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<h3>Introduction</h3>In a&nbsp;<a href="https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408768">hearing</a>&nbsp;on Tuesday focused on recent failures of regional banks, banking regulators repeated their&nbsp;<a href="https://financialservicesforum.cmail20.com/t/r-i-ttjiduky-l-t/">intention</a>&nbsp;to propose new capital rules for banks who have been a source of strength in recent months, the U.S.-based Global Systemically Important Banks, or GSIBs.&nbsp;These new requirements are expected to significantly increase capital requirements for these banks.A new report, <a href="https://www.pwc.com/us/en/industries/financial-services/library/basel-iii-endgame.html#:~:text=Basel%20III%20Endgame%20is%20a,%2Dweighted%20assets%20(RWA)">Basel III Endgame: The next generation of capital requirements</a>, sheds important light on the state of large bank capital in the United States.&nbsp; The findings from PwC, the global audit and consulting firm, are helpful for assessing both the current state of capital at the largest U.S. banks and any potential need for additional capital.&nbsp; In this blog, we provide a brief overview of the PwC report and its key findings.&nbsp; Overall, the report shows that 1) capital and resiliency at the largest U.S. banks is strong, 2) the level of capital maintained by the largest U.S. banks is in line with academic findings on the optimal level of bank capital, 3) increasing capital requirements on this group of banks will impose a direct cost on the economy, and 4) raising bank capital requirements will hasten the migration of activity from the banking sector to the less regulated non-bank sector and impair financial stability.&nbsp; The report and its findings should be seriously reviewed and considered by policymakers as they consider new capital rules for the nation’s largest banks.&nbsp; On balance, the report strongly suggests that any new capital requirements would incur more costs than benefits to the economy.<h3>The Largest U.S. Banks are Well Capitalized and Resilient</h3>Since the financial crisis, U.S.-based Global Systemically Important Banks (GSIBs), have increased their capital levels substantially. As the report shows in the chart below, common equity tier 1 capital (CET1), the highest quality of regulatory capital, has more than tripled to $881 billion.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-05-16-at-4.08.42-pm.png"><figcaption>Source: Basel III Endgame: The next generation of capital requirements</figcaption></figure>&nbsp;And while the report clearly documents the significant and notable rise in capital at the largest U.S. banks, it also outlines the substantial improvements in resiliency through other, non capital-related initiatives, such as liquidity requirements, total loss absorbing capacity (TLAC) requirements, and a host of other important regulatory initiatives.&nbsp; Importantly, the authors note that understanding and accounting for these additional sources of resiliency are crucial when evaluating the “right” level of capital for the banking system because these other initiatives support and complement capital requirements.&nbsp; As an example, the chart below from PwC clearly demonstrates the large increase in liquidity resources from roughly $500 billion to nearly $3 trillion– or more than a six-fold increase – that supports and buttresses capital requirements.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-05-16-at-4.08.57-pm.png"><figcaption>Source: Basel III Endgame: The next generation of capital requirements</figcaption></figure>&nbsp;&nbsp;<h3>Capital at the Largest Banks Consistent with Academic Research on “Optimal” Levels</h3>The new report also offers an important review of academic studies on the optimal level of capital in the banking system.&nbsp; This is an important part of the report because while documenting the significant increase in capital and resiliency is important, ultimately, we need a coherent analytical framework to assess “how much is enough?”The report reviews a broad range of relatively recent academic research on this topic.&nbsp; And importantly, the report reviews academic studies that consider a “broad range” of post-crisis regulations (e.g., TLAC, liquidity requirements) because of the inherent importance of considering the entire regulatory framework when assessing the optimal level of bank capital.&nbsp; The chart below summarizes the findings.&nbsp;&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-05-16-at-4.09.11-pm.png"><figcaption>Source: Basel III Endgame: The next generation of capital requirements</figcaption></figure>&nbsp;As shown in the chart and stated in the report, “the average optimal capital level that the papers suggest is near current levels at firms expected to be subject to Basel III Endgame capital requirements.”&nbsp; Moreover, it is worth noting that the average optimal capital level is “pushed up” by the results of a study from the Federal Reserve, which finds an optimal ratio of 20 percent, substantially higher than the findings of all other academic studies considered in the report.&nbsp; Accordingly, statements that large bank capital levels are inconsistent with the findings of academic research are simply incorrect.<h3>Increasing Capital at the Largest U.S. Banks will Impose Direct Costs on the Economy, Hasten the Migration of Activity to Non-Banks, and Impair Financial Stability</h3>In addition to documenting the resilience and capital adequacy of the largest U.S. banks, the report also provides important evidence on the impact of increasing capital standards on these institutions.&nbsp; Specifically, the report recognizes two key drawbacks to inappropriately high capital requirements: 1) higher borrowing costs for businesses and consumers, and 2) increased migration of banking activities outside the banking sector.In terms of the direct costs of increasing capital, the report points to a range of research, finding, “greater capital requirements increase a commercial bank’s funding costs, which increases its lending rates and reduces its loan volumes,” thus reducing economic activity.&nbsp; As an example, one of the papers reviewed in the report finds that increasing the risk-based capital ratio by two percentage points (e.g., increasing the requirement from 10 percent to 12 percent) would increase the cost of borrowing by roughly a quarter percentage point and reduce GDP by roughly a quarter percentage point.The report also considers the impact on the economy via a migration of activity outside the banking sector.&nbsp; More specifically, the report finds that non-banks may expand as a result of higher bank capital requirements pushing activity outside of the banking sector and may increase the chances of financial crises, “The potential increase in probability of a crisis would be driven by greater leverage in less regulated and less transparent financial intermediaries, and the potential increase in cost would be due to resiliency of the credit supply being reduced.” &nbsp;&nbsp;<h3>Conclusion</h3>PwC’s report on the largest U.S. banks provides a lot of important food for thought for regulators as they consider proposing higher capital requirements for the largest U.S. banks.&nbsp; Overall, the report finds that resiliency at the largest banks has been strengthened considerably and is at levels broadly consistent with recommendations offered by independent research studies.&nbsp; The report also rightly points to the costs of inappropriately increasing capital requirements – both in terms of the direct costs and the financial stability costs of an expanded non-bank sector.&nbsp; The Federal Reserve is conducting a “holistic review” of bank capital.&nbsp; The PwC report serves as an excellent template for such a review.&nbsp; The report is data-based, draws on a broad array of academic research, and, importantly, is fully public and transparent.&nbsp; The data, methods, and analysis contained in the report and its conclusions can be reviewed by anyone.&nbsp; We believe that the Federal Reserve should make its holistic review as open and transparent as the PwC report.&nbsp; Based on the findings, there is no convincing evidence to suggest that the largest U.S. banks are in need of more capital and increasing requirements would come at a cost.&nbsp; If the Federal Reserve holds a different view, it should be willing to provide its findings in a clear, open, and transparent manner before moving ahead with any policy prescriptions.&nbsp;&nbsp;&nbsp;&nbsp;

