US President Barack Obama promised yesterday to act with the “full force of the federal government” to shore up the financial system and acknowledged that more taxpayer money would be required to bail out banks. Obama said he understood opposition to aid for Wall Street but insisted government support was essential to keep credit flowing, reports the Financial Times.
“This plan will require significant resources from the federal government – and yes, probably more than we’ve already set aside,” he said. “But while the cost of action will be great, I can assure you that the cost of inaction will be far greater.” Obama said banks would be held “fully accountable for the assistance they receive,” warning that the days of executives using taxpayer money “to pad their pay checks…or disappear on a private jet” were over.
“I know how unpopular it is to be seen as helping banks right now,” he said. “But I also know that in a time of crisis, we cannot afford to govern out of anger.” The president urged Congress to join him in “doing whatever proves necessary” to prevent the US slipping into an “open-ended recession.”