretary Timothy Geithner at his side, came in swift response to a report that employees of the New York financial world garnered an estimated $18.4 billion in bonuses last year. The figure, from the New York state comptroller, drew prominent news coverage.
Yet Obama's stand also came just one day after he surrounded himself with well-paid chief executives at the White House. He had pulled in those business leaders and hailed them for being on the "front lines in seeing the enormous problems in our economy right now."
The executives who appeared with Obama are not leaders of the Wall Street financial companies that the president targeted, but rather heads of such well-known manufacturing and technology giants as IBM, Motorola, Xerox and Corning. Still, they get paid handsomely.
Lashing out at Wall Street bonuses, Obama said the public dislikes the idea of helping the financial sector dig out of a hole, only to see it get bigger because of lavish spending. The comptroller's report found such bonuses were down 44 percent, but at about the same level they were during the boom time of 2004.
Vice President Joe Biden also chimed in, saying the level of bonuses "offends the sensibilities."
"I mean, I'd like to throw these guys in the brig," Biden said in an interview with CNBC.
Obama said he and Geithner will speak directly to Wall Street leaders about the bonuses, which threaten to undermine public support for more government intervention.