Banks Tell Financial Services Committee They're Lending

Something ain't right. Nothing's right in financial "services."
It almost seems prudent to let the banking system explode.

CNN: Top executives from eight of the nation's largest financial institutions told Congress Wednesday that they are continuing to lend, even as banks have come under severe scrutiny in recent weeks about their use of billions of dollars in government aid.

But skeptical legislators weren't buying it.

At a closely-watched hearing before the House Financial Services Committee, CEOs from such embattled firms as Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500) defended their actions since taking hold of $165 billion last fall, adding that without government assistance, credit would be even harder to obtain.

"We are still lending, and we are lending far more because of the TARP program," Bank of America Chairman and CEO Ken Lewis said in his prepared remarks.

Representative Maxine Waters questions CEOS who increased credit card rates after receiving bailout money:

More grilling:

Greedy Banker John Thain Who Used a Toilet on Legs Resigns

MSNBC: Former Merrill Lynch chief executive John Thain will resign from Bank of America, effective immediately.

Earlier, Bank of America’s shares fell sharply after a report that executives are meeting to discuss Thain’s future with the company.

A report on CNBC followed news that Merrill, which was about to report a $15.45 billion fourth-quarter loss, decided to move up its year-end bonuses, doling out cash just days before it was officially acquired by Bank of America on Jan. 1.
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CNBC has also learned that Thain spent $1.22 million redesigning his office — including $35,115 for a "commode on legs" — when he became CEO of Merrill Lynch a year ago. Thain also paid his driver $230,000 for one years work, which included the driver's $85,000 salary and bonus of $18,000, and another $128,000 in over-time pay, documents show. Drivers of top executives are often paid about half that amount.

Such expenses would have followed $12.2 billion of net losses at Merrill in the second half of 2007 as writedowns on mortgages and other toxic debt began to mount. Thain became chief executive in December 2007.

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