ABC’s Jake Tapper covers an interesting proposition from Republican Senator Bob Corker on financial reform for Wall Street — he wants a “clawback provision” forcing failed executives who have driven companies into the red to give back their earnings for the past five years. Loving it!!!

Read how Austan Goolsbee, one of Obama’s chief economic advisors, tiptoes, avoids and runs away from this idea!!

CORKER: There is no question, and I think that first of all, I plan to offer changes to this resolution authority that say that, if a large entity like this has to go through this resolution where in essence they’re liquidated in an orderly way, I think that everything that the executive team and the board members have earned through this company over the last five years needs to be clawed back. In other words, there needs to be some penalties assessed to the management that have caused the country to have to go through this orderly liquidation process. So absolutely, I will be offering an amendment that deals with that, so that we’re taking back, we’re clawing back all the earnings that management has made out of this firm, if it has to go through orderly liquidation. I think that’s very appropriate, and certainly I’m going to be doing that on the floor if it doesn’t make
it into the base bill.

TAPPER: Austan, can the White House get behind that clawback
provision? Are you being out-populisted by Republicans?

GOOLSBEE: Well, look, in the bill now — the president went to
Cooper Union this last week to revisit the spot where more than two
years ago, he went and said we need to have fundamental reform–

TAPPER: But there is no clawback in this bill?

GOOLSBEE: There is a requirement that they’re all fired. If you
get to that point, all the management is fired–

TAPPER: So they take their $500 million to their home in the Hamptons.

GOOLSBEE: — all the shareholders are wiped out. Well, look, as I say, on any details, we’re open to looking at negotiating the details of how we carry out the president’s principles. But if negotiation — and Senator Corker, to his credit, is not in this camp — but if the negotiators are going to come forward more as a delaying tactic and we’re just going to put in hundreds of amendments and try to keep this going so as to stall, delay and kill reform, that’s not going to happen. This is going to pass.

Um. No. It’s not a delaying tactic. But since we saw in the case of Goldman Sachs that they were betting on the market crashing and profiting by our losses, we need to find some way to put the fear of God into these jerks so that they do not try to profit by playing Ponzi schemes with our dough. Corker’s idea is just one way to make sure we have leglsiation with teeth.

Whether Senator Corker is just doing some populist-type posturing or not, the point is made — if we don’t have accountability in this reform bill and, as Dem. Senator Sherrod Brown discussed earlier, a way to overcome this “too big to fail” debacle, any reform falling short of tackling those two concerns effectively is meaningless.

What do you think would be fitting punishment for irresponsible and dishonest Wall Street sharks? I have a feeling I know the answer!

  • b

    “I am deeply disappointed that Senate Republicans voted in a block against allowing a public debate on Wall Street reform to begin. Some of these Senators may believe that this obstruction is a good political strategy, and others may see delay as an opportunity to take this debate behind closed doors, where financial industry lobbyists can water down reform or kill it altogether. But the American people can’t afford that. A lack of consumer protections and a lack of accountability on Wall Street nearly brought our economy to its knees, and helped cause the pain that has left millions of Americans without jobs and without homes. The reform that both parties have been working on for a year would prevent a crisis like this from happening again, and I urge the Senate to get back to work and put the interests of the country ahead of party.” said Obama after the Repub block financial reform.

    Obama is 100% right. The Repugs got us into this mess and now they want to prevent us from getting out of this mess or stop it from happening it again. Shame on the Repugs. A new low.

  • Ferd Berfle

    Another troll. How quaint.

  • b

    You think Corker and the Republicans want legislation with teeth. Ha! Ha! You are more likely going to get a much stronger bill out of the democrats than out of the Republicans.

    Funny Ani you are now sounding like a liberal or democrat. Funny from someone who has viciously critizing the Democrats and Obama for the better part of two plus years.

    By the way I would love to hear your description of the ponzi scheme and who exactly should be criminally charged. I don’t think your hero McCain or the Republicans are saying that.

    I think the Dems would push through much stronger reform is they could get the votes and some support from the Republicans. However, what is being proposed will go a long way to preventing future tax payer bail-outs.

  • creeper

    “I point out that many banks have already inacted clawbacks” 
     
    Name some.

  • creeper

    “I point out that many banks have already inacted clawbacks”

    Name one.

  • Ferd Berfle

    That asshat is another alias of Free-dumb Fighter, PO, or some other half-witted, half-pint, Ani. Please pay them no mind as the rest of us respect your insight. 
     