A Holistic Review of Large Bank Capital: Findings from a New Report

CONTACT: Barbara Hagenbaugh(202) 471-0436bhagenbaugh@fsforum.com&nbsp;Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today regarding the agreement to address the debt limit:“The Financial Services Forum urges Congress to adopt the agreement between President Biden and Speaker McCarthy to increase the debt limit.&nbsp;We appreciate the efforts of the President and his administration, and the Speaker and other members of Congress, in forging this compromise. Responsible and timely action will preserve the full faith and credit of the United States and our nation’s important position of global economic leadership.”&nbsp;&nbsp;###&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, a competitive global marketplace, and a sound financial system. &nbsp;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>

Forum Urges Congress to Adopt Debt Limit Agreement

Watch: Policy Cents

Dear reader,Welcome to the latest edition of The Forum File. In this edition, we are highlighting the vital work the nation’s largest banks are doing to protect customers from financial fraud, the Forum’s work on bank capital requirements, and a look at our contributions to communities across the country and to promoting a diverse workforce.We hope you enjoy reading this edition and please do not hesitate to share your feedback.Kevin Fromer, President and CEO, Financial Services Forum&nbsp;<h2>Penny For Your Thoughts</h2>Combating Financial Frauds and Protecting Customers: Insights from Mike Steinbach, Citi's Head of Global Fraud Prevention<h3>&nbsp;</h3><h3>What fraud trends is Citi monitoring right now?</h3>At Citi, we serve as a trusted partner for our clients in the fight against fraud by offering dedicated services and easy-to-use, effective tools to stay ahead of scammers. As the Head of Global Fraud Prevention, I have seen financial fraud’s ongoing and rapid evolution from classic physical card theft and account data compromise to sophisticated social engineering schemes.Unfortunately, the impact of cyberattacks and cyber-enabled fraud on global consumers' finances grows yearly. The U.S. Federal Trade Commission <a href="https://www.ftc.gov/news-events/news/press-releases/2023/02/new-ftc-data-show-consumers-reported-losing-nearly-88-billion-scams-2022">data show</a> consumers reported losing $8.8 billion in 2022, a 30 percent annual increase from 2021. Although all fraud is on the rise, like many financial institutions, we are combatting a significant increase in several types:&nbsp;<ul><li>Check fraud:&nbsp;Criminals create or alter checks to illegally withdraw funds from a victim's account, using techniques such as forging signatures, altering check amounts, or creating counterfeit checks.</li><li>Authorized payment frauds:&nbsp;Fraudsters trick individuals into making payments to them, often posing as a trusted entity.</li><li>Money mules:&nbsp;Criminals recruit people to move illicit funds through their bank accounts, often without the individual being fully aware of the scope of the activity.</li><li>First-party fraud:&nbsp;Individuals intentionally defraud financial institutions by submitting incorrect information or abusing credit facilities.</li></ul><h3>Given the rapid growth in fraud, what tools does Citi offer to help customers protect their accounts?</h3>Citi offers tools to prevent, identify, and stop fraud, most of which are opt-in to accommodate customer preferences and reduce friction:<ul><li>Biometric Authentication:&nbsp;Citi Trusted Identity allows enrolled customers the ability to securely manage and monitor their trusted devices. Biometric authentication allows customers to sign onto the Citi Mobile App with their fingerprint, facial recognition, or an iris scan.</li><li>Comprehensive Fraud Management: Citi proactively notifies credit card customers of potential suspicious account activity, and customers can choose to deny suspicious transactions before they happen.</li><li>Account alerts:&nbsp;Highly customizable alerts via Citi Mobile push notifications, email or text help customers monitor their account activity for anything unusual with their balance, payments, spending, and more.</li><li>Citi Quick Lock:&nbsp;This feature allows customers to temporarily freeze misplaced debit and credit cards, blocking new purchases and ATM withdrawals while allowing recurring transactions to continue.</li></ul><h3>What is the broader industry's outlook on the future of fraud?</h3>Fraud has become increasingly sophisticated in the past five to 10 years, with cyber tools enabling criminals to steal at an unprecedented speed and scale. This trend is only growing, as cyber security experts <a href="https://cybersecurityventures.com/cybercrime-damage-costs-10-trillion-by-2025/">anticipate</a> global fraud and cybercrime costs may grow by 15 percent annually over the next five years. Today’s criminals range from individuals to nation states and sophisticated criminal enterprises ­­– and they are all eager to get ahead in this increasingly lucrative shadow industry.To combat their efforts, Citi uses an intelligence-led, threat-driven approach to target fraud throughout the customer journey and fraud lifecycle. This strategy, combined with state-of-the-art tools and top talent, contributes to Citi's position as an industry leader for maintaining low fraud rates, demonstrating our commitment to our customers' financial security.&nbsp;<h2>Value Add</h2>At Citi, our customers are part of our fraud team&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-05-16-at-11.10.10-am.png"></figure>&nbsp;Citi customers themselves play a crucial role in fighting fraud, as they are often the most knowledgeable about their spending habits and can quickly detect suspicious activity.Our research shows that customers feel a shared responsibility for preventing fraud on their accounts and do their part by monitoring their accounts and signing up for alerts. We see alerts as a crucial tool – among many – in helping customers stay ahead of scammers and keeping their accounts safe.Still, customers vary in their knowledge of best practices to avoid fraud, creating an opportunity for Citi and other financial institutions to educate them on fraud prevention and provide clear, actionable solutions.Put simply, proactive customer education is essential for preventing, detecting, and tackling fraudulent transactions. As such, we continually work to stay ahead of scammers and empower consumers with knowledge and information for fraud prevention.That’s why we regularly update <a href="http://citi.com/fraudprevention">citi.com/fraudprevention</a>, for example, to keep customers informed of emerging and common frauds and make it easy for customers to spot red flags to remain secure.Our commitment to empowering and educating our customers in the evolving fight against fraud is unwavering, and we always seek out new ways to safeguard their financial wellbeing.