Dec. 6 (UPI)– Wall Street CEOs testified before the Senate Banking Oversight Committee on the stability of the U.S. banking system, united in their opposition to stricter capitalization guidelines proposed. The Senate Banking Oversight Committee, led by Sen. Sherrod Brown, D-Ohio, hosted a hearing where bank CEOs voiced concerns about economic downturn and resisted the proposed regulations emphasizing the need for firms to maintain more capital.
CEOs representing major Wall Street banks such as Wells Fargo, Bank of America, JP Morgan Chase, Citigroup, Morgan Stanley, and others, expressed their disapproval of the proposal, arguing it would have negative implications for both consumers and their businesses.
Brian Moynihan, CEO of Bank of America, emphasized the potential impact of the proposed capital requirements on standard business operations, stating that it could lead to higher costs for consumers. Senator Sherrod Brown addressed the banks’ resistance by highlighting the importance of ensuring banks are resilient during times of crisis.
In response to the banks’ opposition, Brown underscored the detrimental effects of the 2008 financial crisis, emphasizing that it negatively affected working families across the country. He reaffirmed the committee’s stance on holding Wall Street banks accountable and committed to prioritizing the well-being of the Main Street economy.
Furthermore, the hearing also witnessed statements from Wall Street figures such as Dimon, who raised concerns about the potential impact of the Basel III Endgame guideline. Citigroup CEO Jane Fraser expressed anticipation of an economic downturn but remained optimistic about its severity.
Despite the differing viewpoints between the banking executives and the committee, the hearing did reveal signs of concurrence on issues such as cryptocurrency regulation. For further details on the hearing, you can read more here.
