Post-Obama Meeting, Bank CEOs Stress Cooperation, But Not “Singing Kumbaya” Just Yet
EmailABC News’ Matt Jaffe and Sunlen Miller report:
After emerging from a meeting at the White House, many of the nation’s top banking CEOs briefed reporters on their 90-minute visit with President Obama, Treasury Secretary Tim Geithner, and other members of the administration.
The catch words thrown around were “cooperation,” “working together” and “recovery.”
The CEOs – many of whose companies and names have been drug through the dirt – intimated that much of the conversation was about the PR work that needs to be done on the economy rather than the nuts and bolts of economic recovery.
“We are responsible in some part for some sound bytes that have come out along the way. So we take ownership for that," said Richard Davis of US Bank. “But we’re going to move forward to give you better things to write about, to talk about, and better stories to show what’s happening in a great recovery,”
Davis went on to say that positive sound bytes are what the banking CEOs have not done a good job with and this is something that they will do more of going forward.
“Sound bytes are giving you the facts to talk about something positive, people in new houses, new buildings being built, new companies starting up and hiring new people, we’re doing that everyday but we haven’t done a very good job of telling you guys that.”
Davis said the “dialogue” will be changed to celebrate people’s success in the recovery.
Ken Lewis from Bank of America echoed those comments and said that going forward he will start asking his community bank groups to start talking about the “great things” they are doing in the community.
“We’re going to talk more and more about things starting to get better in different places and try to not talk about the past so much. And start talking about respectively about things that are really good for this country.”
THE TONE OF THE MEETING
The CEOs all called the conversation “very frank” and “open."
"Help me help you," was how JP Morgan Chase’s Jamie Dimon described the president’s message to them. "Be rational and reasonable about compensation. Keep lending."
“Our interests were very much aligned with the administration,” Robert Kelly of Bank of New York-Mellon said, “We want to get our banks bank to financial health – we know that we’re at the sharp end of the stick in terms of getting our economy back. We want to see the American recovery. We’re all working hard to make it happen.”
But Cam Fine, CEO of Independent Community Bankers of America, did acknowledge that there was some dissention during the discussion.
“The participants all expressed strong views to the president and the president expressed strong views to the participants. There were differences of opinion. I wouldn’t say it was contentious, but we weren’t all sitting around the table singing ‘Kumbaya’ either.”
TOXIC ASSETS
The CEOs said Geithner’s plan for buying up toxic assets seemed like an “encouraging first step”, but more details need to be known.
“We need to hear the details. I think there’s going to be a lot of interest in it,” Kelly said. "Ultimately its really important that the buyers and sellers are able to meet at a price that makes sense for both. And the devil is in the details. But I think this is something that is potentially very exciting and really important for the industry and the country.”
Dimon said he is in favor of the program, even if JP Morgan Chase doesn’t participate. To describe the flurry of administration programs, he quoted Colin Powell’s line about "overwhelming force".
"I think when you look at them in total, it’s overwhelming force. Whether any one works exactly the way you expect it to, I don’t think that’s as important. I think they’re pretty powerful programs."
However, Fine said that the administration should hold off on unveiling so many programs…and start finding out which ones work or not.
"Give some of these programs a chance to work. I mean, they announce a program on Monday and then they’re announcing a new program on Wednesday and yet another program on Friday. Let’s give some of these programs a chance to work before we keep introducing the next generation of program."
EXECUTIVE COMPENSATION
There seemed to be conflicting viewpoints on the extent of the discussion over executive compensation, perhaps because some CEOs preferred to tune out that part of the conversation.
“Executive compensation was not part of the discussion,” Richard Davis said.
But in an interview with ABC, Fine said that executive compensation wasn’t dealt on much, but was definitely discussed.
“The president mentioned that perhaps bonuses had gotten out of control on Wall Street. The executives around the table from the big banks actually did a sort of mea culpa and said ‘yeah, maybe things got a little out of control. We’re going to do better in the future, Mr. President’."
Said Dimon, "I think he said that some of it wasn’t earned or deserved, that we should be very conscious of why there’s anger out there, that if the banks contributed to this terrible problem we’re in, that should be deeply recognized by them and I think it is recognized by those CEOs."
