Elizabeth Warren and Jamie Dimon of JP Morgan are at odds over customer fees.
Senator Elizabeth Warren slammed JP Morgan Chase CEO Jamie Dimon in a virtual session on Wednesday, following allegations that the investment bank disregarded rules and profited on more than $1.46 billion in consumer overdraft collections during the pandemic.
Despite the financial plight of many customers, Wall Street firms achieved record profits in 2020, prompting the six major banks to testify before Congress. When asked if they automatically waived customers’ overdraft costs during the epidemic, Citigroup, JP Morgan Chase, Bank of America, and Wells Fargo all said no, despite the Federal Reserve’s encouragement.
JP Morgan Chase’s 2020 profits would have been more than $20 billion if it had followed federal regulators’ advice, according to Warren, a Massachusetts Democrat.
“I understand your desire to avoid answering this question. Do you know how much money you would have made if you had followed the regulators’ advice and waived overdraft fees?” Warren was the one who inquired. “Your profits would have been around $27.6 billion, according to the response. I completed the calculations for you.”
To Warren’s questions, Dimon repeatedly stated that the business eliminated overdraft fees for consumers who contacted and indicated their financial need.
According to Warren, the Federal Reserve reduced fees for banks’ overdrafts on their Federal Reserve accounts automatically, and regulators advised that banks eliminate fees for consumers’ overdrafts as well.
The session is the first time top bankers have appeared for public grilling since Democrats took control of the Senate and the White House. Warren, a fervent consumer champion, chastised Dimon and Wall Street in general for seeming to care about Americans’ predicament while charging them billions in unneeded fees.
“So, here’s the deal: You and your coworkers came in today to boast about how you and your colleagues stepped up and took care of consumers during the pandemic, and it’s a load of nonsense. In fact, it’s about $4 billion worth of baloney, but you can fix that right now,” Warren said. “Mr. Dimon, will you commit right now the one-and-a-half billion dollars you took from consumers during the pandemic?”
Dimon responded with a succinct “no” to whether he would return the money to consumers. None of the other three banks who ignored the guidance responded when asked if. This is a brief summary.