On Wednesday, the Chief Executives of some of the biggest US Banks appeared before Congress for the first time since the financial crisis. Some of the executives include the likes of JPMorgan Chase & Co’s CEO Jamie Dimon, Brian Moynihan of the Bank of America Corp, Mike Corbat from Citigroup Inc., Goldman Sachs Group Inc’s David Solomon and James Gorman of Morgan Stanley, all had to face against the House Financial Services Committee. The committee was led by Maxine Waters, the Democratic Representative. It was expected that the panel would quiz the CEOs on the financial system’s safety, diversity, compensation and some other issues.
There would be no representative from Wells Fargo & Co as former CEO Tim Sloan had resigned in an abrupt manner last month. The first remarks from the Democratic lawmakers involved them questioning if big banks were so big that they cannot fail, were also quite difficult to regulate. Jamie Dimon went on to remind the panel that they would never lose sight of what they all had learned from the financial crisis. He further stressed on the fact that the steps, which the bank have taken since the crisis, goes a long way to rectify the problems that had led to the crisis.
The largest banks of the country have added in excess of $800 billion in capital to strengthen the financial system. Still, the committee of Democrats maintained if the largest banks serve the US in the desired manner. The months that led up to the hearing, the banks even made a range of announcements to show the way they are helping customers as well as the communities at large. On Tuesday, the Bank of America even mentioned that they would increase their minimum hourly wage from $15 to $20 by the year 2021.
Dale Bennett was a Service Analyst by profession and writing is his calling. Owing to his interest, he has quit his 9 to 5 job and has been working as an author at Today News Air. He is a voracious reader and an avid traveller.