Obama Presses Banks to Lend, Accept New Regulations

In an hour-long meeting Monday, President Obama pressed executives from Wall Street banks to increase their lending to small businesses and stop fighting financial regulation efforts, the New York Times reports.

"America's banks received extraordinary assistance from American taxpayers to rebuild their industry," Obama said in remarks after the meeting. "Now that they're back on their feet, we expect an extraordinary commitment from them to help rebuild our economy."

The president hoped to use the meeting to capitalize on public outrage at the banks' dependence on taxpayers for bailouts, and their speedy return to stratospheric executive bonuses. The day before, he called the bankers "fat cats" during a "60 Minutes" interview. But after having recently announced their intentions to repay bailout money, the banks were in a stronger position to resist the pressure. Executives from the largest three -- Goldman Sachs, Morgan Stanley and Citigroup -- did not attend the meeting, blaming fog that canceled flights.

Meanwhile, thousands of protesters marched on the financial district in New York City, decrying home-loan interest rates and bank bonuses.

Bankers stressed that their reluctance to lend is an ongoing response to the subprime mortgage crisis, and that they would continue to closely examine each loan applicant. But several promised a second look at the loans they denied last year, and some said they were already planning to expand lending next year. Wells Fargo will increase its lending by 25 percent in 2010; Bank of America and JPMorgan also promised multi-billion-dollar expansions.

"I made very clear that I have no intention of letting their lobbyists thwart reforms necessary to protect the American people," Obama said. "If they wish to fight common sense consumer protections, that's a fight I'm more than willing to have."