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White House advisers issue strong words for bankers

By John Amick

Top members of President Obama's economic team offered tough talk to bankers on the eve of a White House summit with bank executives on Monday.

"The country did incredible things for the banking industry," Lawrence H. Summers, Obama's top economic adviser, said today on ABC's "This Week." "Those things had to be done to save the economy, but no major bank would be intact, in a position to pay bonuses, if that extraordinary support had not been provided. The bankers need to recognize that. They need to recognize that they've got obligations to the country after all that's been done for them, and there is a lot more they can do."

America's biggest banks have failed to realize how much they owe the government for bailing them out last year amid a financial crisis that was largely caused by banks' reckless risk-taking behavior, said Summers, director of the National Economic Council.

"It was irresponsible risk taking that brought the economy to the brink of collapse," he said on CNN's "State of the Union." "And frankly, after the Asian financial crisis, after the S&L debacle, after the 1987 stock market crash, after other things that happened, it wasn't the first time."

These banks wouldn't be in near the relative health they're in now without the American people, Summer argued, and for banks to send a cadre of lobbyists to Washington to try to halt financial regulation legislation -- passed by the House on Friday -- is proof that attitudes in the banking sector have not changed.

"For them to be complaining about serious regulation directed at making sure this never happens again is wrong," Summers said. "For $300 million to be spent on lobbyists trying to gut serious efforts at financial reform is not how this country should be operating. For firms that have benefited from taxpayer support to be complaining about the government burdening them is, frankly, a bit rich."

On NBC's "Meet the Press," Christina Romer, chair of the White House Council of Economic Advisers, highlighted the disconnect between Wall Street and the average American.

"Wall Street's doing a whole lot better and Main Street is still suffering," Romer said. "And so, you know, that's why the president is going to have the bankers in tomorrow. We're going to be talking about a lot of things, like what are the responsible actions they can take to get lending going again to small businesses, to deal with compensation practices that encourage risk taking, to make sure that responsible homeowners can stay in their home?"

By washingtonpost.com editors  |  December 13, 2009; 4:24 PM ET
Categories:  44 The Obama Presidency  
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Comments

I was kidding around with the Jaws SEQUEL joke I made- seriously kidding around.

But reading this last post here - I see someone else referenced Loan Shark

so I'll promote hopefully a trend here

Jaws jokes - I'll keep mine to citibank.

"I don't have to even go see the new Jaws sequel this year, I just opened my citi bank statement".

ok, I keep away from citibank

If you want to learn more about citibank - check out

http://www.innercitypress.org

That became my NEW Wall Street Journal after Fox bought WSJ from the Bancroft family- they considered renaming it the Fox Journal- sheesh.

I LOVE how Fox quotes "and in the Wall Street Journal today" lol - as IF it's a SEPARATE corporation - maybe that's FTC violation hmm...

Posted by: GREEDOM | December 15, 2009 9:25 AM | Report abuse

From article:


"The country did incredible things for the banking industry," Lawrence H. Summers, Obama's top economic adviser, said today on ABC's "This Week."


Summers is incompetent.

He's not seeing that it was Wall Street investment banks that laundered the dirty zero equity loans.

The banks were just taken down in the cross fire.

I've had enough of this - it's either incompetence ? or Larry ? Why are you obfuscating the truth ?

Really now- Larry- you should KNOW BETTER

Banks SAID no, ALWAYS have said no - to sub prime, AND to ZERO EQUITY mortgage service groups.

ALWAYS

AND ? They've ALWAYS said NO- or mostly so - to STARTUPS - TOO risky- MOST people use their home - via Home Equity Loans to fund their dream business, some make it work, others face the music- THAT is life, THAT is free market capitalism.

I don't even WANT to get into General Motors GMAC's DiTech home equity loan unit and THEIR role - if you didn't own ? go Countrywide- and this is a SERIOUS matter on this one - if you JUST bought ? vai countrywide ? ZERO EQUITY ? HERE is one for the books- Let's go explore where diTech let people borrow off of a new home with zero equity- that ball hasn't even flown off the White House tennis court yet.

That's the pain that will keep us struggling until at LEAST 2015.

Summers ? PLEASE - take my advice - GO STUDY THIS A BIT MORE - as I HAVE - I WORK with CORE DATA of banks, I see it ALL - you - DO NOT - banks are NOT the PROBLEM - and until you DO see that ? Which I don't think you CAN - you won't see that.

WALL STREET INVESTMENT BANKS were the ones who CAUSED THIS SUMMERS !

