Elizabeth Warren rips at ‘star of the overdraft show’ JPMorgan CEO Jamie Dimon for taking $ 1.5 billion in customer fees during the pandemic
- Senator Elizabeth Warren went after JPMorgan Chase CEO Jamie Dimon on Wednesday during a Senate Banking Committee hearing
- She called him the ‘overdraft star’ after the bank received $ 1.46 billion in fees during the coronavirus pandemic
- Warren said bank regulators had told banks not to charge any more fees in 2020, but when they asked CEOs to ‘raise your hand’ if they did, none was raised.
Senator Elizabeth Warren went after JPMorgan Chase CEO Jamie Dimon in a Senate hearing Wednesday, calling him the “ star of the overdraft ” after the bank received $ 1.46 billion in fees during the coronavirus pandemic.
The Massachusetts Democrat instructed Dimon and other bank CEOs during a Senate Banking Committee hearing to “ raise your hand ” if their institutions stopped charging overdrafts during the pandemic, which was the advice of the regulators of the banks.
Warren, appearing virtually, noted to those that not a single hand was raised.
Senator Elizabeth Warren went after JPMorgan Chase CEO Jamie Dimon at a Senate hearing Wednesday, calling him the ‘star of the overdraft’ after the bank received $ 1.46 billion in fees during the coronavirus pandemic
Jamie Dimon, CEO of JPMorgan, defended the bank who went against the advice of the regulators and did not stop the fees by saying that the bank would refund fees when individual customers came forward saying they were ‘under stress because of COVID’
She then turned to Dimon, noting that JPMorgan charges several times more fees per account than the bank’s competitors.
“So, Mr. Dimon, how much will JPMorgan collect in overdrafts from their consumers in 2020?” Warren asked.
Dimon tried to dismiss that statistic.
“I think your numbers are totally inaccurate, but we’ll have to sit in private to go through that,” he said.
“But these are public numbers,” Warren retorted.
Warren again asked Dimon how much the bank is charging customers during the pandemic.
“I don’t have the number in front of me,” said the CEO.
Warren spoke of him and answered.
“Well, I actually have the number in front of me,” she said. “It’s $ 1.46 billion.”
She then asked Dimon if JPMorgan would have “been in financial trouble” had the bank stopped charging fees.
Dimon said the bank did refund fees when customers came forward saying they were “ under stress from COVID. ”
“I appreciate you wanting to avoid this question,” Warren said. The answer is that your profit would have been $ 27.6 billion. I did the math for you, ”she added.
“So here it is,” she continued. “ You and your co-workers come in today to talk about how you stepped up and nurtured customers during the pandemic, and it’s a lot of rubbish. In fact, it’s about $ 4 billion in bullshit. ‘
Warren said at the hearing that the total amount of overdraft fees the banks charged in 2020 was $ 4 billion.
“But you can fix that right now, Mr. Dimon. Will you now commit to repaying $ 1.5 billion taken from customers during the pandemic? she asked.
The CEO said no.
“No, that’s right,” Warren said. “However you try to run it, the past year has shown that corporate profits are more important to your bank than offering a little help to struggling families, even in the midst of a global crisis.”