clearn.png
Monday October 3rd, 2022 7:30AM

Wall Street CEOs return to Capitol Hill as election looms

By The Associated Press

WASHINGTON (AP) — In what has become an annual ritual, the CEOs of the major U.S. banks appeared in front of Congress on Wednesday sell themselves as shepherds of a helpful industry at a time of financial and economic distress for many Americans.

Democrats have called JPMorgan Chase, Bank of America, Wells Fargo and Citigroup to Washington to talk about pocketbook issues as households contend with the highest inflation since the early 1980's and the midterm election looms just weeks away.

Goldman Sachs and Morgan Stanley, which focus on investment banking, are not testifying this time. Instead, the CEOs of three new banks will testify: Andy Cecere of U.S. Bank, William Demchak of PNC Financial and William Rogers Jr. of Truist.

Each of them run “super regionals,” banks that are huge in their own right, with thousands of branches and hundreds of billions in assets, but are dwarfed in size by JPMorgan, BofA, Citi and Wells.

While billed as a hearing on everyday finances, the CEOs are also likely to face difficult political questions with Washington in the midst of an election year. Republicans are almost certain to use the opportunity to ask about the tracking of gun store sales as well as whether banks should weigh in on hot-button social issues like student loan forgiveness. Democrats are likely to ask about Wall Street’s lending to oil and gas companies, racial and wealth equity issues, CEO pay and overdraft fees.

The first hearing is taking place before the House Committee on Financial Services, where Republicans quickly called into question the need for having the CEOs testify.

“It’s theatre, not oversight,” said Rep. Patrick McHenry, R.-North Carolina, and the top Republican on the committee. “They’ve had two years to do oversight. Now we are a month before the midterms.”

Many Americans still remember bailing out the banking industry nearly 15 years ago, so the bank CEOs typically use the annual platform to sell themselves as a force for good.

The biggest banks were the primary conduit for the Paycheck Protection Program loans to small businesses. Many banks waived overdraft or late fees for borrowers during the worst of the pandemic and subsequently cut back on their collection of overdraft fees. The most prominent example was Bank of America cutting its overdraft fee from $35 to $10.

“The work we do at JPMorgan Chase matters, in good times, and particularly in tough times,” said Jamie Dimon, CEO of JPMorgan, in prepared remarks. “We finance Americans’ ambitions with loans for homes, autos, and growing a small business, and provide valuable products and services to more than half of American households.”

Eager to avoid the political headache that comes with being labeled as part of “Wall Street,” the super regionals will be this hearing to sell themselves as a competitive alternative to the Wall Street megabanks.

A series of mergers have brought increased scrutiny for the super regionals. U.S. Bank is currently in the process of buying MUFG Union Bank, the U.S. consumer banking arm of the Japanese banking giant. Truist resulted from the merger of SunTrust and BB&T and PNC bought the consumer banking franchise of Spanish bank BBVA.

“We are a responsible provider that works for American consumers and the economy as a whole,” Cecere of U.S. Bank said in his prepared remarks.

