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<h3>Introduction</h3>Climate change is garnering considerable attention from financial policymakers.&nbsp; As an example, the Financial Stability Oversight Council (FSOC) recently released a <a href="https://home.treasury.gov/system/files/261/FSOC-Climate-Report.pdf">report</a> on climate-related financial risk.&nbsp; Additionally, the Basel Committee on Banking Supervision (BCBS) recently released <a href="https://www.bis.org/press/p211116.htm">principles</a> on the management and supervision of climate-related financial risks. Increasingly, many policymakers are focused on the need for large banks to improve and demonstrate their methods of addressing climate-related financial risks. Consequently, it is important to consider the type and nature of climate-related financial risks borne by large banks.&nbsp; In this post, we review some recent data and analysis that are informative on the nature of climate-related financial risks for large banks.&nbsp; The data suggest that large banks are less exposed to climate-related financial risk than the banking sector as a whole, and may, in fact, perform well in response to some forms of climate risk as a result of increased lending activity.&nbsp; These data are not the last word on climate-related financial risk for large banks, but they are relevant and should be carefully considered as policymakers consider the management of climate-related financial risks by large banks.<h3>Evidence from European Banks</h3>The European Central Bank (ECB) recently undertook an <a href="https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op281~05a7735b1c.en.pdf">analysis</a> to assess the impact of climate change on financial risk using data from 1,600 European banking groups of varying sizes.&nbsp; The analysis was conducted by ECB staff using granular, bank exposure data, and the ECB’s models and assumptions regarding how climate change influences risk.One noteworthy analysis models the impact of transitioning to a “hothouse world” on the credit risk –or average default probability – in bank lending portfolios.&nbsp; The “hothouse world” is a specific climate scenario provided by the Network for Greening the Financial System (<a href="https://www.ngfs.net/sites/default/files/medias/documents/820184_ngfs_scenarios_final_version_v6.pdf">NGFS</a>) – a group of global central banks working on the development of environment and climate risk management in the financial system.&nbsp; This scenario represents an extreme worsening of climate change in which global temperatures increase by 3 degrees Celsius by 2080 and GDP falls by as much as 22 percent over the same period.&nbsp;The ECB analysis considers the average default rate in bank lending portfolios under both a less drastic “orderly transition” and the hothouse world.&nbsp; The increase in average default probability between the orderly transition and hothouse world scenarios measures the impact of climate-related financial risk on each bank’s lending portfolio. The results of this analysis are contained in the Figure presented below from the ECB report.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2021-12-13-at-10.20.11-am.png"></figure>&nbsp;Each dot in the figure represents a specific bank’s loan portfolio.&nbsp; The size of the dot represents the size of the bank’s exposure with larger dots representing larger banks with larger loan portfolios.&nbsp; The red dots represent European Global Systemically Important Banks (GSIBs).&nbsp; European GSIBs are most directly comparable to U.S. GSIBs (all of which are FSF members).&nbsp; The blue and yellow dots represent small and mid-sized European banks. The dotted line in the figure represents the 45-degree line.&nbsp; Any dot that lies on the 45-degree line represents a case in which the bank’s average default probability is the same under both the orderly transition and hothouse scenarios.&nbsp; A dot that lies below the 45-degree line represents a case in which the bank’s average default probability increases in the hothouse world scenario, which suggests that a worsening climate poses an increased financial risk to that institution.The data in the figure reveal a few interesting characteristics about large bank loan portfolios and the impact of a worsening climate on large bank financial risks.&nbsp; First, European GSIBs display average default probabilities that are generally below average and present less financial risk in both scenarios.&nbsp; This can be seen by noting that the red dots are clustered to the left and below the solid lines labeled “Average.”&nbsp; Second, the European GSIB data are relatively close to the 45-degree line suggesting that any increase in default probabilities in the hothouse scenario is small.&nbsp; Third, to the extent that some banks exhibit a noticeable increase in default probability in the hothouse scenario – indicated by a dot that lies well below the 45-degree line – these banks are of smaller size and systemic importance within Europe (the blue dots).Overall, these data suggest that large European GSIBs maintain loan portfolios that are relatively low risk and are not subject to significant amounts of climate-related financial risk.&nbsp; Some smaller and mid-sized banks, however, do exhibit noticeable increases in default risk resulting from the hothouse scenario.&nbsp; While we cannot assert that the experience of European GSIBs will translate directly to U.S. GSIBs, large banks share some common characteristics, such as broad and diversified lines of business and significant capital markets activities, that may suggest at least a degree of commonality in the impact of climate risk on default probabilities. &nbsp;&nbsp;<h3>Evidence from U.S. Banks</h3>As discussed, the European experience may not directly translate to U.S. banks.&nbsp; However, some recent <a href="https://www.newyorkfed.org/research/staff_reports/sr990">research</a> from economists at MIT and the Federal Reserve Bank of New York examines the potential impact of climate risks on U.S. banks.&nbsp; This research examines the impact of weather disasters such as hurricanes and floods on bank capital and performance.&nbsp;The authors find, over the 1995-2018 period, that extreme weather events have no discernible negative impact on bank capital or performance.&nbsp; As stated by the authors, “[w]hen we consider all FEMA disasters, we find generally insignificant or small effects on bank performance and stability.”&nbsp; Additionally, the researchers also find that larger banks tend to exhibit stronger performance following a severe weather event because of the high volume of subsequent lending activity. Interestingly, the authors argue that larger banks respond by increasing lending following a weather event because they have access to deposits in affected and unaffected areas and can effectively channel resources from locations with surplus savings to locations that need to borrow funds to recover from a weather event.&nbsp; Accordingly, large banks’ geographically diversified funding model is beneficial to both themselves and the communities that they serve.Finally, in considering why large banks may be well positioned to address climate risks, it is useful to consider the kinds of assets that are most likely exposed to climate risk and their concentration in large bank asset portfolios.&nbsp; Climate events such as rising sea levels, hurricanes, and floods are most likely to impact real estate assets such as hotels, commercial buildings, and homes.&nbsp; As a result, banks with large concentrations in real estate-backed loans are more likely to be exposed to climate-related financial risks.&nbsp; The table below shows the fraction of bank assets invested in real estate-backed loans for banks in different size categories.<figure class="table"><table style="border-bottom:none;border-left:none;border-right:none;border-top:none;"><tbody><tr><td style="border-bottom:1pt solid windowtext;border-left:1pt solid windowtext;border-right:1pt solid windowtext;border-top:1pt solid windowtext;padding:0in 5.4pt;vertical-align:top;width:467.5pt;" colspan="7">&nbsp;&nbsp;Real Estate Lending as a Percentage of Total Assets by Bank Size&nbsp;&nbsp;</td></tr><tr><td style="border-bottom:1pt solid windowtext;border-left:1pt solid windowtext;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.75pt;">&nbsp;Total Assets ($BN)</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.75pt;">&nbsp;U.S. GSIB</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;250+</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;100-250</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;50-100</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;10-50</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;&lt; 10&nbsp;</td></tr><tr><td style="border-bottom:1pt solid windowtext;border-left:1pt solid windowtext;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.75pt;">Real Estate Lending / Assets (%)</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.75pt;">&nbsp;13.0</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;16.6</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;19.6</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;28.4</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;29.6</td><td style="border-bottom:1pt solid windowtext;border-left:none;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:66.8pt;">&nbsp;53.0&nbsp;</td></tr><tr><td style="border-bottom:1pt solid windowtext;border-left:1pt solid windowtext;border-right:1pt solid windowtext;border-top:none;padding:0in 5.4pt;vertical-align:top;width:467.5pt;" colspan="7">Data available from 09/30/2021 Call Report <a href="https://cdr.ffiec.gov/public/PWS/DownloadBulkData.aspx">https://cdr.ffiec.gov/public/PWS/DownloadBulkData.aspx</a></td></tr></tbody></table></figure>As shown in the table, U.S. GSIBs allocate 13 percent of their asset portfolios to real estate-backed loans.&nbsp; Banks with less than $10 billion in assets allocate an average of 53 percent of their assets to real-estate backed loans.&nbsp; The table clearly shows that the proportion of bank assets invested in real estate-backed loans increases smoothly as bank size decreases.&nbsp; Accordingly, larger banks do not exhibit a concentration in real estate that would naturally lend itself to climate-related financial risks.&nbsp;&nbsp;&nbsp;<h3>Conclusion</h3>Climate change and its impact on our environment and economy is an important public policy issue that deserves careful consideration.&nbsp; Existing data and research suggest that large banks are better positioned to deal with climate change than the sector as a whole.&nbsp; At the same time, large banks are actively assessing these risks and taking necessary steps to manage and mitigate climate-related financial risk.&nbsp; Accordingly, as policymakers consider the role that large banks should play in addressing climate-related financial risk, they should carefully assess the type and significance of climate-related financial risks borne by large banks.&nbsp; A balanced and data-based approach to addressing climate-related financial risks will best ensure that we maintain a robust, safe, and sound banking system.&nbsp;&nbsp;

