On Wednesday, the U.S. House Committee on Financial Services held a hearing titled “Holding Megabanks Accountable: A Review of Global Systemically Important Banks 10 years after the Financial Crisis.” CEOs of eight of the largest U.S. banks attended as witnesses, including Michael L. Corbat, CEO, CitiGroup; James Dimon, Chairman and CEO of JPMorgan Chase & Co.; James P. Gorman, Chairman and CEO of Morgan Stanley; Brian T. Moynihan, Chairman and CEO of Bank of America; Ronald P. O’Hanley, President and CEO of State Street Corporation; Charles W Scharf, Chairman and CEO of Bank of New York Mellon; and David M. Solomon, Chairman and CEO of Goldman Sachs.
In her opening statement, Chairwoman Maxine Waters asked what improvements the banks have made in the years since the financial crisis.
“The purpose of this hearing is to review the activities of these megabanks and examine how they are operating today,” Waters said. “Ten years ago, the CEOs appeared before this very Committee to discuss the financial crisis and the massive bailout taxpayers provided. A decade later, what have they learned? Are they helping their customers, and working to benefit the communities they serve? Or are the practices of these banks still causing harm?”
James Dimon discussed in his opening statement on the impact of excessive regulation and bureaucracy.
“Excessive regulation for both large and small companies has reduced growth and business formation without making the economic system safer or better,” Dimon said in his testimony. “The ease of starting a business in the United States has worsened, and both small business formation and employment growth have dropped to the lowest rates in 30 years.”
Dimon continued, “We need strong regulations, and we have to get better at effectively implementing them—accomplishing the desired good outcomes—while minimizing unnecessary costs and bad unintended consequences.”
Representative Gregory Meeks asked the witnesses if they and their bank have looked at any alternatives to foreclosure “in the face of financial shock.”
In response Brian Moynihan stated that Bank of America “does everything it can.”
“Foreclosure is the last resort for the borrower, and the last resort for the lender,” said Moynihan. Moynihan also noted the centers opened by Bank of America aimed at assisting borrowers facing foreclosure face to face.
Other topics discussed in the hearing included diversity and technology, including the risks tech poses.
Watch the full hearing and find the written testimonies here.