The Back Alley Archives

i've got my money on jamie dimon on a head-to-head on a neutral field...up on the hill, we know it'll be the barney frank show

frank'll have an earful to deliver i'm sure...the quoteds from this hearing'll be legendary.

i got my popcorn ready...do you?


http://news.bbc.co.uk/2/hi/business/7883136.stm#

BAIL-OUTS RECEIVED
Bank of America - $45bn
Citigroup - $45bn
JP Morgan Chase - $25bn
Wells Fargo - $25bn
Goldman Sachs - $10bn
Morgan Stanley - $10bn
State Street - $3bn
Bank of New York Mellon - $3bn


2007 Pay Deals
Jamie Dimon, JP Morgan Chase - $28m
Kenneth Lewis, Bank of America - $25m
Lloyd Blankfein, Goldman Sachs - $70m
John Mack, Morgan Stanley - $2m
Robert Kelly, Bank of New York Mellon - $20m
Ronald Logue, State Street - $28m
John Stumpf, Wells Fargo - $13m
Vikram Pandit, Citigroup - $574,000



US bank bosses to face grilling

Bosses of eight US banks that have received billions of dollars of bail-out funds are due to face a tough time later before a Congressional hearing.

The chief executives of firms including Citigroup and Bank of America will have to tell the House Financial Services Committee how the money is being spent.

The eight firms have so far received $166bn (£114bn) of public funds.

Members of the House committee have already expressed anger at what they see as a lack of accountability.

Transparency call

The eight chief executives due to attend are Vikram Pandit of Citigroup, Jamie Dimon of JP Morgan Chase, Kenneth Lewis of Bank of America, Lloyd Blankfein of Goldman Sachs, John Mack of Morgan Stanley, Robert Kelly of Bank of New York Mellon Corp, Ronald Logue of State Street and John Stumpf of Wells Fargo.

They are all due to detail how they have spent their funds so far, and the extent to which this has enabled them to raise lending levels.

The committee will also be wanting detailed information on any 2008 bonuses paid out at the eight banks.

"The American people are right to expect that we use [the bail-out] funds responsibly, quickly and transparently," said Citigroup's Mr Pandit in prepared remarks.

Mr Dimon said in his written testimony that the $25bn received by JP Morgan Chase had allowed the bank to delay the start of repossession proceedings on more than $22bn of mortgages held by about 80,000 homeowners.

"Our goal, my goal, is to make this a profitable investment for the American people, as soon as possible," he added.

Mr Lewis of Bank of America said it was right that "taxpayers want us to manage our expenses carefully, and provide transparency about how we are putting their money to work to restart the economy".

"Despite recessionary headwinds, we are lending," he added.

'Great theatre'

The hearing, which is due to start at 1500 GMT, will be chaired by Massachusetts Democrat Representative Barney Frank, who is known for his short temper.

"This will be great political theatre," said analyst Jaret Seiberg of investment firm Stanford Group.

The eight banks secured their bail-outs under the $700bn Troubled Asset Relief Program first unveiled by President George W Bush in October.

Bank of America and Citigroup have both received $45bn, while JP Morgan Chase and Wells Fargo got $25bn.

Goldman Sachs and Morgan Stanley both got $10bn. State Street and Bank of New York Mellon were each given $3bn.

On Tuesday, new Treasury Secretary Timothy Geithner announced a new banking bail-out package totalling $1.5 trillion.

This includes the creation of a new fund into which banks can dump any remaining toxic debt.

So those pay deals include bonuses or are they straight up salary? Cause if I'm Mack or Pandit, I'm pissed.

I think I saw them all at the dog track.

For some reason, I'm reminded of that Chappelle skit where drug dealers got called to Congress and were treated like CEO's.

"I plead the fif!"

LMAO, I miss that guy.

1, 2, 3, 4, Fif!

There are so many amendments to choose from! Fiz-zif!

So those pay deals include bonuses or are they straight up salary? Cause if I'm Mack or Pandit, I'm pissed.

mack just said he didn't get paid a cash bonus for 3 years.

pandit just said he got paid 1 dollar last year and takes full responsibility for his organizations inability to operate under the 'new world' era.

all 8 have spoken and most have said that they are INDEED lending money.

frank is suggesting the banks GIVE THE MONEY BANK if they don't like the conditions of the TARP...wow...WITH appropriate interest...lol

frank just criticized the CEOs for needing bonuses for incentive which was a dig at john mack for saying that he hadn't received a cash bonus in 3 years...the only bonus he's rec'd was a stock bonus which would align his interests with those of the stock holders.