    Ferd

  • Ferd Berfle

    That asshat is another alias of Free-dumb Fighter, PO, or some other half-witted, half-pint, Ani. Please pay them no mind as the rest of us respect your insight.

    Fzerd

  • Ani

    Don’t you dare insult me about doing homework.  I don’t appreciate your pretending not to understand the point I am making either — we are not able to get restitution from these criminals from the worst ponzi scheme in a long time.  Someone else made the same point above.  Whatever they enact now is not retroactive — and it should be — these were criminal enterprises where people knowingly engaged in treacherous and reckless actions, gambling with the dearly held funds of others for their own selfish gain. 

    Again, you are distracting from the point at hand — not that Corker is some genius — but that he is pointing out how phony Goolsbee et al are — the Obama administration will not enact legislation that has any teeth.  Corker was being provocative if nothing else. 

    I don’t think either party has the stones to do that, frankly.

  • oowawa

    “Who are the wolves?”

    The ones dressed in sheep’s clothing . . .

  • Ferd Berfle

    It beats banging your head against an impenetrable wall of ignorance represented by the bots.

  • creeper

    No shi…er, kidding?  Way cool!  Henceforth I shall, as you advised, flag early and often.

  • Ferd Berfle

    creeper: The flag *really* does work.

  • foxyladi14

    thieves all of them

  • creeper

    I see our troll has been exercising his freedom of deletion again.  This, more than anything, is cause for banning. 

    Or does “Flag” really work?

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  • EllenD

    I like the analogy – who are the wolves?

  • Anthony

    “Well you certainly cannot blame the Obama failures of the banking system. He is only trying to clear up the mess.”

  • Ferd Berfle

    Bank, you would do better to quit while you’re ahead as your abyssmal ignorance is not only on display on that dumb terminal where you post this dreck but also anywhere that this webpage can be accessed.

  • Bank

    Ani,

    Strange logic you have. Are you even following you own discussion? You talk about Corker above mention that banks need to inact clawbacks. I point out that many banks have already inacted clawbacks, so therefore what Corker is talking about is not all that relevant, as has really already been done. Corker therefore does not add much with his clawback comment and he should be talking about bigger issues. He is just wasting time.

    Second, these clawback enacted by the banks were largely put in place in 2009. You cannot legally go back and take money away from people from what happened in 2007 and 2008. The new compensation plans apply going forward, which frankly is what Corker is talking about.

    Banks paid big bonus in 2009 because the banks made big profits in 2009. You can disagree with that, which is fine, but that is besides the point of “clawbacks”.

    You really need to do some more homework to better understand the issues you blog about.

  • Docelder

    Yep, make the sheep think the other sheep are their real enemies and that wolves are needed to protect the sheep from each other. Maybe make one group of sheep red and the other blue. Make one group for poor sheep and one for rich sheep. one for brown sheep and one for white sheep, one for old sheep and one for old sheep…. then contort this all up so it is so confusing that the sheep can’t really tell anymore. Then the wolves will rule and feast while the sheep hate each other. No it would never work, too simple. 🙂

  • Docelder

    Yep, and he is already started hiking now. It won’t be long and he will be dressing like Bush II and be out there splitting wood. This is so predictable and ridiculously funny.

  • Onofre’s arm

    “Guide for Wolves: How to Get the Sheep to Vote For You.” 

    LMAO, oowawa, I think you’re really on to something here. It also has Shakespearian overtones, as when Titus Andronicus fed Tamora her own sons baked in a pie.

  • oowawa

    “those like Goolsbee and Obama, who like to pretennd they are railing at the banking industry while in reality doing very little to rein in their irrtesponsible practices.”

    Yep.  Obama has got the MSM reporting a staged modern version of The Gunfight at the OK Corral, in which Thee One is playing Wyatt Earp, and Goldman Sachs and other corrupt Wall Street Tycoons are the Dalton Gang.  Guns will blaze, and Thee One will proudly walk away from the bloody fray, tipping his hat to the cheering bystanders.  Later, after the crowd disperses, all the outlaws will get up and grin, dust themselves off, and go down to have a few beers with Marshall Obama at the Hungry Wolf saloon . . .

  • Ani

    Did you read my post?  I said Corker could just be doing “populist posturing.”  I am not advocating him as the greatest thing since sliced bread.  Only that he is bringing the truth into sharp relief — I believe he said what he said to expose those like Goolsbee and Obama, who like to pretend they are railing at the banking industry while in reality doing very little to rein in their irresponsible practices.

