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Sean Campbell

Chief Economist, Head of Policy Research

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Michael Chasen

Research Associate, Policy Research

<h3>Introduction</h3>More than half of all Americans work at small businesses, making these companies vital to the growth and success of the American economy.&nbsp;Though small businesses are generally profitable and vibrant in a healthy economic environment, economic downturns or periods of uncertainty bring challenges that can force them to shut their doors forever. Unlike larger businesses, small business owners simply do not have pockets deep enough to withstand extended periods of adversity. In these circumstances, healthy, well-capitalized banks support entrepreneurs through lending. In this post, we review how the events of the past few years have showcased the substantial contributions of Forum members in supporting small businesses, and the economy.&nbsp; &nbsp;&nbsp;<h3>Forum Members’ Steady and Growing Support for Small Businesses</h3>Figure 1 reports the total amount of outstanding small business loans in each year – small business loans are defined as those loans less than $1 million.&nbsp;As the figure clearly shows, Forum member loans to small businesses have grown steadily over time. Importantly, at the onset of the pandemic, lending to small businesses increased dramatically – in part due to their participation in the government’s Paycheck Protection Program (PPP) - to meet the rapidly growing needs of small businesses across the country.&nbsp;Forum members helped these businesses through a time of economic uncertainty and lockdowns, increasing their small business lending between 2019 and 2020 by 38 percent. In 2021, as some of the uncertainty passed and the economy began opening up again, small businesses repaid previously borrowed funds, and small business PPP loans were forgiven. As a result, the outstanding amount of small business loans fell relative to the 2020 pandemic year, but have remained elevated.&nbsp;&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2022-09-19-at-9.57.35-am.png"><figcaption>Source: Second quarter Call Report data, available at <a href="https://cdr.ffiec.gov/public/PWS/DownloadBulkData.aspx">https://cdr.ffiec.gov/public/PWS/DownloadBulkData.aspx</a></figcaption></figure><h3 style="text-align:justify;">&nbsp;</h3><h3>Forum Members Strongly Supported the Paycheck Protection Program (PPP)</h3>As discussed, Financial Services Forum members also played an instrumental role in the government’s Paycheck Protection Program (PPP). The PPP program was a key element of the government’s pandemic response that was aimed at providing forgivable loans to small business in need of emergency funding during the pandemic. Over the course of the program, Forum members facilitated over $94 billion in loans to well over 1 million recipients andmore than half of Forum member loans were for less than $25,000.&nbsp; In addition, on average, each loan supported roughly 10 jobs, demonstrating the extent to which these loans supported small businesses throughout the country.&nbsp; The PPP program was also a success in supporting a wide array of industries.&nbsp;Figure 2 below shows the number of Forum PPP loans made to different industry sectors.&nbsp; As the chart shows, Forum members channeled small business loans to a wide array of industries, many of which were crucial to addressing the pandemic, such as health care and transportation services.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2022-09-19-at-9.58.58-am.png"><figcaption>Source: SBA PPP All loan data available at <a href="https://data.sba.gov/dataset/ppp-foia">data.sba.gov/dataset/ppp-foia</a></figcaption></figure><h3 style="text-align:justify;">&nbsp;</h3><h3>Small Business Lending All Across the USA</h3>Figure 3 provides even more granular data on Forum member small business lending, showing exactly where these loans are going. The figure shows per capita small business lending by Forum members across the United States through 2020. This geographic look at the data highlights that Forum member small business lending is making a difference all across the country, not only in a few areas. In particular, significant amounts of small business lending can be seen in all regions of the country.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2022-09-19-at-10.00.38-am.png"><figcaption>Sources: FFIEC Community Reinvestment Act, available at&nbsp;<a href="https://www.ffiec.gov/cra/default.htm">https://www.ffiec.gov/cra/default.htm</a>, U.S. Census Bureau County Population Totals, available at <a href="https://www.census.gov/programs-surveys/popest/data/data-sets.html">https://www.census.gov/programs-surveys/popest/data/data-sets.html</a></figcaption></figure><h3 style="text-align:justify;">&nbsp;</h3><h3>Beyond the Numbers: How Forum Members are Supporting Small Businesses</h3>The data we have shown are impressive, but it is also helpful to look at some specific and clear examples of how Forum members are making a difference to small businesses. Below, we detail a handful of specific examples that provide greater context for the broader trends we have discussed.<ul><li>At the start of the COVID-19 pandemic, Bank of America partnered with State Street and several other organizations to create <a href="https://www.smallbstrong.com/">Small Business Strong</a>, a non-profit that provides online resources and personalized consulting services to Massachusetts small businesses (particularly women and minority owned), free of charge. Since its creation, Small Business Strong has helped nearly 2,000 Massachusetts small businesses.</li><li>In July 2021, the Citi Foundation’s <a href="https://www.citigroup.com/citi/foundation/programs/smallbusiness.htm">Small Business Technical Assistance Initiative</a> provided $25 million in unrestricted funding to 50 community organizations, supporting each group in their missions of helping small businesses owned by people of color through lending, training programs, pro bono legal and marketing services, and technical assistance.</li><li>From March 2020 to June 2020, Goldman Sachs committed $750 million to fund PPP loans through Community Development Financial Institutions (CDFIs), and launched partnerships with the National Urban League and the U.S. Hispanic Chamber of Commerce to “ensure that both capital and information reach minority-owned businesses.” Goldman’s <a href="https://www.10ksbapply.com/">10,000 Small Businesses Program</a> continues to provide training and coaching to small business owners, who see significantly increased rates of hiring, expansion, and business success after graduation.</li><li>In February 2021, JPMorgan Chase pledged $350 million over five years to aid Black, Latino, women-owned, and other small businesses in their recovery from the COVID-19 pandemic, and to grow these businesses with the aim of addressing the racial wealth divide. As a part of this commitment, JPMorgan Chase is expanding <a href="https://www.jpmorganchase.com/news-stories/how-39mm-loan-fund-is-helping-underserved-entrepreneurs-grow">the Entrepreneurs of Color Fund</a> in collaboration with the Local Initiatives Support Corporation and a nationwide network of CDFIs.</li><li>Morgan Stanley announced the creation of its <a href="https://www.morganstanley.com/about-us/supplier-diversity/small-business-academy1">Small Business Academy</a> in early 2022, with the inaugural class beginning its virtual learning experience in late April. The Academy was established to empower diverse-owned small-business leaders by helping them to expand their professional networks and strengthen their business acumen.</li><li>Over the past two and a half years, the Wells Fargo <a href="https://www.wellsfargo.com/biz/help/open-for-business-grants/">Open for Business Fund</a> has provided over $400 million in grants to CDFIs and donations to nonprofits to support small businesses with technical assistance. Wells Fargo estimates that the Open for Business Fund has served 150,000 small businesses, with the majority of those owned by Black, Hispanic, Native American, and/or Asian American entrepreneurs.</li></ul><h3>Conclusion</h3>Small businesses are vitally important to the American economy and American small businesses have deftly navigated a number of significant challenges in the past few years. In that time, Forum members have supported small businesses across the country by ramping up their small business lending, initiating specific and purposeful financial programs aimed at benefitting small businesses, and facilitating the government’s PPP program.&nbsp;While there is still work to do in improving the economy for the future, Forum members have been vital to the recent success of America’s small businesses and look forward to supporting them in the future.

Article

Large Banks and Small Businesses: Supporting Small Businesses All Across the Country

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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>

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Lending

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>

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Liquid Capital Markets

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. 

