Among the CEOS testifying with Dimon was Citigroup Inc.’s Jane Fraser, the first women to lead one of the U.S.’s biggest banks. Also appearing were Goldman Sachs Group Inc.’s David Solomon, Bank of America Corp.’s Brian Moynihan, Morgan Stanley’s James Gorman and Wells Fargo & Co.’s Charles Scharf. They will testify again Thursday before the House Financial Services Committee.
In their opening statements Wednesday, the executives pointed out the leading role that big banks played in getting out billions of dollars in government stimulus and assistance for businesses and homeowners jolted by coronavirus. As for their own firms, the leaders said, they remain well-capitalized and didn’t struggle during the market turmoil caused by Covid-19.
U.S. banks have thrived during the pandemic, with the Federal Deposit Insurance Corp. putting out a report Wednesday that showed the industry made $76.8 billion in the first quarter, shattering all previous profit records. Much of the earnings came from lenders releasing reserves that were set aside last year for potential losses that never materialized.
Democrats weren’t the only lawmakers who faulted banks, as Republicans pointedly questioned decisions to curtail lending to politically unpopular businesses such as gun manufactures and oil companies. Senator Pat Toomey, the top GOP member of the Banking Committee, said corporations shouldn’t pursue social agendas that risk hurting shareholder returns.
This article was provided by Bloomberg News.