  • Onofre’s arm

    Obama and a long list of his connected pals are the architects of the banking disaster, the mortgage bubble, Wall Street mayhem, and the general crises with our economy. What he is doing now is simply Kabuki Theater that is meant to capture our attention while he and Geithner provide cover for the real vermin (their pals and contributors) to go to ground.  

  • oowawa

    And it seems that we really need the following book: “Guide for Wolves: How to Get the Sheep to Vote For You.”  It will be largely a synthesis of Machiavelli and Rules for Radicals.  Let’s get it all out in the open and written in simple words.  It would even work well in the “Complete Idiot’s Guide” series.

  • Ani

    Please.  How do you explain these idiots giving themselves record bonuses in 2009.  Clawback?  Don’t make me laugh.

  • Ani

    Please.  How do you explins these idiots giving themselves record bonuses in 2009.  Clawback?  Don’t make me laugh.

  • Ferd Berfle

    Well you certainly cannot blame the Obama failures of the banking system. He is only trying to clear up the mess.  
    ==================================  
    Wow, you’re not only part of the problem, you’re clueless about being part of the problem. 
     
    And I never said Obama, you silly twit, I said “democrats”. You’ve also exposed your own guilt over voting for That One, huh?

  • Ferd Berfle

    Well you certainly cannot blame the Obama failures of the banking system. He is only trying to clear up the mess. 
    ================================== 
    Wow, you’re not only part of the problem, you’re clueless about being part of the problem.

    And I never said Obama, you silly twit, I said “democrats”. You’ve also exposed our own guilt over voting for That One, huh?

  • Ferd Berfle

    Well you certainly cannot blame the Obama failures of the banking system. He is only trying to clear up the mess.
    ==================================
    Wow, you’re not only part of the problem, you’re clueless about being part of the problem.

  • Onofre’s arm

    If you wanted to create a story board detailing the causes of the mortgage crisis, and the intricately incestuous web of political payoffs, campaign contributions, cushy appointments, and outright theft on an unbelievable scale, you should read these profiles:

    http://en.wikipedia.org/wiki/James_A._Johnson_(businessman)

    http://en.wikipedia.org/wiki/Daniel_Mudd

    http://en.wikipedia.org/wiki/Franklin_Raines

    http://en.wikipedia.org/wiki/Jamie_Gorelick

    Many loose ends can be tied up, and a very accurate picture of this criminal empire starts to become recognizable once a lot of these pieces are added to the jigsaw puzzle that is a who’s who portrait of the Democrat Crime Family.

    You’ll find all sorts of running themes, like Harvard educations, Goldman Sachs, and enriching Political/Private symbiotic relationships. You’ll also start to realize why GS will get off with less than a slap on the wrist, and why only relative outsiders and solo flyers like Madoff will end up hanging on meat hooks. 

  • Docelder

    The health bill as passed will give viagra to sex offenders, if prescribed. The doctor would have no way to know if somebody was or not. The republicans wanted to make sure that could never happen. That would have amended the lobbyists health bill and so it was labelled as being obstructionist and a delay tactic by the new democrats. They wanted to vote historically and on a schedule without thinking about consequences and so they did. So now if a sex offender is prescribed viagra there is no provision to not cover it. But the bill was historic. That is the important thing. New democrats won… thatis the most imprtant thing of all. Health care be damned, above all else the new democrats must win.

  • Bank

    Ferd,

    Well you certainly cannot blame the Obama failures of the banking system. He is only trying to clear up the mess.

  • oowawa

    “While everyone’s attention is conveniently focused on . . . ”

    Yep Onofre’s arm, we will be able to preface many comments with this phrase in the coming months.  We have entered the era of masterful political prestidigitation, of sleight of hand, of razzle dazzle ’em, of pure con-artistry by a bunch of phonies who have studied how to create a distraction while picking your pocket.  Line up, rubes!  And look!  Over there! Mighty Mouse!

  • Ferd Berfle

    ROFL. At first I read your post incorrectly and thought it said, “Thee One is the Only One who Must remain Blameless and Unstable“. Then I saw the “unattainable”, which is funny. However, I do think unstable works better, oowawa.

  • oowawa

    Thee One is the Only One who Must remain Blameless and Unstainable.  Holy Holy Oh Holy Oh Holy Forever and Ever Hallelujah Amen.

  • Anthony

    Was referring to Doceider’s post above my response