&nbsp;&nbsp;<h2>Capital Gains</h2>What we’re doing in Washington&nbsp;The Securities and Exchange Commission’s proposed rule “Safeguarding Advisory Client Assets” would significantly harm investors and financial markets and exceeds the commission’s regulatory authority, according to a new&nbsp;<a href="https://fsforum.com/a/media/joint-trades-sec-safekeeping-comment-_final.pdf">comment letter&nbsp;</a>filed by the Forum, the American Bankers Association, ABA Securities Association, and the Bank Policy Institute. The associations urged the commission to withdraw and resubmit a proposal that is better targeted to the commission’s objectives.Forum President and CEO Kevin Fromer issued a <a href="https://fsforum.com/news/fed-svb-report-does-not-support-focus-on-large-bank-capital-requirements">statement</a> in response to the Federal Reserve’s review of its supervision and regulation of Silicon Valley Bank: “One should not conflate a liquidity-driven event marked by management failures and supervisory shortcomings with capital adequacy at the largest U.S. banks. The assertion in the introduction that the Fed should focus on large bank capital requirements is disconnected from the report’s conclusions.” Fromer highlighted the stringent capital and liquidity requirements the largest U.S. banks meet, and how these banks have remained a source of strength and support.&nbsp;&nbsp;<h2>Our Two Cents</h2>Research from the Forum&nbsp;The BankNotes Blog Spotlighted:&nbsp;<ul><li>The <a href="https://fsforum.com/news/u-s-vs-european-capital-adequacy-the-increasingly-unlevel-playing-field-unfolding-in-basel-iii-finalization">unlevel playing field</a> created by the existing capital disparity between large U.S. and European banks, and how further regulatory tightening by U.S. regulators will increase the cost of lending by U.S. banks while diminishing their ability to compete with their foreign competitors.</li><li>A <a href="https://fsforum.com/news/large-bank-capital-requirements-and-recent-bank-failures-why-one-has-nothing-to-do-with-the-other">discussion</a> of why recent bank failures had no connection to the existing capital regime for the largest U.S. banks, and how these banks have acted as a source of strength and supported the broader banking sector to avoid further turmoil and cost to the economy.</li></ul>&nbsp;&nbsp;<h2>Checking the Balance</h2>Members in the news&nbsp;Bank of America <a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/05/bank-of-america-awards-negro-leagues-baseball-museum--1m-grant-f.html">awarded a $1 million grant</a> to the Negro League Baseball Museum’s capital campaign to build a new 30,000 square-foot facility in Kansas City, Mo. The grant will support the museum’s work to expand programming, create new interactive displays and build a larger archival and storage space.BNY Mellon has been <a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/bny-mellon-wins-top-honors-at-global-custodian-awards.html?cid=SEC_OSM_NASECMC_SEC_ASD_2110_327_GlobalCustodianAward_ALLSEG_PUB_GL_TWT_____">recognized</a> by Global Custodian publication as Global Custodian of the Year and was also awarded Deal of the Year for its work with Aviva Investors. “When considering the nominees across our Editors’ Choice Awards this year, BNY Mellon stood out in multiple categories, underscoring what we already knew was a stellar year for the organization,” Global Custodian managing editor Jonathan Watkins said.Citi&nbsp;was&nbsp;<a href="https://www.citigroup.com/global/news/press-release/2023/citi-ranked-number-one-u-s-affordable-housing-lender-for-2022#_blank">recognized</a>&nbsp;as the Top U.S. Affordable Housing Lender for the 13th&nbsp;straight year in Affordable Housing Finance Magazine’s annual ranking. Citi Community Capital provided approximately $6 billion to finance more than 35,000 affordable housing units in 2022 throughout the United States, and over $7.4 billion to finance multifamily affordable housing, education, and other community development projects in 2022.Goldman Sachs <a href="https://www.goldmansachs.com/media-relations/press-releases/2023/ombw-announcement-03-apr-2023.html">announced</a> that its One Million Black Women initiative has deployed $2.1 billion in investment capital over the past two years. The program has supported a total of 137 organizations and projects to date, providing over $23 million in philanthropic capital, with the goal of positively impacting the lives of one million Black women across the United States by 2030.JPMorgan Chase, in partnership with the Center for Nonprofit Advancement, <a href="https://www.jpmorganchase.com/news-stories/nonprofit-investment">invested</a> $350,000 in eight D.C.-based nonprofit organizations led by Black women. The organizations will receive technical assistance, health and wellness support, and leadership and business coaching and training. “This will help me with my general operating budget, hire staff and keep the venue up," Congress Heights Arts and Culture Center executive director Keyonna Jones said.Morgan Stanley <a href="https://www.morganstanley.com/press-releases/successful-year-of-the-equity-collective-">announced</a> a successful first year of “The Equity Collective,” a 27-member group of wealth and asset management businesses who joined together to educate, empower and develop diverse leaders in the finance industry. To date, more than 3,900 students have been impacted through the group’s partnership with organizations such as hellohive, Team IMPACT and Boys &amp; Girls Clubs of America.State Street was recently <a href="https://www.fair360.com/top-50-list/2023/">included</a> in Diversity Inc’s 2023 Top 50 Companies for Diversity list for the second consecutive year. The list recognizes companies that perform well in six areas of workplace fairness, including talent programs, philanthropy, workplace practices, human capital metrics, supplier diversity and human capital metrics.Wells Fargo and the T.D. Jakes Group <a href="https://newsroom.wf.com/English/news-releases/news-release-details/2023/Wells-Fargo-and-T.D.-Jakes-Group-Announce-Ten-Year-Strategic-Partnership-to-Build-Inclusive-Communities/default.aspx">announced a strategic partnership</a> to drive economic vitality and inclusivity in communities across America. Over the next 10 years, the partnership between these organizations could result in up to $1 billion in capital and financing from Wells Fargo, as well as grants from the Wells Fargo Foundation, with the goal of revitalizing neighborhoods, fostering economic opportunity and creating long-term change in communities most in need.

