[inaudible] [inaudible] [inaudible] [inaudible] about those are to think about the committee will come to order. Thank you so much mister chairman, can you hear me okay . Loud and clear, yeah. Thank you mister chairman. I want to first begin by recognizing miss frazier and city group. The conversation i am going to have will involve all of the panelists. I want to begin with her company and herself. Based on our research it looks like they pay five times more interest to its depositors and the rest of the individuals sitting at the table. Miss frazier, is it correct that your deposits are currently yielding 0. 05 Interest Rate . We believe we have a variety of different deposit products. We believe them to be competitive and fair. The information i have here on your basic account package is a 0. 05 Interest Rate, is that correct . One of our products has, that that is correct. For the rest of the panel, is it fair to say that my members here are accurate for the remainder youre paying about 0. 01 on deposits . That is inaccurate. Can you please clarify then for me the figure . Yes, our base account pays about the same as the city groups but basis points are so. We have many products, substantially more. It varies. I dont know of any that paid zero. Okay, can we just clarify this across the board from left to right on the record, for the American People, tell us what your basic standard savings deposit is currently yielding in your institutions . Mister chairman . Im requesting the panel to respond. Lets go from left to right. We have a variety of products that range from five basis points, to over 200 basis points depending on the size of the departed deposit the general public accounts is what im talking about. The majority of your deposits. What are the yielding right now . General retail deposit would be at that lower end of that range. And theres also cds available, termed a positive i dont have a lot of time, can we just go across the board please . We are the same. Five basis points at the lower and we have different products yielding more depending on several factors. Thank you, mister diamond . Premier seem as everyone else here. Miss frazier . Yes, were in the same range. Mr. Monahan . We have a range of products that cover the same range as my colleagues as well. Mr. Rogers . Very similar. Mr. Schauf . I believe were in the same range. Thank you, so much mister chairman, as inflation is battering our public and as Interest Rates are rising and causing credit card Interest Rates to go up and general consumer its across the board devastation for the american public. We have had it on the record earlier today that there is, quote, more money in their accounts, and quote, in all of these Financial Institutions in other words, theres a lot more deposits being held by these Financial Institutions as Interest Rates are rising. One of the only Silver Linings is that saviors are supposed to be rewarded for their savings. Theyre supposed to see the interest that they earn go up. You have what we have here is the fed funds rate that currently, mr. Tournament, at 2. 5 , on the record, its that 2. 5 . The institutions paying between 0. 01 at 0. 05 . Which means theyre making between anywhere to two on the deposits of their customers. I want to ask across the board real quick, mister chairman. Can they confirm whether or not they are going to be increasing the Interest Rates that theyre paying to their depositors at anytime soon . Mr. You hear the question . We would expect to continue to monitor rates and raise rates as appropriate given what is going on with the competition. The same. We expect them to raise them overtime. Mr. Diamond . We expect them to go up soon. Mrs. Frazier . Yes we will. Mr. Monahan . Rates will go up in the future. Mr. Rogers . Yes reads them. Mr. Shaw. Yes the same. Thank you. Well time mister chairman, thank you. The gentlemans time has expired. The turnout recognizes the gentleman from North Carolina. Youre now recognized. Thank you chair. 60 minutes on sunday, President Biden tried to downplay the negative impact of a 40 year your high inflation. 8. 3 inflation isnt that bad because it hasnt specht recently. You also know, the Second Quarter gdp was negative for the second consecutive quarter which is the textbook definition of a recession. Of course President Biden is trying to deny this as well. As the leaders of Financial Institutions that hell deal directly with American Consumers every day, i want to ask you some brief questions to gauge the Financial Health of the average american consumer. Ill stick with the length of time ill stick with the North Carolina institutions, if you would, please. Mr. Rogers, and mr. Monahan at the bank of america. Just brief answers if you would, it could be yes or no, our consumer savings decreasing . Consumer savings are actually quite stable at this particular juncture, after having grown for quite a few months. Mr. Moynihan . Consumer deposits are stable. Are they using up more credit now than they were a year ago . Consumers arent starting to access more credit, particularly in the area of credit cards. Mr. Moynihan . Credit card balances have balance since last year but are not back to prepandemic levels yet. When you factor in inflation, our consumers real wages down, mr. Rogers . If you factor in inflation for most consumers, i believe real wages would be down. Real wages are down, thank you. Mr. Moynihan . On a oneyear, basis the inflation rate exceeds the wage growth. Has the number of consumers with access to, say, real emerged gone up or down . Consumers currently have more in their Checking Account then the opportunity to have an Emergency Savings account, its actually increased during the last