ynihan? >> we will continue to modify them. but as mr. dimon said, we prefer someone who will work with us through foreclosure. >> i want to talk not only about the fact that the cost of housing is escalating so much in my own state of california, you know it has increased probably about 20%, so it is very difficult for people to be able to get these down payments, etc., etc., but i want to ask you about these low-cost houses. under $100,000 in some of these areas across the country, small towns and communities of color in particular. they can't get loans from your banks, they tell me. i ask you to submit some information on that. most of you did. how many of you are absolutely

committed to taking a look at this market and understanding that this is the way in which people low-cost housing -- in low-cost housing can't become owners unless they get loans from you. >> you raised a very good point with us a couple of days ago. we are going to dig deep into it and see if we can come up with programs. >> ms. fraser? >> exactly the same, chairwoman waters. >> ok. moynihan? >> as we enter some markets with lower cost housing, we will probably be doing more with that. >> chairman waters, we do a significant amount of loans under $100,000. we will look to see if we can do more. >> ok. >> it's really not the business we are in. we only did seven loans this

year. >> ok, thank you. my time has expired and i cannot get back to this any deeper. i will now call on our ranking member. you have five minutes. >> thank you, madam chair. i want to thank you all for being here in this format. as i open, this is a sequel that no one asked for. the hearing two years ago, i don't know if much was learned. we will have a similar issue modified by the political discourse today. i think of this as an opportunity for me to ask important questions about your insight into the economy. we know that in the financial crisis, the banking sector provided important liquidity and played its role in our economy to ensure that lending was possible.

that smart underwriting and lending was still possible in the midst of a pandemic. i think that is commendable work. here institutions and banks and fintech's, i credit you for putting that in during the financial crisis. the question i have for the whole panel is the outlook on jobs going forward. we had 8 million unfilled jobs last month. 8 million unfilled jobs. 266,000 net increase in employment, but 8 million jobs unfilled. there is a lot of debate in washington about why that is happening. i would like to hear from you, as experts on the economy, about the nature of that. if we can begin with you, mr. sharp, and then you, mr. moyni han. >> i'm not sure i have a

great answer as to why that is the case. from what we see with ourselves and our clients, their confidence is building. they feel very, very good about prospects for the second half of the year. debt levels are down -- >> but how do you have economic growth if you can't get people to go back to work? that's my question. i will move on to you, mr. moynihan. >> the issue raised has come up to the highest level. there was a pandemic, six months ago, and now it has turned to getting workers for the jobs. i think it is a serious concern, and states are trying to put money forward to help. it's the ability to get stuff through the ports and the ability to get people back to work. >> ms. fraser and mr. di

mon? >> one important thing is as savings go back to work and the liquidity gets translated into ways that create more employment and business creation to drive the recovery. >> ranking member, i think the reasons are many fold, including some of the unemployment insurance, including the fact that our schools have not reopened up, including the fact that people have a lot of money and don't particularly feel like going back to work, but rest assured, we will see a booming economy, lots of people going back to work, and hopefully it will continue for quite a while. >> thank you. thank you for answering that. on the international front, we see a lack of transparency associated with china's lending across the globe.

china has resisted international standards set by bodies like the oecd on export credits. we see this globally, and the federal reserve has flagged elevated debt levels in china, high real estate valuations and we this is in their financial sector. i see a lack of transparency in their lending and a lack of transparency internationally to their domestic action. can you give me further insight into this, and should we believe china? you believe that china's lack of transparency and its official financial sector vulnerability poses a potential risk to global financial stability? mr. solomon, that question is for you, and into you, mr. dunham -- then to you, mr. dunham. >> thank you, ranking member

mchenry. you raise a lot of issues that we spend a lot of time thinking about. transparency and markets is always important and what transparency -- once transparency is better, we have to work in interconnected market so some of the issues [inaudible] we will certainly feel it back in the states. i don't see it as a likely issue at the moment, given the recovery they have had coming out of their pandemic, but these things should be watched and observed closely. >> the gentleman's time was expired. >> saved by the bell. thank you for testifying. >> the chair of the house committee on oversight and reformed is recognized for five minutes. >> thank you, chairwoman waters, for holding this hearing.