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The Forum File, 2023 Edition #3

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We advocate for sound policies that recognize the importance of ensuring that banks are able to support the economy, compete internationally, and remain strong. In particular, the Forum supports a review of the GSIB surcharge, a capital requirement that was agreed to internationally, but that U.S. regulators have implemented in a manner that places higher requirements on U.S. banks than that required of foreign competitors. 

The Forum has also weighed in on an international assessment of post-crisis reforms and the clear need to differentiate between jurisdictions and to acknowledge the progress made in the United States.


Capital and Financial Stability

Washington, D.C., — The American Bankers Association (ABA), Bank Policy Institute (BPI), Consumer Bankers Association (CBA), Financial Services Forum (FSF), International Swaps and Derivatives Association (ISDA), Investment Company Institute (ICI), Managed Funds Association (MFA) and the Securities Industry and Financial Markets Association (SIFMA), a group of trade associations representing broker dealers, banks, asset managers and related financial institutions of all sizes, today issued the following statement on the agreement to raise the federal debt ceiling:“We are encouraged that the Administration and Congressional leaders have reached a bipartisan agreement to raise the federal debt ceiling.&nbsp; America’s capital markets are the strongest, deepest, and most liquid in the world, and we should not do anything to jeopardize that.&nbsp;It is critically important that the United States stand fully behind its obligations.&nbsp; Failure to do so would immediately ripple through the financial system and do irreparable harm to the U.S. economy.&nbsp; &nbsp;“We respectfully urge our public leaders to finalize the debt ceiling deal and take the remaining critical steps necessary to protect our nation’s financial standing in the world.”&nbsp;###&nbsp;About the American Bankers Association: The American Bankers Association is the voice of the nation’s $23.6 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $19.2 trillion in deposits and extend $12.2 trillion in loans.Media Contact:&nbsp; Josh Britton, 202-663-7553, jbritton@aba.com&nbsp;About the Bank Policy Institute: The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.Media Contact: Sean Oblack, 202-538-4227, sean.oblack@bpi.com&nbsp;About the Consumer Bankers Association: The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankersMedia Contact: Billy Reilly, 412-956-6162, brielly@consumerbankers.com&nbsp; About the Financial Services Forum: 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. Forum member institutions are a leading source of lending and investment in the United States and serve 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.Media Contact:&nbsp; Barbara Hagenbaugh, 202-457-8783, bhagenbaugh@fsforum.com &nbsp;About the International Swaps and Derivatives Association: Since 1985, ISDA has worked to make the global derivatives markets safer and more efficient. Today, ISDA has over 1,000 member institutions from 78 countries. These members comprise a broad range of derivatives market participants, including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure, such as exchanges, intermediaries, clearing houses and repositories, as well as law firms, accounting firms and other service providers. Information about ISDA and its activities is available on the Association’s website:&nbsp;<a href="http://www.isda.org">www.isda.org</a>. Follow us on <a href="https://twitter.com/isda">Twitter</a>, <a href="https://www.linkedin.com/company/isda">LinkedIn</a>, <a href="https://www.facebook.com/ISDA.org/">Facebook</a> and <a href="https://www.youtube.com/channel/UCg5freZEYaKSWfdtH-0gsxg">YouTube</a>.Media Contact:&nbsp; Nick Sawyer, ISDA London, +44 20 3808 9740, nsawyer@isda.org&nbsp;&nbsp; &nbsp;About the Investment Company Institute: The Investment Company Institute (ICI) is the leading association representing regulated investment funds. ICI’s mission is to strengthen the foundation of the asset management industry for the ultimate benefit of the long-term individual investor. Its members include mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States, and UCITS and similar funds offered to investors in Europe, Asia and other jurisdictions. Its members manage total assets of $29.9 trillion in the United States, serving more than 100 million investors, and an additional $8.1 trillion in assets outside the United States. ICI has offices in Washington, DC, Brussels, London, and Hong Kong and carries out its international work through ICI Global.Media Contact:&nbsp; Stephen Bradford, 202-993-3760, stephen.bradford@ici.org About Managed Funds Association: Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 170 member firms, including traditional hedge funds, credit funds, and crossover funds, that collectively manage nearly $2.2 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.