December 14th, 2009
01:09 PM ET
3 months ago

Obama to banks: 'Rebuild our economy'


NEW YORK (CNNMoney.com) – President Obama pressed Wall Street bankers at the White House on Monday, urging them to make more loans and modify mortgages to help taxpayers who propped their banks up with federal bailouts.

"My main message in today's meeting was very simple: America's banks received extraordinary assistance from American taxpayers to rebuild their industry," Obama said. "Now that they're back on their feet, we expect an extraordinary commitment from them to help rebuild our economy."

Updated: 1:18 p.m.

Full story


Filed under: President Obama • TARP
soundoff (56 Responses)
  1. tpbco

    Ahhh, Isn't this what the democrats did in the 90's (Clinton, Dodd and Frank) that STARTED this mess?

    December 14, 2009 01:11 pm at 1:11 pm |
  2. Bob in Pa

    There you go – What Me Worry.
    Government force is what got us here in the first place.

    I Always thought he was the spawn of Alfred E. Newman.

    December 14, 2009 01:17 pm at 1:17 pm |
  3. SocialismBad

    These bankers need to tell this socialist were he can stick his rhetoric and ideas. For somebody that never ran anything he sure likes to tell everybody else how to run their business. These businesses ARE NOT GOVERNMENT PROPERTY!

    December 14, 2009 01:18 pm at 1:18 pm |
  4. Hugo

    Mandating Banks to make loans should only happen if the entity receiving the loan produces a balance sheet that makes the loan a profitable or solid investment for the Bank. The Bank is in business, it has nothing to do with "helping out" the current Administration or for that matter the country. Is it the right thing for them to do for our country, yes, but that is only a decision up to them. They have a fiduciary responsibility to their share holders to show a return on investment. The whole problem with the economy goes deeper than banks making loans, the system is broken and the citizenry no longer has confidence in our Government's ability. We are overburdened with regulation, taxes and a network of financial entities that can only be called corrupt. 2010 and 2012 will be many of the lifer's in Washington wake up notice to check in at the unemployment line with the rest of America....

    December 14, 2009 01:21 pm at 1:21 pm |
  5. Rickster

    "make more loans and modify mortgages"............seriously?? Isn't that exactly what got us into the financial mess that we are in? Welcome back, Carter.

    December 14, 2009 01:22 pm at 1:22 pm |
  6. Rickster

    Overall, 44% of voters say they at least somewhat approve of the President's performance. That’s the lowest level yet measured for this president. Fifty-five percent (55%) now disapprove.

    December 14, 2009 01:24 pm at 1:24 pm |
  7. DSW

    The rich get richer.
    The poor get poorer.
    Washington is bought & paid for by special interest groups.
    The bails outs for big banks etc and the health care "debate" is proof of that.

    December 14, 2009 01:25 pm at 1:25 pm |
  8. Bev

    We will NOT see an improvement of the economy/unemployment rate until Obama and the Democrats lose power/control.

    –What business is going to hire now-when the Bush tax cuts are about to expire, and they do not know what their taxes will be??

    -What business is going to hire now-when they do not know what the health care disaster is going to cost them-they don't even know if they will be able to stay in business.

    -What business is going to hire now--when they do not know what the Cap and Tax Energy Bill is going to cost them-they might not even be able to stay in business.

    -What business is going to hire now-when they are now being "punished" for making a profit.

    We will see an immediate improvement of the economy/unemployment rate-–as soon as the power/control is taken away from Obama and the Democrats through the 2010 elections!!

    December 14, 2009 01:25 pm at 1:25 pm |
  9. Obama = unemployment/debt

    Obama is a hypocritical blowhard. Government interference has caused much of the financial grief that we are in (see: the fed, congressional banking committee, Barney Frank and Chris Dodd, bad policies that forced banks to make bad loans...).

    Again,Obama is all talk. He's saying what people want to hear, but doing something different. Another example of this is his "Job Summit". He got solid advice from the president of FedEx, but chose to listen to the job-killing ideas of SEIU and the labor unions.

    Why are people still supporting this guy and his horrible policies.

    December 14, 2009 01:26 pm at 1:26 pm |
  10. Fenarkleman

    Okay, here's me impersonating a bejowled banking executive. "But we can't do that. Harrumph. Harrumph. Harrumph. We have stockholders to protect. Harrumph. Harrumph. And we have 401ks and stock dividends and have to venture away from risky loans. Harrumph. Harrumph. And we have harrumph to fund. Sorry, Mr. President. We simply cannot do that at this time. Thank you. Good luck. That's very nice. Thank you. Would you like a free calendar? Harrumph?"

    December 14, 2009 01:27 pm at 1:27 pm |
  11. stevegee

    Obama and the Democrats just don't get it - government is the problem.

    The only way to rebuild our economy is by getting Washington, D.C. off of the backs of business - and taxpayers If we return to a true free market, then America would see growth again.

    December 14, 2009 01:29 pm at 1:29 pm |
  12. Rick

    What a knucklehead thing to say to the banks. It is clear that Obama does not "get it." His policy's and threats to increase payroll taxes on business to pay for health care, cap and trade taxes looming, all throw water on the economic "fire" if you will. Simply loaning money to people who can't afford it create the very problem and financial collapse we are in. He needs to create an environment for business to prosper. This is at odds with his socialist agenda.

