Obama slams bankers over $18bn bonuses

Barack Obama has denounced as "shameful" the decision by Wall Street chiefs to pay themselves more than $18billion in bonuses last year.

The President could barely contain his anger as he spoke of the "fat-cat executives" who awarded themselves millions while pleading for a cash handout from the government.

The chairman of the Senate banking committee, Robert Dodd, has called for the US treasury to begin legal action to recover some of the bonuses.

Reflecting the mood of many Americans, MrObama tore into the CEOs of financial institutions after the New York Times reported they had received $18.4billion (£12.9billion) in bonuses, the sixth largest total in history.

He said: "When I saw an article today indicating that Wall Street bankers had given themselves $20billion worth of bonuses - the same amount of bonuses as they gave themselves in 2004 - at a time when most of these institutions were teetering on collapse and they are asking for taxpayers to help sustain them, and when taxpayers find themselves in the difficult position that, if they don't provide help, that the entire system could come down on top of our heads, that is the height of irresponsibility.

"There will be time for them to make profits, and there will be time for them to get bonuses. Now is not that time. And that's a message that I intend to send directly to them."

Mr Obama has said that financial institutions that have accepted federal bailouts should limit bonus pay. Press secretary Robert Gibbs said the administration is studying what it can legally do.

The President gave the example of Citibank, which received billions in bail-out funds but had still intended to buy a $50million private jet for company chiefs until Treasury Secretary Timothy Geithner intervened. "We shouldn't have to do that, because they should know better. And we will continue to send that message loud and clear," he said.

Mr Obama said he intended to talk to bank executives soon. "What we're going to need is for the folks on Wall Street who are asking for help to show some restraint, and show some discipline, and show some sense of responsibility," he said.