Congress will hear testimony from the heads of major banks about lending practices, risk management, and pay practices and how that is related to the recent recession. The leaders of the Congressional committee echo the sentiments of many Americans:
“People are angry,” Mr. Angelides said in his opening remarks. “They have a right to be. The fact that Wall Street is enjoying record profits and bonuses in the wake of receiving trillions of dollars in government assistance — while so many families are struggling to stay afloat — has only heightened the sense of confusion.”
The banks, on the other hand, are resistant to the rumors of drastic increases in bank regulation. This resistance likely stems from the profitability of the banking industry. Banks, however, seem unable to equate the lack of regulation with the financial collapse, and the resulting taxpayer bailout of banks.
Bankers Walking a Fine Line at Hearing | New York Times