As banks recover main street lags:

Let us take a look

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WASHINGTON – President Barack Obama implored top bankers Monday to help keep the fragile recovery from faltering by boosting lending to small businesses and getting behind an overhaul of financial regulation. "We rise and fall together," Obama declared.

In response to the president's burst of populist jawboning, some banks pledged to increase loans and exercise more self-control over outsized compensation. But the full impact of Obama's intervention was hard to gauge: The government is losing leverage as major banks repay bailout loans.

Obama's lecture to the bankers was also part of a broader election-season Democratic effort to tie sluggish bank lending to continued high joblessness — and to try to tie the banking industry to Republican efforts against Obama's financial overhaul legislation.

It's a tough balancing act, given past contributions of big banks to Democratic as well as Republican candidates.

http://news.yahoo.com/s/ap/20091214/ap_on_bi_ge/us_obama_banks

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