Wall Street bank CEOs are going to appear before the Senate Banking and House of Representatives Financial Services committees on Wednesday and Thursday. They are expected to face some heat from the committee members on key issues.
But they are also ready to present their points about their efforts to bring back the pandemic-affected US economy on track. Wall Street chiefs will face some tough questions on the subjects of equality, diversity, and equity.
The CEOs of the country’s largest banks will testify before the Senate banking committee for the first time after the 2008 financial crisis.
Political Risks for the Bank CEOs
Although policy proposals are not expected in the hearings, bank CEOs may face political risks. Due to the democratic gains in the 2020 election, Senator Sherrod Brown gained control of the panel.
Being a Wall Street critic, he is likely to present tough questions for Wall Street bank CEOs during the hearings. It is due to the increased scrutiny in Washington under the leadership of Democrats.
Bank CEOs will have to give befitting replies on many issues. The list of issues includes economic inequality, diversity, racial justice, climate change, cryptocurrencies, tax policies, and fair lending.
Banks to Praise their Efforts to Promote Diversity and Inclusion
Wall Street bank CEOs have many achievements in their bags to praise their efforts. Richard Hunt, CEO of the Consumer Bankers Association, believes banks could narrate their great story on key issues.
Since the 2008 financial crisis, the banking industry in Washington has made a remarkable improvement. During the pandemic period, big banks have distributed $69 billion of Covid-19 help among 850,000 struggling small businesses.
Kevin Fromer, CEO of the Financial Services Forum, believes banks have fulfilled their duties. He says the nation’s largest banks have faced the real-life stress test satisfactorily. For instance, they have provided essential support to households, small businesses, and large employers during the pandemic phase.
Senators will put straight and tough questions before the bank CEOs on key issues raised by congressional reports. The major issues are discriminate lending of pandemic aid and speculations of failure of Wall Street’s wealthy to pay sufficient taxes.
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