'Humbled' Bank CEOs Will Deny Blowing Bailout

Top bankers face grilling today from furious Congress

By Rob Quinn, Newser Staff

Posted Feb 11, 2009 2:12 AM CST

(Newser) – Bank bosses being grilled by Congress today will defend their use of bailout cash, according to prepared testimony obtained by Reuters. Chief executives from the eight biggest US banks arrive in Washington this morning—by public transportation instead of private jet this time—and are expected to strike a note of humility in the face of an angry House Financial Services Committee.

The execs will insist that the combined $165 billion in bailout money their institutions received was used for lending instead of paying for bonuses or lobbying. Many, however, will acknowledge that regulation of the industry needs serious reforms. Despite their contrite tone, analysts expect today will provide fine political theater as lawmakers visit the full fury of their constituents on the humbled bankers.

[Images (2)]

[Quotes (2)]

House Financial Services Committee Chairman Rep. Barney Frank, D-Mass. gestures during a news conference on Capitol Hill last week. (AP Photo/Susan Walsh)

Lloyd Blankfein, CEO of Goldman Sachs, has acknowledged public anger at his industry in prepared testimony he will give to Congress today. (AP Photo/Mark Lennihan)

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It is abundantly clear that we are here amidst broad public anger at our industry. - Prepared testimony from Goldman Sachs CEO Lloyd Blankfein

We understand that the old model no longer works and the old rules no longer apply. - Prepared testimony from Citigroup CEO Vikram Pandit

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COMMENTS

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Showing 3 of 4 comments

Forderon

Feb 12, 2009 12:26 AM CST

Why is no one talking about this horribly executed bank bailout? How was it even possible for the banks and CEOs to give the money to each other instead of for the actual purpose? Holy crap, were there any rules or oversight at all? I guess it's just a small example of how deregulation doesn't work and there is no such thing as "free markets"

Guest

Feb 11, 2009 4:53 AM CST

Good. Easy to prove -- show up with papers. Such honest executives. It's good to actually find some.

Guest

Feb 10, 2009 9:33 PM CST

I agree with you sache, they just want to pad thier own pockets, and to hell with the rest of us.

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Politics • Money

Congress • House Financial Services Committee • Vikram Pandit • Lloyd Blankfein • bailout • banks • Troubled Asset Relief Program • Wall Street bailout • TARP

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'Humbled' Bank CEOs Will Deny Blowing Bailout