• 2 days Welcome To The Used Car Bonanza
  • 3 days The Year Of The Retail Investor Keeps Getting Bigger
  • 4 days Airlines Could Recover, But Crew Remain Elusive
  • 4 days Meet The Man Behind The World's Most Exciting Oil Play
  • 5 days Crypto-Mining Immigration Could Be The Start Of A New Trend
  • 7 days Hawkish Fed Sends Gold Prices Crashing
  • 8 days Bezos Is Heading To Space This Sunday
  • 11 days El Salvador’s Surprise Bitcoin Move
  • 14 days Markets Unfazed As Inflation Hits 13-Year High
  • 15 days How the Token Economy is Disrupting Financial Markets
  • 17 days FBI Investigating 100 Types Of Ransomware Attacks
  • 19 days Fed Ends Corporate Credit Emergency Lending Program
  • 21 days AMC Becomes the Latest Winning Meme Stock After GameStop
  • 22 days The Real Reason Your 401k Has Been Lagging
  • 23 days China Lifts Cap On Births, Allows Three Children Per Couple
  • 25 days The Market Is Ripe For Another GameStop Saga
  • 28 days Senate Grills Big Banks Over Pandemic Opportunism
  • 29 days Cannabis Has A Major Cash Problem
  • 30 days Ransomware Netted Criminals $350M In 2020 Alone
  • 31 days Russia Is Taking On Google
The New Drug That Could Be Bigger Than Cannabis

The New Drug That Could Be Bigger Than Cannabis

The global market for psychedelic…

Could This Be The Hottest Commodity Play Of 2021?

Could This Be The Hottest Commodity Play Of 2021?

The rapid rise of lithium-ion…

  1. Home
  2. News
  3. Breaking News

Big Banks Face Off Against Congress

Congress

CEOs of America's biggest financial institutions are appearing before the Financial Services Committee on Wednesday for the first time since the 2008 crisis, facing renewed criticism over their techniques and sky-high profits.

Just one day after Big Tech heavyweights assembled 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 arranged to appear before the Financial Services Committee.

Led by Democratic Rep. Maxine Waters and staffed with high-profile progressives like Alexandria Ocasio-Cortez, the panel is predicted to grill the CEOs on the safety of the financial system, settlements and diversity.

Since the 2008 collapse, the country's most notable banks have injected more than $800 billion in cash to reinforce the financial system.

Democratic legislators will examine whether too-big-to-fail banks were likewise too big to manage.

Republican Agent Patrick McHenry questioned the requirement for the hearing and knocked Democratic lawmakers, suggesting that they were looking 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 women and minorities, while praising guidelines for making banks more sound.

Morgan Stanley's James Gorman tackled the Volcker Rule, stating that its restraints on trading had kept his company from taking on too much risk. Related: Is The Corporate Debt Bubble About To Pop?

Unlike the remainder of the bank leaders appearing before Financial Services Committee, JPMorgan Chase boss Jamie Dimon appeared before Congress many times prior to and following the financial crisis.

The banks worked diligently for the weeks leading up to the hearing, preparing a strong review of issues like organization, lending and minority hiring. They have also begun taking action to address some of Congress' complaints and practiced their speeches in small in-house meetings with other employees 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.

By Michael Kern for Safehaven.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment