WASHINGTON, Dec 6 (Reuters) – Wall Street banking executives told senators on the Senate Banking Committee on Wednesday that capital increases and other new regulations being considered by U.S. banking regulators will affect lending, capital markets, and more. , warned that it would have a negative impact on the overall economy.
Meanwhile, some Democratic lawmakers are pushing back against the industry, accusing banks of exaggerating the risks to the economy and engaging in overly aggressive lobbying to water down rules.
The hearing also examined the resilience of the banking system, the economic outlook and workers’ rights after the collapse of three banks earlier this year.
Below are key quotes from the hearing.
Democratic Sen. Sherrod Brown, chairman of the Senate Banking Committee, said:
“If you have any doubts about whether Wall Street can be trusted to use its power responsibly, just look at the current lobbying efforts on this issue… , is pouring money into Sunday Night Football ads. It’s a campaign.” A campaign engineered by lobbyists to prevent financial watchdogs from introducing capital requirements to protect our banking system and economy. I am.
“That’s why people hate Wall Street. That’s why people hate Washington. That’s why people hate Washington because the lobbying you do usually works.”
Jamie Dimon, CEO of JPMorgan Chase, said:
“The debate should not just be about too much regulation or too little regulation, but also about the appropriate regulation to keep the U.S. banking system the best in the world. We urge you to consider the impact of the proposed regulations and their cumulative impact on the economy. ”
Jane Fraser, Citigroup CEO:
“While we certainly do not believe a dramatic recession is on the horizon, history suggests that a recession is likely given macroeconomic factors.
“We’re also starting to see worrying signs among our customers with lower FICO scores. Unfortunately, these are the same demographics that will feel the credit crunch first.”
Goldman Sachs CEO David Solomon said of Basel capital regulation:
“This will quadruple the capital required for clean energy tax equity projects and increase the capital required for significant deals with pension funds by eight times to improve returns for retirees. Masu.”
Reporting: Chibuike Oguh, Pete Schroeder, Lananh Nguyen, Michelle Price Editing: Nick Zieminski
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