Climate Risk and Large Banks: What Do the Data Say?

CONTACT: Barbara Hagenbaugh(202) 457-8783bhagenbaugh@fsforum.com&nbsp;&nbsp;Largest banks lead the way in offering low-cost, no overdraft accountsWashington, D.C. - Financial Services Forum President and CEO Kevin Fromer issued the following statement today following a report from the Consumer Financial Protection Bureau (CFPB) on overdraft:“The nation’s largest banks have led the way in offering low-cost checking accounts with no overdraft fees and ensuring banking services are transparent, accessible and understandable.“The largest banks generate a small portion of their overall revenue from overdraft fees and in 2020 waived hundreds of millions of dollars in overdraft fees for customers affected by COVID-19. Financial Services Forum members offer overdraft protection for customers who opt in and encourage customers to receive low-fund alerts via text and/or email when their account balances fall below a certain dollar amount so that they do not overdraft their accounts. They also have introduced additional consumer benefits, such as grace periods and small, short-term loans and other alternatives to the traditional overdraft model.”&nbsp;###BackgroundIn an article in Politico, “<a href="https://www.politico.com/news/agenda/2021/06/24/bank-overdrafts-big-business-small-banks-495688">Overdraft Fees Are Big Money for Small Banks</a>,” former Treasury Department official Aaron Klein said his research has shown that overdraft accounts for a small percentage of total profit at large banks. Indeed, he said “a handful of smaller banks are the true overdraft giants” and pointed to some small banks who make nearly all of their profits from overdraft fees. “These banks are running a business model more akin to a check casher than a bank,” said Klein, now a senior fellow in economic studies at the Brookings Institution.<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2021-12-01-at-11.22.41-am.png"></figure>According to a <a href="https://curinos.com/insights/competition-drives-overdraft-disruption/">new study</a> from Curinos, a majority of consumers said they see benefit in overdraft and nearly two-thirds of respondents indicated that triggering an overdraft payment was a conscious choice. The study also found that regular overdraft use fell 40 percent from 2010 to 2020 and that bank-led initiatives aimed to help consumers avoid unintended fees have dramatically reduced the number of small purchases tied to overdraft.&nbsp;The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States.&nbsp; Forum member institutions are a leading source of lending and investment in the United States and serve&nbsp;millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, deep and liquid capital markets, financial inclusion, a competitive global marketplace, and a sound financial system. Visit our website: <a href="http://www.fsforum.com/">fsforum.com</a>Follow us on Twitter <a href="https://twitter.com/fsforum">@fsforum</a> and <a href="https://www.linkedin.com/company/financial-services-forum/">LinkedIn</a>

