The nation’s top bankers visited the White House today for a talking-to by the president.
Three of the invitees - Dick Parsons of Citigroup, Lloyd Blankfein of Goldman Sachs and John Mack of Morgan Stanley - participated by video conference after their flights to Washington were delayed by fog.
The conversation, closed to the press, likely revolved around conflicting themes: good business and good politics, with more than a nod to personal gain.
The government bailout of 2008, particularly the Troubled Asset Relief Program, is hugely unpopular with voters. As Michael Hiltzik of the Los Angeles Times writes today, “The public hates it because it looks purely like a rich-man’s bailout, while the average strapped taxpayer has been left to twist in the wind.”
The administration is frustrated that although the banks were stabilized by billions of TARP dollars, consumers and small-business owners are still unable to obtain loans. Financial institutions also have opposed new regulations the administration is advocating.
In an interview Sunday on 60 Minutes, President Obama pointedly criticized “fat cat bankers.”
David Axelrod offered a summary of the president’s message today on “Good Morning America”: “What the president’s going to say to the bankers is, you guys were part of the problem … And now you have to be part of the solution.
“People are not going to tolerate a situation where the bankers have a party, they pick up the tab, and then the bankers pay themselves huge bonuses, and they’re not lending.”
Major banks have rushed to pay back TARP loans to escape government restrictions, particularly on executive pay. Citigroup this morning became the last of the big banks to reach a deal to exit the program.
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