few years. Mr. Moynihan . Consumer deposits and their accounts are multiples of where they were prepandemic. Do you think the economy will get worse before it gets better . Minister moynihan . Lets switch it around. Mr. Moynihan first. I said earlier that our experts have positive gdp growth this quarter and negative gdp quarter growth for the next couple quarters. Thats their base assumption, at the Research Team that we have. Mr. Rogers . We have a very similar forecast. Thank you. We see the state of our economy is not very good, President Bidens failed economic policies have made things worse for working families in North Carolina and across the country. According to the Federal Reserve of st. Louis, the personal savings rate has been declining since march of last year. Its the lowest since 2008. A recent survey said that more respondents have been in credit that than last year. The Federal Reserve reported that household debts exceeded trillion dollars for the First Time Ever in the first quarter. According to the census bureau, the median Household Incomes have remained stagnant or declined two years in a row. According to bank rate, 56 of americans cannot cover a 1000 dollar emergency expense with savings anymore. It reason abc news poll found that 69 of respondents said that they think the u. S. Economy is getting worse. So, bottom line, americans are buying less, earning less, saving less, while paying more for their daily lives. Thats what i see in all 100 counties in North Carolina. Life seems to have gotten worse under President Biden, and i believe its time he admits it. Thank you all for your time, i yield back. Thank you. The gentleman from illinois, mr. Casten, whos also the vice chair of the subcommittee on investor protection, entrepreneurship and Capital Markets is now recognized for five minutes. Thank you, madam chair. Thank you all for a long day. We want to start with a statement that i think is obvious, but all of you do a wonderful job but i appreciate your work to minimize the risk of last year Equity Capital while still honoring your obligations to shareholders to maximize return. If any of you disagree with that statement, please chime in. But i want to start, just because i want to focus on risk and return. Two years ago, mr. Diamond, miss fraser, mr. Moynihan and mr. Scharf in a banking committee, senator warner asked you all, and i believe you all essentially acknowledged, that you are using, quote, new tools and services to gauge climate risk to your portfolios. Ill put the question to all of you but i want to focus on you, mister scharf, because i think of the largest mortgage book. And the two years since, are you changing your lending, your diligence standards for properties that are exposed to climate risk . Wildfires, forest fires. Weve had two years to gauge those risks, have you changed your lending standards . Congressman, its something that we talked a lot about. Weve always factored some of those risks into the properties that weve financed. So, it continues to be something that we talk about. Whether or not we have specifically changed to the magnitude of that, that i cant answer right now. I dont need another critical question. Theres been some data suggesting that there is a disproportionate flow of those mortgages to fanny and freddie and those highrisk areas. If you dont off the top of your, had we can follow up off line. But theres been a lot of reporting on that and id like to see the data, because its a concern for moving risk on to the taxpayers. You can certainly go back to the data and share it with you. Okay. Shifting to the return side of the question. Mr. Dimon, i think this is a dumb question, im sure youll tell me if it is. Would you support legislation that compelled you to preferentially invest in industries that were struggling to attract capital . I would not. Okay. I assumed that would be your answer. I ask that because, over the last 12 years, the entire oil and gas emp sector is running at a 12 times multiple. Next era, tesla or, all the leading lights of the Clean Energy Space are running at ten times that number for the most part. Yet, we are seeing a lot of my colleagues suggested that we should prevent the Financial Sector from investing in areas that are getting high returns out of some completely bastardized theory of capitalism, whatever that means. The state Financial Officers foundation, a rightwingbacked group, is intentionally promoting that. They are pushing state legislation across the country and, as recently as july, west virginias treasurer announced that he was canceling hundreds of millions of dollars in state contracts to five banks, including yours and wells fargo. I think he said that their analysis was disconnected from the facts. I think wells fargo said that you disagreed with the decision. Subsequent to that, that rated homies has announced that theyre no longer going to find this group. As a few weeks ago, jp morgan and wells fargo were both funded the Officers Foundation. Its not listed on the website anymore. Are you still providing resources to this organization, that is spreading policies that are encouraging you to invest in places that are struggling to attract capital . I dont know the answer, id have lets get back to you. A look at it if i can. Mr. Scharf, is wells fargo still supporting the state Officers Foundation . Im not sure, but im glad to take a look at. It can either of you commit while were here that you will not continue to fund an organization that is spreading disinformation, that is blocking the capital sector from freely allocating capital . I wont commit until i read something, but if thats true we will probably cancel it. Mr. Scharf . I agree with mr. Dimon. As