Wall Street Executives Put Through The Capitol Hill Ringer

The top Wall Street executives were put through the ringer today on Capitol Hill, as delegates tried to get to the bottom of the question everyone wants to know "where did the TARP money go?"

Among those testifying were 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, Wells Fargo's (NYSE: WFC) John Stumpf, State Street's (NYSE: STT) Ronald Logue and Bank of New York Mellon's (NYSE: BK) Robert Kelly.

Despite the barrage, the Wall Streeters kept to their line "Don't look a us, we are lending." There were few apologizes, just the impression that the banks are doing their part to save our sinking economy.

J.P. Morgan's Jamie Dimon offered the best explanation as to why it is that, if the banks are lending, why credit markets are still mostly frozen. Dimon explained that the tight credit market was related to the fact that nonbank lenders, such as money market funds and hedge funds, which constitute 70% of the nation's credit markets, have either stopped lending or cut back significantly.

Although the environment was somewhat hostile, Committee Chairman Barney Frank said, although there is great public backlash against the industry, he would work with the bank executives to find ways to get credit moving.

All of the executives indicated to the panel that the government's investment in their companies will be paid back. Some, like Goldman Sachs (NYSE: GS) Lloyd Blankfein, sounded enthusiastic to pay it back sooner rather than later. In fact, he and the others may have the opportunity to do just that. Committee Chairman Barney Frank indicated that they would remove current obstacles so the firms could pay the TARP money back earlier if they wanted to.

Those banks involved with the mortgage market indicated they would do their part to help stem foreclosures.

Credit cards seemed a major concern for both the banks and Congress. Committee members brought up anecdotal examples of how credit card rates have been ratcheted higher as the credit crisis has intensified. The banks see credit card losses mounting, but agreed to help get credit card rates lower.

Citigroup's CEO Vikram Pandit indicated he will take a $1 salary and forgo his bonus until the bank returns to profitability.

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