WORLD> America
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WORLD> America
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Bank execs vow to work with Obama on recovery plan
(Agencies)
Updated: 2009-03-28 09:49 Repaying Government Many of the executives said repaying the money would aid public perceptions of financial institutions, said Edward Yingling, president of the American Bankers Association. "They thought it would send a very positive signal to the public to see institutions paying it back, to understand that the money was not only being paid back, but was being paid back with a good return to the public," Yingling said. How soon that would happen remains in question, he said. "Quickly is relative," Yingling said. One person in the room said some of the participants expressed concern that a rapid repayment of TARP rescue funds may be perceived as an attempt to get out from under compensation restrictions. Yingling said one of the administration's messages was that the bankers "need to understand the public's anger." Treasury Secretary Timothy Geithner, Council of Economic Advisers head Christina Romer, economic adviser Lawrence Summers, Chief of Staff Rahm Emanuel and senior adviser Valerie Jarrett also joined the meeting with Obama and the CEOs. At the Meeting Other executives present included Lewis, American Express's Kenneth Chenault, Robert Kelly of New York-based Bank of New York Mellon Corp., Ronald Logue of Boston-based State Street Corp., Frederick Waddell of Chicago-based Northern Trust Corp., Richard Davis of Minneapolis-based US Bancorp and James Rohr of Pittsburgh-based PNC Financial Services Group. The CEOs as well as the administration officials called the 75-minute meeting a candid and honest dialogue. The group sat around a long table, with Obama in the middle and with Romer and Geithner on either side of him. Over glasses of water -- no food was served -- Obama made opening remarks and opened up the discussion to anyone else who wanted to chime in. It was a "very frank, open conversation," Kelly said. "Our interests are very much aligned with the administration." It wasn't a relaxed meeting, though the group was engaged and attentive, according to someone who was in the room. There was an acknowledgment on the part of the bank leaders that they could have done things better, said the person, without giving specifics. Distressed Assets The administration's plan to prop up the financial system is dependent in part on the financial companies being willing to sell distressed assets at prices attractive enough to create a new market and enable banks to start lending, which they have been reluctant to do. The plan would remove banks' distressed assets from the lenders' balance sheets through a public-private investment program, with Treasury providing $75 billion to $100 billion to finance investors' purchases of devalued loans and securities. A number of the CEOs met with Geithner last night at a dinner sponsored by the Financial Services Roundtable. Steve Bartlett, the group's president and CEO, said the event for about 150 people featured a "good, candid exchange." The CEOs arrived today at the White House alone or escorted by other company executives; some were quickly ushered in through the security gate by Bartlett, while others were forced to go through the usual routine for visitors. Dimon was among the first to arrive and was asked by the guard at the gate to repeat his name twice and spell it once. He said he was there for a meeting with the president. On Wall Street, the banks today were involved in a stock retreat, trimming a third-straight weekly gain, as JPMorgan's Dimon and Bank of America's Lewis said in interviews with the CNBC cable station that results deteriorated in March and lower oil and metal prices dragged down commodity producers.
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