[Swiftwater Gazette] Bankers

[Brad Haslett]

Everyone loves to hate bankers until you need one. Fan and I supposed
to close on a condo we're buying in Destin, Fl next Friday. I stopped
by the bank where we have our business account on Saturday to repay
myself for some money I'd loaned the company. My account manager is a
sharp young kid who stays on top of current events.  When I asked how
the bank would adjust to the "Barney Bill" if it passes, he replied,
"we'll adjust our fee structure".  Why is this such a difficult
concept for people to understand?  There truly is no such thing as a
"free lunch".

So now we have the POTUS lecturing bankers (read article below).
Let's do a quick review of his history, shall we?  He was a "community
organizer" that sued banks to make risky loans.  As Dr. Sowell pointed
out, community organizers don't help people, they pit one group
against another. In case you've forgotten, Obama's campaign finance
chairman was one Penny Pritzker.  Penny's claim to fame was that she
was a pioneer in sub-prime lending.  She took her family's bank,
Superior in Chicago, into bankruptcy years before the rest of the
industry melted in bad loans.  Obama used to stage demonstrations in
bank lobbys and on the lawns of bank CEO's (and then sued with the
assistance of ACORN). Here's a quick review of the howls of protest
about Freddie and Fannie when they were questioned about their lending
portfolio -

http://tinyurl.com/d4tu3z

If you have good credit, it's easy to get a loan, even today.  You may
need more income, or I should say an income, period.  You may have to
take a greater equity position in your purchase or have more equity in
your business, but you can borrow money.  Banks don't earn money
storing paper in vaults.

So now comes this idiot for a President demanding banks do the very
things that got them in trouble to begin with.  I take that back, he's
not an idiot, he knows exactly what he's doing. He IS a community
organizer after all.

Had enough yet?

Brad

---------------------



>From the AP - Today

Axelrod: Obama to lecture banks on accountability
11 mins ago

WASHINGTON – A top adviser to President Barack Obama says the White
House is telling the banking industry it helped create last year's
near economic meltdown and it has to be "part of the solution."

Previewing a meeting Obama will have later Monday with industry
leaders, David Axelrod said there simply has to be easier credit for
businesses to reinvest and do the hiring needed to bring down
double-digit unemployment.

Interviewed on ABC's "Good Morning America," Axelrod said the message
to bankers is: "You have to accelerate lending to credible small
businesses." He spoke a day after Obama, in an interview CBS's "60
Minutes," said he didn't run for president to "be helping out a bunch
of fat cat bankers."

THIS IS A BREAKING NEWS UPDATE. Check back soon for further
information. AP's earlier story is below.

WASHINGTON (AP) — 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.

"I did not run for office to be helping out a bunch of fat cat bankers
on Wall Street," Obama told CBS's "60 Minutes" in an interview that
broadcast Sunday.

Financial industry officials braced for Obama's tough tone. They
planned to press a conciliatory message and highlight areas where they
agree with the administration while smoothing over their differences.

But the executives also planned to stand up to the president on issues
where they feel his statements oversimplify their positions —
particularly the creation of the Consumer Financial Protection Agency
— according to people familiar with their thinking who spoke
anonymously because they were not authorized to discuss the plans.

"He can say what he wants, but we're not going to go back to the kind
of lending that put us in this mess," said a person who is helping
prepare executives for the meeting. 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. They believe the president has mischaracterized
them as being against the new rules, when in fact they support the
vast majority of the administration's proposals.

"These same banks who benefited from taxpayer assistance ... are
fighting tooth and nail with their lobbyists up on Capitol Hill,
fighting against financial regulatory control," Obama said in the "60
Minutes" interview.

One industry official said Obama is viewed as trying to paint the
debate as either "You're with us or you're against us." The industry
official said bankers did not view it that simply.

"We want him to know we have the same goals, but disagree about how to
get there," the official said.

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.

"They're still puzzled why it is that people are mad at the banks," he
said. "Well, let's see. You guys are drawing down 10, 20 million
dollar bonuses after America went through the worst economic year ...
in decades and you guys caused the problem."

Many firms have taken steps toward the administration's goals of tying
pay to long-term performance and making sure companies do not
encourage risky bets. 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.
"The bankers need to recognize that. They need to recognize that
they've got obligations to the country after all that's been done for
them, and there is a lot more they can do."

Summers spoke on ABC's "This Week."