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Our Employees

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

<h3>Introduction</h3>Large companies in the U.S. that compete all over the globe – companies that run that gamut from the likes of Boeing to Coca-Cola - require steady access to sophisticated financial services that can be tailored to the complex and global needs of their businesses.&nbsp; These services, such as foreign currency and derivative services, are critical to ensuring that U.S. companies operating overseas can compete effectively with their foreign counterparts.&nbsp; Even smaller companies that generate sales and operate overseas need such services to effectively function and compete abroad.&nbsp; Financial Services Forum members operate globally and offer a wide range of financial services that help U.S.-based firms compete effectively in a world that is increasingly characterized by less cross-border lending from large banks abroad as well as foreign “national champion” competitors that are actively supported by foreign government policy.&nbsp; Forum members, as global banks that have deep expertise in foreign markets, are uniquely positioned to support large, U.S. companies competing abroad and contribute to their success on the world stage.<h3>The Decline in Cross-Border Lending</h3>For more than a decade there has been a steady decline in cross-border lending and banking.&nbsp; More specifically, the amount of lending provided by banks in one country to companies in another country has steadily declined.&nbsp; Figure 1 depicts the total amount of outstanding cross-border loans made by banks from 2008-2022.&nbsp; As shown in the figure, the amount of cross-border lending has declined from roughly $20 trillion to $14 trillion since 2008.&nbsp; As a result, large U.S. companies operating overseas must look to U.S. banks to fulfill their financing needs as well as their needs for other financial services that are critical to their success in foreign markets.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2022-09-09-at-10.35.35-am.png"><figcaption>&nbsp;Source: Bank for International Settlements</figcaption></figure>&nbsp;&nbsp;<h3>Forum Leadership in Global Financial Services</h3>While large U.S. companies such as Boeing and Coca-Cola require bank loans, they also demand a range of additional, sophisticated financial services that are largely provided by large, global banks, such as Forum members.&nbsp; As an example, Coca-Cola may need to purchase goods in foreign countries to support its operations.&nbsp; To make those purchases, Coca-Cola will need to transact in a foreign currency and will need a bank that can make large volumes of foreign currency payments.&nbsp; Coca-Cola may also need to risk manage its exposure to foreign currency fluctuations by using foreign exchange derivatives and will need to work with a bank that has expertise in the complex field of derivative risk management.In Figure 2 below, we show the amount of foreign currency payments and the amount of derivative activity conducted by Financial Services Forum members and all other large U.S. banks.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2022-09-13-at-8.45.08-am.png"><figcaption>Source: FR Y-15, FR Y-9C</figcaption></figure>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As can be clearly seen in the figure, Forum members are the dominant providers of foreign currency payments and derivative services.&nbsp; These services are critical to maintaining the competitive position of large U.S. firms operating overseas.&nbsp; In particular, a large U.S. company that is unable to competitively manage its foreign currency expenditures abroad would find it difficult -- if not impossible -- to compete with local firms that bear no foreign currency risk whatsoever.&nbsp; Moreover, operating in foreign markets requires a degree of insight and expertise that can only be achieved by global firms that continuously operate in those foreign markets.&nbsp; Among U.S. banks, Forum members stand alone in their foreign market footprint and expertise.<h3>Beyond Lending: Raising Capital from Public Markets</h3>While large U.S. companies do need bank lending, a large amount of their financing comes from their own issuance of debt and equity securities in our public capital markets.&nbsp; This source of funding is critical to ensuring a steady flow of finance that can be used to make needed investments overseas to remain competitive with foreign competitors.&nbsp; In Figure 3, we show the combined amount of debt and equity underwriting provided by Forum members and other large, U.S. banks.&nbsp;&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2022-09-09-at-10.36.11-am.png"><figcaption>&nbsp;Source: FR Y-15</figcaption></figure>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As shown in the figure, Forum members account for the lion’s share of underwriting activity among U.S. banks.&nbsp; This form of support to large, U.S. companies operating overseas is important for maintaining international competitiveness as some foreign competitors may benefit from certain “national champion” policies that tilt the playing field in the direction of nationally supported foreign competitors.&nbsp; Accordingly, having ready access to global pools of capital puts large U.S. firms in the best position to compete head-to-head against their foreign competitors.<h3>Conclusion</h3>Maintaining the competitive position of U.S. firms internationally is critical to ensuring the success and vibrancy of the U.S. economy.&nbsp; Forum members support the international competitiveness of U.S. firms by lending and providing a range of other financial services that large firms operating overseas require.&nbsp; Forum members are themselves global firms that are uniquely positioned to provide the services, insight and perspective that comes from their day-to-day experience in markets all over the globe.&nbsp; Working together, Forum members and large U.S. companies bring the competitive spirit and productivity of the U.S. economy to the world stage.&nbsp;&nbsp;&nbsp;

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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

Large Bank Support for the International Competitiveness of U.S. Companies 

<h3>Introduction</h3>The recent and horrifying developments in Ukraine have created significant challenges in the oil and gas industry that have impacted consumers at the gas pump and the broader macroeconomy.&nbsp; At the same time, the U.S. economy is also on a transition path that will, over time, make increasing use of renewable energy resources.&nbsp; Large banks play a pivotal role in supporting the existing energy infrastructure and managing the transition to a less carbon-intensive energy industry.&nbsp; In this post we lay out some basic facts about large bank financing of the energy industry.&nbsp; The data clearly show that large banks have been consistently providing financing to this important industry, along with financing for the next energy boom.<h3>Bank Funding of the Energy Sector</h3>Energy companies routinely obtain significant amounts of credit from large U.S. banks.&nbsp; We can open a window into the amount of financing provided to energy companies by looking at the Shared National Credit Report.&nbsp; The Shared National Credit, or “SNC,” report provides an annual review of large loans that are shared, or “syndicated,” by three or more lenders.&nbsp; These are precisely the kinds of large and widely held bank loans that are used to fund large, capital-intensive industries such as the energy industry.The 2021 SNC <a href="https://www.occ.treas.gov/publications-and-resources/publications/shared-national-credit-report/files/shared-national-credit-report-2021.html">report</a> is particularly instructive as it contains an analysis of the loan commitments provided to a range of COVID-impacted industries.&nbsp; The chart below shows the level of SNC loan commitments made to the oil and gas industry as well as other industries from 2019 through 2021.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2022-09-09-at-10.16.05-am.png"><figcaption>Source: 2021 SNC Report</figcaption></figure>&nbsp;As shown in the figure from 2019 through 2021, SNC lenders were providing between $350 billion -$400 billion in loan commitments to the oil and gas sector (O&amp;G).&nbsp; It is further worth noting that among COVID-impacted industries analyzed in the report, the energy sector has received the greatest amount of bank funding.&nbsp; Of course, this is partly to be expected because the energy industry is a capital-intensive industry that typically requires more financing than less capital-intensive industries, such as the retail or entertainment sectors.&nbsp; Finally, it should be noted that large U.S. banks are generally the largest holders of SNC commitments.&nbsp; As detailed in the report, U.S. banks hold over 44 percent of all SNC commitments while foreign banks and non-banks account for 33 percent and 23 percent of all SNC commitments, respectively.<h3>The Energy Industry and Market Funding</h3>While large U.S. banks provide a significant amount of direct lending to the energy industry, direct bank lending is only one part of the credit story.&nbsp; Beyond direct financing, large banks underwrite significant amounts of security issuance, which allow large companies to obtain credit directly from public capital markets.At the onset of the pandemic in 2020, after an initial freezing of credit markets, the Federal Reserve took a number of actions to increase the flow of credit to the economy, including through the increased issuance of debt securities by large companies.&nbsp; In 2020 and 2021, large companies across an array of industries raised significant amounts of funding from capital markets as total U.S. corporate bond issuance rose nearly 65 percent relative to 2019. And this trend towards greater capital markets issuance was not lost on the energy sector.&nbsp; In the table below we highlight the debt issuance of five large, established U.S. companies in the energy sector.<figure class="table" style="text-align:center;"><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:188.75pt;" colspan="2">2020 Debt Issuance of Select Oil and Gas Companies</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:125.75pt;">Oil and Gas Company</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:63pt;">Issuance ($BN)</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:125.75pt;">Chevron</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:63pt;">12</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:125.75pt;">Exxon Mobil</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:63pt;">23</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:125.75pt;">Marathon Oil</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:63pt;">3</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:125.75pt;">Phillips 66</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:63pt;">2</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:125.75pt;">Valero</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:63pt;">1</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:188.75pt;" colspan="2">Source: SEC 10k</td></tr></tbody></table></figure>As shown in the above table, energy companies clearly have availed themselves of the opportunity to raise debt financing in the U.S. capital markets.&nbsp; And these markets are primarily intermediated by large U.S. banks.&nbsp; Indeed, Financial Services Forum members underwrite nearly three-fourths of all equity and debt issuance in the U.S. Accordingly, large banks have supported the energy industry by directly financing their investment needs and by facilitating their debt raising from the public through the U.S. capital markets.<h3>Financing the Transition to a Less Carbon-Intensive Economy</h3>Much of the financing of energy companies has been used to increase our nation’s capacity for traditional, carbon-based energy, such as oil and gas.&nbsp; Yet many of these traditional energy companies, and other companies as well, are actively pursuing opportunities for the more renewable, less carbon-intensive energy sources that will power our economy in the future.&nbsp; Forum members are committed to an “all of the above strategy” that finances our nation’s transition to a cleaner and more renewable energy future while also working to ensure that today’s energy’s needs can be met effectively and efficiently.&nbsp; Forum members regularly disclose and report on their varied and distinct investments in renewable energy projects in relevant reports.&nbsp; These investments represent high-value opportunities that are designed to spur innovation to support our economy’s longer-term needs for cleaner sources of energy.&nbsp;&nbsp;<h3>Conclusion</h3>The recent and unsettling events in Ukraine have shined a light on the need to balance our efforts to support our existing energy needs while supporting innovation towards a less carbon-intensive future. As we have demonstrated, large banks provide significant amounts of financing to the energy industry to meet today’s needs through direct lending and also through underwriting securities issuance in our capital markets, while also financing the energy needs of tomorrow.&nbsp; Both activities, coupled with a sensible and supportive regulatory framework, will continue to support this vital industry as the economy confronts the long-run transition to the less carbon-intensive economy of tomorrow.

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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

