President Obama has told US bank executives that it’s time for them to help taxpayers by lending more.
In a meeting with Wall Street’s top bank executives, the president laid it on the line that their obligations to taxpayers are far from over.
“Now that they’re back on their feet, we expect an extraordinary commitment from them to help rebuild our economy,” the President said.
According to the White House, 60 percent of the banks that took government loans have repaid them with interest, and many of those banks are reporting profits again.
However, consumers and small businesses are still having trouble getting loans, they say.
Bankers say that while people are asking for money the question is if they can pay the loans back during a recession.
“We agree viscerally that more lending needs to be done,” said Richard Davis, CEO of US Bank, said after the meeting.
“We’re looking for those opportunities to make sure we don’t put people in harm’s way, and we don’t put banks back in harm’s way.”
The White House meeting comes just one day after the President’s 60 Minutes interview where he described the bankers as Wall Street “fat cats” who just don’t get it.
He said they’ve gone back to their old ways of big executive bonuses, while taxpayers who bailed them out continue to suffer.
Congress is debating new, stricter financial reforms. The bankers say they’re on board with most of the plan, but feel some of the reforms go too far.
Republicans argue the added government may do more harm than good.
Despite the tough talk, both sides called the White House meeting productive.
The banks have pledged to work on new programmes to jumpstart lending, and the President says he urged them to work harder.
