Senators Elizabeth Warren and Bernie Sanders criticized the six largest U.S. banks for prioritizing shareholder returns over lending and financial stability. In joint letters, they accused lenders of lobbying for deregulation while boosting dividends and buybacks.
- The senators targeted JPMorgan Chase ($JPM), Bank of America ($BAC), Citigroup ($C), Wells Fargo ($WFC), Goldman Sachs ($GS), and Morgan Stanley ($MS).
- In July, banks raised dividends after clearing the Federal Reserve’s stress tests, showing resilience in downturn scenarios.
- JPMorgan announced a $50B share buyback and raised its quarterly dividend to $1.50 per share.
- Warren and Sanders said these actions contradict Wall Street’s lobbying narrative in Washington that deregulation is needed for lending growth.
- The Fed recently finalized new capital requirements for the largest banks following its annual health check.
- The senators requested written responses from bank CEOs by September 22.
Relevant Companies
- JPM – Raised dividend and announced $50B buyback program.
- BAC, C, WFC, GS, MS – All six banks were sent letters criticizing dividend hikes and buybacks.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