Energy and Large Banks in Our Modern Economy

BankNotes Blog

Dear reader,Welcome to the latest edition of The Forum File. In this edition, we are highlighting our firms’ work to increase access to banking and financial services in local communities across the country.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>Shannel Heath, Community Manager at JPMorgan Chase &amp; Co.&nbsp;<h3>How does JPMorgan Chase connect with local communities?</h3>At JPMorgan Chase, we value the relationships we build with our clients and strive to best assist the local communities in which we operate. The community manager role helps us interact more effectively with different communities across the country.As a community manager for JPMorgan Chase in Cincinnati, I work to help increase access to resources, financial health tools and services, particularly in underserved communities in our area. I understand firsthand the challenges of achieving one’s financial aspirations and have worked hard to help make banking and personal finance less intimidating for our clients. Community managers help build trust with members of the community by hosting different community events, financial literacy workshops and by engaging people inside the bank. That’s why it is also important that all our community managers live in the communities we serve.<h3>What tools do community managers at JPMorgan Chase have to help individuals create financial health?</h3>Banking and personal finance can be an overwhelming topic for people of all ages and backgrounds, especially those from underserved communities. Community managers offer free and public workshops that cover various personal finance topics such as opening a bank account, building a budget, saving for a down payment and improving credit health. Additionally, we help educate people on important products and services, such as Chase <a href="https://www.chase.com/personal/checking/savings-program">Autosave</a>, a digital tool that automatically transfers money from a customer’s Chase checking account to their savings account.&nbsp;<h3>How does JPMorgan Chase’s Racial Equity Commitment fit into its connection with local communities?</h3>In October 2020, JPMorgan Chase committed $30 billion to <a href="https://www.jpmorganchase.com/impact/racialequity">advance racial equity</a>. As part of this commitment, we have continued to outline how we are advancing our commitment and providing updates to our stakeholders. Hiring community managers is an important part of advancing this commitment and reaching goals related to increasing homeownership and affordable housing; growing and strengthening small businesses; and improving access to banking in Black, Hispanic and Latino communities.To reach these goals, our bank is opening additional community center branches that are designed to collaborate with local organizations to offer free skills training and space for small business pop-ups. In 2021, the bank hosted some 1,300 financial health workshops across the country, reaching more than 36,000 people. Additionally, 47 of the 100 new branches opened by JPMorgan Chase in 2021 are located in low- to moderate-income communities. JPMorgan Chase representatives and community managers have mentored more than 1,000 Black, Hispanic and Latino small business owners.We are working to close the racial wealth gap. For me, that all starts with a single customer. If I’m focused on that customer, I’m doing my job.&nbsp;<h2>Value Add</h2><figure class="image"><img src="https://fsforum.com/a/media/istock-1047954426.jpg"></figure>According to <a href="file:///C:/Users/Brigid%20Richelieu/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/2UFIL28J/but%20take%20a%20more%20cautious%20approach%20then%20men,">new research</a> from&nbsp;<a href="https://www.jpmorganwealthmanagement.com/">J.P.&nbsp;Morgan Wealth Management</a>, Black and Hispanic Americans prefer to have more control over their investments and care more about the social impact of companies they are investing in. J.P.&nbsp;Morgan surveyed more than 2,000 Americans this year to understand what motivates – or prevents – them from getting invested.The J.P.&nbsp;Morgan Wealth Management Diverse Investor Study found that 59% of Black Americans and 57% of Hispanic Americans want to take an active role in selecting the stocks, bonds or funds that make up their investment portfolio, compared to 46% of White Americans. According to the study, Black and Hispanic Americans also care more about the social impact of the companies they’re investing in, and it’s important that their investments:<ul><li>are Black, Indigenous and People of Color (BIPOC)-owned, started, and/or operated (70% and 46%, compared to 27% of White and 31% of Asian),</li><li>have a positive environmental impact (72% for both Black and Hispanic, compared to 55% of White and 57% of Asian),</li><li>are women-owned, started, and/or operated (60% and 48%, compared to 30% of White and 40% of Asian),</li><li>promote gender and racial equity and diversity (66% and 54%, compared to 35% of White and 42% of Asian)</li></ul>Despite volatility and uncertainty, most investors are not concerned about market decline. The study found that overall, the majority of investors are concerned about rising inflation and interest rates (88%), would not be concerned about a 20% dip in their portfolio (69%), and automate their investments on a regular basis (58%). Additionally, the study found that women are optimistic about their financial situation, with 59% of women saying their financial situation is better now than five years ago, compared to 62% of men. However, women are taking a more cautious approach than men, with 45% of women describing their investing strategy as cautious, compared to 33% of men.Readers can learn more about the J.P.&nbsp;Morgan Wealth Management Diverse Investor Study findings <a href="https://www.jpmorganchase.com/news-stories/jpmc-black-and-hispanic-americans-prefer-to-take-more-control-over-their-investments-and-are-driven-by-purpose">here</a>.&nbsp;<h2>Capital Gains</h2>What we’re doing in Washington&nbsp;In a new video, the Forum highlighted the strength and resiliency of the nation’s largest banks and their contributions to the economy featuring key quotes and clips from federal regulators.<div class="raw-html-embed"><iframe src="https://player.vimeo.com/video/748175654?h=efe677f1c3" width="640" height="564" frameborder="0" allow="autoplay; fullscreen" allowfullscreen=""></iframe></div>&nbsp;<h2>Our Two Cents</h2>Research from the Forum&nbsp;The BankNotes Blog Spotlighted:<ul><li>The substantial contributions of Forum members in <a href="https://fsforum.com/news/large-banks-and-small-businesses-supporting-small-businesses-all-across-the-country">supporting small businesses</a> and the economy.</li><li>How Forum members, as global banks that have deep expertise in foreign markets, are <a href="https://fsforum.com/news/large-bank-support-for-the-international-competitiveness-of-u-s-companies">uniquely positioned</a> to support large, U.S. companies competing abroad and contribute to their success on the world stage.</li><li>Forum members’ <a href="https://fsforum.com/news/energy-and-large-banks-in-our-modern-economy">work</a> financing our nation’s transition to a cleaner and more renewable energy future while also working to ensure that today’s energy’s needs can be met effectively and efficiently.</li></ul>&nbsp;<h2>Checking the Balance</h2>Members in the newsBank of America <a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/08/bank-of-america-announces-small-business-down-payment-grant-prog.html">announced</a> the launch of a Small Business Down Payment Grant Program to drive business growth and help create generational wealth opportunities for minority and women business owners. The program provides down payment grants on SBA 504 and 7(a) commercial real estate loans. Launching in select markets with plans to expand in 2023, the program will extend credit to historically disadvantaged small business borrowers and provide support to make purchasing commercial real estate more affordable.The Banker <a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/bny-mellon-treasury-services-wins-the-bankers-global-transaction-bank-of-the-year-2022.html">recognized</a> BNY Mellon with four awards for the firm’s innovative work to streamline and transform transaction processes. The awards include 2022 Global Transaction Bank of the Year, Transaction Bank of the Year for North America, as well as top honors for Payments and for Trade Finance. Treasury Services received honors in the payments category for the second straight year for its ongoing work to transform the real-time and digital payments space.Two years after Citi launched its <a href="https://www.citigroup.com/citi/racial-equity/">Action for Racial Equity</a> commitment, the firm <a href="https://blog.citigroup.com/2022/09/action-for-racial-equity-two-years-later/">surpassed</a> the $1.1 billion investment goal in strategic initiatives working to help close the racial wealth gap. Since the launch, Citi has made important progress. Recent highlights include launching a special purpose credit program that will expand income eligibility and distribution of lending solutions to serve more diverse consumers, enlisting three minority depository institutions to take part in a $1.23 billion syndicated corporate loan and five Black-owned firms to syndicate a $2.5 billion bond issuance, and <a href="https://blog.citigroup.com/2022/09/citi-impact-fund-expands-to-500-million-doubling-down-on-the-double-bottom-line/">expanding</a> the Citi Impact Fund to $500 million.Goldman Sachs <a href="https://grantmakersforgirlsofcolor.org/resources-item/goldman-sachs-one-million-black-women-invests-500000-in-the-future-economy-lab-abundantly-investing-in-girls-of-color/">invested</a> half a million dollars in The Future Economy Lab, a joint lab between Grantmakers for Girls of Color and SecondMuse Capital. Goldman Sachs <a href="https://www.goldmansachs.com/our-commitments/sustainability/one-million-black-women/">One Million Black Women’s</a> investment will support Black girls and gender-expansive youth age 13 to 24, as well as industry experts, in co-creating and co-designing financial tools to advance racial equity and inclusive growth.Morgan Health, a business unit within JPMorgan Chase, <a href="https://www.jpmorganchase.com/news-stories/morgan-health-announces-new-investment-in-letsgetchecked">announced</a> a $20 million investment in LetsGetChecked, a global health care solutions company that provides clinical tools to conveniently and easily manage patients’ health from home. The LetsGetChecked platform plays a key role in reaching historically underserved individuals who often face significant financial or logistical barriers to routine and recommended testing. The investment aims to scale availability of accessible at-home health care solutions for early diagnosis, disease prevention, care management.Morgan Stanley <a href="https://www.morganstanley.com/press-releases/inaugural-global-cohort-multicultural-innovation-lab">announced</a> the eighth cohort of the&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.morganstanley.com%2Fabout-us%2Fdiversity%2Fmulticultural-innovation-lab%23why-the-multicultural-lab&amp;esheet=52858647&amp;newsitemid=20220906005822&amp;lan=en-US&amp;anchor=Multicultural+Innovation+Lab&amp;index=1&amp;md5=94a3ce61f18b387efcb059ba42d13b40">Multicultural Innovation Lab</a>. The in-house accelerator program for technology and technology-enabled startups targets companies with multicultural or women founders or other C-suite members. Now in its sixth year and with 69 participating companies to date, the program is expanding globally for the first time, with participating companies in both the U.S. and in Europe, the Middle East and Africa.State Street CEO Ronald O’Hanley, along with President and Head of Investment Services Lou Maiuri, were named to the HERoes 2022 Top Advocate Executives list for their work in driving inclusion for women across the business. Yvonne Garcia, Chief of Staff to State Street Chairman and CEO, and Donna Milrod, Executive Vice President of State Street Corporation, were named to the Top Women Executives list.Wells Fargo <a href="https://newsroom.wf.com/English/news-releases/news-release-details/2022/Wells-Fargo-Foundation-awards-7.5-million-to-LISC-Houston-to-expand-homeownership-for-families-of-color/default.aspx">invested</a> $7.5 million in a new initiative launched by Local Initiatives Support Corporation Houston and the Harris County Homeownership Collaborative to expand homeownership opportunities for Black, Hispanic, and other underserved individuals and families. The donation comes from Wells&nbsp;Fargo’s&nbsp;Wealth Opportunity Restored Through Homeownership, or WORTH, initiative, a $60&nbsp;million national effort to address systemic barriers to homeownership for people of color.

