Logo of Phnom Penh Post newspaper Phnom Penh Post - Capitol Hill grills big US bank CEOs

Capitol Hill grills big US bank CEOs

Content image - Phnom Penh Post
Giant US bank CEOs are sworn in before the House Financial Services Committee. ALEX WROBLEWSKI/GETTY IMAGES/AFP

Capitol Hill grills big US bank CEOs

THE CEOs of giant US banks were grilled on Wednesday on their swelling pay packages, commitment to diversity and other hot-button issues in the industry’s biggest congressional once-over since the financial crisis.

Representative Maxine Waters, a California Democrat and chairwoman of the House Financial Services Committee, set the tone, hitting out at the industry’s “chronic lawbreaking”, documented in the fines and settlements worth hundreds of billions of dollars, while also alluding to financial crisis bank bailouts.

But with the industry on firmer footing today, there was somewhat less focus on financial stability than on the industry’s social footprint, with the hearing coming as leading Democratic presidential candidates jostle for attention with proposals on taxes, universal health care and regulation.

‘Drive wages in time’

Several Democrats ripped into the 2017 tax cut signed by President Donald Trump, portraying it as a boon to the rich that has done little to help families still struggling after the 2008 recession.

JPMorgan Chase CEO Jamie Dimon defended the measure for boosting US banks, saying “a more competitive business will drive wages in time”.

Dimon and other CEOs emphasised the industry’s work to support low-income communities and minority-led businesses, as well as to push for greater gender parity in the workforce.

But Dimon got an earful from Democratic California Representative Katie Porter, who asked the JPMorgan chief for “advice” for how a teller could live in California on $35,700 a year.

After essential expenses such as gasoline, rent and child care, she would be down $567 a month, Porter calculated.

“I don’t know,” Dimon said. “I’d have to think about it.”

“Mr Dimon, you make $31 million a year and this is a budget problem you can’t solve,” Porter shot back.

MOST VIEWED

  • Public warned of dengue risks amid rainy season

    Minister of Health Mam Bun Heng has issued an eight-point plan to destroy mosquitoes carrying dengue fever amid the rainy season. In a four-page directive, Bun Heng warned that while the number of dengue cases has dropped sharply compared to last year, it could increase

  • Thirteen charged in UK migrant lorry tragedy

    Thirteen suspects arrested by French police over the deaths of 39 Vietnamese migrants in a refrigerated lorry in Britain have been charged with people trafficking, a judicial source said on Saturday. Six of the group – mainly Vietnamese and French nationals – were held on Tuesday in the

  • Cambodian Blue Helmet dies of virus

    The last rites for Cambodian Blue Helmet peacekeeper Sar Savy, who died on Friday at 63 from Covid-19 while on a mission in the Republic of Mali, will be held on Wednesday and Thursday at the UN base there. Cambodia’s National Centre for Peacekeeping Forces

  • World Bank donates $15 million in aid

    The World Bank on Friday approved $15 million for a medical training system to help Cambodia equip doctors with more skills before they start work. The budget, which was granted by the International Development Association (IDA), is intended to improve health care services. The World Bank

  • Ministry signs MoU to develop ICT training

    The Ministry of Education, Youth and Sport on Friday signed a Memorandum of Understanding (MoU) with IT Academy STEP Cambodia (STEP) to further develop the Sisters of Code project. The project trains female students in computer programming, and enhances information and communication technology (ICT) textbooks

  • Masseuse caught planting fake bills

    Four suspects were sent to Phnom Penh Municipal Court on Sunday for allegedly stealing money from a customer who had visited their massage parlour for a cupping session last Friday in Anlong Kgnan village, in Sen Sok district’s Khmuonh commune. District police chief Hour