Kremlin rising, the man who ran washington, about former secretary of state james baker, and the dider, trump in the white house, 2017o 2021. Join in the conversation with your phone calls, facebook comments, texts and tweets. Indepth with peter baker and susan glasser, live sunday december 4th at noon eastern on book tv, on cspan two. Ceos from americas biggest banks testified before the House Financial Services committee on regulatory and oversight matters in the making banking industry. They also touched on Customer Data protection and working with underserved, underbanked communities. The chair is authorized to declare a recess of the committee at any time. This hearing is entitled holding mega banks accountable, oversight of americas largest consumer, but i now recognize myself for four minutes to give an opening statement. Testifying before us today we have the ceo of the seven largest u. S. Commercial banks that each served millions of consumers. The chairwoman of this committee, i have prioritized conducting rigorous oversight over our nations largest banks and their activities. Last year, four of these mega banks testified before us. Since then, our nation continues to battle an ongoing epidemic. Inflation, its a flick affecting every russias invasion of ukraine, Rising Interest Rates and other crises that have battered our economy. In this environment, the role the banks play to protect consumers and provide access to Affordable Credit is absolutely critical. Over the past several years, weve seen this system of banking in this country take a dramatic shift, our nations largest banks have gotten even bigger during the pandemic in part through murders. Regulators have rubberstamp these merger applications for far too long. This past time, we get to the bottom of who these murders are actually benefiting. For starters, i remain concerned that Branch Closures across the country, which are often the consequence of mergers, are expanding banking deserts and harming communities that rely on for basic banking services. The committee will also examine banks commitments to underserved communities, as our nations racial wealth gap widens and black applicants and others continue to be discriminated against. Im eager to hear about the efforts to ensure communities of color but not only get their opportunities to build generational wealth with the ceos will be asked for an update on the diversity and inclusive commitments of a made following the murder of murder of george floyd and details on additional measures they will take, in addition to following news that equifax sent an accurate Credit Scores to lenders who in turn used them to charge consumers higher Interest Rates, or even denied them credit. Id want to hear what these banks are doing to ensure theyre harmed customers are identified and properly made wool. As a compensations for these ceos go up dramatically, when compared to their tailors and other customer facing employees, many of the banks they represent have simultaneously earned the title repeat offenders for their continued valuations of the law. The committee has received a long list of unlawful actions resulting in fines. These fines pale in comparison to the billions in profits these banks make and amount to nothing more than another cost of doing business. So id like to hear how these banks are working to update their compliance practices and commit to following the law. Theyre many issues the committee will explore today including emerging technologies. Many consumers have approved or a scan through money apps and all the banks shrugged their shoulders. We also want to know what the banks are doing to protect their employees following the supreme courts shameful decision to abolish roe v. Wade, along with efforts to combat gun violence and much more. So i look forward to hearing testimony from a witness today and i yield back. I now recognize the Ranking Member for five minutes. Thank you madam chair. Frankly, i disagree with the premise of this hearing. Its not because i dont want to find people accountable its the opposite. I think this committee has done woefully little over the past few years to hold agencies and those industries we oversee accountable. I disagree with this hearing because its theater not oversight. The majority as that two years to do its job and oversight in a failed miserably. Now that we are just over a month away from the midterms they are posturing. Democrats first held this hearing back in 2019 in search of a headline, and when you got the positive press they got, they felt emboldened by the one party rule of washington to draw this this issue back in 2022, demanding that they parity progressive agenda. Now one year later we expect more of the same. This time at the expense of focusing on the real issues the American People are facing. And when it comes to the Financial System the list of issues is long. We are going to hear democrats encourage banks to make landing politics off will politics rather than creditworthiness. We can hear the social issues rather than economic issues, though we are an economic committee. Thats not all. Elected bureaucrats, Congressional Democrats in the Biden Administration conspired to create uncertainty and stifle creativity in the they are targeting essential products and Services Using and buy nines of consumers, including over drop protection, peer to peer payments and buy now pay later. These policies lend options to consumers at a time when they can least afford it and they get more challenging for Financial Institutions to innovate and compete. Coupled with reckless spending, democrats bad policy mannings devastating americans budgets. The price of gas is still higher today than it was a year ago and that threatens a spike again this winter. Groceries are more expensive, up more than 13 from this time last year. Bidens inflation continues to clobber american families. Last weeks cpi numbers showed prices continue to rise at a 0. 