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The Forum File, 2022 Edition #5

Dear reader,Welcome to the latest edition of The Forum File. In this edition, we are highlighting our firms’ work to remove barriers for historically underserved populations and expand access to banking services across the country to create a more inclusive economy.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>Gonzalo Luchetti, CEO of U.S. Personal Banking at Citi&nbsp;<h3>What is Citi doing to remove some of the barriers preventing low-income Americans from engaging in the financial system?</h3>This Summer, Citi bolstered our track record for leading on overdraft policy by completely eliminating all overdraft fees and returned item fees for our consumer banking customers. We already had some of the lowest overdraft fee revenues in relation to our size in the industry as a result of being a consistent leader in implementing overdraft practices to protect our clients. For example, we do not authorize ATM or point-of-sale debit transactions in cases when we know the money is not available and offer account packages like our industry-leading Access Account Package which provides automatic protection against overdrafts.We also made a significant enhancement to our direct deposit policies, recognizing peer-to-peer (P2P) payments as direct deposits that enable customers to qualify for checking account monthly service fee waivers. This change will offer workers in the gig economy critical savings as they manage their monthly finances and we will continue to explore additional ways we can make our banking products even more accessible and affordable for our customers.<h3>How is Citi helping expand financial access in areas where you don’t have a branch network?</h3>Through the Citi Community ATM Network, we provide nearly 622,000 customers of 31 participating Minority Depository banks and Community Development credit unions with access to about 2,200 Citibank ATMs to make cash withdrawals free, removing a barrier to financial access that disproportionately impacts low-income Americans. Additionally, our Affordable Access to Banking Initiative enables participating community partners the opportunity to offer our Bank On certified Citi Access Account Package, with Citi waiving monthly service fees and minimum balance requirements, to participants regardless of geographic location. We currently have partners such as the National Urban League and Local Initiatives Support Corporation, with more partners in the pipeline.&nbsp;&nbsp;Access to credit is a fundamental consumer need that has to be addressed in order to bridge the wealth gap. We are starting to build the onramps for consumers to feel well informed and credit ready through a credit education pilot that we are offering in partnership with a Community Development Financial Institution and Experian, to support their consumers, including minority business owners, and help consumers feel equipped to make the right credit decisions for themselves. We also continue to participate and lead in initiatives like the OCC-led Roundtable for Economic Access and Change (Project REACh) focused on extending credit to consumers with limited or no credit histories, again eliminating a key barrier for lower-income Americans as they look to enter the financial system and build wealth.<h3>What is the longer-term vision for building on the progress you’ve made so far?</h3>Through the launch of a <a href="https://www.wsj.com/articles/citigroup-joins-industry-effort-to-lend-to-people-without-credit-scores-11662174186">Special Purpose Credit Program (SPCP)</a>, Citi will further our support for borrowers in majority Black and Hispanic census tracts. We will help these borrowers both within and outside our branch footprint, to obtain affordable mortgage loans by permitting low-down payments, removing mortgage insurance requirements and expanding lender-paid assistance programs. Citi is also finalizing a Small Business SPCP (Q1 2023) for a pilot (REACh), which will support lending to women, minority and veteran-owned Businesses in the Los Angeles Metropolitan Area with plans to scale in the future.&nbsp;We know our work is not done. We have built a dedicated team to drive an integrated strategy for Financial Inclusion and Racial Equity within our U.S. Personal Banking business, helping us continue to enhance our services and products, and build new partnerships across the country to increase access and promote financial inclusion and racial equity for everybody.&nbsp;<h2>Value Add</h2>&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/istock-1347065753.jpg"></figure>&nbsp;Over the last two years, gig workers represented about 35% of the U.S. workforce, with more than $1.4 trillion in payments – 40% of which were processed through PayPal. Often, though, these payments aren’t recognized as employment-related direct deposits, preventing these workers from taking advantage of accounts that waive certain fees with direct deposit enabled.In July, Citi became the first major bank to recognize these peer-to-peer payments from employers as direct deposits, waiving monthly service fees for the Citi Access and Basic banking accounts when customers receive these P2P payments using the ACH platform in Cash App, Google Pay, PayPal, Pop Money, Venmo and Zelle.These changes give workers in the gig economy critical savings as they manage their monthly finances. They also show the spirit with which we are embracing the opportunity to adapt to changes in how our customers manage their lives, while promoting access and inclusion in the financial system for low-income workers in the U.S.<h2>&nbsp;</h2><h2>Capital Gains</h2>What we’re doing in Washington&nbsp;&nbsp;The Forum <a href="https://fsforum.com/news/tiffany-haas-selected-as-head-of-forum-government-affairs">announced</a> the selection of Tiffany Haas as Head of Government Affairs. Haas has served as the Forum’s Co-Head of Government Affairs since September 2018. “I am delighted to announce Tiffany’s selection to lead our government affairs work,” Forum President and CEO Kevin Fromer said. “Tiffany has been an essential member of the Forum team for the past four years, serving our organization and its members with the utmost level of skill, professionalism, and dedication. She is a tremendous colleague, and I know she will excel in this new role.”The Forum <a href="https://fsforum.com/news/forum-welcomes-chip-bartlett-to-government-affairs-team">announced</a> that Chip Bartlett has joined the organization as Vice President of Government Affairs. “Chip has a wealth of financial policy knowledge and experience gleaned from work in the public and private sectors,” Forum President and CEO Kevin Fromer said. “We are thrilled for him to join the Forum team and for him to represent the nation’s largest banks in Washington.” Bartlett previously focused on financial legislative and regulatory priorities while serving as the Vice President of Congressional Affairs at the Consumer Bankers Association and Vice President of Congressional Relations at the Independent Community Bankers of America.&nbsp;Forum President and CEO Kevin Fromer <a href="https://www.linkedin.com/posts/kevin-fromer-73aa7017_this-summer-academics-policymakers-and-activity-6973260891853090816-7KiP?utm_source=share&amp;utm_medium=member_desktop">highlighted</a> some of the key themes from the inaugural Financial Services Forum Summit to keep in mind as Washington heads into a busy Fall. The Summit featured discussions from industry leaders, policy experts, and government officials. Main themes that emerged from the event include the resilience of the banking sector, the need to address unanswered questions related to large bank regulation in the near term, the importance of coordination and a broad government strategy in addressing climate change, and the necessity of regulatory clarity in the digital assets space. Click <a href="https://vimeo.com/financialservicesforum">here</a> to see key moments and full recordings of each panel.<h2>&nbsp;</h2><h2>Our Two Cents</h2>Research from the Forum&nbsp;&nbsp;The BankNotes Blog Spotlighted:<ul><li>The <a href="https://fsforum.com/news/past-due-notice-addressing-leverage-capital-for-large-banks-to-restore-treasury-market-functioning">need</a> to move forward on supplementary leverage ratio reform to ensure it plays a role as a backstop without unnecessarily restricting credit to any sector of the economy.</li><li>The <a href="https://fsforum.com/news/standing-apart-from-the-crowd-gsib-capital-liquidity-and-the-economy">robust capital and liquidity levels</a> of Forum members and the implications of current capital levels for current and future economic growth.</li></ul>&nbsp;<h2>Checking the Balance</h2>Members in the news&nbsp;Atrium Health <a href="https://atriumhealth.org/about-us/newsroom/news/2022/transformational-gift-from-bank-of-america-supports-program-aimed-at-reducing-health-disparities">announced</a> a $10 million gift from Bank of America to establish “Meaningful Medicine,” a program uniting the best innovations within health care, social impact and workforce development to directly target health equity and economic mobility goals within Charlotte. Meaningful Medicine will launch by implementing Atrium Health Levine Children’s school-based virtual care in 20 elementary Charlotte-Mecklenburg Schools during the 2022-23 school year. Within three years, the program will expand to offer virtual care at 50 CMS schools and behavioral health telemedicine at 31 schools. &nbsp;&nbsp;BNY Mellon <a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/bny-mellon-joins-white-house-economic-opportunity-coalition-as-founding-member.html">announced</a> its role as a founding member of the Economic Opportunity Coalition, an initiative led by the Biden-Harris Administration to catalyze and align public and private investments that will address economic disparities and accelerate economic opportunity in underserved communities. The announcement is the latest example of BNY Mellon’s commitment to helping underserved communities and responding to some of today’s greatest challenges, including racial inequality and climate change.In a recent report, Citi’s Global Chief Economist Nathan Sheets and Global Head of Trade Chris Cox <a href="https://www.citivelocity.com/citigps/global-supply-chains-2-2/">examined</a> the topic dominating trade talk: how supply chains are shifting as the world reacts to the new realities resulting from the pandemic and the war in Ukraine.Goldman Sachs <a href="https://www.goldmansachs.com/media-relations/press-releases/2022/ombw-announces-black-women-impact-grants.html">announced</a> 50 recipients of the Black Women Impact grants program, part of its One Million Black Women initiative, to fund Black women-led and Black women-serving nonprofits. The 50 organizations were selected based on their established efforts to deliver innovative and transformative solutions to narrow opportunity gaps faced by Black women. A total of $10 million will be invested through the multi-year program.&nbsp;JPMorgan Chase <a href="https://www.jpmorganchase.com/news-stories/jpmc-commits-30mil-to-support-historically-black-colleges-universities">announced</a> an expanded five-year, $30 million commitment to the financial and career success of students at Historically Black Colleges and Universities. This commitment expands on the firm’s <a href="https://www.jpmorganchase.com/impact/people/advancing-black-pathways">Advancing Black Pathways </a>initiative, which launched in 2019 to chart clearer pathways toward economic success and empowerment within the Black community.&nbsp;Morgan Stanley <a href="https://www.morganstanley.com/articles/uk-future-generation-scholarship-program-diversity">welcomed</a> its initial class of interns who were selected to be a part of the Future Generation Scholarship program. The scholarship provides tuition assistance and career-development support for students who are from ethnic minority and/or socially mobile backgrounds. The Future Generation Scholarship Program is one in a series of diversity initiatives championed and funded by Morgan Stanley’s <a href="https://www.morganstanley.com/about-us/diversity/institute-for-inclusion">Institute for Inclusion</a>, which was established in November 2020 to support underserved communities and drive workplace diversity and inclusion, among other equality-driven goals.State Street <a href="https://newsroom.statestreet.com/press-releases/press-release-details/2022/State-Street-Partners-with-Latinx-Firms-to-Underwrite-750-Million-of-Senior-Notes/default.aspx">partnered</a> with four Latinx-owned firms to underwrite $750 million of senior notes. This issuance demonstrates State Street’s ongoing and strong commitment to increasing Latinx representation and opportunities across the industry, and is the third such offering this year where the underwriting syndicate has been structured to amplify the firm’s inclusion, diversity and equity strategy.Wells Fargo <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.

