According to the NYT’s Caucus, this morning President Obama is scheduled to “meet with executives from American Express, Bank of America, Capital One Financial, Citigroup, Discover Financial Services, JPMorgan Chase and others” to outline some of the principles that he would like to see in lending reforms. This is intended to further President Obama’s grand economic plan to save the economy by making credit available and as useful as it has been in the past. However, I am not completely convinced that this will work, although that doesn’t mean trying is not an honest effort. Unless legislation is passed I highly doubt these major credit card companies are going to put themselves through any real “reform” for the benefit of the country. I also am not sure how any major group of companies such as these will react to legislation controlling what they do.
White House Press Secretary Robert Gibbs has said voluntary steps could be taken by credit card companies, but he added that the legislation is necessary to codify the rules the Fed is finalizing. While this is a tricky situation, at least President Obama is making an honest attempt to meet and discuss the situation with the big lenders who have a great influence on our economy.
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