NOT BANKS

PLEASE don't speak BADLY about the banks SUMMERS - unless it's Bank of America- for taking on Countrywide's 300 billion - in GREAT QUANTITY ? ZERO EQUITY.

What WORRIES ME IS - that's dead weight on BofAML - and now that if BOA fails - we all go ? and BoA is treading water holding the dead corpse of countrywide ? It's going to have to let go - or get pulled down with it.

Just how much do you get PAID SUMMERS ?

I'll dance circles around you and work for $25k a year.

Money is a TOOL - I don't CHASE unrealistic income - I'm actually happier with LESS money I find.

Wall Street investment banks - from DOJ to FREE MARKETS need to fail when they need to fail.

TARP should NEVER have been used for Goldman - NOR for AIG.

Sure - would be a mess- but at least we'd not be living a lie.

Tim Miltz

Posted by: GREEDOM | December 15, 2009 9:01 AM | Report abuse

hill_marty Wrote:

Good job, WaPo and Obama Administration on demonizing the very businessmen and women you are hoping to pull your dumb tails out of this mess. It is easy to blame the financial meltdown on bankers, investors, etc., etc., but the real thieves are all in

...


Hill_Marty- no, bankers are fine.

Banks said NO to sub prime - BAnks would NEVER take a ZERO equity mortgage product.

Wall street said - hey - we can get Moody's to triple A this - and who cares, AIG is backing us.

No, you're WRONG.

Wall Street investment banks are behind this laundering operation.


Please don't group INVESTMENT banks with REAL banks.

Even IF they -overnight - changed their status -and where was THRIFT ? WHERE ? to say- hey - wait just a second, Glass Steagall may be gone, but you can't just overnight change your name Goldman and now poof you're a bank to gain access to TARP.

And yet ?

that's EXACTLY what happened.

Until Goldman is held criminally accountable ?

I'm not satisfied.

JUST BECAUSE Lehman and Bear Stears went down - doesn't mean the EVIDENCE HAS BEEN DESTROYED EITHER.

YOU KNOW WHO YOU ARE.

I suggest you find out who WIKILEAKS is

and I suggest you go talk to some SWISS BANKS about just how powerful data can be in bringing AID to the criminal justice system- for the BENEFIT OF ALL - ESPECIALLY those who paid for TARP out of HARD LABORED TAXES - to INVESTMENT BANKS - not banks - INVESTMENT BANKS.

BANKS were ONLY hit because WALL STREET treated ZERO EQUITY PRODUCTS as if ? Thanks to Moody's cooperation ? AS IF they were REALLY WORTH SOMETHING

We're going to be paying for this for a LONG TIME - My guess 2015

THANKS DOJ for keeping WATCH ? on WAll STREET ?

THANKS THRIFT - for LETTING THIS HAPPEN via TARP -

SEC? Why ? we'll never know what was lost in building 7 will we.

or will we ?

Tim Miltz

Posted by: GREEDOM | December 15, 2009 8:54 AM | Report abuse

While I don't mean to repost

I accidentally posted this in the Lost Emails 44 thread.

I also think severe criminal DOJ penalties need to go upstream all the way to Goldman.

Unfortunately we'll never be ABLE to prosecute Lehman or Bear Stearns now -will we.

Wow- gotta wonder what's on their books.

I'd wager my left arm Lehman went long on oil helping to create THAT artificial bubble - Big oil NEW in Spring 2009 - the Co2 data would be in from the second launched US satellite to PROVE it's human influenced- that one managed to blow up over the north pole in Jan, 2009, so, big oil rush wasn't necessary at $150 a barrel after all, Thankfully Japan's JAXTA IBUKI data IS IN, and will be released in Jan, 2010, and DOES SHOW (I know, I've seen it) Co2 is human derived, so - GOOD BYE oil 2010 - I hope there are liability suits to coal too !

I'd bet my RIGHT ARM though, Lehman and Bear Stearns were critical mechanisms in laundering these zero equity housing loan mortgage products.

Comptroller of Currency Dugan points out - Countrywide pushed IT's RECORD 300 billion through Wall Street, why ? I'll tell you why - because any BANK would have laughed you out of the room...

I can see it now:

In a REAL bank:

Client: "Fox News ran this Countrywide ad- saying I could live in a 350k home, I want THIS one - plus, we're gonna FLIP IT at 380, cause it's just magic money goin' on - thanks to a paid for TV ad on real estate I saw on Fox News late at night showing me how to do it all".

Banker: "Assets please? "

Client: "none, plus I'm unemployed"

Banker, "ok, MAYBE we can do this, we'll need a hefty down payment to cover our risk if you default"

Client: "I saw the President on Fox News telling me I didn't have to worry bout no downpayment"

Bankers potential responses:

Banker: "Security !"