The CEOs will return to testify in front of the Senate Banking Committee on Thursday.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services, AP Business - Small Business
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
EXPLAINER: How steep Fed rate hikes affect your finances
Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier
6:35AM ( 12 minutes ago )
US urges UN court to toss out Iranian frozen assets case
The United States has urged the International Court of Justice to throw out a case brought by Iran seeking to claw back some $2 billion worth of frozen Iranian assets that the U.S. Supreme Court awarded to victims of a 1983 bombing in Lebanon and other attacks linked to Tehran
6:32AM ( 16 minutes ago )
Putin sets partial military call-up, won’t ‘bluff’ on nukes
Russian President Vladimir Putin has announced a partial mobilization of reservists in Russia
6:23AM ( 24 minutes ago )
Associated Press (AP)
Biden at UN to call Russian war an affront to body's charter
President Joe Biden is ready to make the case at the U.N. General Assembly that Russia's “naked aggression” in Ukraine is an affront to the heart of what the international body stands
4:22AM ( 2 hours ago )
Opening statements set for trial against close Trump ally
A close ally of Donald Trump is in court fighting charges he secretly worked as an agent for the United Arab Emirates
1:12AM ( 5 hours ago )
The Muscogee get their say in national park plan for Georgia
Hundreds of Native Americans returned to their historic capital in Macon, Georgia, this weekend for the 30th annual Ocmulgee Indigenous Celebration
12:19AM ( 6 hours ago )
AP Online Headlines - Washington
Trump FBI search puts unusual spotlight on Archives nominee
The nominee to head the National Archives is set to face an unusually contentious Senate confirmation hearing this week
5:12PM ( 13 hours ago )
Manchin rails against 'revenge politics' on permit plan
Sen. Joe Manchin on Tuesday railed against what he called “revenge politics″ being used against him, as liberals in the House and Senate team up with Republicans to oppose his plan to speed permits for natural gas pipelines and other energy projects
5:09PM ( 13 hours ago )
Ethics board keeps 'action' secret on complaint against Noem
A South Dakota ethics board is keeping it a secret what action it took after finding there was evidence Gov. Kristi Noem improperly intervened in her daughter’s application for a real estate appraiser license
4:59PM ( 13 hours ago )
AP Online Congress News
UK government caps energy bills for businesses for 6 months
Britain’s government says it will cap wholesale energy bills for businesses this winter to ensure companies don’t go bust amid soaring energy prices
5:23AM ( 1 hour ago )
Global shares decline ahead of Fed decision on rates
Global shares have mostly declined as investors await a widely expected interest rate hike by the U.S. Federal Reserve as it strives to squash the highest inflation in decades
5:04AM ( 1 hour ago )
Australian Indigenous traditional owners halt gas drilling
Indigenous traditional owners have won a court challenge that prevents an energy company from drilling for gas off Australia’s north coast
4:59AM ( 1 hour ago )
AP Business
Asian lender ADB cuts forecasts to reflect weakening outlook
The Asian Development Bank has downgraded its forecasts for growth in the region, citing the war in Ukraine, rising interest rates to combat decades-high inflation, and China's slowing economy
10:42PM ( 8 hours ago )
'Our world is in peril': At UN, leaders push for solutions
The world’s problems are seizing the spotlight as the U.N. General Assembly’s yearly meeting of world leaders opens
6:24PM ( 12 hours ago )
At UN, Truss aims to show UK can still lead on world stage
British Prime Minister Liz Truss is at the UN on a mission to convince the world that she is a steely leader for tough times
5:51PM ( 12 hours ago )
AP Business - Economy
4 Ukrainian regions schedule votes this week to join Russia
The separatist leaders of four Russian-controlled areas of Ukraine say they are planning to hold referendums this week for the territories to become part of Russia as Moscow loses ground in the war it launched
5:40PM ( 13 hours ago )
Beyond Meat executive charged with biting man in fight
A top executive at plant-based food company Beyond Meat has been charged with felony battery after a fight outside a college football game in which he was accused of biting a man’s nose
4:46PM ( 14 hours ago )
GOP AGs push Visa, Mastercard, AmEx not to track gun sales
A group of Republican attorneys general are pushing the major payment networks _ Visa, Mastercard and American Express _ to drop their plans to start tracking sales at gun stores, arguing the plans could infringe on consumer privacy and push legal gun sales out of the mainstream financial network
1:45PM ( 17 hours ago )
AP Business - Industries
Global shares mostly gain as investors await Fed rate hike
Global shares are mostly higher as investors await an interest rate increase by the U.S. Federal Reserve
5:09AM ( 1 day ago )
Asia shares rise on US rally ahead of expected Fed rate hike
Asian shares have advanced after Wall Street closed higher on a last-minute buying spree following recent losses
2:39AM ( 1 day ago )
US stocks rise ahead of expected interest rate hike by Fed
Stocks closed higher on Wall Street after swaying between small gains and losses much of the day as investors brace for another big interest rate increase this week from the Federal Reserve
4:42PM ( 1 day ago )
AP Business - Financial Services
As small businesses raise prices, some customers push back
Inflation isn’t only costing small businesses money
12:06PM ( 1 week ago )
Small businesses feel the pinch from slowing housing market
The chill in the housing market is rippling out to the carpenters, landscapers and other small businesses that lose out when fewer homeowners renovate their properties
9:52AM ( 3 weeks ago )
Small businesses fell the pinch from slowing housing market
The chill in the housing market is rippling out to the carpenters, landscapers and other small businesses that lose out when fewer homeowners renovate their properties
9:50AM ( 3 weeks ago )
AP Business - Small Business
Putin sets partial military call-up, won’t ‘bluff’ on nukes
Russian President Vladimir Putin has announced a partial mobilization of reservists in Russia
6:42AM ( 9 minutes ago )
EXPLAINER: How steep Fed rate hikes affect your finances
Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier
6:35AM ( 15 minutes ago )
US urges UN court to toss out Iranian frozen assets case
The United States has urged the International Court of Justice to throw out a case brought by Iran seeking to claw back some $2 billion worth of frozen Iranian assets that the U.S. Supreme Court awarded to victims of a 1983 bombing in Lebanon and other attacks linked to Tehran
6:32AM ( 18 minutes ago )
US urges UN court to toss our Iranian frozen assets case
The United States has urged the International Court of Justice to throw out a case brought by Iran seeking to claw back some $2 billion worth of frozen Iranian assets that the U.S. Supreme Court awarded to victims of a 1983 bombing in Lebanon and other attacks linked to Tehran
6:14AM ( 37 minutes ago )
Some 230 whales beached in Tasmania; rescue efforts underway
About 230 whales are stranded on Tasmania’s west coast, just two days after 14 sperm whales were found beached on a nearby island
6:12AM ( 38 minutes ago )