The chief executives of big U.S. banks are arguing that banking regulations aimed at strengthening the country’s financial system will instead hurt the economy. As Wall Street went to Capitol Hill on Wednesday, the bank honchos also delivered a mixed but cautiously optimistic view of the 2024 economy under higher-for-longer interest rates.
Jamie Dimon, chief executive of the largest U.S. bank, JPMorgan Chase & Co.
JPM,
-0.47%,
told lawmakers at the Senate Committee on Banking, Housing and Urban Affairs that they should be thoughtful about the cumulative impact of proposed capital rules on “affordable credit and traditional banking products, capital markets and market liquidity, and the economy overall.” A proposed cap on interchange fees could also make bank accounts more expensive for lower-income borrowers, he said. Citigroup Inc.
C,
+3.80%
Chief Executive Jane Fraser said the bank is forecasting a recession but sees no “drastic downturn” on the horizon despite persistent inflation in services, rising debt, a slowdown in global growth and wars in the Middle East and Europe. “Consumers appear to be taking a more cautious approach to spending in recent months, reflected in moderate sales growth, a shift in spend choices and segment differentiation,” Fraser said. Goldman Sachs Group Inc.
GS,
+0.80%
Chief Executive David Solomon said the proposed capital rules will increase the bank’s capital requirements by 25% and nearly double the capital needed for market-making activity. “These higher requirements are simply layered on top of the global market shock … without any consideration for how they interact, resulting in a significant double count,” he said. The “punitive” regulatory measures may harm U.S. competitiveness and capital-markets activity around the globe and push activity overseas and to the private-banking space without making the system safer, Solomon said. Bank of America Corp.
BAC,
+1.68%
Chief Executive Brian Moynihan said the bank has maintained its “responsible growth” effort despite “the challenging economic and geopolitical environment that continues in 2023.” Some of the efforts across the bank include eliminating nonsufficient-fund fees and reducing overdraft fees to $10 from $35. State Street Corp. …
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Jamie Dimon, chief executive of the largest U.S. bank, JPMorgan Chase & Co.
JPM,
-0.47%,
told lawmakers at the Senate Committee on Banking, Housing and Urban Affairs that they should be thoughtful about the cumulative impact of proposed capital rules on “affordable credit and traditional banking products, capital markets and market liquidity, and the economy overall.” A proposed cap on interchange fees could also make bank accounts more expensive for lower-income borrowers, he said. Citigroup Inc.
C,
+3.80%
Chief Executive Jane Fraser said the bank is forecasting a recession but sees no “drastic downturn” on the horizon despite persistent inflation in services, rising debt, a slowdown in global growth and wars in the Middle East and Europe. “Consumers appear to be taking a more cautious approach to spending in recent months, reflected in moderate sales growth, a shift in spend choices and segment differentiation,” Fraser said. Goldman Sachs Group Inc.
GS,
+0.80%
Chief Executive David Solomon said the proposed capital rules will increase the bank’s capital requirements by 25% and nearly double the capital needed for market-making activity. “These higher requirements are simply layered on top of the global market shock … without any consideration for how they interact, resulting in a significant double count,” he said. The “punitive” regulatory measures may harm U.S. competitiveness and capital-markets activity around the globe and push activity overseas and to the private-banking space without making the system safer, Solomon said. Bank of America Corp.
BAC,
+1.68%
Chief Executive Brian Moynihan said the bank has maintained its “responsible growth” effort despite “the challenging economic and geopolitical environment that continues in 2023.” Some of the efforts across the bank include eliminating nonsufficient-fund fees and reducing overdraft fees to $10 from $35. State Street Corp. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]