Wall Street Bonuses ‘Offensive’
Posted on Oct 18, 2009
The Obama administration, perhaps getting wise to public opinion, is lashing out at Wall Street firms. White House senior adviser David Axelrod called the huge bonuses executives received this year “offensive” in light of the fact that the rest of us are struggling through an economic crisis. —JCL
A top White House aide lashed out on Sunday at Wall Street firms that are handing out huge bonuses while the rest of the economy struggles and small businesses cannot create jobs because of a lack of credit.
Highlighting a disconnect between Wall Street and Main Street that has caught the attention of the Obama administration, Goldman Sachs Group Inc’s was on a pace to hand out more than $20 billion in bonuses, which could make this year a record.
Compensation is also soaring at several other big firms, which are raking in higher trading revenues amid a recovery in the stock market that lifted the Dow Jones industrial average above 10,000 last week.
[...] “The most offensive thing is, we haven’t seen the kind of increase in lending that ... we should,” [White House senior adviser David] Axelrod said. “There are a lot of small businesses, credit-worthy businesses around this country who still can’t get the capital they need to grow, which is important for our economy.”
Executive bonuses—fueled by a Dow Jones industrial average that has resurged through the 10,000 level—have led to a decidedly negative view of Wall Street among many Americans. Homeowners and others continue to be plagued by growing foreclosure rates.