Inside the Obama-Bank CEO Meeting

[Jennicut]

Inside the Obama-Bank CEO Meeting
By Rob Blackwell
March 30, 2009

As bank chief executives left the White House Friday after a roughly 90-minute meeting with President Obama, they presented a united front to the media horde outside.

But inside the meeting, which was held in the state dining room, it was clear the CEOs took different approaches. The bluntest was from Ken Lewis, the chief executive of Bank of America Corp.

"Mr. President, I am not going to suck up to Larry and Tim like the rest of these guys," Lewis said, according to sources in the meeting. Lewis was referring to Treasury Secretary Tim Geithner, and Lawrence Summers, the head of the National Economic Council, who also attended.

Obama laughed along with the rest of the CEOs, before listening to Lewis get to his point: he wants to pay back Troubled Asset Relief Program funds.

And he was not the only one.

Jamie Dimon, the CEO of JPMorgan Chase & Co., arrived with check in hand to give to Geithner before the meeting started, according to the participant. Geithner took the check briefly to examine it before handing it back. (The check was fake).

Dimon tried again later during the meeting, telling the president he would like to give back his $25 billion in Tarp money.

The overall tone of the meeting was cordial, participants said, with no raised voices or significant tension. Obama's message was essentially one of mutual dependence: we need you, and you need us.

"My administration is the only thing between you and the pitchforks," Obama said.

Still, Lewis complained that all institutions were being tarred with the same brush, saying policymakers should better distinguish between commercial bankers and investment bankers.

But Obama had a rejoinder to that, saying the industry essentially brought that problem upon itself. He offered to call Sen. Byron Dorgan and ask him to re-establish the Glass-Steagall Act, which was repealed a decade ago. The law put barriers between commercial and investment banks.http://www.bankinvestmentconsultant.com/news/-2661449-1.html

I find this all kind of interesting. Should we let them pay back TARP and what is the good of making them use the TARP money now?

[w4rma]

1. Are they paying the TARP money back with printed money from the Federal Reserve? (nt)

[Jennicut]

2. I just wonder why they are so eager to give it back now?

Obviously they do not want to deal with any regulations what so ever from the govt. regarding how the money can be used.

[ClarkUSA]

3. I love that Barack offered to re-establish the Glass-Steagall Act, which Clinton should've vetoed.

[global1]

4. So What Am I Supposed To Glean From This?.......

These guys don't want the money because they don't want any strings attached or new regulations for their industry. So they want to turn the money back to the government to prevent that? And on top of that they are not jump starting credit to small businesses; lending mortgage money; holding back? Are they trying to blackmail the government? Most Americans have lost all confidence in the financial community - and they are playing hardball? Fire these greedy bastards and put people in that want this country to succeed.

[Jennicut]

5. Essentially yes. I think Obama sent a message to them yesterday regarding that they need to get

their asses in gear. Of course, Obama is a "corporatist" so he loves these guys and the same Wall St. that basically hates his guts. I think BOA CEO is on a lifeline right now. He won't last long, his own shareholders are calling for his head of the Merill Lynch acquisition.

[frazzled]

6. This is not exactly a news source

There is no sourcing in the story. I wouldn't necessarily put much faith in the accuracy of an article from bankinvestmentconsultant.com -- I mean, they're quoting dialogue?

[Jennicut]

7. True. But BOA CEO has talked about wanting to pay back TARP before.

[Adelante]

8. If it wasn't so tragic, I'd laugh

Still, Lewis complained that all institutions were being tarred with the same brush, saying policymakers should better distinguish between commercial bankers and investment bankers.

But Obama had a rejoinder to that, saying the industry essentially brought that problem upon itself. He offered to call Sen. Byron Dorgan and ask him to re-establish the Glass-Steagall Act, which was repealed a decade ago. The law put barriers between commercial and investment banks.