This is all about the lack of jobs being created fast enough to save Barack Obama’s bacon. The first time Barry did this, the money quote was “My administration is the only thing between you and the pitchforks.” Now he has them doing the huddle again to twist arms about small business loans and residential mortgages.
Let’s see if we have this right. Congress changes the Community Reinvestment Act back during the Clinton years putting pressure on the banks to make quotas on loans to people who could not afford them. ACORN steps in and starts protesting outside banks to make sure that happens. Hundreds of thousands of loans are made that will end up in foreclosure when the adjustable rates reset causing the banks to have trillions of dollars of bad assets on their books leading to the credit freeze, the financial collapse and the bank bailouts we saw a year ago. This really is the beginning of the Tea Party Patriots who, as a larger percentage of the population than one would think, were calling and writing their representatives to let these big banks fail and get the pain over with.
Now look at the title of the Washington Post story below. Barack Obama wants the banks to lend more while straight-jacketing them six ways from Sunday with financial regulatory “reform” and executive pay caps. Anybody seen the WSJ article today about how the BofA CEO search has slowed because of the executive pay cap issues? I wonder how this meeting is going to work out for him (and us) when most of these banks are no longer financially controlled by the White House and Congress. What was Barry expecting to trade on, his messiah complex, and does he really expect them to lend when, in my opinion, they are holding on to their cash waiting for the commercial real estate and the asset bubbles to implode?
It appears that the Barry, Harry, and Nancy show thinks that the lack of job creation is the banks’ fault. It has absolutely nothing to do with everything the Dems are doing to scare the crap out of small and large businesses alike; health care, cap and trade, increased taxes, etc.
Democrats increasingly are frustrated that renewed economic growth is not yet producing new jobs, and they have focused on the fact that banks are making less money available to businesses. The amount of money on loan from banks fell by almost $600 billion, or 7.2 percent, from September 2008 to September 2009, according to the Federal Deposit Insurance Corp. Lending to businesses, excluding construction loans, fell 15 percent.
Obama presses bank chiefs to lend more
White House to push for greater regulation, curbs on executive pay
President Obama, who lashed out Sunday at “fat cat bankers” who “still don’t get it,” plans to gather the heads of major banks at the White House on Monday to urge them to make more loans and to accept the necessity of greater regulation.
Obama convened a similar meeting with bank executives in March, and the need for a replay highlights the lack of progress in the interim. The banking industry has reduced lending for five consecutive quarters, even as it has regained profitability thanks to vast public aid.
The administration’s success in rescuing banks stands in starker contrast every day with the financial problems of many Americans, most of all the lack of new jobs, and Democrats made restless by the disparity are mounting pressure on the White House.
Meanwhile, the prospects for financial reform legislation have been clouded by industry groups that convinced moderate and conservative Senate Democrats that some proposals would unduly suppress financial innovation and limit economic growth.
The president and his advisers have responded in recent days with a burst of heated rhetoric, arguing that the government rescued the banking industry and that banks now are failing to show proper gratitude.
“What’s really frustrating me right now is that you’ve got these same banks who benefited from taxpayer assistance who are fighting tooth and nail with their lobbyists . . . up on Capitol Hill, fighting against financial regulatory control,” Obama said in an interview with the CBS show “60 Minutes” on Sunday.
The need for moderation in executive pay also is on the agenda, officials said. The guest list includes the chief executives of 12 of the nation’s largest banks, among them Bank of America’s Kenneth D. Lewis, J.P. Morgan Chase’s Jamie Dimon and Goldman Sachs’s Lloyd C. Blankfein.
So given the democrats track record, the banks will start lending, and then, only to people who cannot pay back the loans. Lovely, I can’t wait.