Bank CEOs pressed to stop working with gun makers
Members of the House Financial Services Committee asked CEOs of the biggest financial institutions — JPMorgan, Goldman Sachs, State Street, Citigroup, Bank of America, Morgan Stanley and BNY Mellon — about their relationships with the gun industry during a hearing on Wednesday, among other social and consumer-driven issues.
Details: In response to a question from Rep. Carolyn Maloney (D-N.Y.) about whether JPMorgan would "adopt a formal policy" for its relationships with gun manufacturers, CEO Jamie Dimon defended the bank's current policy but said the company would "consider" adopting a responsible lending plan. In the wake of several mass shootings, Citigroup and Bank of America last year re-evaluated their business dealings with makers and sellers of firearms.
Questions from lawmakers largely focused on social issues, including CEO pay, diversity, overdraft fee policies and forced arbitration.
A notable exchange on pay: Rep. Nydia Velazquez (D-N.Y.) asked Citigroup CEO Michael Corbat how he would feel if he were the average Citi employee, who makes $49,766 versus his $24.2 million — a 486:1 ratio — per Bloomberg.
- Corbat responded: "I would be hopeful that there's opportunity to continue to advance within the firm."
On diversity: None of the CEOs raised their hand to say they thought their likely successor would be a woman or person of color when asked by Rep. Al Green (D-Texas) to do so.
- All except 2 — Dimon and Morgan Stanley CEO James Gorman — raised their hands to say it could happen within the next decade.
When asked about Brexit, not one of the CEOs said Brexit was a "systemic risk," but called it a challenge for the economy.