Financial Services Forum Statement on Overdraft Report

Dear reader,Welcome to the eighth edition of The Forum File. In this edition, we are highlighting how our members are assisting&nbsp;small businesses through their pandemic recovery and creating networks of support for women entrepreneurs.Thank you for your readership throughout the year as we launched this newsletter. I wish you a wonderful holiday season and look forward to continue collaboration in 2022.&nbsp;Kevin Fromer, President and CEO, Financial Services Forum&nbsp;&nbsp;<h2>Penny for Your Thoughts&nbsp;</h2>Derek Ellington was recently named <a href="https://newsroom.wf.com/English/news-releases/news-release-details/2021/Wells-Fargo-Names-Derek-Ellington-Head-of-Small-Business-Banking/default.aspx">Head of Small Business Banking</a> for Wells Fargo.&nbsp;<h3>After spending 28 years in the financial industry with roles in retail banking, commercial banking, small business banking and credit, what’s ahead for small businesses and how is Wells Fargo helping them move from relief to recovery?</h3>When you think about the fact that small businesses employ about 46% of all Americans, small business is really big business, and entrepreneurs will be at the forefront of our country’s economic recovery.&nbsp; They pump life into our neighborhoods, making them vibrant places to live and work and raise families – and they are the key to millions of local jobs. We’re also seeing an explosion of small businesses owned by women and minorities despite the pandemic and barriers that have historically prevented their businesses from reaching full potential.&nbsp;There are some bright lights ahead, but small businesses are still very vulnerable and the public and private sector needs to continue making equity a priority. Banks like Wells Fargo need to continue being very intentional about investing in different solutions that can make entrepreneurship more accessible to more people.For both new and established small businesses that need to stabilize coming out of the pandemic, owning more of their businesses’ assets, such as property, equipment and technology can be a game changer. According to a 2021 survey conducted by Morning Consult, three out of four (74%) small business owners say owning their physical assets or improving equity in their assets is a top priority, and 57 percent believe owning all their physical assets debt-free would significantly improve the financial health of their business.&nbsp;As an example, in Charlotte we’ve kicked off a $20 million effort <a href="https://newsroom.wf.com/English/news-releases/news-release-details/2021/Wells-Fargo-Donates-20-Million-to-Strengthen-Small-Businesses-in-Charlotte-/default.aspx">through our </a>Open for Business Fund which will distribute funding in the form of grants that do not need to be repaid, in an effort to help entrepreneurs build wealth through their businesses without taking on additional debt.&nbsp; We’re looking forward to applying this type of thinking in other cities next year.<h3>Can you tell us more about the Open for Business Fund?</h3>Wells Fargo’s goal throughout the pandemic has been to help as many small businesses as we could. In the early days of the pandemic, the company moved quickly to implement accommodations, and we’ve been able to help more than 3 million small business customers across the country access the resources they needed to survive. We also played a key role in helping small businesses access loans through the Paycheck Protection Program (PPP), helping nearly 282,000 small businesses get the funding they needed to keep 1.7 million people at work.&nbsp;&nbsp;The PPP provided a lifeline to thousands of businesses, but we understood very early on that one program wasn’t enough to enable small business to bounce back from so much economic disruption. Wells&nbsp;Fargo created the Open for Business Fund in July 2020 by donating the gross processing fees it made from administering Paycheck Protection Program loans in 2020. Through this roughly $420 million small business recovery effort, we’ve collaborated with Community Development Financial Institutions (CDFIs) and local nonprofits to deploy low-cost capital, technical expertise and recovery resources to small businesses across the nation.What’s exciting about the Open for Business Fund is this philanthropic capital is strengthening the network of resources available to entrepreneurs and it is foundational to CDFIs being able to expand lending in their communities. Through October 31, the Open for Business Fund is projected to <a href="https://stories.wf.com/boosting-business-with-mucho-gusto">reach more than</a> 150,000 small business owners, enabling them to help protect an estimated 250,000 jobs.&nbsp;<h2>Value Add</h2>Member program spotlight&nbsp;<figure class="image image_resized" style="width:75%;"><img src="https://fsforum.com/a/media/wfva.jpg"></figure><h3>Giving small business founders a circle of support</h3>Healthy and growing women-owned businesses are vital to an inclusive economic recovery, yet women entrepreneurs face distinct challenges, including fewer resources and less access to professional networks, on top of having a greater share of caregiving duties. As part of the Open for Business Fund, a roughly $420 million national small business recovery effort, Wells Fargo is working with nonprofits such as Nasdaq Entrepreneurial Center to provide women and diverse entrepreneurs with greater access to experts, business coaching and mentors that can help them grow.&nbsp;&nbsp;With this funding, the Nasdaq Entrepreneurial Center started mentoring and providing peer support to women business owners from predominantly underrepresented communities through <a href="https://thecenter.nasdaq.org/milestone-circles/">Milestone Mapping Coaching Circles</a>. In small groups, women entrepreneurs participate in a 12-week-long coach-guided program, where they receive support with business planning, revenue generation, customer leads, marketing and more, helping founders anchor focus to their biggest vision and gain clarity on the key business priority for next quarter.Each Circle is open to all women-identifying business owners in the U.S. and provides a biweekly opportunity for women entrepreneurs to work through specific challenges, celebrate milestones, attend workshops and connect with small business experts and mentors. Interested participants&nbsp;<a href="https://thecenter.nasdaq.org/milestone-circles/">complete an application</a>&nbsp;and, upon acceptance, are placed in a Circle and matched to certain cohorts based on their challenges. Wells&nbsp;Fargo will offer Milestone Mapping Coaching Circles throughout the year and into 2022, with the goal of helping 500 women-owned small businesses.&nbsp;<h2>Capitol Gains</h2>What we’re doing in Washington&nbsp;The Forum joined other trade associations in authoring a <a href="https://fsforum.com/a/media/liborjointtradesletterforhouse.pdf">letter</a> to the House of Representatives urging the passage of H.R. 4616, the “Adjustable Interest Rate (LIBOR) Act,” to address “tough legacy” contracts that currently reference LIBOR. The Forum <a href="https://fsforum.com/news/financial-services-forum-welcomes-house-passage-of-libor-bill">encouraged</a> the U.S. Senate to act swiftly on the measure after it passed the House with strong bipartisan support on December 8.We <a href="https://fsforum.com/news/financial-services-forum-statement-on-overdraft-report">highlighted</a> Forum member leadership in offering low-cost checking accounts with no overdraft fees and ensuring banking services are transparent, accessible and understandable.The Forum <a href="https://fsforum.com/news/financial-services-forum-welcomes-nominees-for-federal-reserve-leadership">congratulated</a> Federal Reserve Chairman Jerome Powell on his renomination and Dr. Lael Brainard on her nomination for vice chair.The Forum and the Bank Policy Institute authored a joint <a href="https://fsforum.com/a/media/bpi-and-fsf-letter-to-hfsc-on-section-19.pdf">letter</a> to the House Financial Services Committee expressing support for the Fair Hiring in Banking Act, which would enable banks to offer more job opportunities to rehabilitated people with prior criminal offenses.&nbsp;<h2>Our Two Cents</h2>Research from the Forum&nbsp;The BankNotes blog spotlighted:<ul><li>The Fall 2021 Federal Reserve Financial Stability Report <a href="https://fsforum.com/news/federal-reserve-financial-stability-report-underscores-how-forum-members-support-financial-stability">highlighted</a> how banks, and Forum members in particular, have actively contributed to U.S. financial stability. The report in particular showed the high levels of capital and liquidity held by U.S. Global Systemically Important Banks.</li><li>U.S. regulators should <a href="https://fsforum.com/news/capital-regulation-may-unnecessarily-restrict-bank-credit-for-creditworthy-businesses">consider</a> a European proposal as they move forward with Basel III Finalization to ensure credit is not unnecessarily restricted for creditworthy companies that contribute to the U.S. economy.</li><li>The Federal Reserve should <a href="https://fsforum.com/news/from-backstop-to-frontstop-the-leverage-ratio-is-becoming-the-binding-capital-constraint">modify</a> the SLR to ensure that it remains in the background and does not serve as the binding capital constraint.</li></ul>&nbsp;<h2>Checking the Balance</h2>Members in the news&nbsp;Bank of America&nbsp;<a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/11/bank-of-america-invests--10-million-in-johnson-c--smith-universi.html">announced</a>&nbsp;a multi-year, $10 million commitment to Charlotte-based Johnson C. Smith University (JCSU), one of the leading private liberal arts Historically Black Colleges and Universities in the South. Bank of America’s pledge to JCSU is part of its&nbsp;<a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/03/bank-of-america-increases-commitment-to-advance-racial-equality-.html">$1.25 billion, five-year commitment</a>&nbsp;announced last year to help advance racial equality and economic opportunity in local communities.BNY Mellon&nbsp;<a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/first-ever-bny-mellon-giving-tuesday-campaign-empowers-employees-to-double-their-impact.html?cid=CC_OSM_YB001375_GivingTuesday2021TW_ALLSEG_PUB_GL_TWT_____">hosted</a>&nbsp;its first-ever Global Giving Tuesday Campaign, double-matching employees’ contributions to select nonprofits from November 30 through December 7. BNY Mellon employees could select one of 14 high-impact charities to receive a 2:1 match, up to $10,000, or the local equivalent. This campaign supplemented the bank’s regular year-round matching program, in which BNY Mellon matches 1:1 up to $5,000.Citi and the Citi Foundation announced the&nbsp;<a href="https://www.citigroup.com/citi/racial-equity/">Action for Racial Equity</a>&nbsp;initiative has&nbsp;<a href="https://www.citigroup.com/citi/news/2021/211109a.htm">invested</a>&nbsp;$1 billion in strategic initiatives to help close the racial wealth gap and increase economic mobility in the United States in year one of a three-year commitment.&nbsp;Citi said it is on track to far exceed its original $1.1 billion commitment announced in September 2020.&nbsp;In particular, Citi has exceeded its $350 million procurement goal for its investments in Black-owned suppliers.Goldman Sachs was&nbsp;<a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.forbes.com_green-2Dgrowth-2D50_-23220c1e096140&amp;d=DwMFAg&amp;c=7563p3e2zaQw0AB1wrFVgyagb2IE5rTZOYPxLxfZlX4&amp;r=b8iCANJjLlDzgmI1DhIxZS-McRP4R7RcWpchMfWzEiw&amp;m=tPYaWs9BprBoQFToxfoJZQKDSygzsNafTABhswDkkxs&amp;s=vEYu1O0CAQyH0KGgOrtwvUEUydJJh4z3orKkbl4zZK8&amp;e=">named</a>&nbsp;to the Forbes Inaugural Green Growth 50 list. Goldman Sachs was recognized as a leader in supporting long-term economic opportunity and prosperity while also reducing its greenhouse gas emissions and meeting sustainability goals.&nbsp;JPMorgan Chase and Youth Guidance announced an expansion of their respective programs,&nbsp;<a href="https://www.jpmorganchase.com/impact/people/mentoring-skilled-volunteerism/the-fellowship-initiative/the-fellowship-initiative-celebrates-10-years">The Fellowship Initiative</a>&nbsp;(TFI) and Becoming a Man (BAM), to Washington D.C. to help young men of color forge local pathways to graduation and post-secondary success. TFI and BAM will work with District of Columbia Public Schools to improve the economic and social outcomes for hundreds of young men of color. Through this intensive, multi-year school-based program high school students will receive academic coaching, college and career readiness services, social and mental health support, and leadership development that helps put them on a path toward greater economic mobility.Morgan Stanley&nbsp;<a href="https://www.morganstanley.com/press-releases/the-equity-collective---a-diversity-driven-collaboration-">announced</a>&nbsp;the launch of The Equity Collective, an industry leading group of Wealth Management and Asset Management businesses who have come together to educate, empower and develop the next generation of diverse leaders in the finance industry. The Equity Collective is composed of&nbsp;25&nbsp;members. Senior leaders across each member organization will participate in education and awareness events and initiatives in this multi-year commitment,&nbsp;which includes exclusive sponsorships with the Boys &amp; Girls Clubs of America, HIVE Diversity and Team IMPACT.State Street&nbsp;<a href="https://www.maconferenceforwomen.org/">presented</a>&nbsp;the 2021 Massachusetts Conference for Women, which focused on leadership, career advancement, equity and inclusion and personal development. The conference featured keynote speakers, networking opportunities and skills training to thousands of women and offered workshops dedicated to issues such as personal finance and entrepreneurship. State Street has sponsored the Massachusetts Conference for Women for over a decade.Wells Fargo&nbsp;<a href="https://newsroom.wf.com/English/news-releases/news-release-details/2021/Wells-Fargo-Helps-Revitalize-Local-Business-Districts-Across-America-This-Holiday-Season/default.aspx">announced</a>&nbsp;the launch of “Hope, USA,” an initiative to support small businesses nationwide. Through this effort, Wells Fargo will help beautify business districts in more than a dozen cities across the country and encourage shopping locally this holiday season. Hope, USA builds upon the firm’s roughly $420 million commitment to small businesses through its&nbsp;<a href="https://www.wellsfargo.com/biz/help/open-for-business-grants/">Open for Business Fund.</a>

