Obama pushing banking execs on protection agency – Yahoo! New

Monday, December 14th, 2009 at 11:27 am

WASHINGTON – President Barack Obama is asking bank executives to support his efforts to tighten the financial industry, while bankers are prepared to tell the president he should stop oversimplifying their concerns if he wants good-faith collaboration.
An hourlong meeting between the president and the nation’s top financial firms was shaping up to be a tense White House encounter on Monday, not least because of Obama’s description of bankers on the eve of the talks as “fat cats.”
Administration officials described the meeting as a continuation of discussions the president initiated early in his tenure and the latest push for lenders to take greater responsibility as the nation combats an economic crisis that began on Wall Street.
Specifically: Wall Street should fall in line with Obama and back a proposal for a consumer protection agency that cleared the House last week.
Financial industry officials braced for Obama’s tough tone. A dozen executives were on the list of those coming, from Goldman Sachs Group Inc., Bank of New York Mellon Corp., Bank of America Corp., Citigroup Inc., U.S. Bancorp , JPMorgan Chase & Co., Morgan Stanley and more.
Bankers expected the regulatory overhaul to provide the meeting’s most contentious moments. The industry official said bankers did not view it that simply.
Bankers were planning to outline alternatives to the new consumer agency. Most lenders support strengthened consumer protections but believe the administration proposal would increase costs and create more gaps between regulators.
Administration officials said Obama would use a populist appeal when discussing pay for top executives at bailed-out institutions. Distaste for Wall Street remains high and Obama took a public shot at the banks in his interview.
Bowing to public outrage, Goldman Sachs Group Inc. announced Thursday that 30 top executives will receive long-term stock instead of cash for bonuses this year.
Other banks, including Citigroup Inc. and Bank of America Corp., are overhauling pay structures to focus on long-term success.
Bank officials contend they would be hurt competitively by strict pay limits, such as the 50 percent tax on bonuses that British officials approved last week.

Obama economic adviser Lawrence Summers said Sunday the president would have “a serious talk with the bankers.

“The country did incredible things for the banking industry,” he said.

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