&nbsp;Media Contact:&nbsp; Noah Theran, news@managedfunds.org&nbsp;&nbsp;&nbsp;About the Securities Industry and Financial Markets Association: SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development.&nbsp; SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).Media Contact:&nbsp; Katrina Cavalli, 212-313-1181, kcavalli@sifma.org&nbsp;

Joint Financial Services Trade Associations Comment on Debt Ceiling Agreement

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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 Chair

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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. Jane serves as a Board Member for the Business Roundtable and the Council on Foreign Relations. She is Vice Chair for the Partnership for New York City and a member of Harvard Business School’s Board of Dean’s Advisors, the Stanford Global Advisory Board and the Economic Club of New York. 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, Forum Vice Chair

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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

Robin Vince is President and Chief Executive Officer of BNY Mellon and a member of its Board of Directors. Previously, he was Vice Chair of BNY Mellon and CEO of Global Market Infrastructure. In that role, he oversaw BNY Mellon’s Clearance and Collateral Management, Treasury Services, Markets and Execution Services and Pershing businesses.

Prior to joining BNY Mellon in October 2020, Robin was the Chief Risk Officer of Goldman Sachs and a member of the Management Committee. He joined Goldman Sachs in 1994 and held many leadership roles, including Treasurer, Head of Operations, Head of Global Money Markets, COO of the EMEA region and CEO of Goldman Sachs International Bank, among others. He served on several key subsidiary boards and governance committees. He was named managing director in 2002 and partner in 2006.

Robin is a member of National Geographic Society's Hubbard Council and serves on the Board of Advisors of The Hospital for Special Surgery.

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Robin Vince

BNY Mellon Chief Executive Officer

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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

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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.

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James Gorman

Morgan Stanley Chairman And Chief Executive Officer

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Wells Fargo & Company

Charles W. Scharf is chief executive officer and president, and a member of the Board of Directors of Wells Fargo & Company.

A financial services veteran with 24 years of experience in leadership roles in the banking and payments industries, Charlie served as chief executive officer of Bank of New York Mellon from July 2017 to October 2019 and the chairman of its board from January 2018 to October 2018. He also was chief executive officer and a director of Visa Inc. from October 2012 to December 2016.

During his tenure at Bank of New York Mellon, Charlie demonstrated a strong track record in initiating and leading change, driving results, strengthening operational risk and compliance, and innovating amid a rapidly evolving digital landscape.

As the CEO of Visa, Charlie transformed the firm into a technology-driven digital commerce company by partnering with the world’s leading technology companies to drive new payment experiences and introduce new technologies to improve payment system security.

Previously, he was a managing director of One Equity Partners at JPMorgan Chase & Co. and chief executive officer of Retail Financial Services at JPMorgan Chase. He also was chief executive officer of the retail division of Bank One Corp., chief financial officer of Bank One Corp., chief financial officer of the Global Corporate and Investment Bank division of Citigroup, and chief financial officer of Salomon Smith Barney and its predecessor company.

Charlie earned a Bachelor of Arts degree from Johns Hopkins University and an MBA from New York University.

He is a director of Microsoft Corporation, serves on the board of trustees of Johns Hopkins University, is a member of The Business Council, and is chairman of the New York City Ballet. He lives in New York City.

