Bank chiefs summoned to White House

The White House

Of all of the Wall Street giants that were bailed out as part of the government's TARP program, Citigroup remains the only one not to have paid money back. However, there was some good news for the corporation yesterday after Citigroup revealed they were close to a deal to exit the government’s bailout program.

According to reports in the New York Times, the bank is currently trying to persuade regulators that it was sound enough to stand on its own. As such, negotiations are now underway between executives at the firm and senior government officials - in fact, last night saw negations going long into the night, with reports suggesting that there was still a huge possibility that talks could collapse.

Economic recovery

There are plans today for chiefs of the nation's biggest banks to meet with President Barack Obama at the White House. The aim of them meeting is to discuss how economic recovery can be fast-tracked, with insiders predicted than more loans to small businesses and homeowners are likely.

Speaking of the problem, Rahm Emanuel, the White House chief of staff, has warned that banks need to play a more "active role" in the recovery of the economy.

"They play an essential role in helping the economy grow," he told the New York Times.

It is reported that today's meeting, which will see the likes of Citgroup, Goldman Sachs and 10 other big financial services firms arrive at the White House, will focus on the size of salaries and bonuses as Obama - who has been criticised the past for being "too close" to Wall Street - seeks to impress upon bankers that they have a "special responsibility" to consumers.

For Citigroup, officials plan to announce a broad program later today. It is reported that, in a series of complex transactions, bank officials expect to raise about $18 billion by selling stock this week.

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