    December 14, 2009 01:29 pm at 1:29 pm |
  13. Greg, MN

    And what did they say? Leave us alone and quit over regulating us. I think its funny that the guy who is pushing his congressional allies to borrow us into debt that is unsustainable is lecturing banks on lending. Granted they have made their own mistakes. Some greed, some speculation (bumble wouldn't burst), and some because of other legislative action by Clinton, Dodd, and Frank that created the sub prime fiasco. Its well documented that the Banking Committee under control of Dodd and Frank was warned to change the easy lending laws by GWB multiple times.

    December 14, 2009 01:29 pm at 1:29 pm |
  14. Slider

    So, Obama wants the banks to "rebuild our economy"?

    I suppose the loans the banks make to those riskier loaners will be securitized by the federal government, too?

    Does our idiot president not remember how the housing bubble burst and left our government with assets that no one in their right mind would relieve our treasury and fannie mae and freddie mac? FHA mess anyone?

    Does Obama not realize the entity that created the environment for the housing mess?

    Mr. Obama would do better paying off companies like Raytheon by appointing Deputy Defense Department positions with former lobbyists of those companies.

    What a complete moron.

    December 14, 2009 01:30 pm at 1:30 pm |
  15. mjm

    "He was also said to be urging execs to curb compensation"

    Yes, the last thing we want is more people in the top 1-3% getting bonuses that the government can tax at 35-40%.

    What's the tax revenue on a $5 million bonus?

    If you curb the compensation you curb your tax revenue. Not smart considering the Libs are spending like drunken democrats.

    Obama needs to create an environment that encourages million dollar bonuses, not the other way around.

    December 14, 2009 01:30 pm at 1:30 pm |
  16. valwayne

    I thought it was riskly loans the Government pressed the banks to make that got us into this mess in the first place. Now Obama wants the banks make more bad loans? Does that make any sense?

    December 14, 2009 01:30 pm at 1:30 pm |
  17. katiec

    De-regulation, no oversight led to the diasters of the financial institutions. Rather than honor trust and integrity, greed, power and irresponsible decisions took over.
    Keep in mind, every republican voted against finance reform in
    the House. It certainly tells the American people where their
    priorities are when it comes to the survial of our country.

    December 14, 2009 01:31 pm at 1:31 pm |
  18. LacrosseMom

    EVERY Bank and Wall Street Firm that was BAILED OUT WITH Tax Payer money owes EVERY American a debt of ........ gratitude!

    Instead of BIG BONUSES, how about donating to the Salvation Army, St. Vincent De Paul, Family Promise and other Charities that are helping the ...... Working & Middle class folks who are having a tough time?

    NOW........ THAT ......... would be CHRISTIAN!

    December 14, 2009 01:31 pm at 1:31 pm |
  19. Aspen Professor

    Why would the Banks want to do that? The over-paid bank executives are Republicans to the core. The best hope for Republicans in 2010 and 2012 is that the economy and unemployment remain in the tank where Bush – Cheney put it and leave it there until their reelection.

    December 14, 2009 01:32 pm at 1:32 pm |
  20. victim of the false prophet OBAMA

    how can they rebiuld something that obama is trying to destroy to promote his version of socialism ?

    December 14, 2009 01:33 pm at 1:33 pm |
  21. Silence Dogoode

    Yes, make more loans to people who cannot make their payments.... we need to look at what caused this....two republicans who wrote a law that deregulated the banking industry, and a democrat president (Clinton) who signed it. Or we could also go all the way back to Nixon who took us from a gold standard to a paper standard which was presented to him by a democratic congress.....

    December 14, 2009 01:35 pm at 1:35 pm |
  22. Jane/Seattle

    Since these banks have reaped such handsome rewards, they need to rebuild that which their irresponsible actions has caaused!

    December 14, 2009 01:39 pm at 1:39 pm |
  23. Henry Miller, Libertarian

    Me to Obama:

    Stop wasting so much money that there's nothing left for the private sector. Stop wasting so much money that lenders are too scared of an economic collapse to lend.

    If money is tight, it's for two reasons. One is that there really is only so much money to go around, and the more the government soaks up, the less available for the private sector to use, including lending it out, growing companies, or hiring more people. And it doesn't help for the government to "give" money to banks–that money had to come from somewhere, either out of the economy, or from inflation. Neither circumstance encourages banks to lend, or, for that matter, companies to borrow–that kind of money generation just adds to the economic risk, which discourages economic activity.

    December 14, 2009 01:40 pm at 1:40 pm |
  24. Padraig

    That is rich, he gave out more in the second bank robbery (stimulus package) and it had no controls. Here is to the waiting game.

    From 2 trillion dollars in defecit under 'lil Georgie to 14 trillion dollars in debt with this character. Why doesn't our fearless leader push to audit the Federal Reserve. That would be interesting to see where our money went.

    December 14, 2009 01:43 pm at 1:43 pm |
  25. Enough

    Obama is so out of touch, the banks aren't the key to jobs, neither is spending billions on more pork projects, neither is raising taxes for more entitlement programs, neither are unions. How can we expect him to know anything about jobs...........he's never had a real one.

    December 14, 2009 01:44 pm at 1:44 pm |
1 2 3