The Senate Banking Committee announced the CEOs of the nation's largest banks will be testifying before the committee in December. The CEOs include JPMorgan's Jamie Dimon (JPM), Bank of America's Brian Moynihan (BAC), Citigroup's Jane Fraser (C), Goldman Sachs' David Solomon (GS), and Morgan Stanley's James Gorman (MS). Yahoo Finance Senior Reporter Jennifer Schonberger reports on the details of the hearing.
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- Major bank CEOs heading to Capitol Hill to face a grilling before the Senate Banking Committee. Jennifer Schonberger here with the details. Jennifer.
JENNIFER SCHONBERGER: That's right. The Senate Banking Committee announcing this morning that they will haul the CEOs of the nation's largest banks before that committee on December 6 here in Washington. Amongst those that will be on the hot seat later this year include JP Morgan's Jamie Dimon, Bank of America's Brian Moynihan, Citigroup's Janet Frazier, Goldman Sachs's David Solomon, and Morgan Stanley's James Gorman.
Now, analysts expect the executives to really use this hearing to criticize the new Basel III capital requirements proposed by the Federal Reserve earlier this summer that would require banks to raise capital by some 16% in aggregate. Bank executives expected to argue that it will hurt credit availability and really push operations into the unregulated shadow banking system.
Now, this is the third year in a row that Senate Banking Committee Chair Sherrod Brown has called the CEOs before Congress here in DC. Brown saying in a statement, quote, "It's our job to hold them accountable to their workers, to their customers, and to the American people. Wall Street megabanks continue to make record profits and to reward corporations that raise prices on Americans." Josh, again, this hearing happening December 6 here in Washington. Back to you guys.
JULIE HYMAN: Jen, Julie here. You are also watching-- you mentioned Jane Fraser, the Citi CEO, a moment ago. But she's also making some other comments about the economy, the state of the bank also. What stood out to you?
JENNIFER SCHONBERGER: Hey there, Julie. Happy Friday. Good to see you. Yeah, that's right, Citigroup CEO Jane Fraser making some comments this morning in an interview on CNBC, saying that she expects the Federal Reserve to raise interest rates at its November meeting, but hopes they won't have to. She also thinks the economy can avoid a recession and achieve that so-called soft landing.
And she also made some comments on Citigroup's previously announced news for layoffs, saying that Citigroup is really hoping to flatten out the organization, remove some of those complexities, and that she expects to announce sometime in the fourth quarter an actual headcount reduction, as well as the cost savings that are expected from those actions. Julie.
JULIE HYMAN: Yeah, interesting story there with Citi. Thanks so much, Jen. Appreciate it. Have a great weekend.