Banker: "Are you high ? "

Banker: "Do you believe the world is ending or someting ?"

Banker: "Did you listen to Bush when he hinted it is End Days ? "

Banker: "Are you MAD ? "

Banker: "Please, I don't have time for this nonsense - why don't you go to Countrywide directly, and they'll jeopardize the entire housing market by artificial inflation, and in about 4 years, this bank will be foreclosed because we had GOOD real estate investments that LOOKED like they went south - mark to market- because people like YOU will have DESTROYED the integrity of the housing sector, and we'll be out of business".

Yes, indeed- a most dangerous client to enter a GOOD bank that day.

Only to have WALL STREET LAUNDER the BUNK LOANS -

AND THEN ? BEST PART ?

Paulson tells investment banks - FORGET GLASS STEAGALL - just do a fictitious name change, and call yourself a bank - don't worry, OTS is a bunch of baffoons anyhoo, plus, they can't do much about it anyhoo".

Tim Miltz


Posted by: GREEDOM | December 15, 2009 8:47 AM | Report abuse

More pretense that a return to Glass Steagall would not force banks back to lending and out of buying Wall Street paper.

Charades from the administration that has made the Democratic party the party of Wall Street.

Posted by: bsallamack | December 14, 2009 6:05 PM | Report abuse

Good job, WaPo and Obama Administration on demonizing the very businessmen and women you are hoping to pull your dumb tails out of this mess. It is easy to blame the financial meltdown on bankers, investors, etc., etc., but the real thieves are all in Government - especially in Congress, where those bloated pigs are about to - yet again - raise the debt ceiling to unprecedented levels, so they can spend our grandchildren's money buying votes and lining their pockets. Far better to pay bonuses to people who really work for a living than those that simply suck off the public teat.

Posted by: hill_marty | December 14, 2009 5:50 PM | Report abuse

It's hard for me to fathom why there are so many comments to this story that are delivered by alleged persons who seem to be sitting on their brains and typing negative feelings via their fingers--fingers that convey feelings (but not much rational/intellectual thought). In so many of the responses/commentaries I've read it seems that the anuses (ani?) of the writers have control of both their alleged "brains" and their fingers: have none yet discerned that the financial-meltdown was directly caused by the Cheney/Bush Cabal's foreign-oil family-dependence and economic illiteracy? How long did it take for the U.S. and the world to recover from "The Great Depression"--which was actually ended by the work-force because of (and during) World War II? Anyone who believes that the successor to the Cheney/Bush economic illiteracy can immediately fix what the Republicans created must also walk around with one hand in a front pocket, searching for their own cojones. If you have nothing but complaints--not possible solutions--to offer the public, then shut up and live with it: adjust your own style of life to what you were left by the continuing Republican idiocies at the beginning of the 21st-century.

Posted by: marc85 | December 14, 2009 5:18 PM | Report abuse

STILL, Frank, Dodd, Rubin, Paulson, are not in JAIL!!!!!!!!!!!!!!!!!!!

This is 2 YEARS later. Still NOTHING from the (PUKE) 'Justice' Department or the Attorney General (General Jerk) except to let the Black Panthers intimidate voters at the polls and let Al Qaeda put AMERICA on trial in NYC.

Oh, yeah, we're getting a LOT for our TAX DOLLARS.

Posted by: mipost1 | December 14, 2009 4:39 PM | Report abuse

And that's all they'll get from this sellout - a lot of strong talk for the cameras followed by a lot more rolling over in private. I don't believe anything that this man says anymore - and I voted for him.

Posted by: cmayfi1 | December 14, 2009 3:03 PM | Report abuse

You know it really doesn't matter at this time. You knew the banks would keep doing their horrific behavior of stealing from those that have less money than them.

The Rothschild's have their servants open the drapes in the morning so they can look out their windows and say to themselves...
Oh look at the little slaves out there, what are they up to today? They use to laugh as they said this. Now they are frightened as they say this. Why is that boys and girls? The answer is because they in fact know there are crosses with their eternal name on them in the lowest dimension. Their eternal name of course is Legion Litter! And, they also know their little slaves won't be nailing them to the cross, but their buddies in their Illuminati club will have to nail each other to a cross...literally!!!

You see boys and girls this is a time of lessons to be learned...a time to be of good values, good morals, and good ethics. A time of truth.

