Obama: the wrath of AIG is not the administrative policy

 

Monday, Mar 23,2009, 11:31:41 PM   Click:

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WASHINGTON_President Barack Obama's not a fan of premiums paid to financial institutions to be kept afloat by taxpayers' money, but also said he would not govern in anger, despite the Americans frustration of these benefits.

Obama has come to the statement as he pushed a $ 3.6 trillion federal budget proposal which is opposed within his own party. As legislators, it seeks the support of his first budget, he took a political risk by signaling discomfort with a plan to strike punitive 90 percent tax on premiums paid to employees of American International Group.

Obama, a law professor became CEO, said in an interview broadcast Sunday that he does not like the idea of "passing laws which are only targeting a handful of individuals "or by using the tax code to punish people.

"Let's see if there are ways to do that are both moral, which are in conformity with the Constitution, supporting our fundamental principles of fairness, but does not hinder us to make the banking system back on track", a Obama said on CBS "60 Minutes."

In a large interview broadcast Sunday night, Obama said he expected the Senate would be a very different and more acceptable version of the bill _ that he could sign.

AIG tax passed by the House with the popular support of Americans frustrated with the company received $ 170 billion in rescue funds to prevent the collapse, still has $ 165 million to pay the bonuses of executives.

Earlier Sunday, the White House economic adviser Austan Goolsbee said his boss understood the anger of the nation and that the simplest solution would be for AIG executives to return bonuses. "It will focus on what emerges from the House, what emerges from the Senate, see what we have ideas," says Goolsbee.

More pressure for Obama, however, was his own draft federal budget.

Senate Republicans warned against shortfalls that could climb to $ 20 trillion in the coming years and a weakening dollar, if Obama and his democratic allies get their proposals adopted.

But even some of Obama's fellow Democrats are not in favor of the proposal, which introduces changes to the farm and energy. Fiscal conservatives also deplore its impact on deficits, it could generate $ 9.3 trillion in red ink during the next decade.

Obama has used the CBS interview to defend once again Treasury Secretary Timothy Geithner and his project to revive the financial system in trouble.

Geithner was set Monday to detail plans to use $ 100 billion bailout of federal funds to make the over 1 trillion dollars in "toxic assets on the books of banks threatened.

Meanwhile, Senator Judd Gregg, RN.H., predicted Obama ambitious $ 3.6 trillion budget, including massive spending to save the economy, would bankrupt the country and would never pass Congress.

"The practical implications of this bankruptcy is for the United States. There is no other way around it," says Gregg.

Goolsbee appeared on CBS ' "Face the Nation". Gregg has appeared on CNN "State of the Union."



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