Bank CEOs to account for themselves

The chief executives of eight US banks that have received a total of $166 billion in bailout funds will have to tell the House Financial Services Committee today how the money is being spent.  The executives are Vikram Pandit of Citigroup ($45 billion), Kenneth Lewis of Bank of America ($45 billion), Jamie Dimon of JP Morgan Chase ($25 billion), John Stumpf of Wells Fargo ($25 billion), Lloyd Blankfein of Goldman Sachs ($10 billion), John Mack of Morgan Stanley ($10 billion), Robert Kelly of Bank of New York Mellon Corp. ($3 billion) and Ronald Logue of State Street ($3 billion).  It will be the first such examination by Congress since they passed the bailout bill last year. Members of the committee have already expressed anger at what they see as a lack of accountability for how the banks have used the taxpayers' money.  The executives will be called to detail how they have spent their funds so far, and the extent to which this has enabled them to raise lending levels.  The committee will also want detailed information on any 2008 bonuses paid out at the eight banks. Several of the banking industry leaders have already asserted that none of the government's money went to bonuses or dividends.  The hearing will be chaired by Rep. Barney Frank (D-Mass).  The initial distribution of the bailout funds lacked strict requirements that the banks account publicly for how they were using the money.  The eight banks received their bailouts under the $700 billion Troubled Asset Relief Program (TARP) first unveiled by President George W. Bush in October.  Last year, Congress gave an infamous grilling to auto industry executives when they flew into Washington in private jets to request a taxpayer bailout for their ailing industry.