i understood what mack meant and barney frank didn't...so he called mack out on it...asked the CEOs to explain it to him...mack had the mic for less than a minute before frank interrupted him and cued bacchus to speak...LMAO!!! frank has questions, asked to the question and wouldn't allow mack the opportunity to answer...LMAO!

btw - dimon was the one who said he didn't want the 25BLN he got....nonetheless, he's using the money in the best interest of the firm.

stumpf from wells fargo said he didn't want the money and said he didn't need the money...bacchus just asked for the money back...bacchus just said the people will make money on that transaction...AND THEN BARNEY FRANK INTERRUPTED AGAIN.

pandit in his opening remarks said that he's been on the job at citi for just over a year and he's personally responsible for instituting MANY a MANY of rule and regulation over at citi with respects to corporate governance.

I don't know how you can watch that...Frank asking questions and acting all pompous and then not letting them answer? That would drive me nuts. I can't watch that Buddy Hackett looking goofball.

And fwiw, I'm still getting lots of credit offers in the mail from Citi and other banks...so they do seem to be lending. Probably not lending to those who lost their jobs, but who can blame them?

next to speak after bacchus is some ole dodgy codger wasting everyones time asking each CEO when it was that they first noticed there was a financial crisis occurring...WTF?!

One of them should direct it back to Frank and ask him that same question! When did YOU know it was going to happen...it surely wasn't early last year!

I don't know how you can watch that...Frank asking questions and acting all pompous and then not letting them answer? That would drive me nuts. I can't watch that Buddy Hackett looking goofball.

And fwiw, I'm still getting lots of credit offers in the mail from Citi and other banks...so they do seem to be lending. Probably not lending to those who lost their jobs, but who can blame them?

stumpf from wells fargo answered as to what HE'S doing with the tarp funds and stumpf said that they're prepared to loan to small business, homebuyers, investors but no one wants to borrow.

personally - i can understand this...who'd want to invest in something big right now. the PRUDENT ONES...that's who!

neugebauer just effectively asked the panel if they believe the gov't should ease out of intervening.

blankfein of goldman is answering as to why HE is not selling those illiquid assets at just any price.

as blankfein was answering, neugebauer interrupted and switched it to pandit of citi.

pandit has stated that he sold over a trillion of assets in the last year...over 150BLN of which were 'troubled assets'

says he will NOT sell a troubled asset at a low bid...not right for his shareholders.


maxine waters is at the 'pulpit' and is now giving a sermon....yawn.

waters is asking if since they've rec'd tarp funds, has anyone increased interest rates on credit cards

lewis from BofA just stated that he's increased rates on 9% of his credit card customers


waters is now asking if they've decreased rates to those who've agreed to buy at certain stores...no one raised their hands...waters is now going off on how much work she has put in on these matters...she's very, very focused on loan modifications.

asking who of the panel require homeowners to be behind their mortgage payments 2 months before loan modifications discussions occur...pandit tried to explain what citi is doing and waters interrupted.

now she's talking about underwriting fees for taking tarp funds and asking BofA why they did that...lewis just said i don't know what you're talking about and waters overstepped her time and got reprimanded...LOL!!!! she's mugging it up for the cameras.

question to pandit - are you satisfied with what bankers are doing or is there anything that you might suggest gov't should be doing as it relates to mortgage foreclosures.


pandit says he's got great success with helping people who have problems...the problems he finds are that the foreclosures he's involved in are with homeowners who don't own up to the problem...if they communicated, citi would help...no one is stepping up to mention problems...it's not shameful....people should contact us.

maloney addressing the ML/BofA merger...says it was in the interest of the taxpayer and the economy...quoted geithner echoing that sentiment...discussing attorney gen'l cuomo's comment on excessive bonuses for ML and questionable timing of paying those bonuses...citing poor performance and wanting to know BofA can justify paying those ML bonuses...how can those who were most responsible for the massive companies be paid the most handsomely.

question - did you know anything about these bonuses before the merger.

lewis answering ... says they urged the ML people to decrease their compensation...says BofA did not have authority of ML at the time of the merger ... different boards...says no one in BofA has golden parachutes...says they get bonuses on 2/15th and no one on his team will be rewarded anything to the magnitude that ML executives were paid.

king asking the panel on their thoughts of a regulatory consolidation

mack answering - we need it...coordination of reporting to a super regulatory organization is needed.

dimon is stating that regulatory issues are not the primary reason for the banking financial crisis

says it can be improved...says there's a lot of regulatory bodies that seem not to be working together...says there needs to be a global regulator.


king asking if there's anyone opposed to a systemic risk regulator...no one raises their hand.