Wall Street banks warn lawmakers about new regulations
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The top bosses of JPMorgan, Morgan Stanley, Citigroup and other Wall Street banks will warn lawmakers that capital hikes and new regulations will hurt the economy, according to prepared congressional testimony published on Tuesday.
The CEOs of the country's eight largest banks will appear before the Senate Banking Committee on Wednesday. The hearing comes amid a fierce industry campaign to kill the «Basel Endgame» proposal, which overhauls how banks must calculate their loss-absorbing capital, and as regulators roll out fair lending and fee-cap rules, among other consumer rules.
The Basel rule, being drafted by bank regulators led by the U.S. Federal Reserve, would «unjustifiably and unnecessarily» increase capital requirements by 20% to 25% for the largest banks, forcing them charge more for services or stop offering them altogether, Dimon will warn.
JAMIE DIMON WORRIED US ECONOMY IN A ‘SUGAR HIGH,’ SAYS LOWER-EARNING AMERICANS SHOULD BE ‘P---ED OFF’
Wells Fargo CEO Charles Scharf, Bank of America CEO Brian Thomas Moynihan, JPMorgan Chase & Co. CEO Jamie Dimon, and Citigroup CEO Jane Fraser testified before the Senate Banking Committee on Wednesday. (Photo by Drew Angerer/Getty Images / Getty Images)
«If enacted as drafted, this proposal will fundamentally alter the U.S. economy in ways that the Federal Reserve has not studied or contemplated,» he will say, according to the prepared testimony published by the Committee on Tuesday.
Other new consumer regulations also show an «alarming» lack of rigorous economic analysis, Dimon will also say.
Regulators say new rules, including capital hikes, are
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