president obama signed into law the credit card act, a bill i wrote, that lists abusive practices of the credit card industry. according to one study, this bill alone is estimated to have saved consumers nearly 12 billion dollars a year. the 20th teen study estimated it saved consumers $16 billion in the first year. but where we made great progress on stopping abusive practices in the credit card market, there is still much work to do on bank overdraft practices. i plan to soon reintroduced the overdraft protection act, to crack down on predatory overdraft fees. bank overdraft fees are outrageously predatory and beyond the scale of what a reasonable charge stood be --

should be for the service. we know these fees and practices are harming consumers and taking billions out of their pockets. according to an s&p global market article from earlier this year, the larger banks collected $8.8 billion in overdraft fees alone and recorded over 146 billion dollars in [inaudible] in addition, those who are impacted by overdraft fees the most can afford them the least. of that 8.8 billion dollars collected last year is money taken out of the hands of americans who are trying to keep food on the table and stay afloat in the middle of our pandemic. each bank has slightly different policies, making it even more confusing to consumers.

all of your banks basically charge around $35 for each overdraft. but the worst of these fees can be on debit card transactions, where the overdraft average of $20 comes to a $35 fee. multiple transactions can quickly add up, to where consumers are charged well over $100 in fees alone. let's first focus on wells fargo. mr. scharf, neither citi nor bank of america charge overdraft fees, deciding this practice was not in the best interest of their customer. i find it curious, why has your bank made the opposite decision, thinking that a sandwich or a cup of coffee at a deli should result in a $35 overdraft fee? >> i'm sorry, could you repeat

that? >> i'm waiting for your answer. >> congresswoman, we are constantly looking at ways to be more consumer friendly. we introduced an account last year that has no overdraft fees at all. it is probably our most popular account since we have introduced it, so we have options that are readily available for customers who do not want to overdraft. we also offer overdraft protection and something called overdraft rewind, which allows us to look back further the past 24 hours for direct deposits coming into that account. we are trying to be more consumer friendly, but it is something we are continuing to look at. >> you have an account with no overdraft fees? i would think that everyone would take that one, because i don't think any people want to pay $35 of overdraft fees for a

cup of coffee. when did you introduce the program that has no overdraft fees? >> we announced it approximately a year ago, and i believe we have had it in the market for six months or so. i will get you the specific dates. >> how did you inform your customers that they can have this option of not having any overdraft fees? >> it's part of the suite of products that we talk to our customers about on a very regular basis. >> well, i would think everyone would choose that if that was really possible. i think everyone likes a good sandwich and a cup of coffee, but not at the cost of 40 or $50. i feel these fees are unfair, unaffordable, and predatory for all americans, plain and simple. do you think that a five dollar

fee for a six dollar debit charge is reasonable? >> the gentlelady's time has expired. would you please get back to ms. maloney to answer that question? with that, we will go on to ms. wagoner from missouri. you are recognized for five minutes. >> i thank you, madam chairwoman. i would also like to thank our witnesses for being with us today. it is important to me that public companies, such as the ones that you all lead, continue to focus less on political agendas and more on what will benefit you are investors, your customers, and your workers the most. that is maximizing profit and shareholder values. i would like to say that upfront.

mr. moynahan and mr. dimon, the biden administration has proposed an increase, along with many other tax increase measures, all to offset an additional anywhere from $1.7 trillion to three point $2 trillion in government spending. what sort of bird what american workers and small businesses bear? i will start with mr. moynahan's response first. >> thank you for the question. starting with the point about what your customers tell us, your small and medium-size businesses, of which we have many, are worried about tax increases. yet slows down our ability to

invest in employees, invest in new a -- new equipment, so their concern is about that. larger companies have an increase in taxes, and there are a couple of years. that would lead them to put more captive a -- capital available outside of the united states, and they are concerned about that, and the impact of prices coming into potential buyers. i know there's a lot of work going on in this body and other bodies regarding that. >> thank you, i appreciate it. mr. dimon? >> the tax is going from 21% to 28%, which is halfway back to what we think we had in 2017, before the last tax act. the tax increase is actually four times what the tax decrease

was in 2017. we know the devil is in the details, but the details matter. i have always believed -- if you want to have a healthy, growing, competitive america, you need a global competitive tax rate, which at the margins, capital can be retained and invested overseas. the same capital can be retained and invested over here. i think it will be detrimental to banks and a lot of companies that will push a lot of capital overseas. it's unfortunate. there are better ways to collect taxes. >> and it would hurt the customers and clients you serve every single day. we must also remember that 55% of small businesses organized rc corpse. one answer, fast -- wooden increased rate allow your firm to be more or less competitive globally? mr. moynahan?

>> that could lead to less competitiveness globally. >> it would be less competitive and increasingly worse over time. >> thank you. can you please describe the challenges your firm faces in global competition, and how does china factor into those challenges as a global competitor? i will start with ms. fraser's response, please. >> thank you very much. china is playing an increasing role in the global financial system and i think it is very important that american multinationals abroad and indeed the u.s. government, other entities, the important flows of foreign exchange trade and cash management, and the global investments in the u.s. market happens on american rails and not on another country. i think it is of strategic

importance for our multinational companies and those working abroad. >> mr. solomon and mr. gorman, discussions over a financial transaction tax have increased over the past couple of months. what adverse effects with this type of tax create within our financial system, mr. solomon? i have limited time. >> [inaudible] >> if i could, madame chairwoman, i am out of time. i would ask for mr. solomon and mr. gorman to send me a written response, for the concept of this financial transaction tax. i yield back. >> the gentlewoman from new york, ms. vasquez, is not recognized for five minutes. >> thank you, madame

chairwoman. mr. dimon, i would like to address my first question to you. in addition to being a member of this committee, i am also the head of the small business committee, which has jurisdiction over the paycheck protection program. despite making changes to make it easier for small business es to access funding, [inaudible] the number of loans issued by jp morgan in these communities decreased. you shoot approximately 58,000 loans -- you issued a proximally 58,000 loans to small

businesses, but then you only issued 30,000. can you explain this decrease? >> we are the largest lender. we lend as much as we can, everywhere we can according to government guidelines. we reached out everywhere to online communities and stuff like that to get exact numbers, but i think we did a fairly good job at it. >> i do have the numbers. i do have the data because i am the chair of this committee, and working with the fda -- we held a hearing yesterday. my question to you, we are talking here, despite the fact that we set aside lending for small businesses, not only did your bank decrease the number

compared to the first branch and second ranch, but also the size of those loans. they went down from approximately $170,000 to $80,000 in round two. at the time, we all knew that small businesses were starving for capital. despite how hard they worked at applying for those loans. it doesn't seem to me that your bank was doing everything it could to reach these businesses. >> well, we did and we reached out everywhere we could. there was less demand. the second program was smaller, and we gave 70 -- invested $70 million in some of the latinx banks, we reached out to see

fbi's and back -- cfdi's and ask them to help us find more people. >> the data shows otherwise. those numbers changed in my community when we brought in nation-based lenders such as cdf i's and micro lenders. i hope we can do a better job in reaching out to those businesses that are starting to get access to capital. ms. fraser, when we held this hearing two years ago, i questioned your presidents -- president -- predecessor. a remarkable 486 to one ratio. can you explain how you are working to reduce this ratio

and, in your explanation, can you explain the median employee compensation size as well? ms. fraser? >> my apologies. thank you very much for the question. yes, i want to start by saying we completely appreciate how fortunate i am for the compensation i do get as th new ceo at citi. we want to make sure our employees have a fairer competitive wage and have an opportunity to grow inside our company and provide them development opportunities, and to provide them different benefits they need to support their families and all the challenges during covid and beyond. the different things we are looking at and the programs we

have put in place to support our employees' growth in compensation going forward. >> i yield back, madam chair. >> the gentleman from missouri, mr. luca meyer, is recognized for five minutes. >> is the largest financial institutions in the country, you lent a $.5 billion in credit last year. but you use your size and power to put companies out of business. what's worse, these decisions are not made as a matter of conscience. your investments in china prove that. activists want to do what the law cannot do, by shutting down american businesses. you are not supporting our

economy, you are actively working against it, i would argue. there is a report out that all of you have put out, the environmental social and governance report, where five of your reports, your institutions mentioned moving away from coal financing and investing in other things. there is an article that came out in bloomberg entitled citibank's plowing billions into china. to that end, it is worth noting that the reports -- ms. fraser, quick question for you. mining: drilling for oil and gas, is that illegal? >> it is not illegal. >> are you doing what you are

