The US president called for restraint and discipline among the ranks of the financial system of the country. He called as shameful the fact that executives on Wall Street received bonuses last year when the financial system had to resort to a massive state rescue plan. The auditor of the State of New York, Thomas DiNapoli, reported that financial companies on Wall Street disbursed a total of $18 billion in bonuses to executives throughout 2008. The figure represents almost half of that in 2007, but still equivalent to that paid in 2004 and represents the sixth largest in history. Obama did not conceal his annoyance. ‘Shameful,” “a scandal,” “the height of irresponsibility” were the words he used to describe what he learned.

Obama’s comprehensive plan to respond to economic problems does not only include revival of growth via the massive stimulus plan but also measures to unfreeze credit markets and review the financial regulations. The Obama administration is assessing a number of ideas that includes the possibility of a bank run by the government to buy toxic assets. Obama who has blamed the financial crisis on the lax regulations of Wall Street has promised to reform the financial laws.

Obama told reporters his anger about the fat bonuses in a time of crisis, and while benefiting from the rescue plan. “What is needed is that people on Wall Street asking for help give proof of moderation, discipline and more responsibility,” he said. One of the things discovered was that Citigroup was planning to commission a new jet for its executives. Citigroup received an injection of $45 billion of public money to keep afloat.

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Via Newsweek