Obama Warns Bankers not to Stand in the way of Financial Reform
POSTED: Tuesday, December 15, 2009 - 7:51am
UPDATED: Thursday, June 3, 2010 - 10:59pm
"In their face" at the White House Monday, President Obama warned bankers not to stand in the way of financial reforms and to do more, immediately, to get more out more loans and speed the recovery. Obama called them fat cats Sunday.
Monday, he called in the nation's top bankers for tough talk, demanding they accept new financial regulations, to prevent another mortgage meltdown, and Wall Street crisis and recession. The president demanded they call off their K Street lobbyists or battle with him.
“If they wanna fight common sense consumer protections that’s a fight I am more then willing to have,” the President said. 3 bankers phoned in; bad weather cancelled their flights. Dick Parsons is chairman of Citgroup. The biggest bank in the Wall Street bailout. Citi got 45 billion. On Monday, the bank repaid 20 billion, selling public stock to cover the cost.
Earlier Citi gave the government stock worth 25 billion, meaning a possible government profit of 13 billion. JP Morgan Chase got 25 billion bailout bucks. Paid it back. Wells Fargo got 25 billion. And has not paid it back.
President Obama demanded all the lenders do more to get money out to Main Street. The bankers said ok.
“We agreed that we can do a better job of telling our story and working better with the American public to make loans more available, said Richard Davis with U.S. Bankcorp. But does "telling a story and working better" mean making more loans and playing by new rules?
The answer on Capitol Hill is don't trust and do verify. The House passed a bill Friday to protect bank customers and ban future bailouts. Senate action comes next.