doing in the u.s. in china, putting pressure on --? >> we are trying to lower carbon technologies, mindful that different industries are at different stages of doing so. >> so you are probably not, is that what you are telling me? >> correct. >> mr. gorman, morgan stanley has $4 billion. is mining coal and drilling for oil and gas, is it illegal? >> no, it's not. >> are you taking similar actions in china that you are doing here, putting pressure on companies to change their business model? >> we continue to support existing coal businesses around the world. we are not funding any new coal businesses. that goes to our franchise committee. >> each of your institutions

have published statements on human rights, which include actions your companies are taking to improve human rights around the globe. not one of your statements on human rights mentioned china. the state department has a statement out with regards to what is going on in china. it is widely reported, religious genocide is going on. the horrible twitch are -- torture and other things going on with minority groups there, and the administration has acknowledge the development of the covid virus in wuhan labs, going after that, which was done for nefarious purposes. strip solomon, you have been in china since 1994 and have $17 billion in investments there. do you plan to alter your business in china as a result of these human rights violations? >> first and foremost, i appreciate the question. we are an american company, but

operate on a global basis. i think the bilateral relationship between the u.s. and china is incredibly complex. there are places we cooperate and places we are confrontational. we try to navigate that and engage with our clients around the globe. >> so you will turn a blind eye to the human tragedies and suffering going on in china by their government and the communist party, which is one in the same, which we have dealt with for almost the past 30 years with? >> i look at this broadly is a complex relationship. i saw that secretary of state blinken said that we have to at all times be competitive, collaborative, and adversarial. we try to operate. our clients are u.s. companies that we serve. congressmen are operating in china and we try to serve them in that context. we think it is better to stay engaged than not, but we will follow what you do as

legislators as to how u.s. companies should be engaged around the world, and we take that very seriously. >> do you at -- intend to change the operation of your business in china -- >> [inaudible] we follow the foreign policy of the united states of america, which is your policy. we follow engagement -- >> foreign policy -- it is to get out of china. >> when you tell us not to, we don't, like cuba, business with russia, we follow exactly what you tell us to do and are patriots like the rest of you. >> the gentleman's time has expired. >> >> does my from california, mr. schumer.

recognized for five-minute. >> in 2008, financial system caused prices -- caused the horrendous crisis. democrats responded by changing the regulatory system. now the financial system has survived the greatest stress test i could have imagined. it did not cause this crisis and it has shown resiliency during this crisis. that's in part because of the regulatory changes that were made and in part because of the stewardship of some of the executives that are before us today. we now face another systemic crisis. not the same level of covid. we can solve this in advance and avoid the problem.

my colleagues have talked about this. we have several trillion dollars outstanding. the following year, you will not be able to calculate the amount of interest that is due because it is tied at a rate that folks will no longer published. i will ask each of you and i'm going to ask you to answer and one world -- one word. do you feel federal legislation is warranted to deal with the financial and legal fallout that will occur if we don't have a replacement rate. >> yes. >> absolutely, yes. >> yes. >> yes. >> yes. >> yep. >> thank you.

a light on total default swaps and family offices. we haven't had in this country a limitation on margin limits. you have to put up half the money and that has been the rule basically my entire long lifetime. we saw the arche ghost family office 9-1 leverage by -- we saw the family office 9-1 leverage. should we allow the average investor to get 9-1 leverage. -- leverage? or should we have one rule for

robin hood? and another rule for the sheriff of nottingham and his family office? >> i appreciate the question and i think this is an area that i know people are looking at closely and i think it probably a good thing to continue to look at it. the big thing i would focus on is transparency. one of the things that would be interesting is disclosure regime around the different >> i asked a question. it's not very transparent. you are a robin hood customer, you get one to one. if you can negotiate because you are big, you can get eight to 1,921 leverage. that's transparent. -- eight to nine. should we have the same rules? >> when you look at

institutional the disappearance, there are a variety with of ways people can get leverage. generally, whether retail or institutional, if you are looking at straight margin, it is one-to-one. generally speaking, >> reclaiming my time. the small swab is a way to have all of the economic benefits and i'm going to try to squeeze and another question. that is, we see that a trillion dollars in federal tax. secretary biden, president biden has indicated that to collect that, we need more reports from banks. are you prepared to cooperate and not only disclose the tax?

