Wednesday, December 16, 2009
Lloyd Blankfein snubs the president
In a move described as “pretty nervy” by one White House official, the leaders of Goldman Sachs, Morgan Stanley and Citigroup did not show up in person on Monday for a meeting with President Barack Obama. The three bank executives said their flights had been delayed by bad weather, which somehow didn’t prevent the leaders of the nation’s other top financial institutions from making the meeting.
Lloyd C. Blankfein (Goldman), John Mack (Morgan Stanley) and Richard Parsons (Citigroup) participated by phone in the discussion, during which Obama encouraged banks to expand their lending to small businesses and homeowners.
The New York Times reported there were “bruised feelings” within the White House about the need for a conference call to have a meeting. “
On Sunday, President Obama appeared on “60 Minutes” and criticized the financial industry, saying: “I did not run for office to be helping out a bunch of fat-cat bankers.”
Observers say the White House’s leverage over Wall Street is weakening as more institutions pay back their bailout money from last year. Citigroup and Wells Fargo were the latest to announce their intention to do so.
-Noel Brinkerhoff
Putting Obama on Hold, in a Hint of Who’s Boss (by Andrew Ross Sorkin, New York Times)
Obama Presses Biggest Banks to Lend More (by Helene Cooper and Eric Dash, New York Times)
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