Full interview
Q Well, here’s something that kind of scared me. Today they passed this thing that says we’re going to tax 90 percent of these bonuses. And the part that scares me is, I mean, you’re a good guy — if the government decides they don’t like a guy, all of a sudden, hey, we’re going to tax you and then, boom, and it passes. I mean, that seems a little scary as a taxpayer, they can just decide — you want to take a break and answer that when we come back? Okay, hold that answer.
THE PRESIDENT: I will. I’ve got a good answer, too. (Applause.)
* * * * *
Q Welcome back. We are talking with President Barack Obama.
Before the break I mentioned that they had just passed this new bill which will tax them 90 percent — and I said it was frightening to me as an American that Congress, whoever, could decide, I don’t like that group, let’s pass a law and tax them at 90 percent.
THE PRESIDENT: Well, look, I understand Congress’ frustrations, and they’re responding to, I think, everybody’s anger. But I think that the best way to handle this is to make sure that you’ve closed the door before the horse gets out of the barn. And what happened here was the money has already gone out and people are scrambling to try to find ways to get back at them.
The change I’d like to see in terms of tax policy is that we have a system, going back to where we were back in the 1990s, where you and I who are doing pretty well pay a little bit more to pay for health care, to pay for energy, to make sure that kids can go to college who aren’t as fortunate as our — as my kids might be. Those are the kinds of measured steps that we can take. But the important thing over the next several months is making sure that we don’t lurch from thing to thing, but we try to make steady progress, build a foundation for long-term economic growth. That’s what I think the American people expect. (Applause.)
Full transcript here.
Citi’s CFO Shifts to New Role; Kelly to Succeed Him (WSJ)
“Citigroup said Chief Financial Officer Gary Crittenden will become chairman of the entity created for non-core assets, with global banking chief Edward Kelly succeeding him as CFO.
The change, the latest for the struggling financial-services company, come as Citigroup looks at shedding those assets while focusing on its core investment bank, credit-card division and regional banking operations.”
Chavez Nationalizes Banks, Inspired By American Example (FT)
After seeing the stunning success of Citi and BAC, Chavez has decided to move forward with his nationalization of Santander – we wish you luck, Mr. Chavez.
“”We are not retreating. Today we have returned to the subject, I announce the nationalisation of Banco de Venezuela to strengthen the national public banking system,” Mr Chávez said during a televised meeting with ministers.
Grupo Santander owns Banco de Venezuela, one of the largest banks in the Opec nation’s financial system.”
Oh Ye Of Little Faith: CNBC Calls Bottom (CNBC)
Clem, from ADVFN, has the feeling this could lead to a good rally – only time will tell, Clem, only time will tell.
Euro Falls Against Dollar (Bloomberg)
“The euro slid from near a two-month high against the U.S. currency after European Commission President Jose Barroso said leaders may agree today to boost the amount of cash for struggling countries to 50 billion euros ($68 billion) from 25 billion. The dollar rose as some traders bet the slump this week stoked by the Federal Reserve’s announcement it start buying Treasuries was overdone given the outlook for the U.S. economy.”
Raters See Windfall in Bailout Program (WSJ)
What’s funny is people think giving the AIG people bonuses was bad, and this is passing (pretty much) under the radar.
“The new rescue effort, run by the Federal Reserve, kicked off Thursday with bond deals totaling more than $7 billion. Each bond issue will need to be blessed by at least two of the three big rating firms: Moody’s Investors Service, Standard & Poor’s Ratings Services and Fitch Ratings.
[...]
Rating services typically charge $40,000 to $120,000 for every $100 million in so-called structured-finance securities they rate. For the initial $200 billion portion of TALF, that translates to $80 million to $240 million. If the program is extended to $1 trillion as the government plans, those fees could skyrocket to anywhere between $400 million and $1.2 billion.”
Plan To Let Judges Alter Loans Stalls (WSJ)
“Opposition from the banking industry and moderate senators of both parties has stalled a proposal to let judges modify mortgage terms in bankruptcy court.”
Do I smell a windfall tax for the raters?
Don’t tax me bro!
i feel like i’ve got a front row seat to the special olympics as i watch this new administration.
@2 Very unpatriotic
@3…if it were like the special olympics, you wouldn’t be in the audience
So a bunch of inept crooks steal a massive amount of money from taxpayers and Obama’s answer is to tax all future high earners regardless of industry? Is this guy a moron?
uh – just curious – what would the response have been from our liberal friends in power and the press if “w”, you or i had uttered, “it’s like the special olympics or something…” when describing our bowling prowess???
This is all truely a clusterfuck! Bama is in over his head. Geithner fucked up, and now i smell a cover up!!!
BTW Obama didn’t answer one question directly on Leno last night it was like they were playing dodge ball.
I thought the UK was in trouble when I moved here, but I am feeling like that was the best move I ever made. I am thinking of sell the US passport. Any takers?
@5, you’re right. he’d be bowling with the president!
Obama has no clue. All of this reactionary, mob-instinct decision-making is like carpet bombing when sniper fire is needed. The majority of those being punished are hard-working families who had nothing to do with this crisis. And there will be a trickle down effect when all those $$$ go back to the federal government instead of being spent in the local economy. Profitable companies that don’t really need the TARP money, like BofA, should just give it back. Not worth the trouble. Government cannot be trusted.
Barack “Stalin” Obama, has a nice ring to it. Everyone has to earn the same, that policy worked in soviet Russia and it will work now, right! Even the chinamen don’t believe that sh*t.
@11
It is not punishment. It is a patriotic privilege. How do you not see that?
Don’t you feel kind of guilty for “doing pretty well”?
@13 go f*ck yourself!
13 – sorry but hard for me to find the humor in this with Rangel’s dick in my ass.
@13, its 14 here, apologies, I over reacted, didn’t realise the obvious sarcasm. I was all ready to get out my pitch fork, now I realise that some decisions made in haste are a bad idea…I wonder if the government will realise the same!
@12
Chinamen? At least you didn’t call them Orientals.
And it’s not Soviet Russia. It’s the Soviet Union.
You don’t live in United America do you, you dolt? Go read a book and then come back.
@16
it was definitely sarcasm. I feel like I have gone cross-eyed trying to explain to “true believers” why this kind of crap does not work.
i have found that getting people who have rejected the idea of personal responsibility and have no background in economics or finance to wrap their brain around this slow car crash……lost cause. Damn frustrating.
@17 – In Soviet Russia, book reads you!
@17 “you dolt”, now thats offensive, i don’t think i can come to this site anymore with such blatant agression! what book should i read, oh great one, that will remove this doltness from my persona?
These guys and the merrill guys should be thankful they are not heading to jail yet.
@21, which guys? Dealbreaker commenters?
@22
your mom
First day of spring. Time to swap the heavy winter snuggie for the lighter spring version.
–Calgary Schmooze
@20
Start with Strunk and White and then we’ll work our way up to Judy Blume when you’re ready.
I’m so happy to see everybody’s crush and future president
Maxine Waters.
I’m so happy to see everybody’s crush and future president
Maxine Waters.