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The Forum File, 2022 Edition #4

Dear reader,Welcome to the latest edition of The Forum File. In this edition, we are highlighting our firms’ work to increase women’s participation in investing and other ways they are supporting a more gender-inclusive investment world.We hope you enjoy reading this edition and please do not hesitate to share your feedback.&nbsp;Kevin Fromer, President and CEO, Financial Services Forum&nbsp;<h2>Penny For Your Thoughts</h2>“Asset managers and advisors who go further in explaining the wider benefits of investing to a new generation of investors will be better placed to capture the significant transfer of wealth expected over the next decade. Our research shows that increasing women’s participation in investing is critical not only for their personal prosperity, but also for the prosperity of society at large, as women are more inclined to make responsible investments with positive outcomes.” – Hanneke Smits, CEO of Investment Management at BNY Mellon.&nbsp;<h3>Tell us about BNY Mellon Investment Management’s&nbsp;Pathway to Inclusive Investment.</h3>The&nbsp;<a href="https://www.bnymellonim.com/uploads/2022/01/de25b1789a78b038fd035dd3f9ca826a/bnym_im_allstreet_report_en_na_optimised.pdf">Pathway to Inclusive Investment&nbsp;</a>study is one of the world’s largest independent studies to better assess how gender-inclusive the investment world is. It set out to explore some of the key drivers behind the persistent gender-investment gap from the perspective of those who currently invest, those who don’t, and the investment industry itself. Unlike previous research into this topic, our aim was to look at the key drivers on what would effect change.<h3>What are some of the key findings from the research?</h3>Women generally want to invest, but globally they don’t feel confident enough. As an industry, we need to do more to engage and connect with women. Women also believe they don’t earn enough to even consider investing and see it as too risky. Importantly, our research revealed that women are more likely to allocate to investments that align with their personal values. In fact, it would equate to an extra $3.22 trillion of assets under management from private individuals today, with $1.87 trillion of that going into responsible investments that have a positive societal impact.<h3>What is BNY Mellon’s commitment to change?</h3>We know women would feel more confident about investing and careers in finance if they have conversations earlier in their lives. That’s why BNY Mellon is collaborating with Inspiring Girls International, a global charity dedicated to raising the aspirations of young girls around the world, to promote early education on money and finance. We are also working with our Diversity, Equity, &amp; Inclusion (DEI) councils and employee business groups to increase engagement within our own organization. Finally, we plan to update our own communications to clients, in light of the research, and work with our peers in the industry to help engage and connect with women.<h3>Where can our readers go to learn more about the report?</h3>We encourage everyone to<a href="https://mysourcesocial.bnymellon.net/external-link.jspa?url=https%3A%2F%2Fwww.bnymellonim.com%2Fuploads%2F2022%2F01%2Fde25b1789a78b038fd035dd3f9ca826a%2Fbnym_im_allstreet_report_en_na_optimised.pdf">&nbsp;read the full report</a>&nbsp;and share it with your networks to prompt conversation on how our industry can better engage not only women – but all genders – to encourage investment and boost diversity.<h3>Is there anything else you’d like to share?</h3>BNY Mellon is committed to collaborating with our colleagues across the industry to help create a more inclusive investment world. We firmly believe that through working together we can make a real difference to women’s prosperity and the face of the industry.&nbsp;&nbsp;<h2>Value Add</h2>Investing with Impact: Announcing BOLDSM Shares&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/logo_dreyfus_cash_color[18]-01.png"></figure>&nbsp;Recognizing that more of our clients are focused on making a positive impact with their investments,&nbsp;Dreyfus, BNY Mellon Investment Management’s cash and liquidity investment manager, <a href="https://www.bnymellon.com/us/en/about-us/newsroom/press-release/dreyfus-launches-bold-shares-supporting-howard-university-130258.html">launched the BOLDSM share class</a> for its largest money market fund, which gives clients a direct opportunity to help support students of Howard University in their educational journeys.Shares of BOLDSM, which stands for Black Opportunity for Learning and Development,&nbsp;support Howard University’s Graduation Retention Access to Continued Excellence (GRACE) Grant, which was created in 2014 to decrease the financial burden on students and increase on-time graduation rates.As part of this initiative, BNY Mellon makes an annual donation of 10% of its BOLDSM shares revenue to the GRACE grant, including a minimum of&nbsp;$300,000 per year. The BOLD shares offering builds upon BNY Mellon’s ongoing commitment to diversity, equity and inclusion by helping to remove financial barriers and improving graduation rates for students of Howard University.Dreyfus chose Howard University, a leading Historically Black College and University (HBCU), due to its commitment to underrepresented minorities and dedication to affordable education.&nbsp;<h2>Capital Gains</h2>What we’re doing in Washington&nbsp;&nbsp;Industry leaders, policy experts, and government officials gathered Monday for the inaugural Financial Services Forum Summit, featuring discussions on the future of banking, today's global economy, regulation, the climate transition, and digital innovation. In a wide-ranging conversation with Forum President and CEO Kevin Fromer, Undersecretary of the Treasury for Domestic Finance, Nellie Liang, remarked on the need for a broad government strategy to address climate change, stating “it’s not something the financial sector can take on its own, but it’s important that it contributes to this.” Liang also observed that the pandemic served as a real-world stress test for banks and noted that “amidst all this, the banking sector has looked pretty resilient,” and that “the banking sector is showing itself, as it should be and can be, to be supporting the economy and supporting credit.” Click <a href="https://vimeo.com/financialservicesforum">here</a> to see key moments and full recordings of each panel.The Forum issued a <a href="https://fsforum.com/news/federal-reserve-stress-tests-confirm-strength-of-largest-u-s-banks">statement</a> noting that the Federal Reserve Board’s 2022 stress test results underscored the strength and resiliency of the nation’s largest banks and that Forum members again showed they can act as a bulwark for the economy even in the face of significant economic headwinds.The Forum submitted comments to the Securities and Exchange Commission regarding the agency’s proposed climate disclosure requirements. The Forum <a href="https://fsforum.com/news/forum-submits-comments-to-the-sec-regarding-climate-disclosure">encouraged</a> the agency to revise its proposal to be more qualitative and principles-based, rooted in traditional materiality, and deferential to prudential requirements for banks. The Forum also noted that the U.S. Global Systemically Important Banks (GSIB) believe in providing investors with decision-useful disclosures regarding climate-related financial risks and already voluntarily disclose much of the information investors have requested, specifically as it relates to their governance, strategy, risk management, and metrics and targets.Responding to a proposal from the Federal Deposit Insurance Corporation, the Forum <a href="https://fsforum.com/news/forum-submits-comments-to-the-fdic-regarding-climate-related-financial-risk">welcomed</a> the agency’s efforts to provide guidance for banks to address climate-related financial risk and provided specific recommendations on how the proposal could be adjusted to further reflect its stated goals.<a href="https://fsforum.com/news/forum-submits-comments-to-federal-reserve-board-regarding-central-bank-digital-currency">Commenting</a> on a discussion paper from the Federal Reserve Board (FRB) regarding a central bank digital currency (CBDC), the Forum urged the FRB to continue to examine the potential risks of a CBDC, as well as alternative ways to achieve the goals associated with a CBDC and an enhanced payments system. The Forum further encouraged the FRB to consider the appropriate legal and regulatory development that is necessary to support payment system innovation before adopting any CBDC.&nbsp;&nbsp;<h2>Our Two Cents</h2>Research from the Forum&nbsp;&nbsp;The BankNotes Blog Spotlighted:<ul><li>Recently announced <a href="https://fsforum.com/news/the-unlevel-playing-field-gets-even-steeper-changes-to-the-gsib-surcharge-for-european-banks-and-implications-for-the-united-states">changes</a> to the GSIB score methodology for EU-based GSIBs further weakens the competitive standing of large U.S. banks relative to their foreign competitors.</li><li>The <a href="https://fsforum.com/news/look-before-you-leap-a-u-s-central-bank-digital-currency-needs-more-research-and-analysis">need</a> for the Federal Reserve and other parts of the U.S. government to work closely with the private sector to fully understand and document the potential costs and benefits of a central bank digital currency to the U.S. economy.</li></ul>&nbsp;<h2>Checking the Balance</h2>Members in the news&nbsp;Bank of America, along with leading public health organizations – the American Heart Association, the American Diabetes Association, the American Cancer Society and the University of Michigan School of Public Health –&nbsp;<a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/05/-collaboration-between-leading-health-organizations-aims-to-impr.html">announced</a>&nbsp;the launch of a signature initiative to advance health outcomes for Black, Hispanic/Latino, Asian American and Native American communities. This $25 million, four-year initiative will initially launch in 11 U.S. cities.Five leaders from&nbsp;BNY Mellon&nbsp;were&nbsp;<a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/driving-dei-at-bny-mellon-leaders-recognized-for-efforts-to-promote-diversity-and-inclusion.html">recognized</a>&nbsp;for their efforts to champion diversity and inclusion in the financial community on the 2022 Empower Role Model List. “Through their outstanding dedication to driving positive change, (the honorees) truly have gone above and beyond to deliver on BNY Mellon's commitment to building a better, more inclusive financial services community,” said Jolen Anderson, Global Head of Human Resources.Citi&nbsp;was&nbsp;<a href="https://justcapital.com/news/top-companies-for-board-gender-diversity-2022/?linkId=166336307">named</a>&nbsp;one of the Top 5 Companies Leading on Board Gender Diversity by JUSTCapital. The firm earned the number one rank among banks for its climate commitments and human rights policies. Citi’s prioritization of diversity is not exclusive to its board – the company has also met a three-year goal to increase diversity within its firm, with 40% of women in leadership roles globally.<a href="https://www.goldmansachs.com/media-relations/press-releases/2022/announcement-21-apr-2022.html">Supported</a>&nbsp;by a $3.6 million contribution from&nbsp;Goldman Sachs, Welcome.US.&nbsp;has launched&nbsp;an initiative to mobilize 100,000 Americans to sponsor people fleeing the war in Ukraine and seeking refuge in the United States.&nbsp;To date, Goldman Sachs Gives has provided $7.6 million to support Ukrainian relief efforts.JPMorgan Chase&nbsp;<a href="https://www.jpmorganchase.com/news-stories/jpmc-commits-20mil-to-support-summer-youth-employment">announced</a>&nbsp;a $20 million, five-year philanthropic commitment to support summer youth employment programs in 24 U.S. markets. Building on the success and lessons learned from the firm’s previous&nbsp;<a href="https://www.jpmorganchase.com/news-stories/jpmc-completes-final-year-of-firms-17m-commitment">Summer Youth commitments</a>, this initiative will continue to help young people, particularly those from under-resourced communities, enter the workforce and gain meaningful experience.The&nbsp;Morgan Stanley&nbsp;Institute for Sustainable Investing&nbsp;<a href="https://www.morganstanley.com/press-releases/sustainable-solutions-collaborative-second-cohort">announced</a>&nbsp;the second cohort of its Sustainable Solutions Collaborative. The collaborative, launched in 2020, aims to identify innovations that support a sustainable future. The second cohort of five winners will join a yearlong strategic collaboration with the institute in which they will tap into the full range of Morgan Stanley’s expertise, networks and resources to help them achieve scale. Each winner will also receive $250,000.State Street&nbsp;Vice President Natasha Persad was&nbsp;<a href="https://empower.involverolemodels.org/poll/2022-top-100-future-leaders/">named</a>&nbsp;to the Top 100 Empower Future Leaders list. Persad is part of a State Street initiative focused on increasing representation of ethnic minorities in financial services. The initiative partners with industry associations for speaking and thought leadership engagements, job board creations, and efforts to build awareness of and address inequalities and disparities.The&nbsp;Wells Fargo&nbsp;Foundation&nbsp;<a href="https://newsroom.wf.com/English/news-releases/news-release-details/2022/Rebuilding-Together-and-Wells-Fargo-Join-to-Address-Urgent-Housing-Challenges-Nationwide-through-Critical-Home-Renovation-and-Repairs/default.aspx">awarded</a>&nbsp;$1.3 million in grants to Rebuilding Together to provide critical home repairs to nearly 100 homes in 45 communities across the U.S. As part of the <a href="https://rebuildingtogether.org/wells-fargo-map">Wells Fargo Builds</a> program, neighbors in need will receive essential home repairs at no cost, allowing residents to remain safe and healthy in their homes.

