sean_campbell_lobby__1528289102_74.109.38.142 (1).jpg

sean_campbell.jpg

Sean Campbell

Chief Economist, Head of Policy Research

<h3>Introduction</h3>During the pandemic, Financial Services Forum members displayed significant strength and provided support to the economy by providing much-needed lending to businesses and households, helping firms raise capital through public securities offerings, and providing consumers with a place to keep their money safe during a period of heightened uncertainty. &nbsp;In looking back at the pandemic, some have argued that given broad government support for the economy, COVID was not a true test of the banking system’s resiliency.&nbsp; In this post, we analyze the impact that counterfactually high COVID losses absent government intervention would have had on Forum members.&nbsp; The analysis shows that even in the face of counterfactually high hypothetical losses Forum capital levels would have remained robust, allowing them to support the economy during the pandemic.&nbsp; &nbsp;<h3>The Calm Before the Storm: Large Bank Capital on the Eve of the Pandemic</h3>On the eve of the COVID pandemic, the fourth quarter of 2019, Financial Services Forum members maintained an aggregate common equity Tier 1 capital ratio of 12.1 percent.&nbsp; Before discussing the events of the pandemic, it is instructive to assess the significance and robustness of that level of capital.&nbsp; In particular, Forum capital levels reflected a 4.5 percent minimum requirement that was established after the financial crisis as well as a variety of capital buffers relating to the Federal Reserve’s stress tests and other regulatory requirements, such as the GSIB capital surcharge, that are intended to ensure that Forum members maintain capital well beyond the amount needed to operate during both normal and stressed economic conditions.&nbsp; These capital buffers are intended to flexibly expand and contract in response to underlying economic conditions and are not rigid requirements that are fixed for all time.&nbsp;&nbsp;&nbsp; &nbsp;In Figure 1, we display the required regulatory minimum and pre-COVID capital levels to visually demonstrate the strong and robust level of capital maintained by Forum members before the onset of the pandemic.&nbsp; The figure clearly demonstrates that Forum members were well positioned to support the economy despite the unanticipated economic turmoil stemming from the pandemic.&nbsp; &nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-02-22-at-3.44.44-pm.png"><figcaption>Source: Federal Reserve Y-9C</figcaption></figure>&nbsp;<h3>Large Bank Capital and Counterfactually High COVID Losses</h3>As COVID shut down the U.S. economy in the first quarter of 2020, banks suffered losses and their balance sheets expanded as they absorbed deposits and extended credit to support the economy.&nbsp; As a result, bank capital ratios declined from 12.1% to 11.4% - the low point of Forum member capital during the pandemic.&nbsp; While this decline represents an economic loss, large banks exhibited double digit capital levels, reaffirming their resiliency.&nbsp; Indeed, the reduction in capital simply reflected a modest compression of the ample capital buffers that were established after the financial crisis.Some have argued that these losses do not represent the “true” economic losses attributable to the pandemic because of government support.&nbsp; While banks received no direct government support during the pandemic, some have argued that broad support provided throughout the economy – extended unemployment benefits, CARES act stimulus, and the like – buoyed household finances and forestalled loan defaults that would have otherwise hit the banking sector.In order to seriously consider these claims, one needs to provide a specific and quantitative estimate of those counterfactual losses.&nbsp; Such counterfactuals are, by their very nature, hard to assess.&nbsp; How can anyone validate a loss estimate that never occurred based on assumptions that were not realized?&nbsp; Conceptual difficulties aside, it is instructive to consider some estimates of counterfactual losses to see what impact they would have had on large bank capital levels.One analysis conducted by the <a href="https://www.minneapolisfed.org/article/2021/government-fiscal-support-protected-banks-from-huge-losses-during-the-covid-19-crisis">Federal Reserve Bank of Minneapolis</a> suggests that banking industry losses would have been $100 billion to $300 billion higher in the absence of government support.&nbsp; Our use of these estimates is intended to be instructive but is not intended to convey agreement with the findings.In Figure 2 below, we show the aggregate Forum member capital ratio that would have been realized had these counterfactual losses – either $100 billion or $300 billion scaled to reflect the size of Forum members relative to the entire industry – occurred in the first quarter of 2020.&nbsp; This calculation is highly conservative because we are assuming that all of the losses would have been realized in a single quarter, and we are also assuming that the losses would have occurred when Forum member capital was at its lowest point during the pandemic (Q1 of 2020).&nbsp; Had those counterfactual losses occurred more smoothly over the course of 2020, the impact on capital would be significantly smaller.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-02-22-at-3.45.00-pm.png"><figcaption>Source: Federal Reserve Y-9C, Federal Reserve Bank of Minneapolis</figcaption></figure>&nbsp;&nbsp;As shown in Figure 2, these counterfactual losses would have reduced Forum member aggregate capital from 11.4% to between 10.7% ($100 billion) and 9.2% ($300 billion).&nbsp; This level of capital is still quite robust, being more than twice the post-crisis regulatory minimum of 4.5%.&nbsp; It is reasonable to assume that banks need to maintain capital above the regulatory minimum requirement.&nbsp; It is clear, however, that operating with a level of capital that is more than twice the post-crisis regulatory minimum would be sufficient to continue operating soundly while maintaining public confidence.&nbsp; While higher COVID economic losses would have resulted in lower capital levels, and may have required some amount of capital to be rebuilt over time, the resulting counterfactual capital levels are not anywhere near a level that could be reasonably described as problematic or distressed.This point has also been publicly made by Federal Reserve Chair Jerome Powell.&nbsp; Specifically, during a <a href="https://www.youtube.com/live/-46kqEn6JLc?feature=share&amp;t=4616">Senate hearing in 2021</a>, Chair Powell disputed an assertion that banks would have been materially weakened by an additional $300 billion in COVID losses.&nbsp; Chair Powell responded: “which they would have met.&nbsp; Which they would have been able to absorb without difficulty.” (emphasis added)<h3>Addressing the Cassandras – Root Risk Analysis in Reality&nbsp; &nbsp;&nbsp;</h3>The analysis above and the statements of Chair Powell clearly document that Forum members would have remained resilient during the pandemic even if bank losses were unrealistically elevated relative to actual experience.&nbsp; But what if losses were $600 billion or $900 billion or even $1 trillion?&nbsp; What if the elevated losses carried into 2021, and 2022, and 2023 as well?&nbsp; What if the virus had become significantly more virulent and resulted in multiyear and economically devastating lockdowns?As a matter of basic arithmetic, it is always possible to dream up an implausibly extreme, counterfactual scenario that would substantially weaken bank capital to unstable levels.&nbsp; But that exercise tests nothing except one’s ability to count.&nbsp; Rigorous and informative risk analysis demands that the scenario be within the bounds of reason given the prevailing economic context.&nbsp; Counterfactually high pandemic losses would have reduced capital levels, but capital would have remained sufficiently strong to avoid any significant financial distress.&nbsp; Of course, one should “never say never” when it comes to risk.&nbsp; But simply asserting that losses could have reached a level that would have destabilized the banking system is a tautology with no empirical content that says nothing about the safety and soundness of large banks.&nbsp;&nbsp;&nbsp;<h3>Conclusion</h3>Forum members steadfastly supported the economy during the depths of the COVID pandemic.&nbsp; Their ability to support our economy stems from their strong capital position.&nbsp; No large banks received direct government assistance during the pandemic.&nbsp; An analysis of counterfactually high COVID losses clearly shows that Forum members would have maintained sufficient capital to continue supporting the economy. &nbsp;&nbsp;

Article

AdobeStock_337322389.jpg

Small businesses are vital to the growth and prosperity of our country. The Forum supported an extension of the Paycheck Protection Program, which provides forgivable loans to small businesses, so that all small businesses would have access to the support in 2021. 

In addition, we endorse policies that ensure the largest banks can best support the economy and market functioning during these difficult times.  The Forum in particular has backed policies that incentivize liquidity in markets and prevent unintended consequences to consumers and small businesses. 


