CBA Reacts To Senate Banking CEO Hearing

Billy Rielly

CBA Reacts To Senate Banking CEO Hearing

 

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt today released the following statement after the CEOs of JPMorgan Chase, Bank of America, Citi, and Wells Fargo testified before the Senate Banking Committee on the state of the industry:

 

“Today’s hearing was a great opportunity for the chief executives of the nation’s leading banks to tout the critical role their employees played in supporting the American people during an unprecedented pandemic, even as they contended with the same challenges as the rest of the country. Bankers delivered emergency relief to households quickly, facilitated Paycheck Protection Program loans and are helping fuel our economic recovery. The banking industry entered the pandemic from a position of strength and stepped up to serve at a time we needed them most. As a result, customer satisfaction and confidence in banks continues to rise. Tomorrow, I hope members of the House Financial Services Committee will recognize the meaningful impact banks have made over the last 15 months and will continue to make for the communities they serve.”

 

In their opening testimonies, the CEOs of JPMorgan Chase, Bank of America, Citi and Wells Fargo outlined their efforts to deliver for customers and communities during a time of significant economic headwinds…

 

ON PUTTING CUSTOMERS FIRST:

 

  • Citi Chief Executive Officer Jane Fraser: “Mindful of the ever-changing COVID-19 landscape and its impact on our customers, Citi deployed protocols to enable consumers to receive full access to stimulus dollars, including applying temporary provisional credits so that customers can access deposited stimulus funds. […] We also expanded access to check cashing services for non-customers, eliminated surcharges for prepaid debit cards issued for stimulus payments and adjusted policies and procedures covering the garnishment of customer stimulus payments.”

 

  • JPMorgan Chase Chairman and CEO Jamie Dimon: “We have delayed payments and extended forbearance options for about 2 million mortgage, auto, and credit card accounts, and refunded $120 million in fees on consumer deposit accounts, including overdraft fees, for over 1 million customers – all with no questions asked.”

 

  • Wells Fargo President and CEO Charlie Scharf: “We deferred payments and waived fees for more than 3.7 million consumer and small business accounts to help people during these challenging times. We provided more than one million mortgage forbearances and suspended residential property foreclosures and evictions to keep people in their homes. And we processed approximately $80 billion in federal stimulus payments.”

 

ON SAVING MILLIONS OF JOBS THROUGH PPP:

 

  • Bank of America Chairman and CEO Brian Moynihan: “Beginning in late March 2020, thousands of Bank of America teammates worked to design, develop and deliver a digital platform to support clients through the Paycheck Protection Program (PPP). We began accepting PPP applications the day after the program details were announced in early April—the first major bank to do so. And in 2020, we provided PPP loans to more small businesses than any other financial institution. […] In 2020, we announced that any net proceeds related to PPP fees will be dedicated to support small businesses and the communities and nonprofits we serve.”

 

  • JPMorgan Chase Chairman and CEO Jamie Dimon: “At JPMorgan Chase, our focus has been on what we, as a company, could do to serve. We entered this crisis from a position of strength, and leveraged our size and scale to contribute to stability in our country and ongoing support for the ‘real economy’ – our customers, clients, employees and communities impacted by the global crisis. […] Under the SBA’s Paycheck Protection Program, we funded well over 400,000 loans to small businesses supporting over 3 million jobs, for more than $40 billion in total funding. About 80% went to businesses with fewer than 10 employees, and 90% to those with fewer than 20. Around one-third of Chase-facilitated loans went to businesses in communities of color.

 

  • Wells Fargo President and CEO Charlie Scharf: “To date, we have funded more than 275,000 loans, totaling over $13.7 billion to small businesses throughout the country, with an average loan size of approximately $50,000, making us an industry leader in providing support to the smallest businesses in need. This lending has supported more than 1.7 million jobs, and more than 40 percent of our loans were made to businesses in either low- and moderate-income (“LMI”) or majority-minority census tracts.”

 

ON SUPPORTING COMMUNITIES HARDEST HIT BY THE PANDEMIC:

  • Bank of America Chairman and CEO Brian Moynihan: “Throughout 2020, we continued to use our network of financial centers—including financial centers in LMI communities and our designated community financial centers […] as well as our digital capabilities, to support financial needs within underserved communities. To complement these channels and to ensure these communities have access to capital, we continue to invest heavily in alternative channels of funding, including CDFIs. […] Bank of America is the nation’s largest lender to CDFIs, which provide affordable, responsible lending and support to low-income and other disadvantaged clients and communities. By funding CDFIs, including our support for PPP lending […] we help make it possible for credit to flow to needs we might otherwise be unable to serve through direct lending.”
  • Citi Chief Executive Officer Jane Fraser: “We are also proud to be the conduit for the extraordinary consumer and business aid that Congress and the Federal Reserve have provided. […] Businesses such as Dinah’s Chicken in Glendale, California, and the Maryland Youth Ballet survived partly on the help Congress enabled and banks like ours delivered. […] To provide further support, we are donating all net profits from our participation in the PPP to Community Development Financial Institutions (CDFIs) and small businesses. To date, we have contributed, or are in the process of contributing, $50 million in net profits, with at least another $40 million expected over the coming year.”

 

  • JPMorgan Chase Chairman and CEO Jamie Dimon: “We took steps to make sure those in need, including those without access to traditional banking services, received each round of stimulus payments quickly. […] We committed $250 million in business and philanthropic initiatives with a focus on helping underserved small businesses and nonprofits access low-cost capital.”

 

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.