US Senators accuse JP Morgan Chase, Bank of America, Wells Fargo, Citibank, US Bank, PNC Bank and Truist of profiteering by making record profits of $100 million and paying savers - The Daily Hodl Two US senators have accused the banks.
In a letter to the CEOs of Bank of America, Citibank, JP Morgan Chase (JPMC), US Bank, PNC Bank, Truist and Wells Fargo, Elizabeth Warren (Massachusetts) and Senator Jack Reed (Washington) allege that these financial institutions are keeping interest rates on savings accounts low while raising rates for borrowers.
Deposit rates for savers have consistently lagged behind the federal funds rate, but the gap is greater for customers of big banks than for local and community banks.
Warren and Reed are members of the Senate Banking, Housing and Urban Affairs Committee.
the senators believe the seven banks will earn a record $1 trillion in 2023. with record profits of $1 trillion.
Warren and Reid say the CEOs of the seven major banks failed to keep their promises when they testified before the Senate three years ago that they would raise interest rates for depositors.
CEO of the largest U. S. lender Jamie Dimon Senators say, When the Federal Reserve began raising the federal funds rate in March 2022, JPMC very quickly raised rates on mortgages, auto loans and credit cards
In September 2022, you (Mr. Dimon) testified before the Senate. Dimon) testified before the Senate Banking Committee that you expected JPMC to also raise the interest rates paid to depositors, albeit more slowly
At that time, JPMC was paying 6.98% on mortgages, 18-27% on credit cards, and 0.01% on demand deposit accounts
However, two years later, despite your testimony, JPMC's interest rates have not changed: JPMC's interest rate on Federal Reserve deposits has risen from 3.15% to 4.4%, while JPMC's customers receive only a measly 0.01% on their deposits. on deposit balances.
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