Economic Support

Large Bank Resiliency During an Economic Crisis - the COVID Stress Test  

<h3>Introduction</h3>Large banks contribute to our economy in a variety of ways.&nbsp; Importantly, breadth and scale make it possible for large banks to extend their reach and help consumers, communities and business throughout the country while also driving efficiencies that reduce costs for the whole economy.&nbsp; In this post, we briefly outline some of the ways in which large banks provide significant benefits to the economy.<h3>Matching Savings with Investment All Across the USA</h3>One key benefit of large banks is that they operate on a national scale, which provides them with the opportunity to benefit consumers, communities and businesses across our economy.&nbsp; One tangible example of the wide reach of large banks is their small business lending activities.&nbsp; The chart below shows small business loans that were originated by Financial Services Forum members in the continental United States in 2021 (Forum members also originate small business loans in Alaska, Hawaii and U.S. territories, but these are not displayed to conserve space).&nbsp; As shown in the chart, Forum members are working with small businesses in every part of our country.&nbsp;&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-02-15-at-9.23.04-am.png"><figcaption>Source: FFIEC Community Reinvestment Act and Census Data for 2021</figcaption></figure>&nbsp;The breadth of small business lending by Forum members displayed in the chart is important because it speaks to a primary function of the banking system: connecting savers and borrowers.&nbsp; The central goal of banking is to match savers with excess savings with borrowers who have productive investment opportunities and need funding.&nbsp; This basic matching function between savers and borrowers is the primary role fulfilled by banks in our economy.&nbsp; A key advantage of large banks is that they have a geographically diverse reach that allows them to find good matches between savers and borrowers even if they aren’t nearby.&nbsp;As an example, a local area in California may have a sharp need for investment because of the emergence of a thriving new industry.&nbsp; At the same time, that specific area may not have significant amount of excess savings among its households to finance the needed new investments.&nbsp; A large bank, however, can source that financing from deposits sourced from New England, or the South, or the Midwest. By leveraging their scale, large banks can connect those that have the greatest need for investment dollars with those households that have the greatest abundance of savings to invest.&nbsp; And as shown above, Forum members productively match small business borrowers with savers all across the country to finance the important needs of small businesses. &nbsp;<h3>Driving Efficiencies to Reduce Economywide Costs&nbsp;</h3>Another key benefit of large banks is their well-documented ability to reduce costs.&nbsp; A raft of empirical research convincingly shows that large banks benefit from scale economies.&nbsp; Specifically, a large bank can produce the same amount of banking services, such as lending, at lower cost than a smaller bank.&nbsp; One reason for these scale economies is that a large bank can spread its fixed overhead costs out over a larger number of customers, thereby reducing total costs.&nbsp; As a simplified example, imagine that every bank needs a building to serve as its headquarters.&nbsp; A small bank with 100 customers would need to amortize that cost over 100 customers while a large bank could amortize the same cost over several thousand customers, thereby reducing the total cost of producing banking services.Several academic researchers have quantified the scale economies in the banking industry.&nbsp; In the chart below we use this <a href="https://www.newyorkfed.org/medialibrary/media/research/epr/2014/1412kovn.pdf">research</a> to compare the operating costs of Forum members – the cost of wages, IT, real estate, legal services, and so on - with the cost that would be expected to result if each Forum member was replaced by a large number of small banks with total assets of $10 billion, such that the total assets of all the small banks equated to the total assets of Forum members.&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/screen-shot-2023-02-15-at-9.23.29-am.png"><figcaption>Source: 2022Q3 FR Y9-C Data, Federal Reserve Bank of New York</figcaption></figure>&nbsp;As shown in the chart above, replacing Forum members with a large number of small banks would result in a significant increase in costs.&nbsp; The increase in costs results directly from the empirically documented scale economies that accrue to large banks such as Forum members, but not to smaller banks.&nbsp; Overall, the research suggests that banking costs would increase by roughly 25 percent if large banks were replaced by an equivalent number of small banks.&nbsp; These increased costs would be borne by the economy.&nbsp; The increased costs could be passed onto borrowers through higher loan rates or through increased prices for other services.&nbsp; Alternatively, increased costs could result in lower wages for bank employees or lower dividends to bank shareholders.&nbsp; Regardless of who pays, some in the economy would bear higher costs for the same banking services, which would reduce economic efficiency for everyone.&nbsp; Accordingly, the scale economies provided by large banks are an important source of economic efficiency that benefits our entire economy.<h3>Conclusion</h3>Large banks play an important role in our economy.&nbsp; Their size and scope help them to efficiently achieve the primary function of the banking sector – connecting savers and borrowers.&nbsp; In addition, large banks benefit from significant scale economies that drive efficiencies that reduces costs to benefit the whole economy.&nbsp; Forum members are committed to leveraging these strengths to serve households, communities, and businesses across the country.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;

Large Banks: Broad Economic Reach and Highly Efficient 

capital.png

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

Fixing What Ain’t Broken: The Real and Hidden Costs of Excessive Bank Capital Regulation  

