Former Treasury Secretary Henry Paulson told nine banks last year that they should accept a federal infusion of funds or be forced to by the regulators, according to a report.
“Your nine firms represent a significant part of our financial system. Therefore, in our view, you must be central to any solution,” ,” Paulson’s talking points to the CEOs stated, according to documents obtained by Judicial Watch which were displayed on its website.
Judicial watch obtained the documents through a Freedom of Information Act request.
The chief executive officers attending the meeting on October 13, according to Judicial watch, were Vikram Pandit of Citigroup, Jamie Dimon of JP Morgan, Richard Kovacevich of Wells Fargo, John Thain of Merrill Lynch, John Mack of Morgan Stanley, Lloyd Blankfein of Goldman Sachs, Robert Kelly of Bank of New York, and Ronald Logue of State Street Bank.
“We don’t believe it is tenable to opt out because doing so would leave you vulnerable and exposed,” the memo said.
“If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance.
The memo then stated that the chief executive officers should contact their boards of directors and confirm the banks’ participation the same evening.