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The Forum File, Edition 8

The Regulatory Reality

Citi

External Link

Our Approach to Net Zero by 2050

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<ul><li>We lead the way in managing climate risk&nbsp;<a href="#_msocom_1">[DM1]</a>&nbsp;and are continuing to evaluate climate scenarios recommended by the <a href="https://www.ngfs.net/sites/default/files/medias/documents/820184_ngfs_scenarios_final_version_v6.pdf">Network for Greening the Financial System</a>. We identify, rank, manage, and test physical and transition risks related to seven risk categories – credit, market, liquidity, compliance, operational, strategic, and reputation.</li><li>All of our institutions are official supporters of the <a href="https://www.fsb-tcfd.org/">Task Force on Climate-Related Financial Disclosure</a> (TCFD) and its recommendations aimed at building a more resilient economy through standardized and transparent climate-related financial disclosure.</li></ul>

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Corporate Governance

Our institutions are developing approaches to corporate governance that ensure a more holistic, firmwide approach to climate-related risks and opportunities.

<ul><li>Bank of America&nbsp;<a href="https://newsroom.bankofamerica.com/press-releases/environment/bank-america-commits-300-billion-2030-low-carbon-sustainable-business">announced</a> it will mobilize $300 billion in capital by 2030 through its Environmental Business Initiative to advance sustainable energy and transportation, climate resiliency, clean water, and sanitation. Since its inception in 2007, this initiative has allowed the bank to commit more than $445 billion to low-carbon, sustainable companies.</li><li>Citi has <a href="https://www.citigroup.com/citi/news/2020/200729a.htm">established</a> a five-year $250 billion Environmental Finance Goal, expanding on its completed <a href="https://www.citigroup.com/citi/about/citizenship/download/22701_CITI_INFOGR_100BILLION.pdf">$100 billion goal</a>. This new goal will finance and facilitate support of renewable energy, clean technology, sustainable transportation, water quality and conservation, agriculture and land use, energy efficiency, green buildings, and circular economy.</li><li>Goldman Sachs&nbsp;is <a href="https://www.goldmansachs.com/our-commitments/sustainability/sustainable-finance/">deploying</a> $750 billion in sustainable financing projects across its investing, financing and advisory activities by 2030 and bringing commercial expertise to help clients accelerate climate transition and advance inclusive growth. The firm has deployed $115 billion in clean energy financing since 2006 and underwritten $59 billion in green, social, and sustainability bonds since 2014.</li><li>JPMorgan Chase&nbsp;has made a $200 billion commitment in clean financing by 2025 as part of its ongoing <a href="https://www.jpmorganchase.com/impact/sustainability">efforts</a> to support climate action, clean water and waste management; increasing access to housing, education and healthcare; and advancing infrastructure, innovation and growth.&nbsp;&nbsp;</li><li>Morgan Stanley&nbsp;has created the <a href="https://www.morganstanley.com/auth/content/dam/msdotcom/en/assets/pdfs/articles/investing-with-impact-brochure.pdf">Investing with Impact Platform</a>, which offers diverse funds and investments to advance environmental, economic, and social goals. The platform incorporates climate change into client portfolios and investments in companies with sustainable practices, like efforts to reduce greenhouse gas initiatives.</li><li>Wells Fargo&nbsp;has <a href="https://www08.wellsfargomedia.com/assets/pdf/about/corporate-responsibility/sustainable-finance-methodology.pdf">committed</a> $200 billion to support environmental sustainability, with 50% of the commitment dedicated to low-carbon opportunities. The commitment will finance energy efficiency, clean transportation, green buildings, renewable energy, sustainable finance bonds, circular economy, environmentally sustainable management of natural resources and land use, and pollution prevention.</li></ul>&nbsp;