BankNotes Blog

Dear reader,Welcome to the latest edition of The Forum File. In this edition, we are highlighting our firms’ work to promote financial health in low- and moderate-income communities.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>Christine Channels, Head of Community Banking and Consumer Governance, Bank of America&nbsp;<h3>What programs does Bank of America have to help people in low- and moderate-income communities improve their financial health?</h3>Financial health is at the root of strong, sustainable communities, and helping our clients build a solid financial foundation is fundamental to everything we do. We strive to connect our clients to products and services, job opportunities, and capital to increase financial resilience and help local communities thrive.One example of how we bring these commitments to life in local communities is through our recently <a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/12/bofa-to-offer-free-financial-counseling-in-17-u-s--markets-throu.html">announced</a> plans to expand access to free financial counseling in partnership with Operation HOPE. We’ve partnered with Operation HOPE for 30 years to support our shared mission of addressing economic inequality, financial illiteracy, and inequitable access to capital. Our program is designed to engage the underserved and improve the financial health of millions of people across the country.We have already seen great results. On average, clients increased their yearly savings by $4,313; improved FICO scores by 21 points; and reduced annual debt by $837. We are expanding this program, called HOPE Inside™, to 180 of our financial centers in 17 U.S. markets beginning this year.<h3>How important is financial literacy to achieving financial goals, and how does Bank of America help close the financial education gap?</h3>We believe that financial health begins with awareness and financial education. A decade ago, we launched Bank of America’s Better Money Habits®, a free, online platform that connects people to relevant resources, tools and guidance to help them take control of their finances.With programming available in both English and Spanish, Better Money Habits provides resources and advice on topics such as <a href="https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/">budgeting and saving</a>, <a href="https://bettermoneyhabits.bankofamerica.com/en/debt">paying down debt</a>, <a href="https://bettermoneyhabits.bankofamerica.com/en/home-ownership">homeownership</a>, <a href="https://bettermoneyhabits.bankofamerica.com/en/retirement">retirement</a> and more. These tools help people make informed financial decisions, putting them on the path to financial success. Better Money Habits is driving people to make real, lasting change to financial behaviors and improve their financial lives.Outside of Better Money Habits, our teams are here to help clients set a foundation, build and strengthen credit and save if they can. We support and guide them as they think through, plan, and ultimately achieve their short- and long-term goals, step-by-step.Our resources range from offerings in Bank of America’s mobile app, including our AI-driven virtual financial assistant, Erica®, to activating our own employee volunteers, known as Better Money Habits Champions, to improve the financial wellbeing of communities across the country.<h3>How do these tools and programs help Bank of America make a difference in the communities in which it operates?</h3>Our goal is always to help our clients&nbsp;build strong financial foundations. We help address financial inequality by focusing on how we can best meet the diverse needs of our clients, ultimately strengthening communities in the process. This requires a comprehensive approach.In addition to our partnership with Operation HOPE, and resources such as Better Money Habits, we demonstrate our commitment to these communities through Community Banking: we have over 700 financial centers designated for community banking, and approximately 30% of our financial centers and ATMs are in low- and moderate-income and majority-minority communities. We have committed $15 billion to affordable homeownership, and another $15 billion through a commitment to the Neighborhood Assistance Corporation of America (NACA), with whom we share a 26-year partnership. Additionally, our efforts to advance racial and gender equality, economic opportunity and environmental sustainability include $2 billion in bonds and $2 billion invested with Community Development Financial Institutions to advance small businesses.&nbsp;<h2>Value Add</h2>Bank of America Investment in Minority Funds&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/istock-1293175094.jpg"></figure>&nbsp;Bank of America’s investments in minority-focused funds provide capital to Black, Hispanic-Latino, Asian, Native American and other minority and women entrepreneurs to help them establish and grow their businesses. These equity investments address a persistent gap in access to growth capital for funds led by diverse managers and equity funding for the minority entrepreneurs they support.In January 2021, Bank of America <a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/01/bank-of-america-announces-investments-in-40-private-funds-focuse.html#:~:text=Today%2C%20Bank%20of%20America%20announced,capital%20for%20minority%2Dled%20businesses.">announced</a> investments in 40 private funds focused on minority entrepreneurs. In May that year, the bank announced that it was increasing its target for equity investment in minority-focused funds from $200 million to $350 million. To date, the company has surpassed its target, committing over $400 million in more than 100 minority funds. The funds will in turn deploy more than $7 billion in capital to U.S. small and mid-sized enterprises, primarily led by diverse and/or women entrepreneurs.Beyond capital, our innovative approach is yielding broader benefits to the entire investment community. As an early investor in many instances, Bank of America serves as a catalyst, enabling emerging fund managers to attract other potential investors. The bank also provides these fund managers with access to other funds, investors and vendors by creating connectivity within the venture capital community.These investments are a component of Bank of America’s overall commitment to advancing racial equality and economic opportunity, which focuses on social issues in minority populations, such as health, jobs, education, housing and capital inequality.&nbsp;<h2>Capital Gains</h2>What we’re doing in Washington&nbsp;The Forum launched its new <a href="https://fsforum.com/news/category/policy-cents/1/9">Policy Cents</a> video series featuring Forum experts as they break down complex topics in the financial industry. In our first Policy Cents <a href="https://www.youtube.com/watch?v=Jc_a9tk6Ojw&amp;t=37s">video</a>, Forum Chief Economist Sean Campbell discusses the basics of bank capital and dives deeper into how capital requirements for large U.S. banks affect the entire economy. Stay tuned for our next Policy Cents video on large banks and the role they play in helping U.S companies compete internationally.&nbsp;<figure class="image image-style-align-center image_resized" style="width:75%;"><a href="https://www.youtube.com/watch?v=Jc_a9tk6Ojw"><img src="https://fsforum.com/a/media/screen-shot-2023-02-08-at-4.48.37-pm.png"></a></figure>&nbsp;In response to a proposal from the Federal Reserve Board, the Forum <a href="https://fsforum.com/news/forum-submits-comments-to-the-federal-reserve-board-regarding-proposed-guidance-on-climate-related-financial-risk">commented</a> on 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. The Forum’s feedback was similar to that provided to the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency in response to their earlier proposals.The Forum <a href="https://fsforum.com/news/financial-services-forum-announces-new-board-leadership-1">announced</a> that State Street Chairman and CEO Ron O’Hanley had been elected to serve as the chair of its board and Citigroup CEO Jane Fraser had been elected to serve as vice chair. O’Hanley replaced Goldman Sachs Chairman and CEO David Solomon, who served as chair of the Forum for two years. Fraser replaced O’Hanley, who served as vice chair. “The Forum is an important voice in Washington for our nation’s largest banks,” O’Hanley said. “I thank David for his outstanding work guiding our board, and I look forward to leading the organization at a critical moment for our country. The institutions that I and my colleagues lead have shown that they are a bulwark for the economy even in the midst of many challenges, most notably a global pandemic. The Forum will continue to prioritize working with policymakers to foster a strong financial system that supports a vibrant, healthy economy for all Americans.” Said Fraser, “I am proud to join Ron in leading the Forum as we work to promote policies that maintain a strong, safe and sound banking sector, which is vital to the health of households, large and small businesses, and to the competitiveness of the U.S. economy.”<h2>&nbsp;</h2><h2>Our Two Cents</h2>Research from the ForumThe BankNotes Blog spotlighted <a href="https://fsforum.com/news/fixing-what-ain-t-broken-the-real-and-hidden-costs-of-excessive-bank-capital-regulation">research</a> on both the direct and indirect costs of bank capital regulation and how a substantial increase in bank capital requirements could raise annual borrowing costs by roughly 0.25 percentage points, costing the economy over $100 billion per year and also incentivizing continued growth of the shadow banking sector.&nbsp;<h2>Checking the Balance</h2>Members in the newsBank of America is <a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/01/bofa-investing-up-to--150-million-in-middle-income-housing-prese.html">investing</a> up to $150 million to preserve more than 3,000 affordable homes nationwide in partnership with Enterprise Community Partners, one of the nation’s largest affordable housing organizations. The partnership will foster the long-term preservation of middle-income homes by investing equity capital to acquire properties that are at risk of being converted into unaffordable, market-rate homes.BNY Mellon’s&nbsp;Treasury Services business&nbsp;<a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/bny-mellon-named-best-global-trade-finance-provider-2023.html">received</a>&nbsp;two awards in Global Finance’s World’s Best Trade Finance Providers 2023 Awards, reflecting its commitment to providing innovative trade finance capabilities. The bank was named “Best Trade Finance Provider – Bank” in both the Global and North America categories, highlighting BNY Mellon’s role as a robust and reliable trade finance provider, as well as the firm’s efforts in driving innovation through investments in new technologies.In January, Citi released its latest report on supply chains, entitled: “<a href="https://financialservicesforum.createsend1.com/t/r-i-tjkidrhk-l-a/">Supply Chain Finance: Uncertainty in Global Supply Chains is Going to Stay</a>.” The report analyzes comprehensive data and survey evidence to reveal that while supply chain disruptions are subsiding, enhancing resiliency remains a top priority for businesses and institutions around the world.&nbsp;Goldman Sachs’&nbsp;One Million Black Women&nbsp;has&nbsp;<a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.bloomberg.com_news_articles_2023-2D01-2D23_nyc-2Dgoldman-2Dsachs-2Dlaunch-2Dloan-2Dprogram-2Dto-2Dgive-2Dsmall-2Dbusinesses-2Da-2Dlift-3Futm-5Fcontent-3Dcitylab-26utm-5Fcampaign-3Dsocialflow-2Dorganic-26utm-5Fsource-3Dtwitter-26utm-5Fmedium-3Dsocial&amp;d=DwMF-g&amp;c=7563p3e2zaQw0AB1wrFVgyagb2IE5rTZOYPxLxfZlX4&amp;r=b8iCANJjLlDzgmI1DhIxZS-McRP4R7RcWpchMfWzEiw&amp;m=Ee64gkNT74BJaksT0u-d5OTjEiLcKIZQQhgsDb9TaV5hcFs0TPEr2Nefx6-8c34y&amp;s=8FosTGPykqPrY8vkftRppK-ZscUSIcH3jYwQjvSipsc&amp;e=">partnered</a>&nbsp;with Mastercard and New York City Mayor Eric Adams to create the $75 million NYC Small Business Opportunity Fund, the largest public-private loan fund for small businesses in the city’s history. The partnership will also work with&nbsp;local Community Development Financial Institutions.&nbsp;JPMorgan Chase&nbsp;President Daniel Pinto, and Head of Strategic Planning Rosa Ramos-Kwok were&nbsp;<a href="https://www.bloomberglinea.com/2022/12/13/bloomberg-linea-presents-the-list-of-the-100-most-influential-latinos-around-the-world/">named</a>&nbsp;to Bloomberg Línea’s inaugural 100 Most Influential Latinos list. The lists highlights Latinos who are leading innovation and representation throughout various industries around the globe.&nbsp;Morgan Stanley&nbsp;<a href="https://www.prweb.com/releases/peopleshores_announces_project_elevate_a_partnership_with_morgan_stanley_to_uplift_the_careers_of_the_underemployed_in_brooklyn/prweb19119125.htm">partnered</a>&nbsp;with PeopleShores on a new initiative, Project Elevate, to help elevate people in economically and socially challenged neighborhoods with technology skills and practical experience to advance their career opportunities. The companies created a Technical Talent Development and Impact Sourcing Technology Center in Brooklyn, New York, designed to educate, employ and empower participants by providing work experience and professional development.State Street&nbsp;<a href="https://clicktime.symantec.com/15tStbMhJowE2C8KQik9U?h=sB6ErmpRKZ897hQJBdnpqNKqSCw4fQqzxICJqctZXBk=&amp;u=https://newsroom.statestreet.com/press-releases/press-release-details/2023/State-Street-Partners-with-Black-Owned-Businesses-to-Underwrite-1.25-Billion-of-Senior-Unsecured-Debt/default.aspx">partnered</a>&nbsp;with four Black-owned businesses to underwrite $1.25 billion of senior unsecured debt. This partnership reinforces State Street’s commitment to strengthening Black-owned businesses and represents an ongoing effort to partner with Black and Latinx-owned investment firms, as well as firms owned by other underrepresented groups, as part of its debt offerings.&nbsp;Wells Fargo&nbsp;<a href="https://newsroom.wf.com/English/news-releases/news-release-details/2023/Wells-Fargo-Launches-20-Million-Invest-Native-Initiative-for-Native-American-Communities/default.aspx">announced</a>&nbsp;a $20 million Invest Native initiative to advance economic opportunities in Native American communities working with Native-led organizations. The initiative aims to address housing, small business, financial health, and sustainability among Native American communities in Arizona, Montana, New Mexico, North Dakota, South Dakota, and Wyoming. The announcement builds on the company’s previous five-year,&nbsp;<a href="https://newsroom.wf.com/English/news-releases/news-release-details/2017/Wells-Fargo-Commits-50-Million-to-American-IndianAlaska-Native-Communities/default.aspx?adlt=strict">$50 million commitment</a>&nbsp;to address American Indian and Alaska Native communities’ unique economic, social and environmental needs.

