(Reuters) – Chief executives of a few of the largest U.S. banks appeared earlier than Congress on Wednesday, giving lawmakers their first alternative to grill the lenders for the reason that 2007-2009 monetary disaster.
FILE PHOTO: JPMorgan Chase CEO Jamie Dimon speaks on the North America’s Constructing Trades Unions (NABTU) 2019 legislative convention in Washington, U.S., April 9, 2019. REUTERS/Jeenah Moon/File Picture
JPMorgan Chase & Co’s Jamie Dimon, Financial institution of America Corp’s Brian Moynihan, Citigroup Inc’s Mike Corbat, Goldman Sachs Group Inc’s David Solomon and Morgan Stanley’s James Gorman all confronted off towards the Home Monetary Companies Committee.
Led by Democratic Consultant Maxine Waters and staffed with some high-profile progressives together with Alexandria Ocasio-Cortez, the panel was anticipated to quiz the CEOs on the protection of the monetary system, compensation and variety, in addition to their function in financing gun-makers and personal prisons.
Ronald O’Hanley, CEO of State Road Corp, and Charles Scharf, CEO of Financial institution of New York Mellon Corp, the nation’s two largest custody banks, additionally appeared.
Wells Fargo & Co is not going to be represented since former CEO Tim Sloan resigned abruptly final month, two weeks after being grilled by the identical committee.
In opening remarks, Democratic lawmakers questioned whether or not too-big-to-fail banks have been additionally too massive to control.
However Republican Consultant Patrick McHenry questioned the necessity for the listening to and criticized Democratic lawmakers, saying they needed to “dictate social and environmental coverage via authorities actions on banks.”
Of the CEOs on the panel, solely JPMorgan’s Dimon was within the high job since earlier than the monetary disaster, having been named CEO in late 2005.
Dimon reminded the panel of that in his introductory remarks, saying “we are going to by no means lose sight of what we realized,” however steps the financial institution took for the reason that disaster have gone an extended strategy to handle issues that contributed to the disaster.
The financial institution executives had ready remarks arguing that Wall Road has reformed the practices that fueled the disaster and to emphasize the contribution banks make to the broader economic system, testimony launched on Monday confirmed.
Because the disaster, the nation’s largest banks have added greater than $800 billion in capital to bolster the monetary system. However Democratic committee workers wrote in a memo to panel members on Friday that “questions stay concerning whether or not America is being well-served by the most important and most systemically essential banks.”
The banks spent current weeks making ready for the listening to by assembly with lawmakers and honing their speaking factors, and consider they’ve a robust story to inform, individuals aware of their pondering stated.
Within the months main as much as the listening to, the banks additionally made a string of bulletins to indicate how they’re serving to prospects and communities.
Financial institution of America stated on Tuesday it will elevate its minimal hourly wage to $20 from $15 by 2021.
Final month, JPMorgan stated it will now not finance the personal jail business and would make investments $350 million in job coaching applications.
Goldman Sachs has publicly set targets for hiring ladies and minority teams, a transfer Citigroup additionally made late final 12 months.
Reporting by Imani Moise, Writing by Michelle Worth; Modifying by Meredith Mazzilli