These hearings tend to be wide-ranging and today was no exception.CEO Jane Fraser said that there is still a chance of a recession, and her firm is seeing increasing weakness among consumers with low credit scores. The state of the economy also came up, though it got surprisingly little air time.The banks touted their position of strength during that time of turmoil, with Morgan Stanley CEO James Gorman saying: “It was not a banking crisis, it was a crisis of three banks.” At one point Dimon said he would be happy to take over the Federal Deposit Insurance Corp. This year’s regional bank failures also came up quite a bit.
Senator Elizabeth Warren, a prominent Democrat and frequent bank critic, used her time to ask about crypto - leading to a rare moment of unity between her and JPMorgan Chase & Co. The event was short on fiery moments, which is unusual.Lawmakers, particularly on the Republican side, expressed their skepticism as well. The CEOs shared their criticisms, which are well-known at this point. The Basel III Endgame proposal that US regulators unveiled in July was by far the main topic Wednesday, despite not being the hearing’s stated purpose.(Bloomberg) - Here are the key takeaways from the Senate Banking Committee’s Wall Street oversight hearing in Washington Wednesday, featuring eight big-bank CEOs:
