Financial Services Forum CEO: Large Banks are Key to Serving the Economy

10 Apr 2019

Forum President & CEO Kevin Fromer says: “These large institutions are key to serving the economy by partnering with businesses large and small, and consumers, millions of them. We have a system that is far stronger than it was before.”

CONTACT: Julia Lawless
(202) 457-8766

WASHINGTON, D.C. – With the chief executive officers of some of the largest financial institutions testifying before the House Financial Services Committee today, Financial Services Forum President & CEO Kevin Fromer joined the hosts of CNBC’s “Squawk Box” and Fox Business Networks’ “Varney & Company” to discuss the health of the American financial system and the critical role these banks play in supporting the economy.

 

Following are highlights from the interviews:

On Role of Large Banks in the Economy:

“We have a $20 trillion economy in the United States, which is the envy of the world. And these large institutions are key to serving that economy by partnering with businesses large and small, and consumers, millions of them. We have a system that is far stronger than it was before the crisis and that is the purpose of this hearing.”

On the Banking Industry’s Progress:
“The lawmakers and regulators and the institutions themselves have helped lead the way towards where we are now, where we have this incredibly strong system. And, you need the system and you need these institutions for this economy.”

On the Future of the Banking Industry:
“I think the commentary around these institutions has to change. It needs to change. It needs to match the condition of these institutions. It needs to match the condition of this financial system, which is extremely strong. Don’t take it from me. Take it from former and current regulators, that is the state that we’re in right now. And I think the commentary needs to get closer to that reality.”

On the Services Large Banks Provide Customers:
“These institutions are responsible for almost half the lending — consumer lending, commercial and industrial lending — three-quarters of the capital markets. They’re underwriting in debt and equity offerings, and they’re very significant for the capital markets and for the growth of the economy. And so, those are important issues that the committee should take stock of.”

Additional Background:
The Financial Services Forum represents the eight, largest most diversified financial institutions headquartered in the United States.  Today, these institutions are strong, resilient and supporting the economy. Specifically, they:

  • Are large employers Our economy depends on the more than one million employees of the Forum firms who help customers, businesses, investors, and communities.
  • Support consumers. Our institutions provide nearly half of all consumer loans. They help families and consumers address a variety of household needs, whether it’s buying a car, closing on a new home or simply saving for the future.
  • Support other banks. Forum members meet three-quarters of the funding needs of other financial institutions, such as local community banks.
  • Support companies. We underwrite nearly three-quarters of all domestic debt and equity transactions, including IPOs.  Start-ups like Lyft and Pinterest go through banks like ours to go public.
  • Support small businesses. We hold one-quarter of all small business loans, which help entrepreneurs grow their business and hire new workers.
  • Support communities. We have about $150 billion in municipal security holdings, or government bonds, to help state and local governments fund infrastructure projects, such as upgrades to local roads and bridges or updates to community hospitals and schools.

To learn more about how large U.S. financial institutions are safe and sound and supporting the economy click here.

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The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States.  Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.

Visit our website: fsforum.com

Follow us on Twitter @fsforum and LinkedIn

Learn More:

The Value and Strength of America’s Largest Financial Institutions

Our institutions support economic growth and a number of steps have led to a more resilient financial sector. Learn more in our briefing slide deck.