above photo - House Financial Services Committee Holds Hearing On Keeping Megabanks Accountable WASHINGTON, DC - APRIL 10: (L-R) Michael Corbat, chief executive officer of Citigroup Inc., Jamie Dimon, chief executive officer of JPMorgan Chase & Co., James Gorman, chief executive officer of Morgan Stanley, and Brian Moynihan, chief executive officer of Bank of America Corp., listen during a House Financial Services Committee hearing on April 10, 2019 in Washington, DC. Seven CEOs of the country’s largest banks were called to testify a decade after the global financial crisis. (Photo by Alex Wroblewski/Getty Images)
The news was initial reported in April but it is worth repeating today because at first the amount seemed like a prank but it truly is real! Ever since the Democratic party assumed control of the House of Representatives they have moved quickly to implement more accountability as part of their oversight. Global Systemically Important Banks known as GSIB’s make us some of the largest U.S. commercial banks.
The TARP Bailouts
During the financial crisis or mortgage meltdown of 2008, in 2009 the GSIB’s as mentioned appeared before the Financial Services Committee to discuss the bailouts they received. On April 10th they reappeared before the committee chaired by Rep. Maxine Waters. The purpose was to discuss “lessons learned” as well as steps they have engaged to balance the lending spectrum across the nation.
$163.7 in FINES
As a group to date they have paid $163.7 BILLION in fines for various consumer abuses and other violations of the law. Questions remain but one thing is clear; many banks chalked up the fines as the cost of doing business as evidenced by their current behavior and fact collectively they have made over $780 billion in profits. Has anything changed?
The hearing shed light on why accountability is critical. The committee has more hearings planned to address specific steps the banks plan on incorporating to benefit all consumers, particularly those that have been historically marginalized.
Here is a list of the fines some of the largest banks have paid in the last ten years:
- Bank of America has paid $76.1 billion in fines.
- JPMorgan Chase has paid $43.7 billion in fines.
- Citigroup has paid $19 billion in fines.
- Wells Fargo has paid $11.8 billion in fines.
- Goldman Sachs has paid $7.7 billion in fines.
- Morgan Stanley has paid $5.4 billion in fines.
Here is the full hearing on video