large_Screen Shot 2023-02-08 at 4.18.11 PM.png

medium_Screen Shot 2023-02-08 at 4.18.11 PM.png

small_Screen Shot 2023-02-08 at 4.18.11 PM.png

thumbnail_Screen Shot 2023-02-08 at 4.18.11 PM.png

Screen Shot 2023-02-08 at 4.18.11 PM.png

The Forum File, 2023 Edition #1

Dear reader,Welcome to the latest edition of The Forum File. In this edition, we are highlighting our firms’ work to support diversity and inclusion in the banking sector and the communities they serve.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>Susan Reid is a Managing Director and the Global Head of Talent at Morgan Stanley and a member of the bank’s Management Committee.<h3>&nbsp;</h3><h3>Tell us about the Morgan Stanley Institute for Inclusion and how it supports the firm’s diversity and inclusion strategy.</h3>At Morgan Stanley, diversity and inclusion is embedded into our culture and is one of our firm’s core values. To further our commitment, we launched the <a href="https://www.morganstanley.com/about-us/diversity/institute-for-inclusion">Institute for Inclusion</a> in June 2020, with the mission to support underserved communities, advance equity through philanthropic giving and drive workplace diversity. The Institute brings our employees, communities and clients together in a shared commitment to creating a more equitable society. Chaired by James Gorman, Morgan Stanley’s Chairman and CEO, and an independent advisory board, the Institute has launched programs to support our diversity and inclusion efforts and played an active role in advising on key issues.Our strategy is designed to support and accelerate diversity and inclusion efforts both within Morgan Stanley and within the communities we serve.&nbsp; We focus on three core pillars to deliver on the Institute’s mission:<ul><li>Workforce: Support and advise on internal diversity, equity and inclusion efforts to enable Morgan Stanley to become a leader in attracting, developing and retaining diverse talent and to create a culture of inclusion.</li><li>Society: Support underserved communities with philanthropy that drives social justice and promotes racial and gender equity with a focus on educational attainment, addressing the racial wealth gap, and health and wellness.</li><li>Marketplace: Invest to advance economic outcomes in underserved communities through our products and business practices.</li></ul><h3>How is the Institute working to advance diversity within the firm?</h3>We continue to develop and invest in internal diversity, equity and inclusion efforts. For example, the Institute’s Talent Accelerator provides a suite of offerings that support career advancement for women and ethnically diverse Vice Presidents and Executive Directors in areas such as skill development, career management, coaching and networking with senior leaders and peers.When it comes to hiring, Morgan Stanley’s Experienced Professionals Program welcomes professionals from a broad range of industries with two or more years of post-graduate work. And at the campus level, we recently welcomed the second cohort of the Morgan Stanley HBCU Scholars Program. This program provides full academic scholarships to 60 students, 15 each year, and represents a $12 million investment and a key element of our expanding portfolio of global scholarships.<h3>What programs have the Institute launched to drive diversity beyond the firm’s walls?</h3>We have a number of innovative programs focused on spurring change in society and the business community more broadly. Our Equity in Education and Career Consortium (EECC) was launched in 2021, with an initial commitment of $20 million, to help address systemic inequities for young adults from low- to moderate-income backgrounds (see more in Value Add below). And in September, we announced the inaugural winners of the&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.sjiawards.org%2F&amp;esheet=52930155&amp;newsitemid=20220929005552&amp;lan=en-US&amp;anchor=Social+Justice+Innovation+Awards&amp;index=1&amp;md5=e0f524dfc05d0190cd7863547f3fcd6f">Social Justice Innovation Awards</a> in partnership with Centri Tech Foundation. This initiative aims to advance social and racial justice and help drive greater inclusive economic opportunity, providing five organizations with $250,000 each to support their game-changing work to advance systemic solutions to complex social justice issues.Finally, we are looking forward to welcoming the next cohort of The Morgan Stanley Small Business Academy in 2023. This program, launched in spring 2022, promotes equity and empowering diverse-owned small-business leaders through education, sharing best practices, and mentorship. The Academy focuses on helping small businesses leverage their competitive advantage, differentiate themselves in the procurement process, strengthen their business knowledge, and build their professional network.&nbsp;<h2>Value Add</h2>&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/asap_c-morganstanley_s.jpeg"></figure>&nbsp;Recognizing that there is much work to be done in expanding access to education, Morgan Stanley launched the Equity in Education and Career Consortium (EECC) at the end of 2021. Funded with an initial commitment of $20 million to be used over five years, the EECC helps to address systemic inequities for young adults from low- to moderate-income backgrounds. In partnership with the <a href="https://www.morganstanley.com/about-us/giving-back">Morgan Stanley Foundation</a>, the initiative convenes a consortium of organizations that already have proven track records in helping high school and college students achieve stronger education and career outcomes.The EECC will impact more than 30,000 students globally, many of whom are the first generation in their families to attend college. Our objective is to level the playing field by exposing students to career paths and opportunities that might not be visible in their communities; broadening students’ skills through training and mentorship; and creating a lasting support system as these students embark on their academic and career journeys.This initiative highlights not only our own efforts to create a more equitable society, but also our understanding that we cannot achieve this goal alone. We have brought on College Possible and CUNY ASAP and invested $5.5 million to provide similar support for community college students. Together as a team, we will focus on eliminating barriers to degree completion and try to ensure that young adults graduate college with the tools, mindsets and self-confidence they need to enter the workforce. Learn more about the EECC <a href="https://www.morganstanley.com/press-releases/equity-in-education-and-career-outcomes-">here</a>.&nbsp;<h2>Capital Gains</h2>What we’re doing in Washington&nbsp;The Forum issued a <a href="https://fsforum.com/news/capital-requirements-affect-the-entire-economy-not-just-banks">statement</a> on large bank capital, emphasizing that the nation’s largest banks are well-capitalized and urging regulators to carefully consider the effects that increased capital requirements would have on the economy: “There is no compelling case to increase capital requirements at the largest banks, which would raise the costs of lending for families and businesses, hinder U.S. economic growth, and further push activity outside of the regulated financial sector. Regulators must carefully consider the economic impact of capital requirements, because they affect the whole economy, not just banks.”&nbsp;&nbsp; &nbsp;Following the release of the findings on living wills by the Federal Reserve Board and the Federal Deposit Insurance Corporation, the Forum issued a <a href="https://fsforum.com/news/forum-comments-on-positive-assessment-from-federal-reserve-and-fdic-on-resolution-plan-review">statement</a> highlighting that the agencies found no deficiencies in their review of the Forum member institutions’ resolution plans. The Forum noted that these findings reaffirm that the firms have a strategy in place to be resolved in an orderly way, without cost to taxpayers. The agencies have repeatedly reached the same conclusion during the past decade, further demonstrating the ongoing commitment of the largest U.S. banks to the safety of the financial system.<h2>&nbsp;</h2><h2>Our Two Cents</h2>Research from the ForumThe BankNotes Blog spotlighted <a href="https://fsforum.com/news/looking-at-the-big-picture-on-large-bank-capital-capital-is-at-the-high-end-of-the-optimal-range">research</a> regarding large bank capital and how a systematic and quantitatively rigorous economic analysis shows that Forum members maintain robust capital levels that appropriately support bank safety and financial stability.&nbsp;<h2>Checking the Balance</h2>Members in the newsBank of America&nbsp;<a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/12/bank-of-america-commits--13-million-to-chicago-area-nonprofits-w.html">announced&nbsp;</a>$13 million in funding to more than 100 Chicago-area nonprofit organizations working to drive economic opportunity for individuals and families in underserved local communities. The bank partnered with nonprofits that are addressing key factors that contribute to economic inequality across the Chicago area, with targeted support to organizations supporting health, jobs, small business, and community development.BNY Mellon <a href="https://www.bnymellon.com/us/en/about-us/newsroom/company-news/bny-mellon-hires-veteran-owned-firms-to-participate-in-a-750-million-dollar-senior-bank-note-issuance-in-honor-of-national-veterans-and-military-families-month.html?cid=CORP_OSM_YD005540_BankNoteSocial_ALLSEG_PUB_NA_TWT_____">collaborated</a> with eight veteran-owned broker-dealers, all founded by military servicemembers, on a $750 million senior bank note issuance, recognizing the important contributions servicemembers provide to the country every day. The announcement is the latest example of BNY Mellon’s dedicated support for diversity and inclusivity in the capital markets—and the company at large.Citi <a href="https://www.citigroup.com/citi/news/2022/221121a.htm">announced</a> that it will donate over $10 million in support of education-focused nonprofit organizations as part of its <a href="https://www.citifx.com/e4e/">2022 e for education campaign</a>, the highest annual amount since the initiative was launched. With this donation, the campaign is set to donate over $66 million in aggregate since its inception in 2013 and has helped nonprofit organizations support over one million young people.Goldman Sachs <a href="https://www.goldmansachs.com/media-relations/press-releases/2022/introducing-datonomy-11-03-2022.html">launched</a> Datonomy, a new classification system for the digital assets market. Designed to provide a consistent, standardized way to help market participants view and analyze the digital assets ecosystem, Datonomy will help create an increased level of transparency into how the market is moving and can be licensed for a variety of uses, such as the review and assessment of portfolio performance and reporting.JPMorgan Chase <a href="https://www.jpmorganchase.com/news-stories/jpmc-commits-7-45-million-to-help-housing-affordability-gap-in-south-florida">announced</a> it will donate more than $7 million to Miami Homes For All and Solar and Energy Loan Fund to help small scale, minority developers and property owners produce and preserve climate-resilient, affordable housing. The announcement is part of JPMorgan Chase’s $<a href="https://www.jpmorganchase.com/news-stories/jpmorgan-chase-commitment-to-closing-the-housing-affordability-gap-for-black-and-latinx-households">400 million, five-year commitment</a> to improve housing affordability and stability for households of color and reflects the firm’s strategy to combat the housing crisis.Morgan Stanley <a href="https://www.morganstanley.com/press-releases/1gt-growth-oriented-private-equity-platform">launched</a> the 1GT growth-oriented private equity platform focused on making investments in companies seeking to mitigate climate change. Part of Morgan Stanley Investment Management’s $200 billion alternative investments business, 1GT is targeting investments in private companies based primarily in North America and Europe whose products or services enable meaningful improvement in their clients’ carbon footprint.State Street <a href="https://newsroom.statestreet.com/press-releases/press-release-details/2022/State-Street-Announces-Inaugural-500-Million-Bond-Issuance-Under-its-Sustainability-Bond-Framework/default.aspx">issued</a> $1 billion of senior unsecured bonds, including an inaugural $500 million bond issued under its Sustainability Bond Framework that enables the issuance of Green, Social, and Sustainability Bonds. The Framework was developed as a key element of State Street’s broader environmental, social and governance strategy and will help channel investment into sustainability-focused projects.In partnership with the National Urban League, Wells Fargo <a href="https://newsroom.wf.com/English/news-releases/news-release-details/2022/National-Urban-League-Partnership-With-Wells-Fargo-Aims-To-Diversify-Home-Appraisal-Industry/default.aspx">announced</a> a $5 million grant to create the Diverse Appraiser Initiative, a new program to increase diversity and reduce barriers to entry in the home appraisal industry. The initiative aims to certify up to 260 diverse appraisers over five years and includes entrepreneurship and small business development components with a focus on creating 130 potential new businesses.

