Big bank CEOs to highlight economic, regulatory challenges to Congress -testimony

JP Morgan CEO Jamie Dimon speaks at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S. November 23, 2021. REUTERS/Brian Snyder

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WASHINGTON, Sept 20 (Reuters) – JPMorgan Chase & Co chief executive Jamie Dimon will warn Congress of economic “storm clouds” while Wells Fargo (WFC.N) CEO Charles Scharf will urge patience while the Bank tackles long-standing regulatory issues, says broad-based testimonials.

In testimony released Tuesday by the House Financial Services Committee, Scharf said the bank still faces the risk of setbacks as it prioritizes resolving a variety of regulatory concerns. He noted that while regulatory approval orders have stayed in place for too long, it will still be “several years” before everything is addressed.

“We know what work needs to be done and we are committed to completing it. I believe that the quality of talent and the processes that we have now will allow us to eventually put these problems behind us,” he said in a statement.

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Dimon, who is scheduled to testify alongside Scharf and other major US bank CEOs at congressional hearings on Wednesday and Thursday, will outline the competing forces shaking the country’s economy. Strong consumer spending and a resilient labor market point to resilience, but “storm clouds” such as tangled supply chains, the war in Ukraine, high inflation and the Federal Reserve’s efforts to contain it all signal tougher times ahead, he added added.

He will also argue that strict rules requiring banks to hold more capital pose significant economic risk and are “bad for America” ​​and limit banks’ ability to lend. After the 2008 financial crisis, global regulators imposed stringent capital requirements on banks.

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Her testimony comes ahead of two oversight hearings for the country’s seven largest retail banks, where CEOs are expected to be grilled on a range of issues, including the economy, consumer issues and hot social issues like fossil fuels and abortion. Continue reading

A memo prepared by the Financial Services Committee, which will first question CEOs on Wednesday, notes that the so-called megabanks have grown significantly following recent mergers. Banking giants continue to pay heavy penalties for “unlawful conduct,” the committee said.

The hearing, according to the memo, will be searched on a range of issues, including consumer protection, compliance issues, diversity and “issues related to the public interest” such as workers’ rights and access to abortion, according to the CEO.

Bank CEOs have generally defended their banks’ work, particularly during the pandemic, highlighting the billions of dollars they had managed through various relief efforts such as the Paycheck Protection Program.

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“Truist teammates have worked tirelessly to get much-needed relief funds into the hands of companies that have worked hard to avoid layoffs and keep operations running,” said William Rogers, CEO of Truist Financial (TFC.N ), in a prepared testimony.

CEOs who testified include the heads of the four largest US banks: Dimon of JPMorgan, Scharf of Wells, Brian Moynihan of Bank of America and Jane Fraser of Citi. They are joined by Andy Cecere, CEO of US Bancorp (USB.N), William Demchak, CEO of PNC Financial (PNC.N), and Rogers of Truist, who lead the country’s largest regional lenders.

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Reporting by Pete Schroeder Editing by Nick Zieminski and Lananh Nguyen

Our standards: The Thomson Reuters Trust Principles.

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