He added, "When you come to Washington, you have to feel that there’s a deep anger about what happened in this country. Banks are being blamed. I think that they shouldn’t only be blamed, but they certainly participated in it. So when you come to Washington, you do feel it. And obviously the White House feels it intensely and they share that with us."
REGULATORY OVERHAUL
The CEOs expressed support for proposal for stronger regulation so that the government can seize control of non-bank groups.
“I think it would be fair to say that we have a pretty old and antiquated kind of creaky regulatory system that needs to be modernized in this county and I think that’s going to happen," one of the CEOs said, "There’s a number of great proposals on the table including consolidating of the number of regulators, including having a systemic regulator, we’re all very supportive of that.”
TARP MONEY
On the discussion of the TARP money and if the banks would be giving that money back soon, Cam Fine told ABC News, “I think every bank in the room wants to return their TARP money, but not so much because of the strings that are starting to be attached or may be attached, but because I think they’re starting to feel confident enough that they don’t need it. At least several of the banks in the room expressed a desire to give it back as soon as they could give it back."
And Fine expressed optimism that the nation might be getting close to the end of the current recession, noting that, "There’s now mixed signals. Where a month ago it was all black, now we’re starting to see points of light. So I think we must be getting close to the bottom on this thing."
Said Dimon, "We’re gonna get through it. Everyone is gonna do everything they can to make this country get back on healthy feet again. People always ask when. To me, whether it’s three months, six months, a year, it doesn’t matter. You put your elbow down, you put elbow grease in it, you put your shoulder into it, and you push until you have to stop pushing."
-Matt Jaffe and Sunlen Miller
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“Someone’s crying, Lord….Kumbaya”………The American Middle Class.
Posted by: Sammy | March 27, 2009, 5:30 pm 5:30 pm
I’m very concerned about Obama’s decisions to go forward with repeated bailouts for private industry. I don’t believe it is fair to American industry as a whole to bail out the automakers or banks. I’m falling out of love with Obama. I hope he comes to his senses soon.
Posted by: Early Grayce | March 27, 2009, 5:49 pm 5:49 pm
I find little comfort in the Banks and the Administration sleeping in the same bed and exchanging French Kisses reassuring….
Posted by: Spartan Phoenix777 | March 27, 2009, 5:58 pm 5:58 pm
Are these bankers really in trouble or are they finally being cautious about lending(which should have always been the case)? If they return the TARP funds…will the public have to fear taxes to cover these loans in the future?
Posted by: upset&confused | March 27, 2009, 6:25 pm 6:25 pm
bad! Bad banks! You promise not to do that again. ok Good… Im glad we had this little talk. You can go now…
Remember people We’re gonna get through this! even if it takes a week, a month, a year, 2 years, 4 years, 8 years… maybe a decade… a couple more billion dollers… maybe your house…. possibly your job… your car… possibly your dignity… did I forget anything?
Posted by: edigoon | March 27, 2009, 6:32 pm 6:32 pm
Here’s the proof folks; they all care more about PR than reality and real reform. NO MORE BAILOUTS PERIOD! Let the suckers croak.
Posted by: pmennick | March 27, 2009, 7:12 pm 7:12 pm
PR? Is this a joke? PR? More Smoke and Mirrors from the Wall Street wizards. This Washington – Wall Street bailout fest makes me literally sick. I will NEVER bank with these giant clowns. These guys want us to be duped into buying the over-priced homes, condos and real estate assets that they created. Interest rates could go to zero and people know prices are too high. Cooperation? To convince us to buy the bubble-priced real estate and autos? Disgusting!
Posted by: trish | March 27, 2009, 7:38 pm 7:38 pm
I find little comfort in the Banks and the
Administration sleeping in the same bed and
exchanging French Kisses reassuring….
Posted by: Spartan Phoenix777 |
***********************************
Almost as bad as Cheneys week long sleepover
with the oil companies designing their energy
policy for the country. At least the media was
informed on this one.
Posted by: spacerook1 | March 27, 2009, 7:44 pm 7:44 pm
Manamanah
Posted by: Nimblewan | March 27, 2009, 7:54 pm 7:54 pm
It’s the liberal’s favorite song, Kumbaya.
Obama knows how to sing their praises. Fantastic.
