White House to Banks: Take the Pill

The Obama administration says they are frustrated with the banking industry's attempts to fight off President Barack Obama's plan to overhaul the financial regulatory system after taxpayer bailouts helped the banks restore record profits last quarter. JPMorgan Chase and Goldman Sachs, which have paid back their government loans, reported huge surges in earnings this week, and are expected to hand out record compensation to their employees. The White House says the industry is in good health because of taxpayer assistance, and lobbying against Obama's regulations goes against the long-term interest of the country. “We are disappointed by the lobbying of anyone in the financial industry against regulatory reform, considering the obvious need for change on that front,” said Valerie Jarrett, a senior adviser to Obama. Some banks are offering up record compensation and bonuses during a time when the unemployment rate rose to almost 10 percent—a disconnect that the White House is using to launch a counteroffensive against Wall Street. Obama is renewing his push to have financial regulations in place by the end of this year, even though his proposals are facing stiff industry opposition.