3 over the prior year and up over the months before. Everything costs more now, and low to middle income americans are her to most. I had to all this the looming housing crisis, and inflationary rising Interest Rate environment, consumers are already having a hard time accessing Affordable Credit. Families are being priced out of the Housing Market because the fed is forced to keep raising Interest Rates as democrats tend to jump dump jet fuel on their economic dumpster fire. Its offensive to all the senses. And if none of that bothers you how about this . The Biden Administration treating the u. S. Treasury like its its own mega bank, doubling out half a trillion in taxpayer dollars to rape we pay student loans. That economic concept is that the same folks that are paying for someone elses American Dream can no longer afford their own. Youre taking from some and manning the populace, some of who couldnt afford to go to college demanding that they pay for those that have that that they shouldnt have taken. So, we should focus on those issues. We should focus on the substance of how the American People live and seek to work. That should be the discussion of today. We have an economy that is at an inflection point. We should focus on that. We should talk about the regulatory challenges of giving consumers the options they want and demand. That should be the focus of this hearing for even go to have a hearing like this. And it should be about the substance of making peoples lives better, by reducing regulatory barriers and make products more expensive and make life harder for average americans. My colleagues have instead called on large bank ceos to publicly pressure them to promote divisive partisan priorities. Well hear a lot of that. Fact, you might hear from both sides by the way where we are a month before the election. Instead of focusing on what your institutions do best, providing capital and serving customers, you are here. Its a shame, its theater and it offers zero solutions to millions of americans who are bearing the financial brunt of the democrats virtue stick. I yield back. Thank you very much Ranking Member mchenry. And now recognize the gentleman from colorado, mr. Pohl math was also the chair of the subcommittee on Consumer Protection and Financial Institutions. For one minute. Thank you madam chair, good morning and welcome to our committee. If theres anything thats built on trust is banking. The Banking Sector lost a lot of trust in 2008, but with the passage of doddfrank and disciplined and prudent operations are banks are now well capitalized. Banks have been a source of strength during the pandemic and in many cases have made progress in restoring Consumer Trust over the last decade. Its not all sunshine and roses, this committee is heard reports of modernday redlining, eye and misleading fees and unfair use of Credit Scores. According to the fdic, one third of unpacked households dont use bags because they dont trust them. Other consumers are turning to risky cryptocurrencies to avoid the system altogether. I hope today and the hearing can be productive in how to continue to instill trust in our Banking System and ensure it works for everyone. Without a deal. Back thank you very much. I want to welcome todays distinguished witnesses to the committee. First we have andy serhiy who is a chairman president and ceo of u. S. Bank core. Next we have william check who is the chairman president and ceo of the p and c Financial Services group. Next we have jamie diamond whos the chairman and ceo of jp morgan and chase company. Next we have jane fraser who is a ceo of city core. Next we have Bryant Monahan who is the chairman and ceo of bank of america. Next we have William Rogers juniors the chairman and ceo of promised financial coercion finally we have charles jinshiro whos the president and ceo of wells fargo and company. Without objection your written statements will be made part of the record. Each of you will have five minutes to summarize your testimony. You should be able to see a timer on your screen that will indicate how much time you have left and the chime will go off at the end of your time. I would ask you to be mindful of the timer and quickly wrap up your testimony. If you hear the chime. Before we begin, with your oral testimony, id like to swear in the witnesses. With all of you please raise your right hands . Do you solemnly swear or affirm that the testimony you will give before this committee and the matters now under consideration will be the truth, the whole truth and nothing but the truth so help you god . Let the record show that all the witnesses answered in the affirmative. Of course youre already seated and we will now begin with your oral testimony. Mr. Say surrey, you are now recognized for five minutes to present your oral testimony. Good morning and thank you. Chairwoman waters, Ranking Member and his will you speak directly into the microphone and with a voice that everyone can hear you . Certainly. Good morning chairwoman waters, Ranking Member mchenry and distinguished members of the committee. Thank you