Bankers hope to work with Obama

 

Tuesday, Mar 31,2009, 11:08:16 AM   Click:

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28 March 2009 Saturday 11:52 AM EST

SECTION: MARKETS; Market characteristics

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TITLE: Bankers Vow to Work With Obama

Signature: The Associated Press.

Copyright 2009 Associated Press. All rights reserved. May This material may not be published, broadcast, rewritten or redistributed.



Darlene Superville

WASHINGTON - Top executives of the nation's largest bank said Friday after meeting with President Barack Obama to work with the administration on its plans for economic recovery, but want more details from the White House. In an interview with CBS News, Obama said his overall message is: "Show some restraint. Show you that it is a crisis and everyone has to make sacrifices. They have accepted and acknowledged . However, the proof in the pudding is in the eating. "

Bankers said a proposal for the administration to initiate loans, a problem in the heart of the crisis in the industry, is encouraging.

"People are looking for this. It's positive, "Morgan Stanley (MS: Nasdaq) John Mack told the Associated Press in an interview." We believe that this is the right thing to do, and now we need to get the details. "

The administration announced a program this week to help the banks to release so-called toxic assets. These investments have linked the capital and were required to resume more normal lending to consumers and businesses.

The plan calls for the administration of a partnership with private investors, the Federal Reserve and Federal Deposit Insurance Corp. to buy as many $ 1 billion in toxic assets of banks. But one concern is whether private investors to participate and if the banks would be willing to sell the assets to the price reduction will be offered to them.

Bankers described a positive meeting and pledged to work with Obama on the restoration of health economics.

"We want to see the U.S. recovery," said Robert Kelly, Bank of New York Mellon (BK: Nasdaq).

Obama has invited leaders of the 15 largest banks in the White House to discuss the economy and other issues.

Jamie Dimon of JPMorgan Chase (JPM: Nasdaq), Vikram Pandit of Citigroup (C: Nasdaq), Ken Lewis, Bank of America (BAC: Nasdaq), John Stumpf, Wells Fargo (WFC: Nasdaq), John Koskinen Freddie Mac and Kenneth Chenault of American Express (AXP: Nasdaq), were among those who attended. Treasury Secretary Timothy Geithner met privately with the CEOs on Thursday evening, Friday and Saturday of the meeting.

Obama urged the leaders to deal with toxic assets. Obama and senior management also discussed his plan to stem the rise in seizures of home, his proposal for tighter regulation of the financial industry, executive compensation, the financial rescue program and "the importance of recognizing that the American public is in this economic crisis," White House press said Robert Gibbs.

Gibbs said Obama was generally satisfied with the meeting. It lasted over an hour.

"The president stressed that the needs of Wall Street and Main Street, Main Street needs Wall Street," said Gibbs.

He said the president had stressed that he had no work beyond the agenda for a solution, the right solution for our financial system and get it again stabilized and working for the American people. "

The Administration also proposed tighter regulation of the financial system. This includes giving the government broad power to take on large financial institutions that are not banks, such as American International Group (AIG: Nasdaq), the giant insurer, including the collapse of the overall system, administration officials have said.

AIG has received several injections of federal money to rescue more than $ 170 billion in all, because the administration said that its failure would have far-reaching and devastating consequences around the world.

Gibbs said: "It is fair to say that they agreed on the need to update the regulation."


Obama also announced a program to help millions of homeowners to refinance their mortgages to avoid foreclosure.

Friday of the meeting capped a period marked by public outrage and the strong language of Obama Wall Street business practices and $ 165 million in premiums paid are struggling financially to certain AIG employees.

Obama assailed AIG last week for "recklessness and greed" in its business practices, but it has since eased its rhetoric. The administration needs for its industry of economic cooperation work plans.

Richard Davis, U.S. Bancorp (USB: Nasdaq), said Obama has raised questions that have fueled public outrage.

"He is not surprised by it. We reported to him that we are not surprised either, Davis said the AP.

___

Associated Press writer Julie Pace contributed to this report.

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