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The Forum File, 2022 Edition #3

The Forum File

CONTACT: Barbara Hagenbaugh(202) 457-8783bhagenbaugh@fsforum.com&nbsp;Washington, D.C. – The Financial Services Forum today announced that Chip Bartlett has joined the organization as Vice President of Government Affairs.“Chip has a wealth of financial policy knowledge and experience gleaned from work in the public and private sectors,” Forum President and CEO Kevin Fromer said. “We are thrilled for him to join the Forum team and for him to represent the nation’s largest banks in Washington.”The government affairs group is responsible for furthering policy priorities&nbsp;of the Forum members, the eight U.S.-based global systemically important banks.Bartlett previously focused on financial legislative and regulatory priorities while serving as the Vice President of Congressional Affairs at the Consumer Bankers Association and Vice President of Congressional Relations at the Independent Community Bankers of America. He also focused on the financial services industry and banking policy while serving as an adviser to Rep. French Hill (R-AR). In that role, he managed a broad legislative portfolio comprised of all issues before the House Financial Services Committee, including legislation affecting capital markets, financial institutions, and housing, as well as issues related to tax policy and trade.&nbsp;Bartlett also worked at the U.S. Department of the Treasury and the Arkansas State Bank Department.&nbsp;He holds a degree in communications from the University of Arkansas.&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, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system. &nbsp;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>

Forum Welcomes Chip Bartlett to Government Affairs Team

CONTACT: Barbara Hagenbaugh(202) 457-8783bhagenbaugh@fsforum.com&nbsp;Washington, D.C. – The Financial Services Forum today announced the selection of Tiffany Haas as Head of Government Affairs. Haas has served as the Forum’s Co-Head of Government Affairs since September 2018.“I am delighted to announce Tiffany’s selection to lead our government affairs work,” Forum President and CEO Kevin Fromer said. “Tiffany has been an essential member of the Forum team for the past four years, serving our organization and its members with the utmost level of skill, professionalism, and dedication. She is a tremendous colleague, and I know she will excel in this new role.”The government affairs group is responsible for furthering policy priorities&nbsp;of the Forum members, all U.S. global systemically important banks (GSIBs).While at the Forum, Haas has co-led engagement ahead of three GSIB CEO hearings and legislative strategy on Forum policy priorities. Further, Haas has led Forum member advocacy on climate-related financial risk before Congress and the administration. Haas has been named one of Washingtonian Magazine’s 500 Most Influential People, to The Hill’s Top Lobbyists list, and was recognized by Women in Housing and Finance as a 40 Under 40 award recipient.Before joining the Forum, Haas served as the vice president for congressional affairs at the Consumer Bankers Association. She previously served as legislative counsel and communications director to Rep. Donald Payne, Jr. (D-N.J.), was a communications adviser at the Democratic National Committee, and served in legal and field roles at Obama for America. In addition, she practiced law as a litigation attorney in the private sector.Haas holds a J.D. from Marquette University Law School, where she was the editor-in-chief of the&nbsp;Marquette Sports Law Review, and a B.A. in political communication from the George Washington University, where she graduated&nbsp;magna cum laude, was elected to Phi Beta Kappa, and captained the university’s Women’s Gymnastics Team.&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, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system. &nbsp;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>

Tiffany Haas Selected as Head of Forum Government Affairs

CONTACT: Brigid Richelieu(202) 660-2569brichelieu@fsforum.com&nbsp;&nbsp;Washington, D.C. – Industry leaders, policy experts, and government officials gathered Monday for the inaugural Financial Services Forum Summit, featuring discussions on the future of banking, today's global economy, regulation, the climate transition, and digital innovation.For those who missed it, click below to see key moments from each panel. Full recordings of each panel are available <a href="https://vimeo.com/financialservicesforum">here.</a><h3>&nbsp;</h3><h4><a href="https://vimeo.com/731746557">A Conversation with Nellie Liang</a></h4>In a wide-ranging conversation with Forum President and CEO Kevin Fromer, Undersecretary of the Treasury for Domestic Finance, Nellie Liang, remarked on the need for a broad government strategy to address climate change, stating “it’s not something the financial sector can take on its own, but it’s important that it contributes to this.” Liang also observed that the pandemic served as a real-world stress test for banks and noted that “amidst all this, the banking sector has looked pretty resilient,” and that “the banking sector is showing itself, as it should be and can be, to be supporting the economy and supporting credit.”<div class="raw-html-embed"><iframe src="https://player.vimeo.com/video/731811228?h=7a9c003a02" width="640" height="564" frameborder="0" allow="autoplay; fullscreen" allowfullscreen=""></iframe></div><h4><a href="https://vimeo.com/731767310">The Future of Digital Assets and the Banking System Nexus</a></h4>Securities and Exchange Commission Commissioner Hester Peirce, Cravath, Swaine &amp; Moore’s David Portilla, and Citi’s Andres Wolberg-Stok commented on the rapid growth of digital assets and the need for regulatory clarity for banks to engage in this space and meet customer demand. “I am worried that the lack of regulatory clarity has actually resulted in less innovation in that space than there otherwise might have been,” Peirce said.&nbsp;<div class="raw-html-embed"><iframe src="https://player.vimeo.com/video/731776527?h=318c2755e9" width="640" height="564" frameborder="0" allow="autoplay; fullscreen" allowfullscreen=""></iframe></div><h4><a href="https://vimeo.com/731758426">Climate Risk and Transition Policy</a></h4>In a panel discussion on climate-related financial risks and the transition to a lower carbon economy, panelists Jonathan Fink from the Office of the Comptroller of the Currency, Mary Obasi from Bank of America, and Alison Hashmall from Debevoise &amp; Plimpton discussed the benefits of scenario analysis as banks work to address climate-related financial risk.<div class="raw-html-embed"><iframe src="https://player.vimeo.com/video/731776732?h=d65c1b605f" width="640" height="564" frameborder="0" allow="autoplay; fullscreen" allowfullscreen=""></iframe></div><h4><a href="https://vimeo.com/731734648">Large Banks and the U.S. Economy</a></h4>A distinguished group of former government regulators discussed lessons learned from the COVID-19 pandemic – including the need to address issues in the Treasury market and to adjust the calculation of bank leverage requirements. Panelists included the Brookings Institution’s Donald Kohn, Cravath, Swaine &amp; Moore’s Jelena McWilliams, and Citi’s Nathan Sheets. “Fixing the Treasury market is very much unfinished business,” Kohn said.<div class="raw-html-embed"><iframe src="https://player.vimeo.com/video/731776425?h=d0fab85386" width="640" height="564" frameborder="0" allow="autoplay; fullscreen" allowfullscreen=""></iframe></div><h4><a href="https://vimeo.com/731737783">Regulations and the U.S. Economy in a Time of Change</a></h4>Focusing on the regulation of large bank capital and liquidity, New York University’s Richard Berner, Mayer Brown’s Andrew Olmem, and Ernst &amp; Young’s Marc Saidenberg examined regulators’ lengthy to-do list, including addressing Basel 3 Finalization implementation, a review of liquidity regulations, non-bank financial intermediations well as other issues including climate and digital assets.<div class="raw-html-embed"><iframe src="https://player.vimeo.com/video/731782727?h=85471448be" width="640" height="564" frameborder="0" allow="autoplay; fullscreen" allowfullscreen=""></iframe></div>&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;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>