As for rules for the banks and credit card companies they weren't following the Federal rules before the bailout. For instance...it is a Federal Law that all credit card statements must be in your mailbox at least two weeks prior to the due date. The credit card companies deliberately have made the statements mailed late. And, that came from the higher executives. That way, people would be late paying their cards and the credit card companies were to make a profit by increasing the interest rate and charging a late fee. How do I know this? Because they started doing this to me. However, I called and got thier billing addresses before they started doing this to me. I knew they were going to do that. Citibank still increased my interest rate. Citibank did not address the issue of some erroneous charges on my bills and in fact refused to do so after I sent them proof.
Citibank then cancelled my card...thinking that would show me they had power. They are in fact powerless and that is one hundred percent the truth!

Bank of America is too disgusting and vile to talk about on this beautiful day. For one thing they are not worthy of me saying anything about. I know their demise.

I read records. Real records. Akashik records. Every day you wake up and find that you are not in the lowest dimension nailed literally to crosses, I suggest you thank Jesus! For soon there will be only two dimensions...Heaven and Hell. Last updated count on who is going to Heaven is less than two hundred thousand beings.

You see so many think they are more powerful than the Lord Jesus Christ. So many think they actually own the land. They don't own the land. They may have an innocent deed or a corrupt deed showing they own the land, but they DO NOT own the land. Chief Joseph tried to explain this to the United States legislature back in the 1800's, but the legislature did not want to hear that. They still don't like hearing the truth.

What time is it boys and girls...it is the end times. I KNOW!

Truly,
Karen Romero

Posted by: karenmarieromero | December 14, 2009 1:59 PM | Report abuse

It's nice for Barack to join our choir and call the bankers a few names.

However, I thought the bonuses were part of the risky loan business. It just seems that they cut off the "Small Businesses" because they are too risky, but no bonus have been cut. Yet how much bonus money comes back into the U.S.economy?

Posted by: bobo13 | December 14, 2009 1:36 PM | Report abuse

"Strong words?" Like please and thank you?I can't believe America has come to this. We have the President politely asking the "Fat Cats" he just bailed out to lend some of that money we fattened the up with. The small Banks and Credit Unions will be the heroes in all this, assuming they can survive the foreclosure and repossession wave (see: http://www.repofinder.com). Break up the big Banks (a.k.a. Crooks) and let the free market be free.

Posted by: dolomite2001 | December 14, 2009 1:35 PM | Report abuse

The fat cats who run the big banks have been ripping off the American public for so many decades that they consider it just a part of normal everyday activities.
Obama needs to TELL THE FAT CAT BANKERS that if they do not start lowering credit card interest rates and do not start lending more money to small business, that he will take over the banks until each and every dollar is repaid.
And then he needs to boost up the regulators power to force the FAT CAT BANKER CROOKS to adhere to these rules.

Posted by: JimW2 | December 14, 2009 12:32 PM | Report abuse

All show, to look like he's really doing something! They contributed big time to him last time around and will again!

Posted by: Jimbo77 | December 14, 2009 12:24 PM | Report abuse

Boy, that is good coming from Obama. Here is a guy that single-handedly wrecks the US economy in a matter of 11 months, and he talks down to bankers. No one loves bankers but they are not the problem, Obama is the problem. This guy is a disaster for this nation.

Posted by: walterndebby | December 14, 2009 11:38 AM | Report abuse

Mr Summers:
Did not the previous administration, with the agreement of the present one, force the banks to take TARP money?
Have not the banks paid interest on the TARP money, did not the taxpayers make a profit on it?
Will the taxpayers make a profit on the money given to GM or Chrysler?
Did the secured creditors of those two companies get screwed?
Obama and Co is about redistributing wealth from those who have any to those who have less. The bottom line is that the small banks are the ones who loan to small business and they don't want any part of TARP. They don't want to appear in front of Barney Frank and get pilloried.
Can you blame them?

Posted by: dcook140 | December 14, 2009 10:53 AM | Report abuse

Obama defense strategy: Strongly worded correpsondance. Didn't he send something to North Korea? I understand they are still shaking in their hobnail boots. What a joke. When is Obama going to actually do anything besides send "strongly" worded news releases or well written and delivered speeches about nothing?

Posted by: staterighter | December 14, 2009 9:20 AM | Report abuse

Obama is out there calling the banksters "fat cats"! The banks are bigger and richer than they were before the crisis! Whose fault is that????? If the Government really wanted to fix too-big-to-fail, it would break up these banks!

Oh, and by the way ... when it comes to bonuses, the FEDERAL employees made out like BANKSTERS.

This president is quite the ventriloquist. He can talk out of both sides of his mouth and never move his lips.

