Wall Street Execs Prepare For Grilling On Capitol Hill

Wall Street executives are set for another round of grilling on Capitol Hill today. The chief executives of the nation's major banks are prepared to testify in front of the the House Financial Services Committee to defend what they are doing with the TARP money.

Among those testifing include J.P. Morgan's (NYSE: JPM) Jamie Dimon, Bank of America's (NYSE: BAC) Ken Lewis, Citigroup's (NYSE: C) Vikram Pandit, Morgan Stanley's (NYSE: MS) John Mack, Goldman Sachs' (NYSE: GS) Lloyd Blankfein, State Street's (NYSE: STT) Ronald Logue, Bank of New York Mellon's (NYSE: BK) Robert Kelly.

There has been public outrage that the banks aren't lending despite getting billions and billions in TARP money. The executives contend they are lending and doing everything in their power to help.

Below are some highlights from the executives preparted testimonies:

J.P. Morgan's (NYSE: JPM) Jamie Dimon:

In short, banks like JP Morgan Chase are continuing to lend in this environment.� The significant tighgening of credit that we have all seen over the last several months must be understood in the wider context of the overall credit markets. Nonbank lenders, such as money market funds and hedge funds, constitue 70 percent of our nation's credit markets-- providing credit, for example, through their holdings in commercial paper. Understandably, as their own investors have pulled back, these institutions have done the same, either by not extending any credit or by dramatically shortening the duration of the commercial paper they are willing to purchase. The result has been a further tightening of liquidty in the financial markets.

Link to Jamie Dimon Full Prepared Testimony (WSJ)

Bank of America's (NYSE: BAC) Ken Lewis:

"First, all of us at Bank of America understand the responsibilities that come with access to public funds. Taxpayers want us to manage our expenses carefully, and provide transparency about how we are putting their money to work to restart the economy. These expectations are appropriate, and we are working to meet them. Second, as we manage our business going forward, we are doing our best to balance the interests of customers, shareholders, and taxpayers. But the fact is, it is in all our interests that we lend as much as we responsibly can – maximizing credit while minimizing future losses. That's how consumers and businesses can prosper. It’s how investors – including taxpayers – can earn returns."

Link to Ken Lewis Full Prepared Testimony (WSJ)

Morgan Stanley's (NYSE: MS) John Mack:

"I believe that both our Firm and our industry have far to go to regain the trust of taxpayers, investors and public officials. As a recipient of an investment from the U.S. govenmetn, we recognize our serious responsiblityes to the America people. It's our goal and our desire to repya the taxpayers in full as soon as possible."

Link to John Mack's Full Prepared Testimony (WSJ)

Citigroup's (NYSE: C) Vikram Pandit:

" Our responsibility is to support the recovery of our financial system and to benefit our shareholders. I pledge that we will continue to do everything we can in that regard at this critical moment in our Company's-and our nation's-history. We will hold ourselves accountable for what we do, and that starts with me. I am personally accountable: My goal is to return Citi to profitability as soon as possible."

Link to Vikram Pandit's Full Prepared Testimony (WSJ)

Goldman Sachs' (NYSE: GS) Lloyd Blankfein:

"It is abundantly clear that we are here amidst broad public anger at our industry. In my 26 years at Goldman Sachs, I have never seen a wider gulf between the financial services industry and the public. Many people believe – and, in many cases, justifiably so – that Wall Street lost sight of its larger public obligations and allowed certain trends and practices to undermine the financial system's stability.

The fact is that all of us are contending with the consequences of a deteriorating economy; lost jobs, lost orders, and lost confidence. Our industry simply cannot sustain itself without a healthy, resilient economy. And, Main Street cannot prosper without financial institutions that are strong enough to provide capital to entrepreneurs, businesses and consumers.

We have to regain the public’s trust and do everything we can to help mend our financial system to restore stability and vitality. Goldman Sachs is committed to doing so."

Link to Lloyd Blankfein's Full Prepared Testimony (WSJ)

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