medium_Reid_Susan_Final_Environmental_Crop_Jul20_cq5dam_web_1280_1280 (002).jpg

small_Reid_Susan_Final_Environmental_Crop_Jul20_cq5dam_web_1280_1280 (002).jpg

thumbnail_Reid_Susan_Final_Environmental_Crop_Jul20_cq5dam_web_1280_1280 (002).jpg

Reid_Susan_Final_Environmental_Crop_Jul20_cq5dam_web_1280_1280 (002).jpg

The Forum File, 2022 Edition #7

Dear reader,Welcome to the latest edition of The Forum File. In this edition, we are highlighting our firms’ work to strengthen economic advancement and wealth creation in minority communities.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><a href="https://newsroom.wf.com/English/news-releases/news-release-details/2022/Wells-Fargo-Names-Otis-Rolley-as-Head-of-Social-Impact/default.aspx">Otis Rolley</a> joined Wells Fargo this summer as President of the Wells Fargo Foundation and head of Philanthropy and Community Impact. He joined Wells Fargo from the Rockefeller Foundation&nbsp;<h3>First, congratulations on your new role. Can you give us an overview of your responsibilities at Wells Fargo?</h3>I am responsible for Wells Fargo philanthropy, employee volunteerism and giving, and leading the company’s strategic vision on advancing community impact. I believe racial equity and improving outcomes for historically marginalized groups should be centered in all the work we do. I am excited about leading the Wells Fargo Foundation and an annual philanthropy budget of roughly $300 million and working with leaders across the company to drive meaningful change through both our philanthropic giving as well as through our business products and services.<h3>Can you tell us a bit about your background and experience?</h3>I am an urban planner by training and am fascinated by the complex barriers people face when it comes to economic opportunity and ways in which to remove them. I started my career in Baltimore municipal government advocating across five administrations for better housing, support for small businesses and infrastructure. Most recently I led national leading initiatives at the Rockefeller Foundation. I’ve come to understand what an effective public-private partnership looks like at scale and how all sectors need to collaborate to effect change.<h3>Why did you choose to join Wells Fargo?</h3>I want to drive positive change in local communities, especially for those facing the greatest barriers. I've been focused on that my entire career. Leading social impact at Wells Fargo is an opportunity to take my experience and vision and put it to work on a larger scale with more resources.I honestly approached the interview process as a two-way conversation. There is a saying, do not talk about it, be about it. I felt that CEO Charlie Scharf was being about it in a real and systemic way and that there was values alignment between myself and the company.The company knows it has more work to do.Changes aren't going to happen overnight, but they can't happen at all without dedicated human and financial resources and a commitment from the top. I believe change is happening and wanted to be on the journey with Wells Fargo.&nbsp;<h3>Do you have a vision or goal that you hope to achieve within Wells Fargo?</h3>At Wells Fargo, our vision is to strengthen historically marginalized communities through economic advancement and wealth creation. Our priorities for the Wells Fargo Foundation are tied to our expertise – building financial health, creating greater access to quality homes, enabling small businesses to thrive, and supporting a low-carbon future. We recently launched a $60 million program called WORTH which aims to create 40,000 homebuyers of color by 2025 in eight markets. Our Open for Business Fund is benefiting more than 150,000 small businesses. My goal is to accelerate this work and add my personal and work experience to the process.<h2>&nbsp;</h2><h2>Value Add</h2>Wells Fargo’s WORTH Initiative Continues to Build Homeownership Opportunities; Partnering to Expand Entrepreneurial Equity&nbsp;<figure class="image"><img src="https://fsforum.com/a/media/wells-fargo-worth-img.jpeg"></figure>&nbsp;As a company, Wells Fargo is committed to creating opportunities for more people of color to buy their own homes, which in turn, grows generational wealth. Launching in 2022 across eight U.S. markets, Wells Fargo’s Wealth Opportunity Restored Through Homeownership (WORTH) initiative is a $60 million national effort to address systematic barriers to homeownership for people of color. Nationally, WORTH aims to help create 40,000 new homeowners of color by the end of 2025.The WORTH initiative builds on Wells Fargo’s ongoing efforts to increase racial equity in homeownership. &nbsp;Wells&nbsp;Fargo’s $40&nbsp;million Growing Diverse Housing Developers program is also working to expand housing inventory in communities of color, among other initiatives. The company also recently launched a Special Purpose Credit Program to help eligible homeowners of color whose mortgages are serviced by Wells&nbsp;Fargo lower their interest rates and reduce their monthly mortgage payments.Helping more people have an equitable pathway to entrepreneurship is also a priority for Wells Fargo. This year the company joined forces with Third Way and the National Urban League to launch the <a href="https://www.aeequity.org/">Alliance for Entrepreneurial Equity</a>, a one-of-a-kind effort that will develop and promote federal policies to increase opportunities for entrepreneurs of color and women to start and expand successful businesses. To amplify the need for entrepreneurial equity, Wells Fargo hosted an <a href="https://www.washingtonpost.com/washington-post-live/2022/09/13/business-founders-color-policymakers-entrepreneurial-equity/">event with the Washington Post</a> with CEO Charlie Scharf, Sheila Johnson, co-founder of BET and CEO of Salamander Resorts, and Marc Morial, President of the National Urban League. Together, their conversation focused on the role of the private sector and government in supporting the creation, sustainment, and expansion of women- and diverse-owned small businesses.The conversation continued with <a href="https://www.sba.gov/person/isabella-casillas-guzman">Small Business Administration</a> Administrator Isabella Casillas Guzman and Havenly co-founders <a href="https://havenly.com/team/">Lee Mayer and Emily Motayed Lancaster</a> about the entrepreneurial landscape, equitable access to economic opportunity and the role of early investment.&nbsp;<h2>Capital Gains</h2>What we’re doing in Washington&nbsp;In a <a href="https://www.americanbanker.com/opinion/dont-delay-public-input-on-feds-review-of-capital-requirements">new op-ed</a> in the American Banker, Forum President and CEO Kevin Fromer urged the Federal Reserve to be more transparent and to solicit public input for its comprehensive review of the bank capital framework: “A comprehensive review of the capital framework and soliciting public input are necessary to ensure a safe and sound banking system in balance with the promotion of economic growth. Doing one without the other will be counterproductive — and risks reaching an outcome that does not reflect the needs of our economy.” &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Forum issued a <a href="https://fsforum.com/news/forum-statement-on-fdic-s-unbanked-households-survey">statement</a> regarding the FDIC’s <a href="https://www.fdic.gov/news/press-releases/2022/pr22075.html">2021 National Survey of Unbanked and Underbanked Households</a>, which found that the share of unbanked households has dropped to historic lows. The Forum noted that our members have long been on the frontlines in the effort to bring unbanked and underbanked Americans into the financial mainstream, and the survey’s encouraging results reflect our members’ ongoing commitment to that goal.The Forum and other trade associations provided <a href="https://fsforum.com/a/media/commentletterprudentialtreatmentofcryptoassetexposures.pdf">joint comments</a> to the Basel Committee on Banking Supervision regarding the committee’s second consultative document on the prudential treatment of cryptoasset exposures. The trades welcomed the Basel Committee’s continued focus on designing a prudential framework for cryptoassets that is risk sensitive and looked forward to continuing collaboration with the committee as the markets continue to evolve.&nbsp;<h2>Our Two Cents</h2>Research from the Forum&nbsp;The BankNotes Blog Spotlighted:<ul><li>Research and recent data from the U.S. banking system demonstrating that <a href="https://fsforum.com/news/bank-capital-borrowing-costs-and-lending-demand-curves-still-slope-downwards">increasing capital requirements reduces lending</a>.</li><li>Questions raised about the <a href="https://fsforum.com/news/gilts-pension-funds-and-central-banks-what-goes-around-comes-around">incentives to engage in private market making in the government bond market</a> in light of the recent bout of volatility in the UK gilt market.