for speaking with me youth you tonight. U. S. Back is based in minneapolis, minnesota holds one of the longest banking charters in the United States. We have spent nearly 160 years serving individuals, families, businesses and communities and striving to be a responsible and innovative later in the Financial Services industry. A u. S. Bank we operate a straightforward, consumer and business banking, payment services, and wealth management, and investment services. We have earned a reputation for being well managed, financially sound and responsible in our approaches to underwriting and risk. Because of this, we have one of the highest that ratings and would be recognized for eight consecutive years as one of the worlds most ethical companies. These achievements are impossible only because of our sex Exceptional Team members. We work hard to take care of their needs and invest in growth and development. This is been reflected in our newly expanded lead benefits and recently announced increases in entry level pay. Next to our Incredible Team that provide exceptional backing it spares to our customers. Our Retail Banking whether virtually or in person our retail branches which we operate in 26 states. There are few areas of our Retail Banking business i want to highlight today. First, we have pioneers several digital enhancements. In addition to our awardwinning mobile app we, consider created a tool for our customers to brown with video. This helps our customers feel heard and understood when they make financial transactions. Second, we made it easier for individual customers and Small Businesses to access credit. I know policymakers on this committee have been seeking a short term, low cost, small dollar solution for people of low cash needs. Four years ago, we, are simple loan products we similarly streamline our services for Small Businesses. We now can process and fund a Small Business loan in lasted 15 minutes. Thanks to our investments in new point of sale technologies, our Small Business customers cannot manage their money and service to customers. 30, or working to make homeownership a reality for more americans across rural committees communities in the cities. We have launched access home, a program to design to promote blackowned ownership in partnership with community partners. We are leading h f a lander. We are serving we recognize that being a good Corporate Citizen goes beyond providing world class Financial Services. And 2021, we developed our access commitment, a multi dimensional commitment that worked to close the racial wealth gap and communities. Fulfilling these commitments is important and weve made substantial progress. Last year we provided nearly 200 million in capital of the blackowned or black Led Businesses or organizations. We made a 305 million loan commitments to cfis and made diversity a priority in her spending 500 million on these efforts annually. Still we have more. In addition to our commitment our efforts in this area are recognized earlier this year. Name to the top 50 companies for the fourth year in a row. In closing, we believe relationships are key for our bank. Thats why we are taking the best of our person to person interactions and enhancing them with new digital capabilities. Today as always our focus is on serving the people. Relationships are the center of our business and the core of all the communities we serve, and that commitment will never change. With that, thank you for your time and the work you do for a country. I look forward to your questions. Thank you. Thank you very much mister sincerity. Hello will now go to mr. Check. You now recognized for five minutes. Present your oral. Testimony thank you chair woman waters, and Ranking Member mchenry and distinguished members of the committee. Im pleased to be here on behalf of p c Financial Services. Dnc is a main street Banking Organization focused on traditional banking activities. Weve been in the same business for 170 years which is when we were founded. Our priority is always been to help customers save, burrow and move money. We are a large bank by historical standards but we are just one sixth the size of some of the banks represented on this panel. We live in a Capital Markets, limited derivative and foreign operations. P and c is not a global systemically important bank. What we are is a financially strong and Resilient Bank this committed to serving consumers and if in a fair and transparent way. I am proud p and c was the first large bank to modify its overdraft practices. Since the role of our low cash mode product Overdraft Fees a p c have dropped by nearly 50 . Weve also made it easier for consumers to send and receive payments. P c along with the other owner bags of Early WarningServices Development and rolled out cell, realtime platform. Xultophys consumers with a free and convenient way to send money to individuals and businesses. Despite the headlines, disputes within the Zealot Network make up less than ten basis points of all transactions. This is not true of unregulated p2p Digital Payment service which in at least one instance in p cs case has 13 times the disputes that we see on the cell network. Network. But better is not good enough. And scams in particular continue to grow across the financial ecosystem. Scams are different than traditional fraud. And that a bad actor gets to initiate the transaction themselves. These games are growing daily. And the industry regulators, and importantly legislatures, need to respond. It is not enough that we have porti