Posted by: Migeul | March 27, 2009, 8:11 pm 8:11 pm
Stop OBAMA and take control of congress. We can change things and reverse the damage Obama has done. It just takes winning in 18 months enough seats to stop him.
Posted by: brian | March 27, 2009, 8:18 pm 8:18 pm
CEO’s wearing red ties=GOP, Blue ties=Democrats? DEMs and repubs are mega corporate entities.
Posted by: Phallon | March 27, 2009, 8:32 pm 8:32 pm
Why is there nothing in this article about cram-down and the bankers opposition to it? Looks like they have bought off Evan Bayh and are using him to put the kibosh on this extremely important measure to keep people in their homes.
Posted by: Flash Override | March 27, 2009, 8:36 pm 8:36 pm
I wonder how many of these guys fly into Washington on their private jets and helicopters? Well maybe for PR reasons they were driven in by one of their peons (working Americans). Washington, your state capitals, your cities are about to turn up the screwing of us with higher taxes and consumption fees. Keep spending and funneling that taxpayer money to the fatcats, Obama. America….the teapot is boiling! What the banks don’t take, your government will. Stuff that extra cash in the mattress. You are gonna need it. God Bless the American People.
Posted by: mercury57 | March 27, 2009, 8:38 pm 8:38 pm
The amount of cooperation we can expect from the bank CEOs — similar to that from the bailout CEOs when their bonuses were being investigated?
The more I see of the current administration, the more I fear for our country. Thank God I didn’t vote for this joker!
Posted by: JustMe | March 27, 2009, 8:42 pm 8:42 pm
Why does Obama keep on slamming the special needs people. Today he has to bring up pudding when talking about the banks and tarp. I’m sure it’s Bush’s fault.
Posted by: zimbo | March 27, 2009, 9:10 pm 9:10 pm
Washington and Wall Street – a fraternity with their secret bailout spanking, and doing a Kevin Bacon thing – “Thank you sir, may I have another.” The only difference, is that the American people are the ones with a stinging back side.
Posted by: flounder | March 27, 2009, 9:12 pm 9:12 pm
Here is a PR idea gentlemen — Lines and lines of Americans closing their accounts at these huge bailout banks and putting their funds in responsible local banks.
Posted by: lauren | March 27, 2009, 9:31 pm 9:31 pm
NO bailouts or stimulus payments to ANY company that outsources American jobs …. past, present, or future! PERIOD!
Posted by: NV-Sparkle | March 27, 2009, 9:52 pm 9:52 pm
This Administration is just taking this country over. Plain and simple. This administration is Toxic.
Posted by: aforefreedom | March 27, 2009, 10:06 pm 10:06 pm
lauren – we already did it. I find it hard to believe anybody in America would keep an account with one of these guys. As for PR, all of these congressional hearings and political talk shows, etc, are part of the PR campaign to convince us that what we know is wrong – these bailouts – is right.
Posted by: Chloe | March 27, 2009, 10:07 pm 10:07 pm
NO bailouts or stimulus payments to ANY company that outsources American jobs …. past, present, or future! PERIOD!
=======================================
The president said yesterday in the virtual townhall that the outsourced jobs are not ones we want.
Posted by: mad | March 27, 2009, 10:44 pm 10:44 pm
Mr. O’s on the same page as the banks–Ain’t that great!? Keep stalling with “grand” ideas, and rob the poor to support the robber barons of today. A charming personality does not make an honest politician.
And to the censors-uh- I mean the editors of these posts, don’t you have anything better to do that delete non-offensive posts that fall out of your purview?
Posted by: samjin | March 27, 2009, 11:53 pm 11:53 pm
Early Grayce, you speak the truth. Obama is a smart man and he has done a lot in his first few months, but the bailouts have got to stop.
Posted by: Andrew | March 28, 2009, 12:20 am 12:20 am
The only way to stop this maddness that has taken over Washington , the grab for money and power, is to vote the liberal democate party out of power in the House in 2010.
SWEEP the “enablers” of the Obama agenda out. The snake oil salesman Obama (Community Organizer in Chief) will become powerless without them.
