Wells Fargo CEO on the Hill today;

Live-Blogging the Bankers’ Showdown on Capitol Hill

Excerpt:

11:01 a.m. | And yet more loans: Mr. Stumpf of Wells Fargo says the bank made $72 billion of new loans in the fourth quarter. “We do business and lend money the old fashion way — responsibly and prudently,” he says. “We are Americans first and bankers second.”

12:00 p.m. | Fannie and Freddie: Rep. Edward R. Royce asks to what extent the mortgage securitization process, led by Fannie Mae and Freddie Mac, was part of the problem. Mr. Stumpf of Wells Fargo — which originated relatively few of the most exotic kinds of mortgage loans — says that the problem started a long time before 2007 with “crazy things” such as negative amortization loans and so-called liar loans. “There’s no question that Fannie and Freddie played a part in that,” Mr. Stumpf says.

1:44 p.m. | Autos and bonuses: What are these banking chiefs’ views on the viability of the American auto industry? Several executives say that they are supportive of the industry, including by making auto loans.

Back to TARP money received, salary and bonuses, or lack thereof.
Mr. Stumpf: $25 billion. $850,000 salary. No bonus.
Mr. Pandit: $45 billion. $1 million salary. No bonus. He will take $1 salary until Citi turns a profit again.
Mr. Mack: $10 billion. $800,000 salary. No bonus.
Mr. Logue: $2 billion. $1 million salary. No bonus.
Mr. Lewis: $15 billion. $1.5 million salary. No “incentive.”
Mr. Kelly: $3 billion. $1 million salary. No bonus.
Mr. Dimon: $25 billion. $1 million salary. No bonus.
Mr. Blankfein: $10 billion. $650,000 salary. No bonus.


2:06 p.m. | Where’s the money?: Will the banks lose more money? Mr. Stumpf recollects his time as a collector and says that job losses are key to answering the question. Mr. Pandit agrees that unemployment is important; when asked about when credit will flow again, he says “we’re doing everything we can.”

3:42 p.m. | No less anger: A congressman from Texas says the American people won’t have any less anger after the hearing because they don’t know where the money has gone. He asks if the bankers can ascertain the amount of new money that has been lent out directly attributable to TARP. Everybody raises their hands except for Mr. Stumpf, who says all of the loans go into the same pool of capital.

4:16 p.m. | Mark to market: Mrs. Biggert asks whether anyone would do away with mark-to-market accounting. Mr. Stumpf and Mr. Lewis said it should be modified for extraordinary times when there is no market for products.

4:20 p.m. | “Feed the troops”: Representative Joe Donnelly, Democrat of Indiana, tells the bankers to “feed the troops before they feed themselves.” “We are counting on your good judgment,” he says. He also asks the bankers whether they can work with small businesses who are paying their loans but their ratios might be off. Mr. Stumpf says they are working with small companies.

Comment: My favorite part ... does not involve Wells Fargo:

3:30 p.m. | “Mr. Countrywide”: A congessman from Florida doesn’t seem to know who the bankers are. He mispronounces Mr. Dimon’s name and asks the panel who “Mr. Countrywide” is. Mr. Lewis said he is “not Mr. Countrywide.”