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Charles Scharf

Wells Fargo & Company Chief Executive Officer And President

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We are the eight largest and most diversified financial institutions headquartered in the United States. Our more than 720,000 U.S. employees&nbsp;serve millions of consumers, businesses, investors, and communities across the country.

Forum members increased credit to businesses and households by 11% to $9.2 trillion in 2021.

Forum members recognize that climate change poses risks to the world’s economy.
The transition to a low-carbon economy will occur over several decades and requires collaboration between a wide range of industries and government. The Forum advocates for appropriate policies and international cooperation to ensure that climate policies and regulations related to the financial industry are based on science, risk, and sound methodologies.


Climate Finance

Panelists:<a href="https://www.brookings.edu/experts/donald-kohn/">Donald Kohn</a>, Robert V. Roosa Chair in International Economics and Senior Fellow, Economic Studies, Brookings Institution <a href="https://www.cravath.com/people/jelena-mcwilliams.html">Jelena McWilliams</a>, Partner, Cravath, Swaine &amp; Moore LLP <a href="https://www.businesswire.com/news/home/20210816005447/en/Citi-Announces-Appointment-of-New-Global-Chief-Economist">Nathan Sheets</a>, Global Chief Economist, CitiModerator:<a href="https://fsforum.com/who-we-are">Kevin Fromer</a>, President and CEO, Financial Services Forum

U.S. businesses, households, and the overall economy have faced significant challenges during the COVID-19 pandemic. What have we learned about the relationship between large banks and the economy during this time and how should that inform our thinking about policy going forward? We evaluate if there are lessons from this period that will require longer-run policy changes or if the pandemic has been more of a “one-off” event.

Panelists:<a href="https://www.stern.nyu.edu/faculty/bio/richard-berner">Richard Berner</a>, Clinical Professor of Finance and Professor of Management Practice and Co-Director, The Volatility and Risk Institute, New York University Leonard N. Stern School of Business &nbsp;&nbsp; <a href="https://www.mayerbrown.com/en/people/o/andrew-olmem?tab=overview">Andrew Olmem</a>, Partner, Mayer Brown <a href="https://www.ey.com/en_us/people/marc-saidenberg">Marc Saidenberg</a>, Americas Financial Services Regulatory Lead and Principal, U.S. Financial Services Consulting, Ernst &amp; Young LLPModerator:<a href="https://fsforum.com/who-we-are">Sean Campbell</a>, Chief Economist and Head of Policy Research, Financial Services Forum

The U.S. economy is strong, but is facing significant inflationary headwinds, leading the Federal Reserve to remove the proverbial punch bowl, raise interest rates and announce plans to taper its balance sheet. At the same time, bank and market regulators are evaluating potential updates. We’ll discuss the implications for these developments with a focus on the regulation of large bank capital and liquidity, the relation to recent Federal Reserve developments, and the economy.

Panelists:<a href="https://home.treasury.gov/about/general-information/officials/nellie-liang">Nellie Liang</a>, Under Secretary for Domestic Finance, U.S. Treasury&nbsp;Moderator:<a href="https://fsforum.com/who-we-are">Kevin Fromer</a>, President and CEO, Financial Services Forum

Forum President and CEO Kevin Fromer sat down with Under Secretary of Treasury Nellie Liang to discuss the banking sector.

Panelists:<a href="https://www.occ.gov/about/who-we-are/leadership/bio-jonathan-fink.html">Jonathan Fink</a>, Assistant Chief Counsel and Climate Risk Officer, Office of the Comptroller of the Currency <a href="https://www.debevoise.com/alisonhashmall">Alison Hashmall</a>, Counsel, Debevoise &amp; Plimpton <a href="https://www.rmahq.org/speakers/mary-obasi/?gmssopc=1">Mary Obasi</a>, Head of Global Climate Risk for Global Risk Management,&nbsp;Bank of AmericaModerator:<a href="https://fsforum.com/who-we-are">Tiffany Haas</a>, Co-Head of Government Affairs, Financial Services Forum

What are the most unique and pressing climate-related financial risks for large banks, and what can we expect from regulators in the near term? How are large banks responding to the increased focus on climate-related financial risks?  What are the opportunities and challenges associated with a transition to a lower carbon economy?

Panelists:<a href="https://www.sec.gov/biography/commissioner-hester-m-peirce">Hester Peirce</a>, Commissioner, Securities and Exchange Commission <a href="https://www.cravath.com/people/david-l-portilla.html">David Portilla</a>, Partner, Cravath, Swaine &amp; Moore LLP <a href="https://www.linkedin.com/in/andreswolbergstok/">Andres Wolberg-Stok</a>, Global Head of Strategy in the Office of the CTO, CitiModerator:Brett Quick, Former Co-Head of Government Affairs, Financial Services Forum

The rapid growth of digital assets in the past few years raises a variety of important questions about how the financial system will continue to adapt to these new assets and technologies. We will look at what role we expect large banks to play in the development, intermediation, and adoption of these products and how we think about the rapidly evolving pace of regulation in this area.  

