White House takes cuts at bank bonuses

WASHINGTON, Oct. 19 (UPI) -- Top White House officials unleashed a fresh assault on bank bonus pay, which they called "offensive" in light of the high U.S. unemployment rate.

Unemployment is at a 26-year high of 9.8 percent. U.S. banks, near collapse in a financial meltdown a year ago, are back to making profits and awarding employees with billions of dollars in bonus checks.

During the weekend, senior Obama administration adviser David Axelrod said, "the bonuses are offensive."

Banks "ought to think what they are doing, and they ought to understand that a year ago a lot of these institutions were teetering on the brink, and the United States government and taxpayers came to their defense," he said.

Officials berated the banks for lobbying against financial reform after accepting billions of dollars in taxpayer assistance, The Wall Street Journal reported Monday.

"They're now back trying to fight a consumer office and the type of protections that will prevent another type of situation where the economy is taken over the cliff by the actions taken on Wall Street and financial market," White House Chief of Staff Rahm Emanuel said.