"We absolutely did not participate in this train wreck. We did not get into credit-default swaps and option-ARM loans and no-doc loans and all the other products that created the toxic waste on Wall Street," he added. "The reason community banks did not get into it is because we have our own personal skin in the game. If our banks get into trouble, we get into trouble personally. It hurts our standing in the community. Clearly, that has not been the case on Wall Street."
Camden Fine, president and CEO, Independent Community Bankers of America, said he was "outraged" by the aid to Citi.
"Right now, all we see is taxpayer money ... being used to bail out incompetent management and prop up common shareholders," he said.
In particular, he is upset that the government's action benefited shareholders.
He said small banks keep ownership of their loans, unlike the big banks.
"So the loan of the borrower hasn't been chopped into 15 different pieces," Fine said. "So there is a one-on-one relationship between the banker and the borrower."
That gives bankers more flexibility to readjust loans, when need be.
"Any company that is too big to fail is too big to exist," he said.