we look at their website today, the only Group Supporting this is groups with active agendas. What does he continue to minimize equity risk, i want to see you continue shareholder returns and i want to leave a better planet for a kids and the ones that are parents left us. I would hope that you all Work Together with us on that. Thank you, i yield back. The gentleman from indiana, mr. Hollingsworth, is now recognized for five minutes. Good afternoon, im excited to be here with each of you. Before i get started on my questions, mr. Moynahan, i want to let you know. Raise your hand ruth the, she has been my team member for a couple of years now. But on monday, she becomes the bank of america team member. About which she is very excited, i hope shell take good care of her and recognize the talent that she has shown already in our office, im sure shell do the same a bank of america. We will do, that her father already works for us. So, we will do. That you shouldve called us. Good, i appreciate the opportunity to chat about some of these issues today. What im really interested in is the state of the economy. Mr. Budd touched on this, but i want to delve deeper. We are, as of today, and a truly unprecedented pace, and winding by quantitative easing as well as the accommodative policies of the last couple years. Though the fed continues to talk about soft landing, i worry that this pace will lead to a harder landing then perhaps they are yet forecasting. But theres a couple ballots to that. One, very strong corporate Balance Sheets. Earnings have been relatively resilient, but bound sheets are better than theyve ever been in the s f p 500. Secondarily, household Balance Sheets are better than they have ever, quite literally, been. You all touched on this a little bit, but one thing that i continue to notice is a tremendous amount of savings that households have, in excess of the savings ahead in 2019. Have you begun to see households mobilizing that . Or not begun to see that mobilizing that . I think this is really important to real underline economic demand going forward. In the face of some of the extra costs that are being incurred, were seeing them depended a savings. With all due respect to mr. Budd, theres a difference between a decline and savings rate and a decline in the level of savings. So, im curious, maybe start with you, mister moynihan. Then ill ask mr. Dimon and miss fraser but the same thing. Consumers of bank of america have multiples of the amount of money they had pre pandemic. That amount is stable right now, it had been growing for the last year and a half, since the last stimulus and it grew, kept growing, went up in tax time, came down a little after tax time, came down a little would payification and now unstable. Put us on data from the institute every month so you can see. It understood. Thank you. Mr. Dimon . Consumer currently is in very good shape. High savings, jobs available, jobs going up at the lower end. Household, even debt going up a little bit. So much lower than it was before. Debt Service Ratio is lower than its been in 50 years. Even if we go into recession but yet later, not now. Thats the good news, which is now. The bad news is later, and its coming. Miss fraser . I think, similarly, its always dangerous talking about averages rather than what we see across the spectrum. But stability in the deposits, still elevated levels of spending. And equally importantly, still low credit losses across the board. I would assume any controller cfo worth their salt has but the last couple of years looking at very low rates and extend to get their maturity ladders to ensure they dont face upcoming maturities. Are you seeing, any of the three of you, and he stressed in corpus yet with higher rates . No . Not even in p e, sponsor, high leverage than areas . Not actual stress, but it spreads it way up. The markets not strong for those types of credits, but its hard to transact today. One of the things we continue to talk about up here is ensuring we are investing enough in research and development. We want to maintain the Significant Competitive advantage we have in developing new technologies, whether thats a Research Institutions across the country or in very innovative, Smart Companies across the country. One of the things weve noticed is that veasey finding is declining dramatically. In some estimate, says a trillion dollar gap between what we find it in the last five years of what were likely to find in the next five years. Some of that is reluctance of companies to recognize valuations today versus what they might have been even six months ago. But i wondered if youve seen an uptick in earlier stage venture backed funds seeking loans instead of equity, given some of the transactions and the values that were seeing. Versus what they were before. Anyone want to comment . We havent seen evidence of it yet. But it is early days. They generally dont borrow money, youre not going to see a lot of. That indeed, but i heard more were inclined to do that rather than recognize the fitbit downs in their valuations. With that, all yield. The gentlewoman from massachusetts, miss pressley, whos also the vice chair of the subcommittee on Consumer Protection and Financial Institutions, is now recognized for five minutes. Thank you, madam chair, for holding this critical hearing and ensuring that oversight remains a priority for this committee. Well we have the ceos in front of, us i want to take just a moment for the official record to center that which is most important. That is the workers. Bank tellers who work day in a day out to do the transactions for the custodial staff who keep offices safe. Too often i think theyre lost in these hearings or, wors