Posted by: Neville | March 28, 2009, 12:20 am 12:20 am
While I am glad that the two parties can talk. We need to get out of this system where these big guys control everything. We need the freedom to let them fail as much as possible, so the good business practices of others can propel them to success. That’s the kind of economic system we’re supposed to have. Not all of the back door dealing that government has gotten so accustomed to.
Posted by: NPage | March 28, 2009, 6:41 am 6:41 am
Why isn’t ABC reporting that one of the people named this week to President Obama’s new Task Force on Tax Reform is a member of the AIG board of directors, Martin Feldstein.
Posted by: CW | March 28, 2009, 7:40 am 7:40 am
samjen: You just can’t give our President a break….what are your suggestions. He is trying to put restrictions on the bank’s bonus pay and all you can do is complain. Even after you complained about them in the first place….
Posted by: talmag | March 28, 2009, 10:10 am 10:10 am
First, Congress was the one that dropped the ball here, and later the President by passing a bill they were ignorant of last Fall, and later agreeing to the bonus language that Emmanuel or Geithner or whomever dictated. Congress knew noxious provisions were in the stimulus bill, and I’m starting to suspect they knew it, and made a big displayl out of no one reading it as cover (it was too long, too many special interests, etc….)
If legislation is too long and detailed to read and vet thoroughly before being voted on, it’s too long to be legislation. The bill was long because it was a greedy grab bag of interests to pay off different groups, in areas having nothing whatsoever to do with economic stimulus.
We need the banks to behave rationally as business entities, not to jump on board Obama’s agenda. The banks provide solid fuel for the economy when each is maximizing it’s own interests, and providing the best yield for it’s stockholders. Yes, with clear rules of the road, regulation, and tough enforcement and penalties when needed. We don’t need our banks to suddenly take on a community organizer mentality. We need them to be banks.
This is Obama’s problem in managing the economy. He has elevated this collectivist ideal, this tendency to “community organize” everything and everybody, into the highest, most noble, moral ideal, and everything that doesn’t conform with that is bad, selfish and greedy. He doesn’t see that that mentality itself is the height of greed and selfishness.
Business entities have to act rationally according to their own best interests. They can’t make it any other way. It’s the job of the electorate or political leaders to step in if they see a problem. But Congress stepped in and made matters worse. Every action they took seemed to aggravate the previous one. It’s as if Congress was out to prove that it cannot intervene in the private sector to the extent that it’s lust for power and control demands.
The CEOs have an interest in stabilizing the economy. They’re supposed to do that, not because Obama told them to be noble, but because that’s what helps them accomplish the bank’s mission — yield for shareholders. They’re not supposed to be social workers, they’re rational actors in a currently flubbed up system. To expect them to do anything else is lunacy and shows a lack of understanding about the role private sector profits and business play in larger society.
We have a free society. No amount of executive orders, signing statements, resolutions or unread bills can change that.
Posted by: jordan | March 28, 2009, 10:18 am 10:18 am
“The banks provide solid fuel for the economy when each is maximizing it’s own interests, and providing the best yield for it’s stockholders”
Since this assumption has again been seen to be demonstrably false assumption, perhaps it is time to reevaluate your conclusion.
Posted by: Flash Override | March 28, 2009, 11:02 am 11:02 am
“This Administration is just taking this country over”
LOL!
Does the word “duh” mean anything to you?
Posted by: Flash Override | March 28, 2009, 11:05 am 11:05 am
Washington and Wall Street are one and the same. These Wall Street banks would be out of business if it were not for Washington’s bailout money. And the Washington ruling class would be out of business if it were not for Wall Street campaign contributions. Fear of losing that power keeps the money flowing back and forth.
Posted by: Brenda | March 28, 2009, 12:01 pm 12:01 pm
Jordan wrote: “We have a free society. No amount of executive orders, signing statements, resolutions or unread bills can change that.”
Obviously you and so many others are unable to see the forest for the trees. As America is falling in step with the Pelosi-Reid-Obama Leftists’ popularization of class warfare–and their War on Capitalism–no one is paying any attention to their War on our Inalienable Rights (Life, Liberty and the pursuit of Happiness).