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Sustainable Investments 

We are supporting sustainable investments and facilitating the transition to a low-carbon economy. Our institutions are investing in solar and wind energy, green building, sustainable transportation, water quality and conservation, and broader clean technology

<ul><li>BNY Mellon&nbsp;was <a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/bny-mellon-recognized-for-sustainability-by-two-leading-organizations.html">named</a> to the CDP Climate Chance ‘A List’ and the Dow Jones Sustainability Index (DJSI) in 2020. The bank has earned its place on these lists for its actions to reduce emissions, mitigate climate risks, and develop new and thoughtful initiatives, as well as its prioritization of ESG efforts.</li><li>State Street&nbsp;has <a href="https://www.statestreet.com/content/dam/statestreet/documents/values/CR_Report_2017.pdf">pledged</a> to reduce greenhouse gas emissions by 30%, reduce water usage by 10%, and achieve a recycling goal of 80% by 2025.</li></ul>

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Operational Changes 

Our institutions are working to ensure we are leading by example and taking critical steps to reduce our own direct impact on the environment through policies like reducing greenhouse gas emissions, sourcing renewable energy for 100% of power needs and greatly reducing water, paper, and waste.  

Combatting Climate Change

CONTACT: Barbara Hagenbaugh(202) 457-8783bhagenbaugh@fsforum.com&nbsp;Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today after President Biden announced his decision to nominate Sarah Bloom Raskin to serve as Vice Chair for Supervision of the Federal Reserve Board and Lisa Cook and Philip Jefferson to serve on the Board:“We congratulate the nominees and appreciate the depth and diversity of experience they would bring to the Federal Reserve, which serves an important role in supporting the economy and ensuring the safety and soundness of our financial system.“We look forward to hearing their views during the confirmation process and working with them if confirmed. The largest banks in the United States are strong, well capitalized and have been a key source of support for American households, businesses, and communities throughout the pandemic. We expect members of the Federal Reserve and other regulators will continue to hold the largest banks to the high regulatory and supervisory standards that have remained in place to support a resilient and essential part of the U.S. financial system.”&nbsp;&nbsp;###BackgroundU.S.-based Global Systemically Important Banks, or GSIBs, are subject to the highest regulatory and supervisory standards. These standards, which were put in place more than a decade ago, have been maintained or strengthened in recent years. Capital requirements for these banks more than doubled from 2015 to 2021. Liquidity requirements have increased. And the Federal Reserve continues to conduct rigorous stress tests – using hypothetical scenarios far worse than the financial crisis -- to ensure the largest banks hold enough capital to be able to continue to lend and remain strong even in the face of significant headwinds.&nbsp;Learn more about the robust regulatory and supervisory standards for U.S. GSIBs <a href="https://fsforum.com/a/media/regulatoryreality.pdf">here</a>.&nbsp;&nbsp;The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States.&nbsp; Forum member institutions are a leading source of lending and investment in the United States and serve&nbsp;millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, deep and liquid capital markets, financial inclusion, a competitive global marketplace, and a sound financial system. Visit our website: <a href="http://www.fsforum.com/">fsforum.com</a>Follow us on Twitter <a href="https://twitter.com/fsforum">@fsforum</a> and <a href="https://www.linkedin.com/company/financial-services-forum/">LinkedIn</a>&nbsp;&nbsp;

Article

Financial Services Forum Statement on Federal Reserve Nominees 

Goldman Sachs

Goldman Sachs One Million Black Women Announces Latest Round of Investments, Partnerships and Grants to Kick Off 2022

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<ul><li>Citi has provided $173 million in capital, administered over $886 million in financing, and committed more than $79 million in philanthropic funding to more than 80 CDFIs across the country since 2015. The bank has also made its ATM network available free of charge to clients of nearly 30 MDIs and CDFIs – providing their customers with convenience and nearly $1 million in savings.</li><li>Goldman Sachs&nbsp;provided $774.5 million to eight different CDFIs between 2016 and 2020.</li><li>JPMorgan Chase&nbsp;has made 64 loans totaling more than $870 million to CDFIs and invested more than $1.4 billion in 49 different CDFIs through the New Markets Tax Credit program since 2015. Additionally, from 2015 to 2019 the firm provided 1,001 grants to 145 CDFIs totaling $194 million and continues to mentor and advise select MDIs and CDFIs to help them achieve their future success.</li><li>Morgan Stanley&nbsp;has provided $3.6 billion in investment in 41 CDFIs and $30.5 million in investment in three MDIs between 2016 and 2020. Additionally, the firm has <a href="https://www.morganstanley.com/press-releases/morgan-stanley-announces--10-million-to-support-minority-deposit">committed</a> $10 million in grants supporting MDIs.</li><li>Wells Fargo&nbsp;has invested $847 million in 305 unique CDFIs through grant and debt capital since 2015. Additionally, the bank has <a href="https://stories.wf.com/wells-fargo-announces-seeking-commit-50-million-capital-minority-depository-institutions/">committed</a> to investing up to $50 million in capital for MDIs.</li></ul>

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Supporting CDFIs and MDIs

We are supporting hundreds of Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) by providing over $8.5 billion in capital and financing between 2016 and 2020.

