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Obama warns bankers against credit blockade

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Barack Obama takes America’s Top-before bankers at a meeting at the White House the U.S. president urged more use of them in revamping the financial sector and in extending credit. The taxpayers would have saved the Institute – now the money managers would have their part to contribute to recovery.

WASHINGTON – The heads of U.S. banks to make concessions, President Barack Obama has the required financial manager in a meeting at the White House for "extraordinary use" for the reconstruction of the economy. He explicitly warned against the planned Financial Market Regulation too slow.

He had made the banking chiefs clear that he would not allow their lobbyists to torpedo the deliberations in Congress to toughen up laws for the financial sector. "If they want to fight a reasonable consumer, then I’ll take this fight," warned Obama.

The banks stood in its duty to resume lending and repay the state aid. "American banks have received exceptional assistance to rebuild their industry," said Obama. "Now we expect that they make an extraordinary contribution to the reconstruction of our economy," said Obama after the meeting.

Citigroup will pay back state aid

It was not until Monday, the U.S. bank Citigroup expressed a willingness to repay the billion-dollar U.S. government aid. The once world’s largest financial institution, announced on Monday a capital increase of 17 billion U.S. dollars, around 2010 without credit from state economies to be able to pots. The Institute will have paid for their own information so that a total of 3.1 billion U.S. dollars in dividends and interest to the government.

Citigroup is next to Wells Fargo one of the last great banking houses, which has not yet paid its debts to the state. Already in the summer as banks had repaid JPMorgan Chase, Morgan Stanley and Goldman Sachs, State aids.

Obama criticizes slow lending

The President also criticized the slow lending to small businesses as a serious problem. Companies would complain to him because they have borrowed from the banks any money.

The dressing down at the top bankers took a half hours and thus longer than planned. The meeting was attended by the heads of nine large U.S. banks, including Jamie Dimon of JPMorgan Chase and Bank of America-Executive Ken Lewis. Goldman Sachs CEO Lloyd Blankfein, Citigroup CEO Dick Parsons and Morgan Stanley’s John Mack was switched telephone only because their flights had been canceled because of fog.

All financial institutions were the main recipients of public funds from the banking Rescue Program (TARP). Lewis said after the meeting, the Bank of America have promised to try to increase lending to small and medium enterprises in the coming year, at least five billion dollars compared to 2009.

Already at the weekend Obama had the financial sector hard attacks. The banks would still not understand how angry people make the payment of high bonuses. By addressing the manager, Obama said: "You accepted you ten or twenty million dollars in bonuses after America has been through the worst year economically for decades – and you have caused the problem."

The high salaries and bonuses based on corporations with taxpayers’ money in the U.S. have triggered a storm of indignation. The agreement fell below 50 percent for Obama and thus to the lowest level of his previous presidency. Many Americans hold it against the government that they program the Bush administration continues to prop up banks with billions of taxpayers, while the job has become increasingly difficult and the unemployment rate is ten percent.