November 24th, 2008
10:57 AM ET
6 years ago

Bush spoke with Obama about bank rescue plan

Bush and Paulson met Monday.
Bush and Paulson met Monday.

(CNNMoney.com) – President Bush said Monday that the first step toward economic recovery is to stabilize the financial system – and that the government may step in to help financial institutions again the way it did with Citigroup.

"This is a tough situation for America. But we will recover. The first step is to secure our financial system," Bush said after meeting with Treasury Secretary Henry Paulson. "If need be, we're going to make these kind of decisions to safeguard our financial system in the future."

The president said he spoke with President-elect Obama about the decision. "Anytime we're to make a big decision during the transition, he will be informed, as will his team," Bush said.

Watch: Bush promises close cooperation with Obama

Bush's statement came on the heels of one of the worst weeks on Wall Street, and within 12 hours of an announcement that the federal government would step in to help Citigroup, whose shares fell 50 percent last week on a loss of confidence.

The Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation said the federal government would guarantee roughly $300 billion in losses at Citigroup on its troubled assets and inject $20 billion more into the bank. That new capital injection is on top of the $25 billion given to Citigroup weeks ago as part of the $700 billion bailout passed by Congress in October.

The president's comments preceded a news conference to be held by President-elect Obama in which he was to announce his economic team, including New York Federal Reserve President Timothy Geithner as secretary of the Treasury.


Filed under: Obama transition
soundoff (107 Responses)
  1. Blue is my favourite colour

    That pic looks like tweedledee and tweedledum, or dumb and dumber.

    The sooner both of these clowns are out of the way the better off we'll all be.

    November 24, 2008 12:11 pm at 12:11 pm |
  2. hometowndemocrat

    Nice picture......it looks like Lurch chasing Howdy Doody!

    November 24, 2008 12:11 pm at 12:11 pm |
  3. Navneet

    The best way for US govt to demonstrate that it is not abetting more gamblers or wall street thieves is to tax all capital gains at 50% by calculating them based on the lowest price of stock in the past 6 months incase they sell within the next 3 years.

    The capital gain taxes can be reduced to normal levels after 3 years, this will ensure that shortsellers, speculators and wall street money launderers stick their necks also and dont exit the market by making quick bucks.

    November 24, 2008 12:12 pm at 12:12 pm |
  4. educated Ron

    They should allow Obama to implement his stimulus package before XMAS.

    Xmas makes many companies half its yearly income.

    I don't like the bailouts, but could someone explain why it appears to be so easy for banks and insurance to get billions of dollars, but the car companies can't even get a loan they will have to pay back?

    November 24, 2008 12:12 pm at 12:12 pm |
  5. Jan

    facts are facts–by the village idiot, you DO mean Obama the guy who had to pad his Presidency with Clinton retreads because he has no clue how to run anything–? the guy who has no courage to have press conferences because he can only stammer when not teleprompted ? You should have specified–we might have thought you meant Gaffe-man Biden!

    November 24, 2008 12:15 pm at 12:15 pm |
  6. ANAG LOS ANAGELES, CA

    No more BAILOUTS!

    November 24, 2008 12:17 pm at 12:17 pm |
  7. john in VA

    Just one question – The big three came to congress asking for money. They were told "show us the plan". The banks simply go to Paulson and have billions of dollars throw at them. WHERE IS THEIR PLAN?????

    November 24, 2008 12:19 pm at 12:19 pm |
  8. getting closer

    The sooner the these 2 clowns are out the better for ALL OF US.
    Every time one of these guys speaks, the market loses confidence and billions of dollars go up in smoke.
    I have an idea. SHUT UP and let Obama handle it.

    November 24, 2008 12:21 pm at 12:21 pm |
  9. K. Parks

    This may sound unreasonable but why bailout any of these companies. Let them fail, and then other will take their place. I know America will go through much pain because of the collapse but should come out better in the long run. Does not anyone see that the downside to all these bailouts is that once again the Democrats will be blamed for ‘tax and spend, tax and spend’? If these companies had not had such greedy capitalism, who main goal was to make money at any cost, we wouldn’t be in this mess. If US government is going to help anybody it needs to be the folk who have addresses on Main St, Not Wall St or in Auto City.

    November 24, 2008 12:21 pm at 12:21 pm |
  10. Vicki5

    Bush said, "If need be, we're going to make these kind of decisions to safeguard our financial system in the future." Please don't let them have their hands on the rest of the bailout package.
    Please!! Please stop them now!

    Congress, you had better be taking notes and taking names on all this. If the citizens don't see some accountability SOON..., we are going to start losing the anticipatory hope we have for fixing this mess and becoming an even GREATER nation in the process. We need to see the accountability taking place...Emphasis on SEE.

