# Big bank CEOs to sell lawmakers on relief, diversity efforts amid economic, regulatory challenges Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Major U.S. bank CEOs to Discuss Economic Challenges in Meta Description: JPMorgan Chase CEO Jamie Dimon to warn of 'storm clouds' while Wells Fargo CEO Charles Scharf will stress patience in addressing regulatory issues URL: https://financedigest.com/big-bank-ceos-to-sell-lawmakers-on-relief-diversity-efforts-amid-economic-regulatory-challengeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-20t160657z3lynxmpei8j0o5rtroptp4usa-jpmorgan-dimon-1736815184758-compressed.jpg) By Pete Schroeder WASHINGTON (Reuters) -JPMorgan Chase & Co Chief Executive Jamie Dimon will warn Congress of economic “storm clouds,” while Wells Fargo CEO Charles Scharf will urge patience as the bank addresses longstanding regulatory issues, according to wide-ranging prepared testimony. The heads of the nation’s seven largest banks on Wednesday and Thursday will broadly defend their performance, highlighting efforts to steer billions of dollars in government support, tout efforts to boost diversity within their ranks, as well as efforts to cut emissions to combat climate change, according to testimony published Tuesday by the House Financial Services Committee. In his testimony, Scharf said the [bank is still at risk for setbacks as it prioritizes fixing a wide-ranging number of regulatory](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") concerns. He noted that while regulatory consent [orders have remained in place](https://www.financedigest.com/ryanair-places-major-boeing-order-after-jet-price-spat.html "Ryanair places major Boeing order after jet price spat") for too long, it still will be “several years” before everything is addressed. Dimon, who is due to testify alongside Scharf and other major U.S. [bank CEOs](https://www.financedigest.com/ogrady-to-return-to-bank-of-ireland-as-ceo-irish-times.html "O’Grady to return to Bank of Ireland as CEO – Irish Times") at congressional hearings Wednesday and Thursday, will outline the competing forces buffeting the nation’s economy. Strong consumer spending and a robust job market suggest resilience, but “storm clouds” like snarled [supply chains](https://www.financedigest.com/g7-finance-leaders-pledge-financial-stability-supply-chain-diversity.html "G7 finance leaders pledge financial stability, supply chain diversity"), the war in Ukraine, high inflation and the Federal Reserve’s efforts to contain it all signal tougher times ahead, he added. Citigroup CEO Jane Fraser will similarly say current economic challenges are “no less daunting” than during the COVID-19 pandemic, but the [bank can continue to serve as a source of stability](https://www.financedigest.com/banking-stability-worries-go-behind-closed-doors-at-imf-world-bank-meetings.html "Banking stability worries go behind closed doors at IMF-World Bank meetings"). Their testimony comes ahead of a pair of oversight hearings for the nation’s seven largest [retail banks](https://www.financedigest.com/uk-retail-banks-is-irrelevance-curtailing-opportunity.html "UK Retail Banks: Is Irrelevance Curtailing Opportunity?"), where CEOs are expected to be grilled on a range of questions, including the economy, consumer issues, and hot-button social issues like fossil fuels and abortion. A memo prepared by the [Financial Services](https://www.financedigest.com/devops-the-secret-tool-thats-transforming-financial-services.html "DevOps: The Secret Tool that’s Transforming Financial Services") Committee, which will question the CEOs first on Wednesday, noted that so-called megabanks have grown significantly larger after recent mergers. [Banking giants continue to pay large fines](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure") for “unlawful behavior,” the committee said. The hearing will seek CEO testimony on a range of issues, including consumer protection, compliance issues, diversity and “issues relating to the public [interest” such as worker rights and abortion access](https://www.financedigest.com/rci-bank-increases-easy-access-interest-rate-to-1-02.html "Rci Bank Increases Easy Access Interest Rate To 1.02%"), according to the memo. In addition to touting relief efforts during the pandemic, bank CEOs also highlighted in their prepared testimony how they have worked to boost diversity within their ranks, as well as increase [pay for front-line workers](https://www.financedigest.com/thousands-of-british-postal-workers-walk-out-over-pay.html "Thousands of British postal workers walk out over pay"). Several CEOs also highlighted their work addressing climate change, [including commitments to net zero emissions](https://www.financedigest.com/citi-pledges-to-cut-emissions-for-more-sectors-including-coal.html "Citi pledges to cut emissions for more sectors including coal") by 2050 in line with the 2015 Paris climate agreement. [“Climate change presents risks](https://www.financedigest.com/institutional-investors-back-shell-board-lawsuit-over-climate-risk.html "Institutional investors back Shell board lawsuit over climate risk") to Citi and its clients that will increase over time. We are committed to helping our clients mitigate these [risks and transition to cleaner energy,”](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") said Fraser. The [CEOs testifying include the heads of the four largest](https://www.financedigest.com/russias-largest-lender-sberbank-on-track-to-profitability-says-ceo.html "Russia’s largest lender Sberbank on track to profitability, says CEO") U.S. banks: JPMorgan’s Dimon, Wells’ Scharf, Citi’s Fraser and Bank of America’s Brian Moynihan. They will be joined by US Bancorp CEO Andy Cecere, PNC [Financial CEO](https://www.financedigest.com/10-tips-for-financial-wellness-from-eric-blue-ceo-of-nevly.html "10 Tips for Financial Wellness from Eric Blue, CEO of Nevly") William Demchak, and Truist CEO William Rogers Jr., who run the country’s largest regional lenders. (Reporting by Pete Schroeder; Editing by Nick Zieminski and Lananh Nguyen) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---