The heads of Wall Street’s biggest banks have used an appearance on Capitol Hill to plead with senators to stop the Biden administration’s proposed changes to how banks are regulated, warning that the new proposals could negatively impact the economy at a time of geopolitical turmoil and inflation, Ken Sweet reported for the Associated Press (AP).
Among those testifying before the Senate Banking Committee included JPMorgan’s Jamie Dimon, Bank of America’s Brian Moynihan, Jane Fraser of Citigroup, and Goldman Sachs’ David Solomon. I Photo: Thomas Hawk Flickr
Wall Street’s most powerful bankers have regularly appeared in front of Congress going back to the 2008 financial crisis.
Among those testifying before the Senate Banking Committee included JPMorgan’s Jamie Dimon, Bank of America’s Brian Moynihan, Jane Fraser of Citigroup and Goldman Sachs’ David Solomon.
Whereas in previous years the bank CEOs used the hearing to highlight the industry’s good deeds, this year they warned about the potential dangers of over-regulating the industry.
The banks are adamantly against a number of proposed regulations that could hit their profitability, including new rules from the Federal Reserve that would require big banks to hold additional capital on their balance sheets.
The industry says the new regulations, known as the Basel Endgame, would curtail lending and weaken bank balance sheets at a time when the industry needs more flexibility.