[NEWS] U.S. bank CEOs face off with Congress for the first time since financial crisis – Loganspace AI

(Reuters) – Chief executives of some of a truly great U.S. banks looked sooner than Congress on Wednesday, giving lawmakers their first different to grill the lenders for the reason that 2007-2009 monetary disaster.

JPMorgan Dawdle & Co’s Jamie Dimon, Bank of The US Corp’s Brian Moynihan, Citigroup Inc’s Mike Corbat, Goldman Sachs Team Inc’s David Solomon and Morgan Stanley’s James Gorman all faced off in opposition to the Dwelling Monetary Companies Committee.

Led by Democratic Representative Maxine Waters and staffed with some excessive-profile progressives including Alexandria Ocasio-Cortez, the panel used to be expected to quiz the CEOs on the safety of the monetary machine, compensation and fluctuate, to boot to their feature in financing gun-makers and non-public prisons.

Ronald O’Hanley, CEO of Issue Avenue Corp, and Charles Scharf, CEO of Bank of Original York Mellon Corp, the nation’s two greatest custody banks, also looked.

Wells Fargo & Co is maybe now no longer represented since ragged CEO Tim Sloan resigned with out note final month, two weeks after being grilled by the an analogous committee.

In opening remarks, Democratic lawmakers puzzled whether too-gigantic-to-fail banks were also too gigantic to govern.

But Republican Representative Patrick McHenry puzzled the need for the hearing and criticized Democratic lawmakers, announcing they wished to “dictate social and environmental policy via govt actions on banks.”

Of the CEOs on the panel, finest JPMorgan’s Dimon used to be within the tip job since sooner than the monetary disaster, having been named CEO in unhurried 2005.

Dimon reminded the panel of that in his introductory remarks, announcing “we will have the option to by no methodology lose see of what we learned,” but steps the monetary institution took for the reason that disaster have long previous a worthy distance to tackle considerations that contributed to the disaster.

The monetary institution executives had willing remarks arguing that Wall Avenue has reformed the practices that fueled the disaster and to stress the contribution banks safe to the broader economy, testimony released on Monday confirmed.

For the reason that disaster, the nation’s greatest banks have added higher than $800 billion in capital to bolster the monetary machine. But Democratic committee workers wrote in a memo to panel members on Friday that “questions live concerning whether The US is being properly-served by a truly great and most systemically vital banks.”

The banks spent recent weeks getting willing for the hearing by assembly with lawmakers and honing their speaking substances, and imagine they’ve a ambitious memoir to expose, folks conscious of their bearing in mind talked about.

Within the months main up to the hearing, the banks also made a string of announcements to expose how they are serving to potentialities and communities.

Bank of The US talked about on Tuesday it would possibly per chance well elevate its minimum hourly wage to $20 from $15 by 2021.

Closing month, JPMorgan talked about it would possibly per chance well no longer finance the personal prison industry and would invest $350 million in job practicing programs.

Goldman Sachs has publicly feature targets for hiring girls and minority teams, a transfer Citigroup also made unhurried final yr.