Bank executives set to appear before the Senate committee on December 6th

The Senate Banking Committee has scheduled a hearing for December 6, featuring the CEOs of eight major U.S. banks. This is the third year in a row that Sen. Sherrod Brown, D-OH, has called for the leaders of the nation's top banks to testify in front of lawmakers in Washington.

The hearing aims to address the new capital proposals, which are intended to align U.S. banks with international standards in response to this year's banking crisis and the collapse of three regional lenders. The proposals have been criticized by top bank CEOs, including Jamie Dimon from JPMorgan Chase and Brian Moynihan from Bank of America.

Jamie Dimon, while speaking at an industry conference, questioned whether the proposals would make banks ever investable again, expressing concerns about a lack of transparency in the proposals. Brian Moynihan stated that the proposal would hamper Bank of America's lending activity, suggesting that a 100 basis point increase in bank capital ratios could prevent the bank from making approximately $150 billion of loans.

The new capital proposals are related to Commercial, Retail, Regulations & Policy, and Risk sectors. They are intended to apply to firms with $100 billion or more in assets.

Sen. Brown stated that the committee's focus is to prioritize the Main Street economy and hold the banks accountable to their workers, customers, and the American people. Previous hearings have covered topics such as diversity, payments fraud, overdraft policies, and environmental, social, and governance efforts.

The RECOUP Act, a bill that gives federal regulators power to claw back compensation for executives of failed banks, was passed by the Senate Banking Committee with a 21-2 vote in June. The CEOs scheduled to appear include those from JPMorgan Chase, Bank of America, Citi, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, and State Street.

It remains to be seen how the hearing will unfold, with the bank CEOs voicing their concerns and Sen. Brown emphasizing the need for accountability and support for the Main Street economy. The hearing is expected to provide valuable insights into the ongoing debate surrounding bank capital proposals and their potential impact on the U.S. economy.