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

Large Banks and the U.S. Economy

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

Regulations and the U.S. Economy in a Time of Change

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

A Conversation with Nellie Liang

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

Climate Risk and Transition Policy

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 Future of Digital Assets and the Banking System Nexus

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

ICYMI: Financial Services Forum Summit 2022 Brings Together Leaders to Discuss Key Issues for Banking Industry

Press Releases

This op-ed was featured in <a href="https://morningconsult.com/opinions/strength-of-large-u-s-banks-means-its-time-to-rely-on-rigorous-capital-distribution-process/">Morning Consult</a>.&nbsp;<h3>By Kevin Fromer</h3><blockquote>Later this week, the Federal Reserve will issue results of its latest round of stress tests, offering an update on the health and safety of the largest banks in the country. This assessment marks the third round of stress tests the government has conducted in a year to measure the capital adequacy of large U.S. banks.</blockquote>These results will herald the full return to the government’s normal capital distribution oversight <a href="https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210325a.htm">process</a>, which was halted in 2020 due to the uncertain economic effects of the pandemic. Given the strength of the nation’s largest banks and the rapid improvement in the economy, it is clearly time to rely on the established and rigorous regulatory process, which allows banks to return excess capital to investors across the country. This return to regular order will support the economy as we build a strong, inclusive recovery.Capital distributions are expected by investors in any large corporation. Companies in a variety of&nbsp;<a href="https://www.wsj.com/articles/companies-are-flush-with-cashand-ready-to-pad-shareholder-pockets-11621157406">industries</a>&nbsp;routinely distribute portions of their earnings to investors — it is how American companies attract investment so that they can grow, create jobs, expand services and better support the economy.Despite what critics would have you believe, the capital distribution process is not a zero-sum game. Share distributions&nbsp;<a href="https://finance.yahoo.com/news/tax-cuts-fuel-stock-buyback-spike-130545937.html?acid=twitter_yfsocialtw_l1gbd0noiom&amp;ncid=twitter_yfsocialtw_l1gbd0noiom&amp;guccounter=1">complement</a> — not replace — the investments that banks make in their communities, workers, operations and businesses. Only safe and highly capitalized banking institutions can even consider buybacks or dividends.What’s more, unlike every other industry, large financial institutions face higher regulatory scrutiny and approval to buy back shares or to issue dividends.This year, large banks must pass a strenuous stress test to demonstrate they maintain a strong capital position and can support the economy, even during a significant downturn. They must further satisfy several different regulatory capital&nbsp;<a href="https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20200304a2.pdf">requirements</a>&nbsp;each quarter to continue making planned buybacks and dividends. Then, and only then, are banks able to distribute capital.In the most recent test, which the Federal Reserve completed in&nbsp;<a href="https://www.federalreserve.gov/publications/files/2020-dec-stress-test-results-20201218.pdf">December</a>, the average post-stress capital ratio for the U.S. Global Systemically Important Banks was 9.7 percent, significantly larger than that of other U.S. banks subject to the stress tests and more than twice the minimum requirement of 4.5 percent.The largest U.S. banks entered the global pandemic in a strong position and they acted quickly to&nbsp;<a href="https://fsforum.com/our-impact/covid-19-response">support</a>&nbsp;customers, small businesses, employees and the communities in which they operate. They also&nbsp;<a href="https://fsforum.com/news/financial-services-forum-statement-on-share-buybacks">suspended</a>&nbsp;their share buybacks — which account for the majority of their capital distributions — and aggressively reserved for potential losses. Importantly, large banks’ strength and scale allowed them to significantly support the economy.In 2020, the nation’s largest banks increased their provision of&nbsp;<a href="https://fsforum.com/a/Credit_ad3853a06e/Credit_ad3853a06e.pdf">credit</a>&nbsp;by 10 percent, helping families, small businesses, large employers and the government. They accepted a massive surge in deposits and facilitated loans to nearly 850,000&nbsp;<a href="https://fsforum.com/a/COVID_19_Response_b55baf7fc3/COVID_19_Response_b55baf7fc3.pdf">small businesses</a>&nbsp;through the Paycheck Protection Program. They also committed significant resources to communities across the country, creating or preserving more than 158,000 affordable&nbsp;<a href="https://fsforum.com/a/Committed_to_Affordable_Housing_2021_4c59c48264/Committed_to_Affordable_Housing_2021_4c59c48264.pdf">housing</a>&nbsp;units, and supported their nearly 758,000 employees by giving them extra time off, paying for child and elder care and providing economic incentives.The largest banks have also been strong&nbsp;<a href="https://fsforum.com/our-impact/supporting-underserved-communities">supporters</a>&nbsp;of historically underserved communities. In addition to the work they are doing to promote lending in minority neighborhoods, they are investing in mission-driven financial institutions so that they can succeed and serve diverse and low- and moderate-income communities. From 2015 to 2020, the largest banks&nbsp;<a href="https://fsforum.com/a/cdfifactsheetfinal2021_861e28ce56/cdfifactsheetfinal2021_861e28ce56.jpeg">invested</a>&nbsp;$9 billion in Community Development Financial Institutions, and they have also&nbsp;<a href="https://fsforum.com/a/MDI_One_Pager_6a4a12345f/MDI_One_Pager_6a4a12345f.pdf">committed</a>&nbsp;more than $500 million to Minority Depository Institutions, in some cases investing directly in the MDIs to support their long-term wellbeing.The largest banks are committed to supporting their employees and the communities they serve. These institutions can and will continue to provide this support while distributing&nbsp;capital.It’s important to remember that the benefits of buybacks and dividends to the economy go far beyond the shareholders. More than half of all U.S. households own stocks, either directly&nbsp;or indirectly, according to the&nbsp;<a href="https://www.federalreserve.gov/econres/scfindex.htm">Federal Reserve</a>. Moreover, stock holdings are most concentrated among households headed by a retiree and dependent on dividends to meet their financial needs. Therefore, money returned to shareholders recirculates throughout the economy.&nbsp;It is our banks’ responsibility to those teachers, first responders, veterans and small businesses who invest in them to always use capital in the highest and most efficient way possible.As Federal Reserve Chairman Jerome Powell&nbsp;<a href="https://www.govinfo.gov/content/pkg/CHRG-115shrg32517/pdf/CHRG-115shrg32517.pdf">said</a>: “When a company buys back its shares or pays higher dividends, the resources do not disappear. Rather, they are redistributed to other uses in the economy. For instance, shareholders may decide to invest the windfall in another company, which may in turn make productivity-enhancing investments. Or they may decide to spend the windfall on goods and services that are produced by other companies, who may in turn hire new workers. In these ways, stock repurchases would also be likely to boost economic growth.”The nation’s largest banks are committed to serving our country and to building an economic recovery that supports everyone. They have been through a real-life stress test during the past year and have shown that they are safe, strong, and are a key source of support for the economy. Government oversight of share distributions by the largest U.S. banks is rigorous, and ensures the continued strength of the financial system. The fact that banks have such excess capital to reinvest in the form of buybacks and dividends is a promising sign for the economy. It is now time to rely upon a normal process of assessing our institutions, and ensuring that they may support a durable, inclusive recovery.&nbsp;Kevin Fromer is president and CEO of the Financial Services Forum, which represents the eight largest, most diversified U.S. banking institutions, and previously served as&nbsp;the Assistant Secretary of the Treasury for Legislative Affairs from 2005 to 2009.&nbsp;

Op-ed: Strength of Large U.S. Banks Means It’s Time to Rely on Rigorous Capital Distribution Process

