Bank CEOs are due to testify while US Congress tightened control of Wall Street
© Reuters. FILE PHOTO: The sun sets behind the dome of the US Capitol in Washington
By Michelle Price
WASHINGTON (Reuters) – US Congress will hold hearings with senior executives at major Wall Street banks next month as Democratic lawmakers clarify the role of lenders in helping struggling Americans recover from the COVID-19 pandemic examine.
The House Financial Services Committee and Senate Banking Committee will hear statements from JP Morgan Chase & Co (NYSE :), Bank of America Corp (NYSE :), Citigroup Inc (NYSE :), Wells Fargo (NYSE 🙂 & Co, Goldman Sachs Group Inc (NYSE 🙂 and Morgan Stanley (NYSE :), according to a statement from the House Committee.
The virtual hearings scheduled for May 26th and 27th could determine how much legislative and political risk the largest banks will have by 2022, Jaret Seiberg of the Cowen Washington Research Group wrote on Thursday.
“These hearings may offer more benefits than risks. A strong performance by bank managers can deter progressive Democrats from planning more hearings or introducing negative laws,” he added.
While the industry’s image in Washington has improved since the financial crisis a decade ago, Democratic lawmakers have expressed skepticism that lenders are doing everything they can to help Americans and small businesses affected by the pandemic.
You will likely be briefing CEOs on the industry’s role in the small business paycheck protection program and asking them to address concerns highlighted in several Congressional reports that lenders distributed the money to scammers and discriminated against some borrowers.
Industry officials also expect lawmakers to focus on how mortgage lenders are helping homeowners and whether they are doing enough to prevent a foreclosure crisis. Other democratic goals, including combating racial injustice and climate change, are also expected to be included in the discussion.
After banks made surge profits in the first quarter of this year and President Joe Biden floated the idea of a tax hike for the rich, the millionaire’s executives are also likely to be concerned about whether Wall Street and its wealthy executives are getting enough of it Government pay.
Representatives of the banks declined to comment.
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