Barak Obama attacks US banks: When you needed, you were helped; now it’s your turn to give back.
The President of the US addressed all the banks that were helped during the ongoing financial crisis and requested them to return a favor. In his words, now it’s the time for the banks to do their part and chip in to help the financial recovery and give more credit to little businesses. He is practically saying, hey the US tax payer helped you bail out; now the time has come for you to give something back to the public.
Obama made this statement at his “weekly address” which is broadcasted live via the radio and the internet. In his speech, he commented that many business owners in America are having a hard time to get credit from the banks, even though the government had done a lot to improve the financial situation of the banks after the economic collapse in September 2008, which afterwards the banks stopped handing out loans for small and medium businesses.
“These are the very taxpayers who stood by America’s banks in a crisis, and now it’s time for our banks to stand by credit worthy small businesses and make the loans they need to open their doors, grow their operations and create new jobs” Obama said. He pointed out the White House is willing to take the steps needed to encourage the banks to give credit, but he didn’t mention what steps will be taken if at all. “It’s time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system and more broadly shared prosperity” he added.
Earlier last week, Barak Obama criticized the American banks and financial institutes and claimed that they were working through Congress to try and sabotage his idea of a federal agency the “Consumer Financial Protection Agency”. Obama blamed them for “using every bit of influence they have to maintain the status quo” that has helped them get richer “at the expense of American consumers”. That is in spite of the fact that recently those same consumers helped them bail out as a consequence of their wrong decisions.
According to estimations, the financial bailout package cost taxpayers around 700 billion dollars. In his address last Saturday, Obama also said that small businesses have created two thirds of US new jobs over the last 15 years, thus making them a crucial part of the economy, that we must help to sustain- “they must be at the forefront of our recovery”, he said. In addition, last week, he asked Congress to increase the size of SBA loans (small business administration) and announced his rewarding plan: to give low interest loans to banks, who do help and agree to lend more money to small businesses.
When playing business simulation games, you can learn from these past mistakes and learn how to foresee the consequences of your actions. During the development of The CEO Game, we have kept in mind the financial crisis and have taken a great deal of effort in creating and simulating a vast real-life like economic system which generates and is influenced all the time by unplanned events and misfortunes, that every CEO has to cope with in order to succeed.
The CEO Game.