Facing Oversight, Banks Go on Offense

Wall Street Executives Say They're Looking to Improve Risk Management

By Amit R. Paley
Washington Post Staff Writer
Wednesday, February 11, 2009

Wall Street is trying to move out of its defensive crouch.

The chieftains of eight of the nation's largest banks could receive a tongue-lashing when they testify before a House committee today, but some on Wall Street have moved to preempt the withering criticism by proposing their own solutions to the economic meltdown.

Earlier this week, Goldman Sachs chief executive Lloyd Blankfein urged tougher regulation of the financial sector and tighter limits on lavish compensation for executives. His comments echoed previous proposals by Wall Street's main lobbying association to expand oversight and regulation of the industry.

The banks helmed by Blankfein and the other seven chief executives called to appear before the House Financial Services Committee this morning received $165 billion from the $700 billion government bailout. Lawmakers are furious at the executives over accounts of their lavish spending since receiving the taxpayer funds, and have attacked them for hoarding the money instead of using it to boost lending.

(More here.)