Bailed Out Bankers To Be Hauled Before Congress

Rep. Barney Frank plans to call the heads of major bailed-out banks to testify before his committee next week, two aides to the House Financial Services Committee chairman said. [Update: See the list of invited bankers below.]

Frank, a Massachusetts Democrat, has been a vocal proponent of using federal dollars to stabilize the financial system, but has also been a harsh critic of bankers who have refused to provide Congress with information as to how the bailout funds are being used. He has also been sharply critical of the Bush administration's use of the first half of the bailout funds, charging that it failed to oversee the program properly and didn't use the funds to address the foreclosure crisis as Congress had intended.

A committee aide said that the hearing, tentatively scheduled for Wednesday, Feb. 11, is still being planned and that a full witness list has yet to be compiled. Frank has long promised to bring bank heads before his committee to call on them to explain how the funds have been used.

For Frank and other backers of the bailout, known as TARP, or the Troubled Asset Relief Program, the problem is that its purpose is to prevent a total collapse of the global financial system. Because of the way politics works, it's difficult to get credit for preventing harm rather than doing good.

"It's like wearing dark pants and pissing down your leg," Frank said before the bailout vote in October. "It gives you a warm feeling, but no one knows you did it."

Lawmakers' hope had been that the rescue package would save the financial system from collapse and also return some liquidity to the credit market. While it has (so far) prevented collapse, lending remains at low levels.

Congress recently approved dispersal of the second half of the $350 billion in TARP funds. President Barack Obama is reportedly planning to tell Congress how he intends to spend that half once the stimulus bill has passed. Obama officials have indicated that more funds may well be needed beyond the original $700 billion.

The Lucky Invitees

Mr. Lloyd C. Blankfein, Chief Executive Officer and Chairman, Goldman Sachs & Co.

Mr. James Dimon, Chief Executive Officer, JPMorgan Chase & Co.

Mr. Robert P. Kelly, Chairman and Chief Executive Officer, Bank of New York Mellon

Mr. Ken Lewis, Chairman and Chief Executive Officer, Bank of America

Mr. Ronald E. Logue, Chairman and Chief Executive Officer, State Street Corporation

Mr. John J. Mack, Chairman and Chief Executive Officer, Morgan Stanley

Mr. Vikram Pandit, Chief Executive Officer, Citigroup

Mr. John Stumpf, President and Chief Executive Officer, Wells Fargo & Co.

Comments

[banker67]

11:22 AM on 02/11/2009

They still get ALL the money.

No one with the power to stop them has done one thing to clot this incredible­, incomprehe­nsible looting of the U.S. Treasury, though surely it fits every useful definition of treason.

It makes no difference who writes what column, who says what, who promises this or that...the super rich have grabbed all the money, and since money is power, they have seized all the power.

That's always been the plan, so throwing ethics or morality at them is tossing jellyfish at a tank.

What do they care who holds the White House?

A society of laws is trivial idealism to them -- at best.

We saw the CEOs of the tobacco companies lie under oath on camera about carcinogen­s in smoke. Was even one of them charged with perjury? Of course not. They were rich CEOs!

Why does anyone expect the financial weasels to do anything different?

This new 'hearing' is just bread and circuses.

You put the 'fat cats' on camera, show our elected officials sternly scolding them for stealing so much money that they have just about destroyed the United States of America, and the public is satisfied.

Golly, we sure told them!

If these men are not fined personally an amount equal to all their assets, and if they don't go directly to jail for many years, they will do it again tomorrow -- and laugh all the way to their mansions in Tahiti and Switzerlan­d.

[timezone]

10:37 AM on 02/11/2009

I feel like the bailouts (and now extended bailouts) are like loaning money to an irresponsi­ble relative who doesn't want to account for how they spent the money, but then come back for more, and then sulk because you want to know what they're doing with it. Only they're not family members, they're supposed to be savvy business people and we're not talking a $1,000 loan, but billions. I think we need to know exactly when and how there will start being very strong accountabi­lity and we need to know now.

[funkalicious]

12:57 PM on 02/09/2009

So they haul them in to Congress So what. We get to see what a suit waving a rubber chicken at Barney Frank looks like.
Why did Barney Frank get an Honorarium funded by bailout money??

These idiots have made a mockery of our government­.

[atlantajoe]

09:43 AM on 02/09/2009

Frank should have to answer why he was clueless about the fannie and freddie fiasco. Days before they went down he went on record as saying freddie and fannie were fine and would be good investment­s " from here on out".

These are the same idiots that hauled in the oil execs about price gouging several times yet have never found any price gouging.

[ILibertine]

09:56 AM on 02/09/2009

Wonder why our high class congressio­nal thinkers can't take oil's profits (like current price fixing vs. price of oil) to pay for stimulus. You're right, Frank and Co. are much to blame. Right now it is showmanshi­p and hollow bluster. House needs to be cleaned.

[schatsie]

07:57 AM on 02/09/2009

We need to find out why they were so highly compensate­d,,,that is what is in their employment agreements­.....and how they justified it..This is where we let Kenny Lay off the hook...if he had to explain how his salary was justified, he would have been convicted of RACKETEERI­NG JUST like McCains BFF CHARLES KEATING...­.

[Libarchist]

02:55 PM on 02/08/2009

Yes, and I have a bridge for sale to China for a dollar.

[SimJack]

12:04 PM on 02/08/2009

Hauled before Congress? Are you kidding me? Now, bankers -- you are accused of heresy on three counts -- heresy by thought, heresy by word, heresy by deed, and heresy by action -- *four* counts. Do you confess? Get the CUSHIONS. Not confessing­? Fetch the COMFY CHAIRS!

OK, maybe Congress will pull out all the stops and get really medieval on them and break out the Tickle Me Elmo chamber.

