President Barack Obama will quiz top U.S. bankers on Friday about developments in the economy and their businesses as his administration seeks broader authority to regulate the financial system.
Obama, who will pitch his plans to combat global recession and reform regulation at next week's G20 meeting of major economies, is set to host leaders of the biggest U.S. financial institutions at the White House around noon EDT.
The meeting will come just days after the U.S. Treasury Department provided details on a government plan to cleanse banks' balance sheets of up to $1 trillion in distressed loans and securities.
The Obama administration also announced on Thursday its plan to rewrite financial rules, including creating a single regulator to monitor any firm whose failure could threaten the financial system.
Senior White House officials said Friday's meeting would not be a sales job by the president, however, who has walked a fine line with bankers -- chastising them for taking big bonuses while encouraging them to increase lending to help turn the economy around.
This is a meeting about the broad approach to restoring our economy and our national economic strength, top White House economic adviser Larry Summers told reporters.
Our future is inextricably linked to these financial institutions and theirs is to ours, and so it makes all the sense in the world that they come together and have this conversation, said Valerie Jarrett, a senior adviser to the president.
Officials said about 15 CEOs were expected to attend, including chief executives from JPMorgan Chase & Co, Goldman Sachs and Citigroup.
Other invited financial institutions, according to a financial sector source, include: Fannie Mae, Freddie Mac, Bank of New York/Mellon, Northern Trust, PNC Financial, State Street, Bank of America, Morgan Stanley, USBancorp, Wells Fargo, American Bankers Association and the Financial Services Roundtable.
Summers said the president would have a back-and-forth conversation with the banking leaders. I think he'll want to understand and I expect they'll want to tell him about things they're doing that are supportive of our economy, he said.
He said those topics could include, the way they treat highly indebted consumers or the way they're going to think about monitoring the risks better in the future or the steps they're going to take to assure a continuing and strong flow of capital.
Obama flies to Europe next week for a summit of leaders from the Group of 20 leading emerging and industrial economies, which will try to coordinate their strategies to address the global economic crisis.