There is not going to be much positive press today about the U.S. banking sectors.  The top CEOs of America’s  banks are going to testify before the House Financial Services Committee.  Despite the government now being part owner, the grilling today is likely to generate even more major PR damage at a time when these banks are already on the defensive.

Here are the banks and CEOs which will be on Capitol Hill this morning, along with our TAP count:

• Bank of America (NYSE: BAC) Ken Lewis, $45 billion
• Citigroup (NYSE: C) Vikram Pandit, $45 billion
• JP Morgan Chase (NYSE: JPM) Jamie Dimon, $25 billion
• Wells Fargo (NYSE: WFC) John Stumpf, $25 billion
• Goldman Sachs Group (NYSE: GS) Lloyd Blankfein, $10 billion
• Morgan Stanley (NYSE: MS) John Mack, $10 billion
• State Street (NYSE: STT) Ronald Logue, $3 billion
• Bank of New York Mellon (NYSE: BK) Robert Kelly, $3 billion

There are going to be questions today that probably do not start out with anything to do with the use of TARP funds.  These bankers will be asked questions about  how much they made in total compensation, how much stock they currently own, how much in bonus money went out, how they came to D.C., and whether the the bank has private jets.

Besides the fact that you figured out we are against too strict  pay limits, there are many other things that the banks will hear from the committee.  The committee will want to know why the funds are being used for acquisitions rather than for increased loan activities.  There is also likely going to be some questioning about highly paid non-executive employees that goes down as far as traders and brokers.

Jamie Dimon is in the strongest position today to defend and to fight back for the whole group.  We have an idea that he is not going to be apologetic at all since he has maintained that JPMorgan Chase has been healthy the whole time and that the TARP money was forced upon it.

Let’s just hope these guys didn’t fly the company jets to D.C. and that they are prepared for the inquiry today.  If not, these guys will need a major PR makeover for what will be in tomorrow’s newspapers and tonight’s news reports.

Barney Frank has already said that he wants the banks to acknowledge the sins of the past.  He might be one of the more “nice” mouths today, as we expect many members to dwell on getting air time for the pay inquiry so they can tell their districts that they are on the situation.  Banks are actually up this morning after a huge “Geithner-Put” yesterday.

Jon C. Ogg
February 11, 2009

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