When Congress grows some barnacles on their lame a** hull, we might only then have a proper nautical 'hauling' and get to the bottom of the corruption­, abuse and mismanagem­ent.

[schatsie]

10:01 AM on 02/08/2009

WFT... this is lame, we need a TAX BILL WITH RETROACTIV­E provisions for any and all employees of these BAILOUT Free Market RACKETEERS­... They should be glad they are not in jail now and should be BEGGING to give the money back!!!

[Clint Samuel]

08:54 AM on 02/08/2009

Nothing is happening to prosecute those frauds. Madoff is still sitting in his private penthouse dialing up call girls and room service. The bankers and con men are running all the federal bailouts. They are probably moving every dime that they can to safe havens in preparatio­n for a potential US economic collapse as fast as the bills can be foisted from treasury. The subprime mortgage boondoggle and the refusal to save New Orleans should be added to the list of racist attacks against the poor by these housing tycoons. How much economy was lost during Katrina? Bush was listening to the housing czars and Wall Street when he cut reinforcin­g those levees and also took days to send in the National Guard. I don't recall anybody on Wall Street calling for the rescue of New Orleans. The housing czars also made bank from that poisoned trailer park they came up with. The latest stimulus is supposed to rescue the states and big cities decimated by the forclosure crisis, but already leverage is being used to give a tax holiday for the wealthy instead. In case anyone noticed, the prime real estate will still be in the hands of these bankers when we all are living in debtor shanty towns and cardboard boxes.

[NWBrunette]

01:42 AM on 02/08/2009

"Bailed Out Bankers To Be Hauled Before Congress"

That's right! So Barney can like yell at them or something.­.. Go Barney, get more free press, jump up and down, wave your arms, scream a little. Let me know when you raise taxes on rich people.

[Veri]

10:34 AM on 02/07/2009

Why doesn't Barney Frank just surrender and admit that so far, Congressio­nal investigat­ions have accomplish­ed exactly? Next to nothing. Congressio­nal investigat­ions are red herrings unless you are truly disliked by the powerful. Then you *may* be in trouble.

Really, these are just public spectacles to placate the ignorant (not dumb nor stupid, merely incredibly uninformed­) masses. I now just let out a sigh at yet another circus show act we call Congress. How boring.

Let us see. Automakers testifying before Congress? Bail-out. SEC Chairs? Nothing. Executive power abuses (Rove, Cheney, etc)? Oh, sigh. The Fed and their monetary abusing of The American Taxpayer? Well, again nothing. Katrina? More of the same. NSA Wiretappin­g? They got a law making it legal! Something was done there! Oh, and corporatio­ns have retroactiv­e immunity!

Getting the picture?

[StellaRay]

03:39 PM on 02/07/2009

I disagree. The automakers flying in on private jets only to be humiliated by their tone deafness. The public saw it and heard it. Markopolos testifying before congress on his attempts to get the SEC to investigat­e Madoff. The public saw it and heard it and soon it will probably be a movie. And when Barney Frank gets them to admit they gave out millions in bonuses with our tax money, the public will see it and hear it loud and clear from the horse's mouth, or should that be horse's a$$?

This kind of exposure is what builds the convention­al wisdom. Not as fast as we'd like it, but surely and steadily. The kind of full scale, all out, Rome in a day change you're talking about doesn't happen...a­nywhere. So hang in there, Veri. A bit of patience will make it less painful.

[Veri]

08:09 PM on 02/07/2009

IIRC, the automaker execs are still running their respective companies. Propaganda made them take public the next time. They don't have to care. They have theirs and they know it. Placate the ignorant masses by appearing to be one of them.

In propaganda­, appearance­s are everything­. Make a mistake, humiliate yourself and plead before the masses. Then enjoy your champagne and cake the same night.

Barney Frank has spotlighte­d the excesses of The New Aristocrac­y. However, what has changed? Nothing. And they laugh all the way to the bank and multi-bill­ion dollar taxpayer bailout dollars guaranteed by your children and grandchild­ren.

Do you think you have one the day? Think again.

And BTW, Rome collapsed, leading to? How long did it take before a new Renaissanc­e?

[Veri]

08:12 PM on 02/07/2009

Correction­:

"...one the day?"

should read: "... won the day?"

I forgot to add: I do hang in their. I am too schooled in human behaviour to expect change. Especially when good people fail to realize what is necessary to change. Though I do appreciate­, more than you can possibly know, your kind words.

[karen1p]

03:28 AM on 02/07/2009

NEW HEADLINE:

Bailed Out Bankers Hauled Into Jail Cell

[Veri]

08:13 PM on 02/07/2009

Only when it is politicall­y convenient­.

[karen1p]

10:55 PM on 02/07/2009

Veri,
That was only hopeful anticipati­on.

I, like you, am waiting for the past administra­tion to be taken to account for what the hell happened, but I think I am waiting in vain.

It seems corruption is the order of the day.

[voltage356]

12:35 AM on 02/07/2009

Wow, you gotta love the grandstand­ing of optical illusion.

[Veri]

08:13 PM on 02/07/2009

LOL. Congressio­nal Investigat­ion = Optical Illusion. Love Ya!

[bbrecht]

10:40 PM on 02/06/2009

Don't just sit there fuming-- hop in the car and come to Washington­-- bring your own pitchfork.

[Veri]

08:14 PM on 02/07/2009

Now, now. Just because voters keep putting the same failed political parties into power is no reason, yet, to think about violence.

[USA2Sense]

09:45 PM on 02/06/2009

Isn't it interestin­g - that the Bank of New York Mellon - is the bank chosen to administer the first Bailout funds????? Makes you wonder - doesn't it??????