We made mistakes: US bank chiefs
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There has been a lot of anger in the US over the bailout of the major investment banks (Getty Images: AFP: Spencer Platt)
The US President, Barack Obama, plans to impose a fee on the country's biggest banks to recoup bailout costs from the global financial crisis.
The US Administration hopes to raise at least $US120 billion.
Meanwhile, the bosses of the biggest US investment banks are again explaining their role in the financial crisis to the Financial Crisis Inquiry Committee Commission.
They said they made mistakes, but there were no apologies.
"We lent money out too cheaply and, in certain loans, without the traditional safeguards. We didn't recognise early enough that risk was being mispriced, we made too made liquid investments, particularly in real estate, and we were too concentrated in certain areas, mainly leveraged loans," said Lloyd Blankfein, the head of Goldman Sachs - the most profitable US investment bank.
"We didn't see as clearly as I would have hoped the excesses, so we didn't raise a hand and ask whether some of those transient practices that became commonplace, really served the financial system's interests."
Goldman Sachs is under fire because it plans to pay staff about $18 billion this year.
The head of the commission, Philip Anglelides, says the aim is to find out what caused the global financial meltdown.
"I see this commission as a proxy for the American people. Their eyes, their ears and possibly also their voice," he said.
"This forum may be the only opportunity to have their questions asked and answered. This forum may be our last, best chance to take stock of what really happened. If we ignore history, we are doomed to bail it out again."
There was regret from the bankers, but no apologies.
The toxic securities they sold led to the near meltdown of the world's financial system and the global recession.
Jamie Dimon, the boss of JP Morgan Chase, says lending standards were too low.
"We did make mistakes, and there are a number of things we could have done better," he admitted.
"First, we should have been more diligent when negotiating the structuring commitment letters for leveraged indicator loan transactions. Second, the underlying standards of a mortgage business should have been higher."
After the hearings, Philip Angelides told reporters that Lloyd Blankfein did not admit that Goldman Sachs had any responsibility for selling the toxic investments.
Texas politician Ron Paul told Bloomberg that he was sceptical about what the commission would achieve.
"I don't anything of much benefit has come out of it, and I don't expect much to come in the future."
US President Barack Obama will tomorrow announce a plan to charge a fee on around 20 of the country's biggest banks.
The administration hopes the charge will raise about $US120 billion to help repay the $US700 billion doled out to rescue troubled firms.
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