The president, however, has not shunned Wall Street. He has courted financial executives for campaign donations, including inviting them to a campaign gathering at the White House. He has attracted more money for his campaign and for the Democratic National Committee from financial firm employees than all of the GOP candidates combined — a total of $15.6 million. – Wall Street’s resurgent prosperity frustrates its claims, and Obama’s
The largest banks are larger than they were when Obama took office and are nearing the level of profits they were making before the depths of the financial crisis in 2008, according to government data.
Wall Street firms — independent companies and the securities-trading arms of banks — are doing even better. They earned more in the first 2 1/2 years of the Obama administration than they did during the eight years of the George W. Bush administration, industry data show.
Like George W. Bush, Pres. Obama has failed to inspire financial institutions to increase lending to “prime borrowers.” More:
A recent study by two professors at the University of Michigan found that banks did not significantly increase lending after being bailed out. Rather, they used taxpayer money, in part, to invest in risky securities that profited from short-term price movements. The study found that bailed-out banks increased their investment returns by nearly 10 percent as a result.
“If the goal was to support lending, it would have been sensible to require a portion of the money to support credit origination,” said Ran Duchin, one of the finance professors who completed the study. “Lending to prime consumers was not the most profitable use of their capital.”
The bigger the bank, the more money they make for themselves.
Profits have also rebounded. The largest banks, including Bank of America, Citigroup and Wells Fargo, earned $34 billion in profit in the first half of the year, nearly matching what they earned in the same period in 2007 and more than in the same period of any other year. – Wall Street’s resurgent prosperity frustrates its claims, and Obama’s
This concludes yet another chapter in the Barack Obama marketing and myth story versus reality, brought to you by your hostess, the recovering partisan.
The party’s over, baby.