</li><li>Scheduled increases in GSIB capital surcharges and explained how they’re <a href="https://fsforum.com/news/raising-the-cost-of-credit-at-the-wrong-time-the-unnecessary-and-counterproductive-rise-in-the-gsib-surcharge">unwarranted, unhelpful, and will only serve to weaken our economy</a>.</li><li>The bigger and more consequential <a href="https://fsforum.com/news/don-t-paint-the-house-before-finishing-the-roof-basel-iii-finalization-and-the-large-bank-capital-regime">open issues with the current large bank capital regime</a> that regulators should address before moving ahead with Basel III Finalization.</li></ul>&nbsp;<h2>Checking the Balance</h2>Members in the newsBank of America&nbsp;<a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/10/bank-of-america-doubles-mdi-deposits-with-additional--100-millio.html">announced</a>&nbsp;an additional $100 million in low-cost deposits to minority depository institutions (MDIs), which will facilitate lending, housing, neighborhood revitalization and other banking services in minority and low- to moderate-income communities. The announcement doubles the bank’s commitment to deposits in MDIs, part of the company’s&nbsp;<a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/10/bank-of-america-s-community-development-financial-institution-lo.html">$2 billion portfolio</a>&nbsp;of loans, deposits and investments in Community Development Financial Institutions (CDFIs) and MDIs.Eight&nbsp;Citi&nbsp;leaders were&nbsp;<a href="https://blog.citigroup.com/2022/10/eight-citi-leaders-named-to-american-bankers-2022-most-powerful-women-lists/">named</a>&nbsp;to American Banker's 2022 Most Powerful Women Lists while Citi continues to raise the bar for diversity with its newly announced expansion of&nbsp;<a href="https://blog.citigroup.com/2022/09/a-commitment-to-increase-our-diversity/">diversity representation goals</a>&nbsp;to include additional markets and underrepresented groups.BNY Mellon <a href="https://www.prnewswire.com/news-releases/bny-mellon-launches-new-payment-platform-vaia-for-payee-choice-disbursements-301656750.html">launched</a> Vaia, an aggregated payment platform that gives U.S.-based institutions access to digital payment options for disbursements. Integrated with BNY Mellon, institutions can provide their payees with access to a range of payment choices – including real-time payments, Same-Day ACH, Tokenized Payments, and debit cards – on a client-branded front end. Vaia leverages BNY Mellon's Account Validation Services to verify payee identities and validate accounts end-to-end, helping to mitigate payment fraud.Goldman Sachs&nbsp;<a href="https://fortune.com/2022/11/01/advancing-allyship-goldman-sachs/?xid=soc_socialflow_twitter_FORTUNE&amp;utm_source=twitter.com&amp;utm_campaign=fortunemagazine&amp;utm_medium=social">hosted</a>&nbsp;its inaugural Advancing Allyship conference which brought together renowned thought leaders in diversity, equity, and inclusion to collectively advance the firm’s commitments toward allyship for its employees and communities. The firm will also be releasing a series of Allyship guides for clients and companies to help foster a culture of inclusion.JPMorgan Chase&nbsp;<a href="https://www.jpmorgan.com/technology/code-for-good-10-years">celebrated</a>&nbsp;the 10-year anniversary and hosted its 100th&nbsp;Code for Good hackathon in New York City. The program pairs university students with JPMorgan Chase technology professionals to develop creative solutions to help global nonprofits. After the event concludes, solutions are implemented for the nonprofits and the JPMorgan employees continue to serve as mentors for the students. The firm recognizes that many nonprofits have a need for technology resources to improve their operations.Morgan Stanley, in partnership with Centri Tech Foundation,&nbsp;<a href="https://www.morganstanley.com/press-releases/inaugural-winners-of-the-social-justice-innovation-awards">announced</a>&nbsp;the inaugural winners of the&nbsp;<a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.sjiawards.org%2F&amp;esheet=52930155&amp;newsitemid=20220929005552&amp;lan=en-US&amp;anchor=Social+Justice+Innovation+Awards&amp;index=1&amp;md5=e0f524dfc05d0190cd7863547f3fcd6f">Social Justice Innovation Awards</a>. This new strategic initiative aims to advance social and racial justice and help drive greater inclusive economic opportunity. The awardees will participate in a nine-month collaborative program in which they receive leadership coaching, support for tech-enabled strategies and access to professional networks. Each organization will also be awarded $250,000 to support their work.State Street&nbsp;<a href="https://newsroom.statestreet.com/press-releases/press-release-details/2022/State-Street-Commits-to-Management-Leadership-for-Tomorrows-Hispanic-Equity-at-Work-Certification-Program/default.aspx">announced</a>&nbsp;its commitment as an inaugural employer pursuing the Management Leadership for Tomorrow Hispanic Equity at Work Certification. This first-of-its kind certification sets clear, measurable standards for achieving Hispanic equity internally and for contributing to Hispanic equity in society. This Certification will provide State Street with a guide to evaluate equity in the workplace and builds on the bank’s&nbsp;<a href="https://www.statestreet.com/values/inclusion-diversity/10-actions-to-address-racism-and-inequality.html">10 Actions to combat racism and inequality commitment</a>.The&nbsp;Wells Fargo&nbsp;Foundation and nonprofit Elevate are <a href="https://newsroom.wf.com/English/news-releases/news-release-details/2022/Wells-Fargo-Elevate-Team-Up-to-Boost-Access-to-Clean-Affordable-Energy-and-Jobs-/default.aspx">collaborating</a> to provide Chicago residents with access to clean, low-cost energy and inclusive workforce development opportunities. The two-year project, which is supported by a $3.15 million grant from the Wells Fargo Foundation, will support the decarbonization of approximately 100 homes for people with lower incomes. The effort will also expand access to&nbsp;<a href="https://urldefense.com/v3/__https:/www.elevatenp.org/contractor-workforce-development/__;!!F9svGWnIaVPGSwU!okQy6cjPln_FXr7SDKq2HPLbl8C23Tvro3by7cVh-eMaSBw5cMhCE9YyRCGixUb3sH5-n6PgXI9KyS69gss0Clc$">Elevate’s Contractor Accelerator</a>, which connects women and contractors of color with training and resources to work on clean energy projects.

large_Screen Shot 2023-01-05 at 11.04.20 AM.png

medium_Screen Shot 2023-01-05 at 11.04.20 AM.png

small_Screen Shot 2023-01-05 at 11.04.20 AM.png

thumbnail_Screen Shot 2023-01-05 at 11.04.20 AM.png

Screen Shot 2023-01-05 at 11.04.20 AM.png

The Forum File, 2022 Edition #6 

The Forum File

CONTACT: Barbara Hagenbaugh(202) 457-8783bhagenbaugh@fsforum.com&nbsp;“Nation’s largest banks are highly capitalized and resilient.”Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today after the Federal Reserve released the scenarios for its annual bank stress tests:“The nation’s largest banks are highly capitalized and resilient. They have shown repeatedly – in both hypothetical stress tests, and in the real-life stress test of the pandemic – that they can and will support American households and businesses even in the face of a severe recession.“We will review the scenarios, which every year have been more severe than the financial crisis.”&nbsp;Additional Background:Since 2009, Forum members have increased their Tier 1 capital, which acts as a cushion against sudden financial losses, by nearly 50 percent to $979 billion. U.S. bank capital requirements, meanwhile, continue to increase and are higher than that required of foreign banks around the globe.The Federal Reserve conducts stress tests, a simulation to determine a large financial institution’s ability to support the economy even when faced with an economic crisis, at least once a year.&nbsp;Learn More:<ul><li>To learn more about large bank capital – what it is, why it is important, and why it is essential to get the calibration right – watch our “Policy Cents” video, <a href="https://fsforum.com/news/large-bank-capital-and-the-economy">Large Bank Capital and the Economy</a>.</li><li>For more information on the increases in large bank capital and bank capital requirements, read <a href="https://fsforum.com/a/media/capital-and-the-nation%E2%80%99s-largest-banks.pdf">Capital and the Nation’s Largest Banks</a>.</li><li>To read about what U.S. bank regulators have said about capital in the largest banks, view <a href="https://fsforum.com/a/media/what-they%E2%80%99re-saying--regulators-on-capital-levels-and-the-largest-banks.pdf">What They’re Saying</a>.</li></ul>&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;Follow us on Twitter <a href="https://twitter.com/fsforum">@fsforum</a> and <a href="https://www.linkedin.com/company/financial-services-forum/">LinkedIn</a>

