The chief executives of some of the largest banks in the U.S. are appearing before the Financial Services Committee on Wednesday for the very first time since the 2008 financial crisis, as they deal with new criticism over their methods and record earnings.
Just one day after Big Tech heads appeared before Congress, JPMorgan Chase & Co’s Jamie Dimon, Bank of America Corp’s Brian Moynihan, Citigroup Inc’s Mike Corbat, Goldman Sachs Group Inc’s David Solomon and Morgan Stanley’s James Gorman are all scheduled to appear before the Financial Services Committee.
Led by Democratic Rep. Maxine Waters and staffed with some high-profile progressives including Alexandria Ocasio-Cortez, the panel is anticipated to examination the CEOs on the security of the financial system, settlement and diversity.
Since the 2008 collapse, the country’s biggest banks have added more than $800 billion in capital to bolster the financial system.
Democratic legislators will examine whether too-big-to-fail banks were also too big to regulate.
Republican Representative Patrick McHenry questioned the need for the hearing and slammed Democratic lawmakers, suggesting that they hoped to “dictate social and environmental policy through government actions on banks.”
In remarks prepared for the hearing, bank heads highlighted their push to hire more females and minorities, while applauding guidelines for making banks more sound. Morgan Stanley’s Gorman confronted the Volcker Rule, stating its constraints on trading had prevented his company from taking on too much risk.
Unlike the rest of the bank leaders appearing before Financial Services Committee, JPMorgan Chase & Co. chief Jamie Dimon has been in the congressional hot seat lots of times before. And rival executives explain, he has a propensity to dominate the conversation.
The April 10 hearing has taken in huge banks’ lobbying and public relations operations for weeks. They have gathered solid review of covering problems like organization, lending and minority hiring, readied responses to pointed concerns about pay and inequality, and performed so-called murder boards– practice sessions where chief executive officers are cross-examined by a team pretending to be hostile members of Congress.
Big bank stock prices weren’t moving much as markets opened, with JPMorgan and Wells Fargo up less than 0.1 percent. BofA gained about 0.3 percent, while Goldman and Morgan Stanley were down about 0.3 percent.