<ul><li>Bank of America&nbsp;in 2020&nbsp;<a href="https://newsroom.bankofamerica.com/press-releases/bank-america-announces-four-year-1-billion-commitment-supporting-economic">committed</a> $1 billion over four years to help local communities address economic and racial inequality. The firm has also <a href="https://newsroom.bankofamerica.com/press-releases/community-development/smithsonian-announces-race-community-and-our-shared-future#:~:text=Bank%20of%20America's%20%2425%20million,economic%20opportunity%20in%20minority%20communities.">committed</a> an additional $25 million to the Smithsonian to fund its Race, Community and Our Shared Future initiative, <a href="https://newsroom.bankofamerica.com/press-releases/corporate-philanthropy/bank-america-expands-support-boys-girls-clubs-america-1">provided</a> a $1 million grant to the Boys &amp; Girls Clubs of America, and made a $22.1 million <a href="https://newsroom.bankofamerica.com/press-releases/corporate-philanthropy/bank-america-expands-support-boys-girls-clubs-america-1">investment</a> in 2020 Neighborhood Builders and Neighborhood Champions in Support of Local Organizations.&nbsp; &nbsp;&nbsp;</li><li>BNY Mellon&nbsp;has <a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/bny-mellon-commits-20-million-to-fund-the-future-workforce.html">committed</a> $20 million to community colleges and a select group of local and national organizations to support workforce training programs in traditionally underrepresented minority groups and communities. Additionally, the bank made an initial pledge of $1.5 million to organizations including My Brother’s Keeper, the NAACP Legal Defense and Education Fund, the Southern Poverty Law Center, the National Network for Safe Communities and the Vera Institute of Justice.</li><li>Citi <a href="https://www.citigroup.com/citi/news/2020/200923a.htm">launched</a> more than $1 billion in strategic initiatives in 2020 aimed at closing the racial wealth gap. The bank also <a href="https://www.citigroup.com/citi/news/2020/200117a.htm">launched</a> the $150 million Citi Impact Fund to make equity investments in ‘double bottom line’ private sector companies, with a focus on women and minority owned businesses.</li><li>Goldman Sachs&nbsp;has launched the One Million Black Women <a href="https://www.goldmansachs.com/our-commitments/sustainability/one-million-black-women/index.html">initiative</a>, a $10 billion investment initiative to advance racial equity and economic opportunity by investing in Black women with the goal of impacting the lives of at least 1 million Black women by 2030. It has also <a href="https://www.goldmansachs.com/media-relations/press-releases/current/gs-fund-for-racial-equity.html">created</a> the Goldman Sachs Fund for Racial Equity, which launched with $10 million – building on the more than $200 million the firm has granted over the past decade to organizations serving communities of color – and aims to support organizations addressing racial injustice, structural inequity and economic prosperity.</li><li>JPMorgan Chase&nbsp;in 2020 <a href="https://www.jpmorganchase.com/news-stories/jpmc-commits-30-billion-to-advance-racial-equity">committed</a> $30 billion to advance racial equity over the next five years through growing Black- and Latinx-owned businesses, improving financial health and access to banking in Black and Latinx communities and accelerating investment to build a more diverse and inclusive workforce.</li><li>Morgan Stanley&nbsp;<a href="https://www.morganstanley.com/press-releases/morgan-stanley-announces-10-million-to-support-national-urban-le">announced</a> $10 million in grants to support the National Urban League, aimed at supporting financial literacy, homeowner counseling and workforce development programs. The firm also <a href="https://www.morganstanley.com/press-releases/morgan-stanley-commits--5-million-to-naacp-legal-defense-and-edu">committed</a> $5 million on top of matching employee contributions to the NAACP Legal Defense and Education Fund to support its work in fighting for racial justice.</li><li>State Street&nbsp;in 2020 <a href="https://www.statestreet.com/content/dam/statestreet/documents/New_Commonwealth_Racial_Equity_and_Social_Justice_Fund_Press_Release.pdf">announced</a> a five year, $5 million commitment to the New Commonwealth Racial Equity and Social Justice Fund, which supports Black- and brown-led organizations that are working on economic empowerment, youth civic engagement, healthcare equity and criminal justice reform.</li></ul>

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Combatting Inequality

We are dedicated to combatting inequality through a series of important initiatives. These initiatives support minority owned small businesses and provide funding for community organizations that are dedicated to closing the racial wealth gap.

<ul><li>Bank of America in 2020 provided $5.9 billion to build sustainable communities, creating more than <a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/02/bank-of-america-community-development-banking-provided-record--5.html">13,000 affordable housing units</a>, including 1,650 units developed by minority and women- owned businesses. This year, the bank tripled its affordable homeownership initiative to $15 billion through 2025, giving homebuyers as much as $10,000 for down payments and as much as $7,500 for closing costs. In May the bank and NACA <a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/05/bank-of-america-and-naca-expand-mortgage-program-to--15-billion-.html">expanded their program</a> to provide $15 billion in mortgages to low-to-moderate income homebuyers through May 2027.</li><li>Citi in 2020 issued the first <a href="https://www.citigroup.com/citi/news/2020/201030a.htm">affordable housing bond</a> with a notional value of $2.5 billion. Proceeds will finance the construction, rehabilitation and preservation of quality affordable housing for low- and moderate- income populations in the U.S. Citi is also investing more than $200 million, out of a $550 million three- year commitment to affordable housing, in five equity funds co- managed by Black investment managers to preserve multi-family rental housing.</li><li>Goldman Sachs promotes affordable housing through its <a href="https://www.goldmansachs.com/what-we-do/asset-management/impact-investing/">Urban Investment Group</a>, a domestic, multi-asset class investing and lending business deploying over $1 billion annually in community and economic development through real estate and other projects. In Utah, the bank’s work has led to the development of 4,700 affordable housing units, while in Newark and neighboring East Orange, N.J., investments by Goldman Sachs have led to over 2,000 units of mixed- income housing.</li><li>JPMorgan Chase in 2020 announced a five-year <a href="https://www.jpmorgan.com/commercial-banking/insights/breaking-down-barriers-to-affordable-housing---jpmorgan-chase">commitment</a> to finance 100,000 affordable housing units in underserved communities, originate 40,000 home loans for Black and Latinx households, and help 20,000 Black and Latinx households lower their mortgage payments through refinancing. The bank also expanded its Homebuyer <a href="https://media.chase.com/news/chase-homebuyer-grant">grant program</a> to up to $5,500 to help cover closing costs and down payments in 6,700 minority neighborhoods nationwide.</li><li>Morgan Stanley <a href="https://www.morganstanley.com/press-releases/morgan-stanley-continues-commitment-to-sustainable-investing-wit">last year</a> issued its inaugural social bond for $1 billion to support affordable housing projects, the latest step in the bank’s work to advance market-based solutions to address sustainability challenges. Morgan Stanley intends to allocate an amount equal to the net proceeds of the social bond to affordable housing projects, which aim to provide housing at affordable rates to low- or moderate-income individuals and/or families in the United States.</li><li>State Street in 2020 invested over $240 million in <a href="https://www.statestreet.com/values/economic-responsibilities.html">affordable housing</a> communities throughout the U.S., through the Low-Income Housing Tax Credit (LIHTC) program. This investment resulted in the creation or preservation of approximately 9,500 affordable units in 25 states. Since 2010, State Street has invested over $1.7 billion in affordable housing, reaching nearly 100,000 households, including $85 million in the first few months of 2021.</li><li>Wells Fargo works with NeighborWorks® America <a href="https://www.wellsfargo.com/mortgage/lift/">to provide</a> down payment assistance and homebuyer education for low- and moderate- income families. Last year, the bank facilitated over $1.2 billion in bond offerings that provided critical funding to preserve and develop more than 10,400 homes intended for underserved communities. The bank also has made a $1 billion philanthropic commitment to address housing affordability solutions by 2025 and&nbsp; <a href="https://stories.wf.com/60-billion-plan-aims-to-boost-african-american-homeownership/">launched</a> a ten-year initiative with the National Urban League and the National Association of Real Estate Brokers to provide $60 billion in home loans to 250,000 African American homeowners and to invest $15 million in homeowner education and counseling.</li></ul>

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Commitment to Affordable Housing

Forum members are playing a leading role in promoting affordable housing throughout the country. In 2020 alone, Forum banks created or preserved more than 158,000 affordable housing units.

