US Bancorp CEO makes his case on TARP repayment

| 18 June 2009 09:56

This video of US Bancorp CEO Richard Davis on CNBC is good in getting to the motivations and thinking of bank CEOs now repaying TARP monies.  Davis sounds articulate, well-prepped and diplomatic and makes a lot of sense.  You couldn’t ask for a better spokesperson to make the case.

The bottom line: Big banks exiting TARP can now say they have ‘done their duty’ by taking TARP as requested, issuing FDIC-insured bonds as required.  But now, with the banking system on its way to health, it is time to return to business as usual. As far as most big banks are concerned, the financial crisis is over.

Note: Davis is supportive of the Obama regulation plans as most bankers seem to be. He also mentions that loan demand is falling. As Richard Koo suggests, it is demand, not lending which will reduce credit.

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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