US President Barack Obama told top bankers today they owed the country their help in lifting the economy out of crisis and implored them to lend more money and to get behind financial reforms.
'Given the difficulty that businesspeople are having as lending has declined, and given the exceptional assistance banks received to get them through a difficult time, we expect them to explore every responsible way to help get our economy moving again,' President Obama said.
After speaking at the White House to executives of a dozen major financial firms, Obama said that, having benefited from taxpayer bailouts, they owed 'an extraordinary commitment' to help rebuild the economy.
He said that meant finding ways to help credit-worthy small- and medium-size businesses get the loans they need.
US business lending has plummeted since the financial crisis struck from a peak of $1.65 trillion in October 2008 to around $1.35 trillion earlier this month.
The bankers appeared chastened afterwards, promising to expand credit for small businesses and insisting they supported regulatory reform.
Obama said he was receiving letters from small firms saying they could not get loans.
Having complained about 'fat cat bankers' taking big bonuses, Obama said he also told the executives he had no intention of allowing lobbyists for the institutions to thwart legislation on financial reforms.
Americans are outraged at the bonuses paid to executives of big banking firms. Many blame Wall Street recklessness for the worst financial crisis since the Great Depression and creating an economic mess that has led to double-digit unemployment.
Obama, whose public approval ratings are below 50%, the lowest of his presidency, is annoyed that some of the public's anger at Wall Street firms is being directed at his administration for continuing the financial rescue package begun during the Bush administration.
Among those at the meeting were Jamie Dimon, chairman and chief executive of JP Morgan Chase; Ken Chenault, president and chief executive of American Express Co; and Ken Lewis, president and CEO, Bank of America.