<ul><li>Recognizing the importance of a banking relationship to help narrow the wealth gap, Forum members were founding lenders in a pilot program with CFE to offer&nbsp;<a href="https://cfefund.org/project/bank-on/">BankOn accounts</a> to people across the country. More than <a href="https://2wvkof1mfraz2etgea1p8kiy-wpengine.netdna-ssl.com/wp-content/uploads/2021/07/CFE-Fund_-2021-Bank-On-100-Accts-Press-Release.pdf">100 lenders</a> big and small now offer BankOn accounts, <a href="https://www.stlouisfed.org/~/media/files/pdfs/community-development/bank-on/bankon_data.pdf?la=en">successfully</a> bringing people into the banking system.</li><li>Forum members have worked with CFE Fund and others to launch Financial Empowerment Centers in cities across the country. These centers offer free financial counseling, helping clients navigate complex financial situations and plan for the future. Additionally, the program supports strategic research projects to enhance the success of financial counseling.&nbsp;<a href="https://cfefund.org/project/financial-empowerment-centers/">Learn more</a>.</li><li>Bank of America, Citi, JPMorgan Chase, and Wells Fargo have long partnered with Cities for Financial Empowerment (CFE) to provide low-cost, low-fee checking accounts to help bring more people into the banking system.</li><li>The Citi Foundation <a href="https://www.prnewswire.com/news-releases/the-citi-foundation-and-cities-for-financial-empowerment-fund-to-increase-summer-job-opportunities-financial-education-and-banking-access-to-an-additional-140-000-young-people-301316128.html">announced</a> an additional $3.66 million in support to the CFE&nbsp;to increase summer job opportunities, financial education, and banking access to an additional 140,000 young people.</li><li>Forum members are working with the OCC on&nbsp;<a href="https://www.occ.treas.gov/topics/consumers-and-communities/minority-outreach/project-reach-fact-sheet.pdf">Project REACh</a>, a program to promote financial inclusion.&nbsp;Led by JPMorgan Chase, banks have worked to find ways to help people without traditional credit histories access credit. The banks have created a tool to import non-traditional data sources, such as deposit account activity, to allow lenders to have greater options to assess creditworthiness.</li><li>The Wells Fargo Foundation <a href="applewebdata://9AC3D0AC-44A3-42B2-AAA0-A73664A505E0/%E2%80%A2%09https:/cfefund.org/cfe-fund-and-wells-fargo-announce-third-cohort-of-bank-on-fellowship/">announced</a> a $1 million grant to CFE to increase the size of the BankOn Fellowship Program, which funds a full-time BankOn coalition leader focused on improving banking access for residents.</li></ul>

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Bringing Those Outside of Banking In

Forum members have long been on the frontlines in the effort to bring unbanked and underbanked Americans into the financial mainstream.

<ul><li>Bank of America&nbsp;has committed to spending nearly $2 billion annually with diverse businesses through its <a href="https://about.bankofamerica.com/en-us/what-guides-us/vendor-management.html#fbid=tlM4qFkwCad">Supplier Diversity program</a>.</li><li>BNY Mellon&nbsp;has established a dedicated <a href="https://www.bnymellon.com/us/en/supply-chain-responsibility-program/supply-chain-responsibility-program-statement.html">Supply Chain Responsibility program</a> to build and maintain a diverse supplier base, as well as host workshops and expos to support diverse vendor development.</li><li>Citi actively seeks diverse suppliers through minority and women business development organizations and participation in various trade show activities while utilizing diverse suppliers and consultants through their <a href="https://www.citigroup.com/citi/suppliers/who.htm">Supplier Diversity program</a>.</li><li>Goldman Sachs&nbsp;has <a href="https://www.goldmansachs.com/our-commitments/sustainability/our-vendor-program/vendor-diversity/">committed</a> to increasing spending with diverse vendors by 50 percent by 2025.</li><li>JPMorgan Chase&nbsp;has set a goal of continually exceeding $1 billion in spending with <a href="https://www.jpmorganchase.com/about/suppliers/supplier-diversity">diverse suppliers</a> each year.</li><li>Morgan Stanley&nbsp;<a href="https://www.morganstanley.com/about-us/supplier-diversity">partners</a> with supplier diversity organizations like the Women’s Business Enterprise National Council and the National Minority Supplier Development Council.</li><li>State Street&nbsp;has committed to increasing its spending with diverse suppliers over the next three years in order to strengthen Black- and Latinx-owned businesses.</li><li>Wells Fargo&nbsp;aims to spend 15 percent of its procurement budget with diverse suppliers through the bank’s <a href="https://www.wellsfargo.com/about/diversity/supplier-diversity/commitment/">Supplier Diversity program</a>.</li></ul>

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Supporting Diverse Suppliers

Our institutions are committing to partner with diverse vendors and suppliers to support minority and women-owned businesses.

We invested nearly $9 billion in Community Development Financial Institutions between 2016 and 2020.

Supporting Historically Underserved Communities

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The Goldman Sachs Group, Inc.

David Solomon is Chairman and Chief Executive Officer and a member of the Board of Directors of The Goldman Sachs Group, Inc.

Previously, he was President and Chief Operating Officer and prior to that, he served as Co-Head of the Investment Banking Division from 2006 to 2016. Before that, Mr. Solomon was Global Head of the Financing Group, which includes all capital markets and derivative products for the firm’s corporate clients. He joined Goldman Sachs as a Partner in 1999.

Mr. Solomon is a member of the Board of Trustees of Hamilton College and serves on the board of The Robin Hood Foundation.

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David Solomon

The Goldman Sachs Group, Inc. Chairman and Chief Executive Officer, Forum Chairman

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State Street Corporation

Ron is chairman and chief executive officer of State Street Corporation. He is also a member of State Street Corporation’s Board of Directors.

Ron was previously president and chief operating officer of State Street Corporation, and before that president and chief executive officer of State Street Global Advisors, the investment management arm of State Street Corporation. He joined State Street in 2015.

Prior to State Street, Ron was president of Asset Management & Corporate Services for Fidelity Investments, responsible for all Fidelity asset management organizations and Fidelity’s corporate functions and enterprise technology. He served at Fidelity from 2010 to 2014.

Prior to joining Fidelity, Ron served as president and chief executive officer of BNY Mellon Asset Management in Boston, a position to which he was named in 2007. During this time, he also served as vice chairman of Bank of New York Mellon Corporation and was a member of its Executive Committee. Additionally, Ron oversaw all of Bank of New York Mellon’s activities in Asia. Prior to the 2007 merger of Bank of New York and Mellon, he was vice chairman of Mellon Financial Corporation and president and chief executive officer of Mellon Asset Management. He served at Mellon and Bank of New York Mellon from 1997 to 2010.

Prior to Mellon, Ron was with McKinsey & Company, Inc., from 1986 to 1997 and was elected a partner in 1992. He founded the Investment Management practice worldwide and was co-founder and co-leader of the firm’s North American Personal Financial Services practice. Additionally, he was a member of the Worldwide Property & Casualty Insurance practice. During his tenure with McKinsey, Ron served in the firm’s Boston, New York, and Stockholm offices.

Ron received his Bachelor of Arts degree in political science from Syracuse University in 1980 and his Master of Business Administration from Harvard Business School in 1986.

Ron serves on the boards of Unum Corp. and Rhode Island Commerce Corporation. He also serves on the boards of Beth Israel Lahey Health, The Boston Foundation, IYRS School of Technology and Trades, Syracuse University and WBUR. Ron’s philanthropic and civic interests include corporate governance, retirement/healthcare policy and funding, education, and climate. He has led several initiatives on gender equality. Ron is a frequent speaker and writer, and an avid offshore sailboat racer.

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Ronald O'Hanley

State Street Corporation Chairman And Chief Executive Officer, Forum Vice Chairman

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Bank Of America

Brian Moynihan leads a team of more than 200,000 employees dedicated to making financial lives better for people, companies of every size, and institutional investors across the United States and around the world.

Bank of America is recognized as a top employer by Working Mother magazine and Military Times. The company is also listed on Fortune magazine’s list of the Best Workplaces for Diversity and the Best Workplaces for Parents. It was also named one of the Best Places to Work for Disability Inclusion by the U.S. Business Leadership Network and the American Association of People with Disabilities. In 2018, Euromoney recognized Bank of America as the World’s Best Bank and the World’s Best Bank for Diversity and Inclusion, as part of their annual Global Awards for Excellence. Bank of America was also named the 2019 Catalyst Award winner, honored for supporting the continued development, empowerment and advancement of women in the company and around the world.

Moynihan participates in several organizations that focus on economic and market trends, including the World Economic Forum International Business Council, the Financial Services Forum, the Bank Policy Institute (chair), the Business Roundtable, and the American Heart Association CEO Roundtable (co-chair). He is also a member of the Federal Advisory Council of the Federal Reserve Board.

Moynihan leads the company’s Global Diversity and Inclusion Council and is a member of the museum council for the Smithsonian’s National Museum of African American History and Culture. Moynihan is also a member of the Brown University Corporation’s Board of Fellows and the Congressional Medal of Honor Foundation Board.

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Brian Moynihan

Bank Of America Chairman Of The Board And Chief Executive Officer

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BNY Mellon

Todd Gibbons currently serves as the Chief Executive Officer of BNY Mellon. Prior to that, Todd had been a Vice Chairman of BNY Mellon and CEO of Clearing, Markets and Client Management. In that role he oversaw the Pershing clearing business; the trading, financing, collateral and liquidity management solutions delivered through the Markets business; treasury services and commercial payment activities; the U.S. government securities clearance and U.S. tri-party repo businesses delivered through BNY Mellon Government Securities Services Corp; credit services; global client management; and regional area management. From 2008 through 2017, he served as CFO. Previously, for six years he was Chief Risk Policy Officer, overseeing credit, operational and market risk management of the company and The Bank of New York.

Todd also served as CFO of The Bank of New York for almost a year prior to the merger. He first joined The Bank of New York in 1986 and held top management positions in the capital markets business, including head of global treasury, with responsibility for asset and liability management, funding, money market trading, swaps and derivative products. Prior to joining The Bank of New York, he was assistant treasurer at Handy and Harman, a leading refiner, processor and fabricator of precious metals.

Todd is a member of BNY Mellon’s Executive Committee. He also serves on the advisory board of Wake Forest University’s Business School. He holds a B.S. in Business Administration from Wake Forest University and an MBA from Pace University.

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Thomas Gibbons

BNY Mellon Chief Executive Officer

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Citigroup

Jane Fraser is the Chief Executive Officer of Citi, the world’s most global bank, serving millions of consumers, businesses and institutions across 160 countries and jurisdictions. She is the first female CEO in the firm’s history.

Jane has deep experience across Citi’s consumer and institutional businesses and, in many ways, she helped shape Citi into the company it is today. Before becoming CEO in February 2021, she was President of Citi and CEO of the Global Consumer Bank, responsible for all of Citi’s Consumer businesses, including Retail Banking and Wealth Management, Credit Cards, Mortgage and Operations and Technology in 19 markets.

Before that, she was the Chief Executive Officer of Citigroup Latin America from 2015 to 2019. From 2013 to 2015, she was the Chief Executive Officer of the U.S. Consumer and Commercial Banking and CitiMortgage. From 2009 to 2013, Jane served as the Chief Executive Officer of Citi’s Global Private Bank. Prior, Jane was the Global Head of Strategy and Mergers & Acquisitions for Citi from 2007 to 2009. She joined Citi in 2004 in the Corporate and Investment Banking division.

Before joining Citi, Jane was a Partner at McKinsey & Company. She started her career at Goldman Sachs in the Mergers & Acquisitions department in London and then worked for Asesores Bursátiles in Madrid, Spain.

She is Vice Chair for Partnership for New York City and a member of the Harvard Business School’s Board of Dean’s Advisors, the Stanford Global Advisory Board, the Economic Club of New York and the Council on Foreign Relations. Jane has an M.B.A. from Harvard Business School and an M.A. in economics from Cambridge University. She is married with two children.

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Jane Fraser

Citigroup Chief Executive Officer

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JPMorgan Chase & Co.

Jamie Dimon is Chairman of the Board and Chief Executive Officer of JPMorgan Chase & Co., a global financial services firm with assets of $2.5 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers, small business, commercial banking, financial transaction processing and asset management.

Dimon became CEO on January 1, 2006 and one year later also became Chairman of the Board.  He was named President and Chief Operating Officer upon the company’s merger with Bank One Corporation on July 1, 2004. Dimon joined Bank One as Chairman and CEO in 2000.

Dimon began his career at American Express Company.  Next, he served as Chief Financial Officer and then President at Commercial Credit, which made numerous acquisitions and divestitures, including acquiring Primerica Corporation in 1987 and The Travelers Corporation in 1993. Dimon served as President and Chief Operating Officer of Travelers from 1990 through 1998 while concurrently serving as Chief Operating Officer of its Smith Barney Inc. subsidiary before becoming co-Chairman and Co-CEO of the combined brokerage following the 1997 merger of Smith Barney and Salomon Brothers.  In 1998, Dimon was named President of Citigroup Inc., the global financial services company formed by the combination of Travelers Group and Citicorp.

Dimon earned his bachelors degree from Tufts University and holds an MBA from Harvard Business School. He serves on the boards of directors of a number of non-profit institutions including the Clearing House and Harvard Business School. Additionally, he is the Chairman of the Business Roundtable and serves on the executive committee of the Business Council and the Partnership for New York City, and is a member of the Financial Services Forum, Financial Services Roundtable and Council on Foreign Relations.

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Jamie Dimon

JPMorgan Chase & Co. Chairman And Chief Executive Officer

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Morgan Stanley

Mr. Gorman is Chairman and CEO of Morgan Stanley.

Mr. Gorman became CEO in January 2010 and Chairman in January 2012. He joined the Firm in February 2006 and was named Co-President in December 2007.

Before joining Morgan Stanley, Mr. Gorman held a succession of executive positions at Merrill Lynch. Prior to this, he was a senior partner of McKinsey & Co. and began his career as an attorney in Melbourne, Australia.

Among his civic activities, Mr. Gorman serves as a Director of the Federal Reserve Bank of New York and the Council on Foreign Relations, and is a member of the Board of Overseers of the Columbia Business School, the Monetary Authority of Singapore International Advisory Panel, the Business Council, and the Board of the Institute of International Finance.

He formerly served as President of the Federal Advisory Council to the U.S. Federal Reserve Board, Co-Chairman of the Partnership for New York City, Chairman of the Board of the Securities Industry and Financial Markets Association and Co-Chairman of the Business Committee of the Metropolitan Museum of Art.

Mr. Gorman, who was born in Australia, earned a B.A. and Law degree from the University of Melbourne and an M.B.A. from Columbia University.

James Gorman

Morgan Stanley Chairman And Chief Executive Officer

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