Bankers vow to work for financial system reform

Facing a disgusted public and Congress, bank CEOs agreed with demands for greater accountability today in the first testimony on how they’re spending money from the taxpayer-funded $700 billion bailout. “Both our firm and our industry have far to go to regain the trust of taxpayers, investors and public officials,” John J. Mack, head of Morgan Stanley, told the House Financial Institutions Committee. In general, the eight top bankers appearing before the panel were contrite and conceded they have work to do to win over a bitter public and an exasperated Congress. They had little choice but to acknowledge as much, given intense anger and anxiety as the troubled financial system continues to spiral downward in an ever-worsening recession. Taxpayers are furious with big banks that benefited from the federal bailout designed to get credit moving again, but which also spent lavishly on executive bonuses, company retreats and office redecorating. Lawmakers also are feeling the heat for signing off on the bailout package plan last year.