Jamie Dimon, CEO of JP Morgan Chase, said unequivocally that his bank would continue to support the development of fossil fuels.
In a confrontation with Michigan Democrat and Squad member Rashida Tlaib on Wednesday, Dimon declared: “Absolutely not, and it would be the way to hell for America.”
To fulfil their collective commitment to strive toward net zero emissions by 2050, Tlaib urged banks executives to indicate whether or not they had a policy “against supporting new oil and gas products” by answering “yes” or “no.”
Tlaib recommended people to terminate their accounts with the powerful financial organisation in reaction to Dimon’s emphatic rejection.
She referred to President Joe Biden’s promise to erase up to $20,000 in student loan debt and added, “Sir, you know what, anyone who gets relief from student loans [that] has a bank with your bank, should definitely take out their account and shut their account.”
The fact that you’re not even there to assist many people who are in terrible debt due to student loan debt and you’re out there condemning it.
The congresswoman then went back to her initial line of inquiry, claiming that Dimon ‘clearly’ doesn’t care about working class people in frontline areas like ours who are dealing with high incidences of asthma, respiratory difficulties along with so much more.
Tlaib quickly turned to the other CEOs to inquire about their investing views.
According to Citigroup CEO Jane Fraser, “We will continue to invest in and assist customers who are investing in fossil fuels and helping them transition to cleaner energy.”
The CEO of Bank of America, Brian Moynihan, concurred with Fraser and said that they are assisting customers in choosing a greener route.
According to Moynihan, “We are helping our customers make a transition,” which entails lending to both oil and gas businesses and new energy companies and assisting in monitoring their progress toward the criteria you’re referring to.
The CEOs of the biggest banks in the country appeared before Congress on Wednesday and provided a pessimistic assessment of the American economy, reflecting the financial and economic hardships many Americans are experiencing.
The American consumer is in excellent position, but faces dangers from high inflation and increasing interest rates, according to Dimon, Faser, and other bank executives.
The Federal Reserve raised its benchmark interest rate by three-quarters of a percent on the same day as the hearing in an effort to rein in inflation.
The bank CEOs were more doubtful when questioned by legislators about whether the Fed can accomplish its objective of a “soft landing,” where inflation is brought back down without significantly harming the economy.
Dimon remarked, “I’m crossing my fingers.”
Although COVID is behind us, Fraser stated in prepared remarks for the hearing that the current economic challenges are no less difficult.
Despite the less optimistic outlook, the CEOs generally agreed that the U.S. consumer is currently in good financial health because of the savings they built up during the pandemic.
The amount of money in customers’ accounts has remained stable, according to Brian Moynihan. Dimon claimed that debt loads have decreased while wages have increased, and Fraser asserted that consumer spending is at record highs.
On Thursday, the CEOs will appear once more before the Senate Banking Committee.