Financial Services Forum Statement on 2023 Stress Test Scenarios

CONTACT: Brigid Richelieu(202) 660-2569brichelieu@fsforum.com&nbsp;Nation’s Largest Banks Affirm Commitment to Managing Climate-Related Financial RisksWashington, D.C. – The Federal Reserve Board should use high-level principles and a risk-based, flexible approach that focuses on material risks in its guidance to banks on climate-related financial risks, the Financial Services Forum said Monday.Responding to a proposal from the Federal Reserve Board (FRB), the Forum appreciated 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. The Forum’s feedback was similar to that provided to the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency in response to their earlier proposals.“Our members recognize the need for banks to have robust capabilities for the safe and sound management of exposures to climate-related financial risks and, as the proposal recognizes, have already taken important steps to incorporate such risks into their comprehensive, enterprise risk-management frameworks,” Forum President and CEO Kevin Fromer said. “The Forum urges interagency coordination to ensure regulatory consistency of oversight of climate-related financial risks.”The Forum’s letter offered several key observations and recommendations regarding the proposal. The Forum encouraged regulators to use high-level principles and a risk-based, flexible approach that focuses on material climate-related financial risks. Additionally, the Forum cautioned against overly prescriptive board and management requirements that may hamper a banking organization’s ability to develop appropriate practices to address climate-related financial risk and other risks. The proposal’s use of exploratory scenario analysis, rather than stress testing, is the appropriate approach to assist banks in quantifying and assessing the range of impacts from potential transition and physical climate-related financial risks. That said, data gaps and long time horizons pose significant challenges to climate scenario analysis, creating uncertainty and unreliability in results. Therefore, regulators should provide banks flexibility in designing scenarios and determining how to use and integrate the outcomes of the scenario analysis. &nbsp;The Forum’s full comments to the FRB can be found <a href="https://fsforum.com/a/media/fsf---frb-climate-principles-comment-letter.pdf">here.</a>&nbsp;###&nbsp;The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States.&nbsp; Forum member institutions are a leading source of lending and investment in the United States and serve&nbsp;millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.&nbsp;Follow us on Twitter <a href="https://twitter.com/fsforum">@fsforum</a> and <a href="https://www.linkedin.com/company/financial-services-forum/">LinkedIn</a>

AdobeStock_256710240.jpg

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

Forum Submits Comments to the Federal Reserve Board Regarding Proposed Guidance on Climate-Related Financial Risk

CONTACT: Brigid Richelieu(202) 660-2569brichelieu@fsforum.com&nbsp;State Street and Citigroup CEOs ElectedWashington, D.C. – The Financial Services Forum today announced that State Street Chairman and CEO Ron O’Hanley has been elected to serve as the chair of its board. Citigroup CEO Jane Fraser has been elected to serve as vice chair.O’Hanley replaces Goldman Sachs Chairman and CEO David Solomon, who served as chair of the Forum for two years. Fraser replaces O’Hanley, who served as vice chair.&nbsp;“The Forum is an important voice in Washington for our nation’s largest banks,” O’Hanley said. “I thank David for his outstanding work guiding our board, and I look forward to leading the organization at a critical moment for our country. The institutions that I and my colleagues lead have shown that they are a bulwark for the economy even in the midst of many challenges, most notably a global pandemic. The Forum will continue to prioritize working with policymakers to foster a strong financial system that supports a vibrant, healthy economy for all Americans.”&nbsp;“I am proud to join Ron in leading the Forum as we work to promote policies that maintain a strong, safe and sound banking sector, which is vital to the health of households, large and small businesses, and to the competitiveness of the U.S. economy,” Fraser said.Said Financial Services Forum President and CEO Kevin Fromer: “The Forum is a critical resource in Washington. As the United States navigates the current environment of economic uncertainty, the Forum and its members will continue to provide important leadership and promote policies that support a strong and resilient economy, efficient and effective markets, and a safe, competitive U.S. financial system.”O’Hanley became CEO of State Street in January 2019. He was previously president and chief operating officer of State Street Corporation, and president and chief executive officer of State Street Global Advisors, the investment management arm of State Street Corporation. He previously worked for Fidelity Investments, BNY Mellon Asset Management and McKinsey &amp; Company, Inc. O’Hanley serves on the boards of Unum Corp., Beth Israel Lahey Health, ABL Space Systems, The Boston Foundation, The Ireland Funds, IYRS School of Technology and Trades, Syracuse University, and WBUR.Fraser became CEO of Citigroup in March 2021. Before becoming CEO, she was President of Citi and CEO of the Global Consumer Bank. She joined Citi in 2004 in the Corporate and Investment Banking division, served as Citi’s Global Head of Strategy and Mergers &amp; Acquisitions from 2007 to 2009, as the CEO of Citi's Global Private Bank from 2009 to 2013, as the CEO of Citi Mortgage from 2013 to 2014, as the CEO of the U.S. Consumer and Commercial Bank and Global Mortgages from 2014 to 2015, and as the CEO of Citigroup Latin America from 2015 to 2019. She previously worked at McKinsey &amp; Company, Goldman Sachs, and Asesores Bursátiles. Fraser serves on a number of boards such as the Business Roundtable, Partnership for New York City, Stanford Global Advisory Board, Harvard Business School’s Board of Dean’s Advisors, the Economic Club of New York, and the Council on Foreign Relations.The Financial Services Forum’s Board of Directors is comprised of the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States.&nbsp;&nbsp;###&nbsp;The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States.&nbsp; Forum member institutions are a leading source of lending and investment in the United States and serve&nbsp;millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system. &nbsp;Follow us on Twitter <a href="https://twitter.com/fsforum">@fsforum</a> and <a href="https://www.linkedin.com/company/financial-services-forum/">LinkedIn</a>

Financial Services Forum Announces New Board Leadership

Press Releases

kevin_fromer_lobby__1528289124_74.109.38.142.jpg

kevin-cropped.jpg

Kevin Fromer

President and Chief Executive Officer

This op-ed was featured in the <a href="https://www.americanbanker.com/opinion/dont-delay-public-input-on-feds-review-of-capital-requirements">American Banker's BankThink.&nbsp;</a>&nbsp;<blockquote>Last month, Federal Reserve Vice Chair for Supervision Michael Barr outlined the Federal Reserve's agenda to make the financial system safer and fairer by improving banks' safety and soundness. Barr <a href="https://www.federalreserve.gov/newsevents/speech/barr20220907a.htm">called for a holistic review</a> of the bank capital framework, including a review of leverage and capital requirements for large banks. We welcome the Fed's review. And we urge the Fed to be more transparent about it.</blockquote>Mr. Barr is right. Currently, the U.S. capital framework is comprised of a dizzying array of moving parts: risk-weighted assets, stress capital buffers, surcharges on global systemically important banks, countercyclical buffers and leverage buffers, just to name a few. All these requirements are implemented separately, sometimes with several years between rules. No singular element of the capital regime determines overall capital requirements — rather, the various constraints knit together in complex and unpredictable ways to determine the overall amount of capital required of large banks. Given that capital requirements strongly influence the cost and amount of lending by banks in our economy, getting the mix of requirements right is critical, as is transparency around this process.&nbsp; Right now, all we know is that the Fed expects to complete its review this fall, and will only seek public input on proposed capital rules that are informed by the findings of the review after it is complete. We don't know much about how the review is being conducted, but we do know it is happening quickly — and without public input. But waiting for public input until so late in the game — once the direction of travel is set — is too late and risks consequential errors based on a lack of full information. The Federal Reserve should commit to seeking public feedback on its holistic review of the capital framework before the review is finalized and before any subsequent capital rules are proposed. Public feedback is crucial for several reasons.&nbsp; First, regulators' analysis can be improved by taking input from a variety of stakeholders, including academics and practitioners with significant expertise in bank capital.&nbsp; Second, public input will help ensure an evenhanded approach in reviewing the capital framework. A review solely conducted by regulators runs the risk of tipping the scales in a direction confirming existing policy preferences, even if there may be data supporting other perspectives.&nbsp; For example, studies have found that central bank-sponsored research on quantitative easing's effectiveness is more positive than other research on the topic. A full, open review of the capital framework soliciting input from a wide array of stakeholders will help ensure a thorough, unbiased and informed assessment.&nbsp; Most important, any study of the capital framework either implicitly or explicitly embeds a value judgment about the appropriate trade-off between economic growth and financial stability. Regulators are charged with maintaining financial stability, but they are not solely in charge of determining how society balances safety versus growth. Finding the right balance between growth and stability requires weighing the costs and benefits of additional financial stability measures against the impact on job creation and living standards. That debate must be informed by the views of all relevant stakeholders. The Federal Reserve and other agencies reviewing regulations routinely do so with public input. At least every 10 years, the bank regulatory agencies are <a href="https://egrpra.ffiec.gov/">required</a> by federal law to gather public input and review existing regulations. During the last cycle, regulators traveled the country for in-person meetings and collected written feedback. At one of these meetings, Federal Reserve Board Chairman Jay Powell <a href="https://www.federalreserve.gov/newsevents/speech/powell20150204a.htm">explained that</a> creating balanced, effective and thoughtfully calibrated regulations to avoid undue burden requires input from stakeholders. Researchers' review of the capital framework should also adhere to existing transparency standards for published academic research — and all of the data and analysis should be made public. The economics literature is replete with examples of studies that came to drastically incorrect conclusions because of simple data errors that were later uncovered by other researchers. Most academic journals now require that the data and programs used to conduct any analysis be made public before the results are published.&nbsp; The stakes are too high to accept even a small probability of an errant mistake. A comprehensive review of the capital framework and soliciting public input are necessary to ensure a safe and sound banking system in balance with the promotion of economic growth. Doing one without the other will be counterproductive — and risks reaching an outcome that does not reflect the needs of our economy.&nbsp;