Posted by: penniless_taxpayer | December 14, 2009 8:59 AM | Report abuse

The way these banks, especially Citibank and Chase have jacked up the interest rates, even on the customers who were never late with a payment, and usually paid more than the amount due, the American public owes these thieves NOTHING. They should have never been bailed out, then we would see where these thieving crooks would be.

Posted by: citigreg | December 14, 2009 8:47 AM | Report abuse

Memo to POTUS -- After you're done with the bankers, talk tough to your security/intel team about this (now exposed) ugly American secret:

OBAMA WRONG, UNAWARE; US DOES TORTURE -- ITS OWN CITIZENS

• Regional Homeland Security- administered fusion centers use a nationwide microwave/laser radiation "directed energy" weapons system employing cell towers and satellites to silently torture, impair, subjugate unconstitutionally "targeted" Americans and their families -- an American genocide hiding in plain sight.

http://nowpublic.com/world/obama-wrong-unaware-u-s-does-torture-its-own-citizens
http://nowpublic.com/world/gestapo-usa-govt-funded-vigilante-network-terrorizes-america
nowpublic.com/world/govt-tortures-me-silent-microwave-weapons-ousted-s-prez
OR (if links are corrupted / disabled): NowPublic.com/scrivener RE: "GESTAPO USA"

Posted by: scrivener50 | December 14, 2009 1:30 AM | Report abuse

I've said it many times before elsewhere, it really time to enhance the Tea Party Movement by initiating a Nation wide strike to shut down this economy until the WH, The potus, and the rest of the idiots in DC repeal all the laws, bills that are currently up for vote, and they shut down the EPA, and do away with AGW ideology. It's getting to the point that no matter what The American People say or do Congress, and the rest of the Belt Way simply refuse to listen and the only way I see them Listening is with a non Violent means with a Nation Wide Strike period End of Story !!!!

Let go America, Wake the hell up and Smell the Rose's it's time to fight fire with fire and if we use our Power, and will to change the way Congress does business and stop the Cash Flow they'll have no other choice but to listen !!!

Posted by: dirtydan64 | December 14, 2009 12:45 AM | Report abuse

And, I have some strong words for the White House!! STOP the Spending!!

Posted by: CayC | December 13, 2009 10:13 PM | Report abuse

And the american plutocracy rolls on,unfettered...

Posted by: hyroller56 | December 13, 2009 9:39 PM | Report abuse

pssssssttt........team obama

banks ONLY lend money to make profits

not to help the poor
not to help you get reelected
not for smug obama soundbites

thats what capitalism is

if you are too STUPID to make incentives to promote even more liars loans and fraudulent lending

you know like barney frank demanded with fannie mae

well then just shut up

Posted by: ProCounsel

I'll say it again, dipstick.

You'd have a lot more credibility making commentary on serious matters if you didn't communicate like an eight-year-old.

Posted by: Attucks | December 13, 2009 8:52 PM | Report abuse

TEA PARTY REVOLT refuses to earn an extra dime until Obamaland is gone.
Obama Pelosi Reid must be out of office before the USA starts again.

The sooner they void all Obama signatures, and opens illegally secreted intel, the sooner the money comes out of the matresses. Medical stand down for NPD Sociopathic dual profiles is exactly the cure the Country wants now.

Place President Biden this week and the USA will have a wonderful Christmas after all.

Posted by: dottydo | December 13, 2009 8:50 PM | Report abuse

pssssssttt........team obama

banks ONLY lend money to make profits

not to help the poor
not to help you get reelected
not for smug obama soundbites

thats what capitalism is

if you are too STUPID to make incentives to promote even more liars loans and fraudulent lending

you know like barney frank demanded with fannie mae

well then just shut up

Posted by: ProCounsel | December 13, 2009 8:24 PM | Report abuse

Sommers says we're out of the woods. Who does he think he is santa claus? Let's run out and shout it's over? He's bin drinking the bubbly or thinks we'll buy his garbage. We need a new administration to straighten out this mess.

Posted by: MOMLEE | December 13, 2009 7:56 PM | Report abuse

The foxes are still in charge of the hen house so all those "advisors" who are all too chummy with the banks, wall st., etc. will never inspire fear or even a worry for any bank, corporation, etc.

What heifer dust -- a very old cowboy expression for cow pie

Posted by: abbydelabbey | December 13, 2009 7:50 PM | Report abuse

Tell the banks to pay back all the money they owe us from their "Loan-Shark" Interest rate increases on our credit cards. Obama should take over the banks like he did the auto industry.

Posted by: wasaUFO | December 13, 2009 7:39 PM | Report abuse

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