Congress is sworn to uphold and defend the U. S. Constitution. Yet just last week the House of Representatives overwhelmingly (328-93) passed a bill that singles out a small segment of America for a retroactive punishment without a trial or conviction–expressly prohibited by the Constitution. Every member of the House–Democrats and Republicans–who voted for the 90% taxation of all bonuses received by individuals making more than $250,000, whose employer received at least $5 billion from the government’s financial rescue program, should be denied re-election in 2010.
Posted by: James Danley | March 28, 2009, 12:51 pm 12:51 pm
To James Danley:
The problem with Obama is that he is continuing Bush’s economic and military policies. He’s getting us into a new war with Afghanistan. He is militarizing Mexico by continuing Bush’s “Plan Mexico,” otherwise known as “The Merida Plan.”
And his financial advisors are the ones who created this mess. There is no change! They are just giving billions and billions to Wall St crooks.
That is the problem with Obama.
Posted by: Joan | March 28, 2009, 2:41 pm 2:41 pm
I just love being in a conga line with creepy old bankers.
Posted by: DontGet818OnMeNow | March 28, 2009, 2:56 pm 2:56 pm
James, it is the forest I was talking about, not the trees. People do seem to be falling for the Pelosi-Reid class warfare shtick, but it’s only a cover for the roll back of those inalienable rights, which no one is clearly articulating in the opposition. Those that do are mocked as crazy Ron Paulians or something.
The comment about executive orders and resolutions is this: the freedoms you speak of, as you said are inalienable. Obama and Congress can sign all the orders and resolutions they want, but in the end, they can’t take away rights that are inherently ours, and not their’s to take. Our freedoms are internalized, in our DNA, and won’t be given up.
Watch how our system has been perverted when any Congressional hearing is taking place. To state the obvious, the imperious ruling class has stepped way over the line. They truly believe the citizenry is there to do their bidding, not be represented. The Constitution? Ha! A flawed document, an obstacle to their perfect society, and too constricting. But in fact, it’s restraints and balances were designed precisely to prevent impulses like Reid/Obama/Pelosi’s from prevailing.
Look how easily everyone has accepted this state of affairs, where government truly believes it has a right to ride on the backs of the people.
Posted by: jordan | March 28, 2009, 3:01 pm 3:01 pm
The bankers bought 90 minutes with the president using our tax monies. Are they any different than the lobbyist that we were told would not have any influence in an Obama administration
Posted by: Mary | March 28, 2009, 3:22 pm 3:22 pm
Life, Liberty and pursuit of Happiness ARE inalienable rights–God given rights. HOWEVER, this Congress and this President are determined to control how we live by greatly limiting the liberties we currently enjoy and castigating those whose pursuit of happiness has come to fruition. Instead of promoting an individual’s right to pursue the “American Dream,” they want to make us all slaves to the master-federal government.
Posted by: James Danley | March 28, 2009, 3:50 pm 3:50 pm
Brenda: your point “Washington and Wall Street are one and the same. These Wall Street banks would be out of business if it were not for Washington’s bailout money. And the Washington ruling class would be out of business if it were not for Wall Street campaign contributions. Fear of losing that power keeps the money flowing back and forth.” —- If that ain’t the truth, I don’t know what is.
Posted by: ben | March 28, 2009, 5:35 pm 5:35 pm
The Dept Of Defense briefed the president this morning.. They told President Obama that 2 Brazilian soldiers were killed in Iraq. To everyone’s surprise, all the color drained from Obama’s face. Then he collapsed onto his desk, head in his hands, visibly shaken, almost in tears. Finally, he composed himself and asked, . . . . . . “Just how many is a brazilian?” This is not surprising, since he obviously has no understanding of billion or trillion either.
Posted by: Mohammed | March 28, 2009, 6:43 pm 6:43 pm
samjin,
“Mr. O’s on the same page as the banks–Ain’t that great!? Keep stalling with “grand” ideas, and rob the poor to support the robber barons of today.”
I think you got that backwards. PRESIDENT O is making sure the robber barons of the Bush regime return our money! Think about it. Taxpayers are investors in these big banks now. Don’t you think some good news should be reported to the stockholders? If it weren’t for the banking industry’s prissy republican political views, they would have put a stop this one-sided bear news months ago.
Posted by: Common Sense | March 28, 2009, 7:34 pm 7:34 pm
lauren,
/—–
Here is a PR idea gentlemen — Lines and lines of Americans closing their accounts at these huge bailout banks and putting their funds in responsible local banks.
