When asked to list the biggest risks to banks today, many cite cybersecurity issues and the growth of leveraged corporate lending.
NEW YORK — The heads of seven of the largest banks in the U. S. fielded sometimes contentious questions from a House committee Wednesday, some dealing with current risks to the financial system and other focused on more politically-charged topics.
The appearance by the chief executives of JPMorgan Chase and Goldman Sachs and five other banks represented the largest gathering of leaders of the banking industry before Congress since the financial crisis.
The CEOs told members of the House Financial Services Committee they’ve taken steps to improve the stability of their institutions since the financial system nearly seized up in 2008. The banks have raised capital, are more diverse, and are more resilient than they were before the financial crisis, the CEOs said.
“There is no doubt that the strength, stability and resiliency of the financial system has been fundamentally improved over the course of the last ten years,” said Jamie Dimon of JPMorgan. “Post-crisis reforms have made banks much safer and sounder in three important areas: capital, liquidity and resolution and recovery.”
The backdrop of this hearing is the 10-year anniversary of the 2008-2009 financial crisis. The banking system required extraordinary efforts by regulators – and a bailout by U.
