Wednesday, February 11, 2009

Live Blogging- CEO's Questioned on Allocation of TARP funds.

Watch CEO's of large banks who received TARP funds being questioned over their allocation of these funds at

We will be live blogging so check back often...

10.15 a.m. No action yet...politicians cat fighting over time allocation to get their 2 bits in....

10.35 a.m. CEO's start their prepared testimony...basically defending themselves...
from the kind of information that these CEO's are presenting, it looks like their lawyers have done a great job!
Citi CEO has requested his Board to pay him a $1 salary and no bonus till the bank returns to profitability.

11.21 Rep Kanjorski- When did you first realize that there is a huge problem, what did you do?

BOA CEO Lewis- August 2007 timeframe the then treasury secretary contacted us....
Goldman CEO Blankfein- Before August 2007.

Rep Kanjorski- What do you see in the future? Have we failed?
No time for answer.

11.30 Rep Waters- Since you received TARP funds have you increased credit card interest rates?
BOA- Yes increased credit card rates to 9% customers
Citi- Yes
did you reduce the amt of credit available to customers?
Rep Waters to BOA- Do you have a loss mitigation department offshore?
BOA CEO- I dont know
You have to be 2 months behind to receive loan modifications?
According to Rep Waters BOA & CITI received processing fees for receiving TARP funds. (None of the CEO's quite understood this...)

11.40a.m. Responding to a question, CITI CEO claims that Citi is successful at helping its mortgage customers if customers talk to them, open up to them.
Rep Maloney- Questions BOA CEO on the issue that has been on everybody's min...Merill's multi billion $$ bonuses.

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