Alexandria Ocasio-Cortez Vs Corbat And Dimon At Congressional Hearing
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[Alexandria Ocasio-Cortez Vs Corbat And Dimon At Congressional Hearing]
[Maxine Waters:] Source: LYBIO.net
The gentlewoman from New York, Ms. Ocasio-Cortez is recognized for five minutes.
Thank you, chairwoman Waters. And thank you all for joining us here today. I know it’s been a really long day.
The purpose of this hearing is to review globally systemic banks 10 years after the 2008 financial crisis.
So just know that while I’m tough, it’s not personal, okay.
I was really going back and reviewing these last 10 years and I have concerns about how much things have really changed.
I did an assessment and year by year, let’s go back to 2013.
2013, Chase had to pay out $720 million in fines to the Fed, SEC, and UK Financial Conduct Authority, for failing to oversee its trading practices, including what is known as the London Whale.
2014 Bank of America agreed to a $16.5 billion settlement to the DOJ and others for misconduct related to mortgage-backed securities and a $20 million penalty with another $727 million in consumer relief.
2015, Bank of New York Mellon; $714 million to settle claims that a defrauded customers when it promised to exchanged at best rates for customers, but instead used the worst rates and pocketed the difference.
2016, Wells Fargo entered into consent orders for fraudulently opening millions of accounts in customers names without their consent or knowledge.
2017, State Street; seven months after installing the Fearless Girl statue paid $5 million in back pay an interest after Department of Labor audit found that State Street was systematically paying female employees less than their male counterparts and black executives less than similarly situated white executives.
My colleague from Illinois highlighted some troubling connections between Morgan Stanley and Puerto Rico’s illegal debt load.
2018, Goldman Sachs began facing lawsuits from DOJ, the Fed, foreign governments in relation to funding bribes and kickbacks to foreign officials relating to raising funds for Malaysia’s sovereign wealth fund, Timothy Leissner. The Goldman Southeast Asia executive pled guilty to various charges and forfeited $43 million.
And just last month March of 2019, Citibank fined for $25 million for violating the Fair Housing Act for failing to offer benefits to all eligible customers namely on the basis of race, national origin and sex.
And so I’m concerned here about the potentiality of fines related to misconduct just being incorporated as the cost of doing business. And Mr. Corbat is a cost-benefit analysis that weighs the cost of government fines versus the potential financial upside of potentially breaking a law, does that factor into controversial decision-making around misconduct and at your bank.
[Michael Corbat:] Source: LYBIO.net
Okay. In my district, I represent Rikers Island. I represent kids that go to jail for jumping a turnstile because they can’t afford a MetroCard. Do you think that more folks should have gone to jail for their role in a financial crisis that led to 7.8 million foreclosures in the 10 years between 2007 and 2016, Mr. Dimon?
I don’t think people should go to jail for jumping a subway and we put too many people into jail, and I think if people broke the law they should go to jail.
Mm-hmm, okay. And do you think that the failure to hold more people accountable for the 2008 crisis is a failure of our legal system?
[Jamie Dimon:] Source: LYBIO.net
Look you’d have to talk to a lot of legal experts about why more people didn’t, whether they deserved to or they broke the law, what’s intent, what’s not intent. But you have to talk to legal experts about that.
On that note, Mr. Dimon, I do want to commend you for your decision and Chase’s decision to pull out of financing for private prisons. I think that that has led to some changes particularly with Wells Fargo as well and in making sure that we begin to divest from some of the troubling things that we’re seeing, particularly when it comes to the caging of children at our border.
I have one last question with respect to that’s more future looking, recently the Federal Reserve Board decided not to activate the counter-cyclical capital buffer this year. But banks are very profitable making a record $237 billion in profits last year. Mr. Corbat, is this not the best time for banks – is this not the best time for the Fed to build more capital so that they can be in a better position to weather a future downturn?
[Michael Corbat:] Source: LYBIO.net
As I stated earlier, today by the Fed’s own measurement they’re measuring 23 or 24 different types of capital. What we’ve said is we’re welcome to a holistic approach of which the counter-cyclical buffer is one but rather than pick individual – let’s look holistically at what the right solution is.
Thank you very much –
The gentleman from New York, Mr. Zeldin is recognized…
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Alexandria Ocasio-Cortez Vs Corbat And Dimon At Congressional Hearing. I represent kids that go to jail for jumping a turnstile because they can’t afford a MetroCard. Do you think that more folks should have gone to jail… Complete Full Transcript, Dialogue, Remarks, Saying, Quotes, Words And Text.