BankThink Op-ed: Don't Delay Public Input on Fed's Review of Capital Requirements

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;<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;<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

Opinion

Letters

 Forum Comments to The Federal Reserve on Climate-Related Financial Risk Management Principles

Comments in Response to the Second Consultation on the Prudential Treatment of Cryptoasset Exposures

FSF - SEC Climate Proposal Comment Letter

Screen Shot 2023-03-01 at 4.19.30 PM.png

Understanding the Role of Big Banks in American Competitiveness

Forum Chief Economist Sean Campbell discusses the important role that the nation’s biggest banks play in helping American companies compete internationally and explains how American international competitiveness is critical to ensuring the success and vibrancy of the U.S. economy.

Video

large_IC PC-22.png

medium_IC PC-22.png

small_IC PC-22.png

thumbnail_IC PC-22.png

IC PC-22.png

Capital Thumbnail Final.png

Large Bank Capital and the Economy

Forum Chief Economist Sean Campbell explains capital regulations for large U.S. banks and how those regulations impact small businesses, consumers, and the U.S. economy.

large_Capital PC Thumbnail-02.png

medium_Capital PC Thumbnail-02.png

small_Capital PC Thumbnail-02.png

thumbnail_Capital PC Thumbnail-02.png

Capital PC Thumbnail-02.png

Policy Cents

Fact Sheet

small_capital.png

thumbnail_capital.png

What They’re Saying: Policymakers on Capital Levels and the Largest Banks

Axios

External Link

Finance Program Passes Target of Helping 100,000 Women Entrepreneurs

impact-diversity.svg

impact-diversity-faded.svg

<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>

large_shutterstock_1449672377.jpg

medium_shutterstock_1449672377.jpg

small_shutterstock_1449672377.jpg

thumbnail_shutterstock_1449672377.jpg

shutterstock_1449672377.jpg

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>

large_AdobeStock_367634928.jpeg

medium_AdobeStock_367634928.jpeg

small_AdobeStock_367634928.jpeg

thumbnail_AdobeStock_367634928.jpeg

AdobeStock_367634928.jpeg

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>

large_iStock-661542840.jpg

medium_iStock-661542840.jpg

small_iStock-661542840.jpg

thumbnail_iStock-661542840.jpg

iStock-661542840.jpg

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>

large_iStock-1307539178.jpg

medium_iStock-1307539178.jpg

small_iStock-1307539178.jpg

thumbnail_iStock-1307539178.jpg

iStock-1307539178.jpg

Bringing Those Outside of Banking In

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

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

large_mike-petrucci-c9FQyqIECds-unsplash.jpg

medium_mike-petrucci-c9FQyqIECds-unsplash.jpg

small_mike-petrucci-c9FQyqIECds-unsplash.jpg

thumbnail_mike-petrucci-c9FQyqIECds-unsplash.jpg

mike-petrucci-c9FQyqIECds-unsplash.jpg

Supporting Diverse Suppliers

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

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

Supporting Historically Underserved Communities

large_Screen Shot 2023-03-01 at 4.19.30 PM.png

medium_Screen Shot 2023-03-01 at 4.19.30 PM.png

small_Screen Shot 2023-03-01 at 4.19.30 PM.png

thumbnail_Screen Shot 2023-03-01 at 4.19.30 PM.png

Citi

Walmart and Citi Introduce the Bridge built by Citi platform to Walmart Suppliers

impact-art-economy.svg

impact-art-economy-faded.svg

<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>

large_amy-hirschi-JaoVGh5aJ3E-unsplash.jpeg

medium_amy-hirschi-JaoVGh5aJ3E-unsplash.jpeg

small_amy-hirschi-JaoVGh5aJ3E-unsplash.jpeg

thumbnail_amy-hirschi-JaoVGh5aJ3E-unsplash.jpeg

amy-hirschi-JaoVGh5aJ3E-unsplash.jpeg

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>

large_dane-deaner-BVLVJ6YErSc-unsplash.jpg

medium_dane-deaner-BVLVJ6YErSc-unsplash.jpg

small_dane-deaner-BVLVJ6YErSc-unsplash.jpg

thumbnail_dane-deaner-BVLVJ6YErSc-unsplash.jpg

dane-deaner-BVLVJ6YErSc-unsplash.jpg

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. 

large_leon-Oalh2MojUuk-unsplash.jpg

medium_leon-Oalh2MojUuk-unsplash.jpg

small_leon-Oalh2MojUuk-unsplash.jpg

thumbnail_leon-Oalh2MojUuk-unsplash.jpg

leon-Oalh2MojUuk-unsplash.jpg

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

medium_sean_campbell_lobby__1528289102_74.109.38.142 (1).jpg

small_sean_campbell_lobby__1528289102_74.109.38.142 (1).jpg

thumbnail_sean_campbell_lobby__1528289102_74.109.38.142 (1).jpg

small_sean_campbell.jpg

thumbnail_sean_campbell.jpg

large_AdobeStock_337322389.jpg

medium_AdobeStock_337322389.jpg

small_AdobeStock_337322389.jpg

thumbnail_AdobeStock_337322389.jpg

BNY Mellon

BNY Mellon Receives Award from American Red Cross in Honor of Nearly Four Decades of Philanthropy

thumbnail_statestreet_logo_final.png

statestreet_logo_final.png

State Street Corporation

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

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

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

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

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

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

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

small_ron_ohanley.jpg

thumbnail_ron_ohanley.jpg

ron_ohanley.jpg

Ronald O'Hanley

State Street Corporation Chairman And Chief Executive Officer, Forum Chair

thumbnail_citi_logo_final.png

citi_logo_final.png

Citigroup

Jane Fraser is the Chief Executive Officer of Citi, the world's most global bank, serving millions of consumers, businesses and institutions across 160 countries and jurisdictions. She is the first female CEO in the firm’s history. Jane has deep experience across Citi’s consumer and institutional businesses and, in many ways, she helped shape Citi into the company it is today. Before becoming CEO in February 2021, she was President of Citi and CEO of the Global Consumer Bank, responsible for all of Citi’s Consumer businesses, including Retail Banking and Wealth Management, Credit Cards, Mortgage and Operations and Technology in 19 markets. Before that, she was the Chief Executive Officer of Citigroup Latin America from 2015 to 2019. From 2013 to 2015, she was the Chief Executive Officer of the U.S. Consumer and Commercial Banking and CitiMortgage. From 2009 to 2013, Jane served as the Chief Executive Officer of Citi's Global Private Bank. Prior, Jane was the Global Head of Strategy and Mergers & Acquisitions for Citi from 2007 to 2009. She joined Citi in 2004 in the Corporate and Investment Banking division.
Before joining Citi, Jane was a Partner at McKinsey & Company. She started her career at Goldman Sachs in the Mergers & Acquisitions department in London and then worked for Asesores Bursátiles in Madrid, Spain. Jane serves as a Board Member for the Business Roundtable and the Council on Foreign Relations. She is Vice Chair for the Partnership for New York City and a member of Harvard Business School’s Board of Dean’s Advisors, the Stanford Global Advisory Board and the Economic Club of New York. Jane has an M.B.A. from Harvard Business School and an M.A. in economics from Cambridge University. She is married with two children.

large_Screen Shot 2023-01-12 at 1.47.13 PM.png

medium_Screen Shot 2023-01-12 at 1.47.13 PM.png

small_Screen Shot 2023-01-12 at 1.47.13 PM.png

thumbnail_Screen Shot 2023-01-12 at 1.47.13 PM.png

Screen Shot 2023-01-12 at 1.47.13 PM.png

Jane Fraser

Citigroup Chief Executive Officer, Forum Vice Chair

thumbnail_bofa_logo_final.png

bofa_logo_final.png

Bank Of America

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

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

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

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

small_brian_moynihan.jpg

brian_moynihan.jpg

Brian Moynihan

Bank Of America Chairman Of The Board And Chief Executive Officer

News

Sign Up for Updates