This op-ed was featured in <a href="https://www.americanbanker.com/opinion/capital-relief-is-good-for-big-banks-and-the-economy">American Banker's BankThink</a>.&nbsp;<h3>By Sean Campbell</h3><blockquote>The nation’s largest banks have been instrumental in supporting the economy through the coronavirus pandemic, providing vital assistance to consumers and businesses and facilitating critical financing from government programs.To ensure the banking industry can be a key source of support during the crisis, regulators rightly made temporary and targeted adjustments to certain regulations.</blockquote>Yet, some critics including in a recent&nbsp;<a href="https://www.americanbanker.com/opinion/dont-weaken-the-g-sib-surcharge">BankThink</a>&nbsp;op-ed, have shown a clear misunderstanding of big bank capital levels and the objective of the Federal Reserve in navigating one of the most serious economic crises to ever hit the U.S. and global economy.The author argues that regulators “gutted” large bank capital by temporarily excluding deposits at the Federal Reserve and U.S. Treasuries from the supplementary leverage ratio’s (SLR) risk-insensitive measure of total exposure, which determines the amount of capital required by the SLR. A few points should be noted in response.First, regulators have long held that risk-insensitive leverage capital requirements are intended to be a backstop to risk-based capital requirements. Prior to the crisis, the minimum capital requirement for a risk-based capital measure, called Tier 1, was 4% of risk-weighted assets. Today, that minimum stands at 6%, a 50% increase.What’s more, over the past decade banks have significantly improved both the quality and quantity of capital maintained. Financial Services Forum members, for instance, have grown their capital base by&nbsp;<a href="https://fsforum.com/a/forum_value_and_resiliency_2020q1_1_f835ef3ee5/forum_value_and_resiliency_2020q1_1_f835ef3ee5.pdf">$260 billion</a>&nbsp;and substantially raised capital levels as a proportion of the risk-weighted asset base.Regulators rightly made a temporary change to the SLR standard in the pandemic to help ensure that risk-insensitive leverage requirements do not move to the fore and become the binding capital constraint. This would further distress capital markets and the ability of banks to provide credit to businesses and households during an unprecedented economic disruption.Second, large banks are currently bound by the Federal Reserve’s new capital policy announced in late June with this year’s stress test results. All large banks are prohibited from making any share repurchases through the third quarter and dividend payouts are frozen at previous levels.Accordingly, it is hard to understand how large bank capital will decline significantly as the Federal Reserve has actively taken steps requiring banks to conserve capital. These measures outweigh any potential impact that the temporary change to the SLR could have.Some critics also maintain that the finalization earlier this year of the&nbsp;<a href="https://www.americanbanker.com/news/fed-finalizes-new-capital-buffer-ahead-of-2020-stress-tests#:~:text=The%20final%20SCB%20%E2%80%94%20which%20the,severely%20adverse%E2%80%9D%20stress%20test%20scenario.">stress capital buffer (SCB) rule</a>&nbsp;— which was first introduced during the Obama administration and ties large bank capital requirements to stress testing — somehow represents a big bank giveaway.Yet the Federal Reserve’s&nbsp;<a href="https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20200304a1.pdf">analysis</a>&nbsp;showed that the SCB will have the effect of raising capital for global-systemically important banks (G-SIBs) by roughly $46 billion on average, while at the same time lowering capital requirements for smaller banks. Given that the analysis shows the SCB final rule raises capital for G-SIBs, it is difficult to understand how one would assert that the SCB represents a weakening of the large bank capital regime.Also, this year the Fed opted not to set bank capital distribution policy with regard to the SCB. Rather, the Fed is using a new “sensitivity analysis” to determine bank capital distributions.This year’s sensitivity analysis found that 75% of all large banks subject to the stress tests — a universe that goes well beyond the G-SIBs — would maintain capital levels above the minimum requirement.In the parlance of the previous stress testing regime, most banks actually passed the stress tests, but are still being required to conserve capital per the Fed’s new capital distribution policy. Accordingly, the suggestion that somehow large banks are either not well-capitalized or are shedding capital simply does not add up.All of the capital modifications announced by the Fed are temporary and explicitly designed to deal with the coronavirus crisis to help ensure that banks of all sizes can continue to support the economy in this time of great need.<blockquote>Data and existing research convincingly show that large banks have been&nbsp;<a href="https://www.fsforum.com/types/press/unprecedented-increase-in-large-bank-lending-to-help-businesses-through-the-recovery/">playing an outsized role</a>&nbsp;in supporting the U.S. economy. Indeed,&nbsp;<a href="https://www.nber.org/papers/w27256">research</a>&nbsp;from Boston College and Federal Reserve staff further documents that the bulk of corporate lending during the pandemic has come from large banks, showing these institutions have risen to the occasion during such trying times.</blockquote>The Federal Reserve and other regulators are wisely and judiciously making temporary adjustments to certain capital rules to ensure that formulaic and risk-blind capital requirements do not unnecessarily cinch the flow of credit, which is so crucial to managing through this crisis. The Fed’s modification of the SLR in these exigent times is a shining example of what a good regulator should do in a crisis.It is not a “rollback” or “weakening” of anything. Rather, it illustrates the central bank’s resolve in putting the economy and people ahead of inflexible rules.As the economic and public health data clearly show, the nation is not out of this pandemic yet. Regulators should continue to prudently modify regulations that risk unnecessarily crimping private credit expansion, which would present even more challenges to an already unstable economic recovery.&nbsp;<a href="https://www.americanbanker.com/author/sean-campbell">Sean Campbell</a>Sean Campbell is chief economist and head of policy research at the Financial Services Forum.

BankThink Op-ed: Forum Head of Research Explains Why Targeted Capital Relief Makes Sense for Large Banks & an Economy in Crisis

This op-ed was featured in <a href="https://www.americanbanker.com/opinion/easing-derivatives-trading-rule-would-help-the-system-not-hurt-it?utm_source=twitter&amp;utm_content=socialflow&amp;utm_campaign=bankthink-tw&amp;utm_medium=social">American Banker's BankThink</a>.&nbsp;<h3>By Kevin Fromer and Kenneth E. Bentsen</h3>&nbsp;<blockquote>Recent attempts by policymakers to eliminate an initial margin requirement for certain trading swaps between affiliates of the same financial institution would reduce costs for consumers and businesses.Such an action would also remove a competitive disadvantage for U.S. banks while promoting safety and soundness in the financial system. This is counter to a&nbsp;<a href="https://www.americanbanker.com/opinion/the-40-billion-gift-that-wall-street-doesnt-deserve">recent BankThink</a>&nbsp;in the July 16 issue of American Banker that made a number of incorrect assertions around both the need for continuing the margins requirement, and the rationale for ending it.</blockquote>However, it is important to first address the hyperbolic characterization of swaps, or derivatives. Swaps are an important and heavily regulated tool that banks and other institutions use to help manage their exposure, and that of American businesses and consumers, to risk and market fluctuations.The requirement that banks post an initial margin based on swaps between their own affiliates is one that should be revisited and ultimately removed. And there is good reason why.First, it yields no benefit. There are two regulatory margin requirements: initial margin and variation margin.Initial margin is exchanged at the time a swap transaction is established — and adjusted during the life of the transaction as needed — to minimize losses if a counterparty defaults on its obligations.This is sound policy for third-party contracts. But in the case of two affiliates or legal entities under the same corporate holding company, the exchange of interaffiliate initial margin serves no purpose in ensuring contract performance.Variation margin, however, does properly mitigate risk between affiliates. That’s because variation margin requires the exchange of collateral between affiliates based on the current value of the swaps, and accounts for changes in market value. The amount being collected through variation margin is also quite sizable.In 2018, the top 20 firms collected&nbsp;<a href="https://www.isda.org/2019/04/09/top-20-firms-collected-nearly-160-billion-in-initial-margin-at-year-end-2018-survey-finds/">more than $850 billion</a>&nbsp;in variation margin, or more than 20 times the amount of initial margin for interaffiliate swaps.&nbsp;In addition, banks also post initial margin on all trades with covered true third parties, amounting to approximately $158 billion.The technical fix policymakers are considering would only apply to the initial margin between affiliates. It would not change the variation margin requirement between affiliates, nor the initial and variation margin requirements for external counterparties.Second, if the initial margin requirement for interaffiliate swaps is maintained, the cost will ultimately be borne by customers and hurt American competitiveness.Indeed, swaps are an important tool utilized by pension funds for teachers, firefighters, manufacturers and many other kinds of businesses — big and small — to help manage risk. The collection of initial margin on transactions between affiliates increases costs for swaps for these end-users and subsequent customers.Given that U.S. bank regulators are the only major G-20 authorities to impose these requirements, the nation’s banks are left on an uneven playing field when competing both against foreign banks and other U.S. nonbanks. European and Japanese regulators, as well as the Commodity Futures Trading Commission and Securities and Exchange Commission, do not require initial margin collection between affiliates.Further, the assertion of lax regulation outside the U.S. is a red herring. It does not support the fact that all major jurisdictions have implemented substantial and similar rules regarding swaps and margin requirements, as per the G-20 Pittsburgh accords then led by the Obama administration.The current initial margin requirement also puts the safety and soundness of banks at risk. Initial margin requirements on interaffiliate swaps perversely act as a disincentive to better, centralized risk management of an institution.The associated costs discourage interaffiliate swaps in favor of hedging with third parties. Removing the requirement would help broaden a bank’s view of its overall risk exposure, and enhance the safety and soundness of the financial system.Finally, the recent BankThink piece oddly mentioned a proposal to revise the enhanced supplementary leverage ratio — a wholly unrelated issue — and repeated an inaccurate assertion that the change would lead to a large decrease in the amount of required capital at banks.Margin is not the same as capital. And importantly, the Federal Reserve’s own analysis showed that the proposal would not result in a material change in capital at the eight U.S.-based global systemically important banks.The eight global systemically important banks have&nbsp;<a href="https://www.fsforum.com/research/">increased their capital</a>&nbsp;to roughly $925 billion, or more than 40% during the past 10 years.Regulators worldwide and institutions have taken other important steps to greatly enhance the safety and resiliency of the global financial system. CFTC leadership of both political parties have supported the revision.<blockquote>After a decade of rapid regulatory change, we agree with the domestic and foreign regulators who have said it is imperative to review the rules to ensure its effectiveness and efficiency.Elimination of the interaffiliate initial margin requirement has bipartisan support because it would enhance the ability of banks to serve the economy without sacrificing regulatory improvements made in the past decade. Such a move is smart policy that would benefit consumers and businesses alike.</blockquote>Kevin Fromer Kevin Fromer is president and CEO of the Financial Services Forum, which represents the eight largest, most diversified U.S. banking institutions.Kenneth E. Bentsen Kenneth E. Bentsen, Jr., is president and CEO of the Securities Industry and Financial Markets Association.

BankThink Op-ed: Easing derivatives trading rule would help the system, not hurt it

Opinion

Letters

FSF - SEC Climate Proposal Comment Letter

Principles for Climate-Related Financial Risk Management for Large Financial Institutions

Comment Letter on FRB CBDC Discussion Paper

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Al Dia

External Link

State Street introduces Hispanic Equity in the Workplace of Tomorrow Certification Program

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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>

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Diverse Talent

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>

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Leadership Roles

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>

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Employee Resource Groups

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>

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Employee Trainings

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>

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Hiring Commitments 

Our institutions have established hiring commitments to diversify our workforces.

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

Promoting Diversity, Equity and Inclusion

Citi

Action for Racial Equity – Two Years Later

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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>

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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 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>

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Commitment to Affordable Housing

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>

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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.

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