The Financial Services Forum Summit

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<ul><li>We hold more than $4.2 trillion in loans, accounting for 40% of total lending to businesses and households.</li><li>We provide more than $679 billion, or nearly half, of all consumer loans by banks in the U.S., supporting everything from the purchase of a new car to furnishing a new home.</li><li>Lending by our institutions accounts for 34% of total commercial and industrial (C&amp;I) lending by banks, helping businesses grow and contribute to the economy.</li><li>We represent a major source of lending to small businesses in communities across the country, holding $126 billion in small business loans&nbsp;and allowing the economy to grow at both a local and national level.</li><li>We also collectively meet nearly three-quarters of the bank funding needs of other financial institutions, supporting community banks, insurance companies and mortgage finance companies, for example, which then provide important services to businesses and households.</li></ul>

Our institutions lend to consumers, businesses and other financial institutions, promoting savings and investment that positions individuals and entities at all layers of the U.S. economy for resiliency and success. At the same time, we are supporting consumers, governments, and businesses of all sizes in growing and creating American jobs.

<ul><li>We underwrite nearly three-quarters of debt and equity transactions – such as initial public offerings – among large institutions in the U.S., providing a critical service that other U.S. institutions cannot offer on a similar scale.</li><li>With $4.2 trillion of mutual funds and annuities under management, we support the retirement and other savings needs of many Americans.</li><li>We finance a significant portion of state and local government expenditures for vital projects, like hospitals, roads, bridges, and schools, through $120 billion in municipal securities holdings. Additionally, we support a large portion of federal government expenditures through $1.1 trillion in U.S. Treasury securities holdings.</li></ul>

Our institutions help foster deep and liquid capital markets, ensuring the U.S. government and private institutions are able to effectively finance public spending and investments in the real economy. 

Our institutions collectively employ more than 750,000 people, offering a variety of benefits and opportunities to help our employees achieve their personal and professional goals.

Forum members increased credit to businesses and households by 10%
to nearly $8.3 trillion in 2020.


Essential to the U.S. Economy

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<ul><li>Bank of America is the largest private investor in Community Development Financial Institutions (CDFIs) in the United States.&nbsp; The company provides capital to more than 250 CDFIs across all 50 states, which supply affordable, responsible loans and technical assistance to low-income and other underserved clients and communities.&nbsp;Bank of America’s portfolio of loans, deposits and investments to CDFIs exceeds $2 billion. Additionally, as part of its $1 billion commitment to closing the racial wealth gap, the bank has committed $50 million to support MDIs.</li><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>

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>

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 2021 provided $6.6 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">11,600 affordable housing units</a>, including 3,200 units for senior citizens, 3,400 units for formerly homeless, veterans, or those with special needs, and 5,500 certified green units. The bank also tripled its affordable homeownership initiative to $15 billion through 2027, giving homebuyers as much as $10,000 for down payments and as much as $7,500 for closing costs.</li><li>Citi in 2021 established its <a href="https://www.citibank.com/icg/sa/citicommunitycapital/">Affordable Housing Preservation Program</a>, 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. In Oregon, Citi provided a $10.0 million construction loan and a $4.7 million permanent loan for the renovation of Webster House, a 48-unit project targeting elderly households experiencing homelessness or at risk of becoming homeless.</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 (UIG)</a>, a domestic, multi-asset class investing and lending business that provides capital to real estate developments and social enterprises working in underserved communities. In 2021, UIG deployed over $3 billion in community development loans in low- and moderate-income communities and created and preserved 4,617 units of affordable housing across the country.</li><li>JPMorgan Chase in 2021 <a href="https://www.jpmorgan.com/commercial-banking/insights/affordable-housing-preservation-two-years-in">announced</a> it had committed more than $13 billion in financing for over 100,000 affordable housing units as part of its Affordable Housing Preservation Program. In 2020, JPMorgan Chase announced its <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 has also committed to originating over 40,000 home purchase loans and refinancing an additional 20,000 loans in minority neighborhoods.</li><li>Morgan Stanley, along with the National Equity Fund, in 2022 <a href="https://www.connectcre.com/stories/morgan-stanley-nef-invest-250m-in-affordable-housing-program/">committed $250 million</a> to preserve and deliver quality affordable and workforce housing at a national level. In 2021, Morgan Stanley partnered with the Metropolitan Atlanta Rapid Transit Authority (MARTA) and the National Equity Foundation to <a href="https://www.housingfinance.com/finance/partnership-launches-100-million-fund-to-preserve-housing-near-marta-stations_o">launch</a> the Greater Atlanta Transit-Oriented Affordable Housing Preservation Fund to boost MARTA’s affordable housing effort, which supports long-term preservationof affordable housing near MARTA rail stations by incentivizing and providing gap funding for owners of affordable housing.</li><li>State Street is a longtime supporter of <a href="https://www.metrohousingboston.org/about/">Metro Housing | Boston</a>, a Boston nonprofit that works with individuals and families who are homeless or at risk of losing their homes, helping them navigate available services to empower them to move along the continuum from homelessness to housing stability. In 2020, 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 program. Since 2010, State Street has invested over $1.7 billion in affordable housing.</li><li>Wells Fargo in 2022 <a href="https://newsroom.wf.com/English/news-releases/news-release-details/2022/Wells-Fargo-Foundation-Aims-to-Grow-Diverse-Housing-Developers-with-40-Million-Donation/default.aspx">announced</a> Growing Diverse Housing Developers, a $40 million grant initiative focused on expanding the growth and success of real estate developers of color, including Black- and Latino-owned firms, as well as increasing the supply of affordable homes across the country. Wells Fargo also works with NeighborWorks America <a href="https://nl.wfhmconsumerevents.com/">to provide</a> down payment assistance and homebuyer education for low- and moderate-income families. In one initiative, in 2021 the bank committed to invest $5 million to help more than 300 low- and moderate-income residents in Houston with home down payment assistance.</li></ul>