    November 24, 2008 12:22 pm at 12:22 pm |
  11. Carramia

    Paulsen is a traitor to this country. He is giving billions to his cronies with no oversight on what they do. Then he says no money for the automakers....... yea the blue collar guys

    November 24, 2008 12:26 pm at 12:26 pm |
  12. BJ

    Does anyone else recall that the Dow was over 14,000 before the Demoncrats gained control of Congress?

    Just sayin...

    November 24, 2008 12:27 pm at 12:27 pm |
  13. maurice

    Any 1 of you folks that think they can do better, in 2012 go run for office. Or better yet 2010 go run for the senate or congress. Then say that no good president . Until you walk in another persons shoes don`t be so hasty to judge them. Who knows what bush and obama talked about. Atleast bush isn`t keeping obama in the dark. He is giving obama access to things he actually doesn`t have to. LEAVE THE HATE IN THE BOX!

    November 24, 2008 12:31 pm at 12:31 pm |
  14. Canadian POV

    Eight years ago the US had a $200 Billion dollar suprlus and oil was $25 a barrel. With an oil man and his cronies from Haliburton in the White House for the past eight years, there is nothing short of a catastrophe in the offing for the new president and yet the personal fortunes of these crooks has grown substantially. The utter contempt that Bush & Co. continue to show for the country and the very office they hold is beyond comprehension. The Evil Empire is finally going through a Regime change. I hope Obama investigates the corruption and throws them all in jail. Impeaching Clinton for what he did but to sit idly by and let these scoundrals get away with their true crimes that directly hurts millions the world over is hypocracy.

    November 24, 2008 12:32 pm at 12:32 pm |
  15. Kim

    Dubya is scrambling to find something to do now that he has been retired from the White House (thank you God for term limits). Hard to make the resume for the past 8 yrs. look succesful, though. Lame duck does not even begin to describe how irrelevant he and his ilk have become. I pay my mortgage and bills on time but our family can barely keep our heads above water with the costs of living. When do I get MY bailout?

    November 24, 2008 12:33 pm at 12:33 pm |
  16. dwayne1523@yahoo.com

    Imagine that! Bail out for the boys wearing suits and ties who got themselves in this financial mess. But the unionized companies have to face the 3rd degree, have a plan, get questioned by congress, and wait before anything. Yet the BIG Bankers, Brokers, Investers and rest of Wall Street get their welfare checks without question.

    Something smell's a fishy. But don't defend those Big Three price galging companies. Hey you could have competed with Honda and Toyota. You chose not to. You and BIG OIL were in bed together. Why don't you ask your pimp BIG OIL for a bail out?

    November 24, 2008 12:35 pm at 12:35 pm |
  17. Michael M. Noonan

    But, Carol, we all care deeply about what you have to say.

    November 24, 2008 12:37 pm at 12:37 pm |
  18. PDX Gal

    Joyce-
    Dubya is a criminal.

    Don't tell anybody to show respect when this crook should be in handcuffs.

    November 24, 2008 12:37 pm at 12:37 pm |
  19. dittohead with forty names

    I thought I saw this photo posted in the Post Office,or was that a dream about the future?

    November 24, 2008 12:39 pm at 12:39 pm |
  20. I'm Not Missing The Old Mule & Winky Half-baked Alaska

    Did Georgie tell him what a big dump he was leaving for him to deal with and how he's stopped working now that help is finally on the way?

    November 24, 2008 12:43 pm at 12:43 pm |
  21. Allen Robertson

    Well, well, well. Almost eight years down the road, and the people of America are finding out what the rest of the world knew before he was elected. GW Bush was a dummy, uniformed, puppet of the Republican Neo-conservatives. Dick Chenney was the President of the United States and Haliburton, and was only titled Vice-President.
    You were douped.

    November 24, 2008 12:43 pm at 12:43 pm |
  22. OZ

    IMPEACH BUSH!

    November 24, 2008 12:43 pm at 12:43 pm |
  23. eddy

    Paulson is another dud in bush family.

    November 24, 2008 12:45 pm at 12:45 pm |
  24. ANGIE

    Bush as long as you are still Involed we will never recover!!!

    November 24, 2008 12:49 pm at 12:49 pm |
  25. Angel

    The govn't will have to get involved regardless of what happens..if the banks fail, the FDIC insurance will have to take over...so hey why not help if they can...maybe save some jobs..it is a shame that America's economic strength is down the drain....

    November 24, 2008 12:51 pm at 12:51 pm |
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