Bank CEOs and Lawmakers Clash Over Proposed Banking Rules and Recession Concerns

Wall Street CEOs, including those from JPMorgan Chase, Bank of America, and Citigroup, expressed concerns over proposed banking regulations that would raise capital requirements. They argued that the rules would have negative consequences for the economy, small businesses, and low-income Americans. The CEOs warned that the increased cost of capital would impact profitability and growth prospects for the industry, potentially benefiting non-bank players. They also highlighted potential negative effects on mortgages, small business loans, retirement savings, infrastructure projects, and consumer costs. Additionally, the CEOs cautioned that heightened oversight on banks could push financial activity to non-bank players, leaving regulators blind to risks. The hearing saw partisan questioning, with Democrats skeptical of the executives and Republicans inquiring about potential harms to everyday Americans.