Forum members are playing a leading role in promoting affordable housing throughout the country. In 2021 alone, Forum banks created or preserved more than 150,000 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>

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>

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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<ul><li>BNY Mellon&nbsp;started the <a href="https://www.bnymellon.com/us/en/about-us/diversity-inclusion.html">IMPACT</a> network to help cultivate a diverse and inclusive workplace by promoting the recruitment, retention, professional development and advancement of multicultural employees.</li><li>Morgan Stanley&nbsp;has established an ‘<a href="https://www.morganstanley.com/articles/diversity-hiring-black-banking-professionals">Experienced Professionals Program</a>’ to recruit Black professionals with two or more years of post-graduate or work experience for full-time positions to help expand the talent pool of Black financial professionals.</li><li>State Street&nbsp;helps create a diverse workforce through its <a href="https://www.statestreet.com/values/social-consciousness.html">Global Inclusion program</a>, which offers mentoring, events and performance goals focused on diversity and inclusion, and employee networks.</li></ul>

We are building a pipeline of diverse talent by expanding the pool of diverse managers and ensuring an inclusive workplace.

<ul><li>Bank of America&nbsp;has a Global Diversity &amp; Inclusion Council chaired by CEO Brian Moynihan, which leads D&amp;I efforts and works with the management team setting related goals for the company.</li><li>Citi&nbsp;has named members of the CEO’s leadership team as co-chairs of its affinity groups, which set and reinforce the company’s diversity priorities and goals.</li><li>JPMorgan Chase&nbsp;<a href="https://www.jpmorganchase.com/news-stories/jpmc-announces-brian-lamb-as-global-head-of-diversity-inclusion">named</a> a new Global Head of Diversity &amp; Inclusion in April 2020, a newly created position that reports directly to the firm’s co-presidents.</li><li>Wells Fargo has created a new expanded diversity role reporting directly to the CEO, with a broad mandate to drive diversity and inclusion in both the firm’s workplace and business.</li></ul>

Our institutions are establishing and empowering Diversity & Inclusion leadership roles dedicated to advancing diversity, inclusion and equity in the workplace in partnership with chief executives.

<ul><li>Bank of America&nbsp;offers Employee Networks that provide teammates from diverse backgrounds opportunities to connect with each other, develop leadership skills, and build strong ties with the communities they serve.</li><li>JPMorgan Chase&nbsp;has multiple <a href="https://careers.jpmorgan.com/us/en/about-us/diversity">Business Resource Groups</a> (BRGs) that help foster networks of employees and connect women and minority employees with each other to provide mutual support and sharing.</li><li>Morgan Stanley&nbsp;has multiple <a href="https://www.morganstanley.com/people-opportunities/enetworking">Employee Networks</a> designed to enhance employee engagement, deliver substantive content, create a framework for cross-business unit connectivity and idea-sharing, and advance the firm’s overall culture of inclusion.</li></ul>

We have launched and expanded our Employee Resource Groups (ERGs) and other affinity groups to support employees and create conditions for them to succeed.

<ul><li>Bank of America&nbsp;has created unconscious bias trainings and offers diversity &amp; inclusion training.</li><li>Citi trains all hiring managers and Human Resources employees on unconscious bias.&nbsp;</li><li>JPMorgan Chase&nbsp;requires all employees to participate in unconscious bias and diversity &amp; inclusion training.</li><li>Wells Fargo&nbsp;requires live anti-racism manager training and has developed a series of educational sessions in which employees can share with their colleagues their personal stories and perspectives on the realities of racism in the U.S.</li></ul>

We are creating and offering training focused on concepts like anti-racism, unconscious bias, and social justice.

<ul><li>Bank of America&nbsp;has committed to hiring 10,000 individuals from low- and moderate-income communities by 2023.</li><li>Citi has set a goal of having 30% Black and Hispanic/Latinx colleagues in its U.S. analyst and associate programs.</li><li>Goldman Sachs&nbsp;<a href="https://www.goldmansachs.com/media-relations/press-releases/current/update-on-inclusion-and-diversity.html">announced</a> a plan to, by 2025, achieve a representation among its vice presidents that equates to 40 percent women globally, 7 percent Black professionals in the Americas and UK, and 9 percent Hispanic/Latinx professionals in the Americas.</li><li>JPMorgan Chase&nbsp;has committed to hiring 4,000 Black students in full-time positions, apprenticeships and internships over the next five years.</li><li>State Street&nbsp;has <a href="https://www.statestreet.com/values/inclusion-diversity/diversity-goals.html">set</a> three- and five-year goals for achieving higher percentages of employees of color in SVP, MD, and VP positions across the firm.</li><li>Wells Fargo&nbsp;has committed to doubling the number of Black employees in leadership positions over the next five years.</li></ul>

Our institutions have established hiring commitments to diversify our workforces.

**Our commitment to diversity, equity and inclusion**

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