Congress Calls Bank CEOs to Capitol Hill for Consumer, Compliance Hearings

The leaders of the country’s seven biggest commercial financial institutions will head to Washington, D.C., this week to face two Congressional hearings to review consumer protection and compliance issues, enforcement actions and recidivism, and trends and developments in the industry.

The CEOs will appear before the House Financial Services Committee on Wednesday (Sept. 21), according to a press release, and the Senate Banking Committee on Thursday (Sept. 22), according to another statement. 

In attendance will be Jamie Dimon, CEO and chairman of J.P. Morgan Chase & Co.; Brian Moynihan, CEO and chairman of Bank of America; Jane Fraser, CEO and chairwoman of Citigroup; Andy Cecere, CEO and president of  U.S. Bancorp; William Demchak, CEO, chairman and president of The PNC Financial Services Group; William Rogers Jr., CEO and chairman of Truist Financial Corporation; and Charles Scharf, CEO and president of Wells Fargo & Company.

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“These banks have maintained adequate capital and leverage ratios, provided PPP loans, and engaged in stock buybacks in 2021,” the release from the House noted. “With the exception of Wells Fargo, which is subject to an asset cap restriction imposed by the Fed, these banks have generally increased in size since 2019 and collectively hold more than $11 trillion in assets.”

Mergers and acquisitions among these players have created “banking deserts,” where access to a nearby bank branch is difficult to find in some communities, according to the House release.

Since 2010, the four largest banks have closed 25% of their branches, according to the release, with one-third in low- to moderate-income (LMI) communities and communities of color from 2017 to 2021.

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The hearing, titled “Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks,” will address a range of hot-button issues including reserves, fraud, fees, diversity, equality, abortion, climate change and Ukraine.

Mortgage lending, overdraft fees, incorrect credit scores, promoting the public interest and the future of banking are all part of the agenda.