—–/
How un-American to try to sabatoge the American taxpayer/stockholder. The responsible local banks don’t lend to the average american. What are you thinking?
Posted by: Common Sense | March 28, 2009, 7:37 pm 7:37 pm
Liberal Democrat spending is like the Titanic..
It is headed straight toward an Iceberg called Bankruptcy
Pelosi is steering the ship and the Commander in Training is shouting out..”Full speed ahead”
Posted by: Neville | March 28, 2009, 7:53 pm 7:53 pm
Obamas promise to cut the deficit created by Bush (1.5 trillion) in half is irrelavant because on the next page of Obamas “budget”…he proposes to create his own deficit of 3+ trillion with longer range deficits to reach between 7 to 10 Trillion.
The “talking point” of cutting the Bush Deficite in half is meant to decieve the public.
I admit..Obama is one slick “Snake Oil Salesman”.
Posted by: Neville | March 28, 2009, 7:58 pm 7:58 pm
I think that how this time table of figuring how we can get out of this recession is really hard and frustrating but there seem to be away.If anything America has been in this kind of mess before.And even dough its going to be a while we and indeed once again get out of this recession biger and twice as better. So as the President of the United States Of America says, yes we can
Posted by: Wayne | March 28, 2009, 9:47 pm 9:47 pm
President Obama started strong and in control as far as the banks were concerned. They were failing left and right.Many were on the point of bankruptcy (a few actually went bankrupt).They went on their feet (u can say crawled 2 Capitol Hill)begging for handouts.Both Bush and now Obama gave it 2 them, via the Congress of course.In the most recent meeting with President Obama, the bankers seem to be in control. They were corky and patronizing while President Obama seemed subdued,condescending and compromising.We don’t want that. The bankers are still getting our bail handouts and are in no position to set conditions.Obama,Congress and we the tax paying public still call the shots.Please,this is not a honey moon, someone is playing with our blood, sweat, and tears–that is our money.Don’t play games with the Ponzi conmen.
Posted by: SingoStar | March 29, 2009, 12:55 am 12:55 am
Beat up the economy, and then soften after you’ve scared the crap out of the country.
Beat up bankers and inspire threats of physical violence against them and then realize you need their help.
This is the stuff of Stockholm Syndrome.
Barack Obama is a buffoon.
Posted by: drjohn | March 29, 2009, 3:39 am 3:39 am
Paul Krugman appears to have become a right-winger:
“In his Times column the day Geithner announced the details of the administration’s bank-rescue plan, Krugman described his ‘despair’ that Obama ‘has apparently settled on a financial plan that, in essence, assumes that banks are fundamentally sound and that bankers know what they’re doing. It’s as if the president were determined to confirm the growing perception that he and his economic team are out of touch, that their economic vision is clouded by excessively close ties to Wall Street.’”
Posted by: Fascist Hyena | March 29, 2009, 11:14 am 11:14 am
Krugman, kind of took a step back today on the- this week-panel after geithners interview…which was excellent…I read his column at the new york times, and his snarkiness maybe came from feeling he was being snubbed by this administration…But I like to point out–geithners specialty is high finance and krugmans is economics..I am thinking krugman should speak to his specialty
Posted by: cowgirl | March 29, 2009, 2:49 pm 2:49 pm
Here are a group of high-paid bankers that have put the country in great difficulty because of their bad judgement and, to certain extent, greed in approving sub-prime loans to borrowers without due diligence of checking. They are very lucky to be given a second chance to stay as CEO by the grace of Obama administration. One only hopes that they have really learned their lessons and will do something good for the country.
Posted by: T888tai | March 29, 2009, 9:22 pm 9:22 pm
I work for a credit card company, customer service over the phones. Many people are getting change in terms in the mail about thier rates going up because of the “economic crisis”. Won’t this make it worse and…and I stress AND…these same people with thier rates going as high as they are, will they ever go back to what they had before! I highly doubt it! I kinda imagine everyone sitting around eating off of golden plates and silverware while the rest of the world is suffering financially. It’s all about the money!
Posted by: kristen | April 21, 2009, 9:31 pm 9:31 pm