>> we will do whatever is legally required. >> thank you. >> thank you very much. the gentleman from oklahoma is now recognized. >> thank you, madam chair. >> 40 years ago, i was trying to get into the army. i went through the inflationary. through the 70's and 80's. very exposed. interest rates. it was a wild ride. that brings me to where we are 40 years later. we've experienced a surge in commodity crisis. crude oil, soybeans, wheat. materials like cotton. do you expect this to be sustained for some time to come? would like to turn to mr. solomon and mr. orman. if you would please. >> thank you.

i appreciate the question. it is something that we've been spinning -- spending a meaningful amount of time with. i think as used it -- stand back and look at the shutdown and the dramatic effect on the economy, we have a combination of picking up very quickly and supply production and availability not being as full as it would normally be. what's hard to see at this point is whether or not it's going to be transitory or whether or not it will continue or be sustained. i think it is something that we should watch very carefully. recovery combined with other monetary actions will have an impact on this. hopefully the fed can manage as we go forward. >> mr. solomon?

>> representative lucas, thank you also for the question and coming from a long line of farmers from the outback where the family product had a lot of tending for the space, its supply and demand. we've had a global recession and now we are getting extraordinary demand. you going to see surges and prices that has more capacities brought online whether it's oil rigs or more money around the world. right now, we are in a surge. >> i'm just a little bit nervous having increased the debt. it seems like a rather expansive increase. if the economy picks up, what's the term velocity? i'm just nervous. anyone under 60 did not live through that.

-- through that period. second question. the biden administration proposed more than four between dollars in spending for the american jobs plan and the american families plan of which they plan to incorporate a hike in taxes. they also proposed a minimum global tax rate. while we should level the playing field, some argue that global, minimal tax rates would be disadvantageous to companies. could you comment on this concern and how feasible it would be for this to achieve a global tax rate? >> america would be the only country in the world. going from 21 to 28 isn't the issue.

the tax increase because of something like that is four times the tax cut of 2017. there's no question that the margin would be a mistake for america. >> missed fraser, could you share your thoughts on how feasible the global minimum tax rate is? >> i think it's very hard to get other countries to sign on to an equipment program despite optimism. i think that would be extremely difficult. it could put the u.s. in a position of being less competitive around the world. >> my background representing agriculture and industry, those international markets are important for us. we have gone through the last 50

years trying to have fair access. i'm very sensitive about undoing the progress that we've made just as i'm very sensitive about inflation daily. -- inflation. >> thank you very much. the gentleman from new york. also the chair of the house committee on foreign affairs is now recognized for five minutes. >> thank you, madam chair. thank you for having this important hearing. institutional investors are monitoring racial and equity commitment. blackrock announced they plan to conduct a racial equity audit. additionally, new york state announced in february that the state retirement fund conducting

racial equity employment, including amazon. however, many do not agree with this idea. mr. diamond, your jp morgan statement says conducting a racial equity audit would not provide useful information. ms. frazier, we heard that the bank recently urged its shareholders to vote against a proposal. could you elaborate on your opposition to independent racial equity? >> we are devoted to the principle of trying to do a better job for black and latinx community. you're welcome to come and look at the programs. harlem to $30 billion from merck

-- for housing mortgages for black full. small business enterprise, getting kissed high school. it's pretty global. -- forgetting kids through high school. it's pretty global. we report it out. that is completely different from the theocracy and -- bureaucracy and bs. i would rather take the time and effort. if there are best practices, we will learn from them. >> we feel we have been very transparent. we just put out another extensive update for our racial equity plan and that covers different dimensions. many of which are verified by third parties. we did not think it was needed

to have a separate audit, but it is something that we are looking at. >> i think it's something, and replied to mr. diamond, we've seen something that was not verified. independently to verify what's going on, then it is something that is trustworthy. i think that independent and that's what independent audits are always important. it gives that independent audit whether it will be sufficient for your deficit. let me go to, i am pleased to hear that many of you have committed to cancel investments

and i have been encouraged over the years. i would love to hear more because a commitment to invest is very different from an agreement to invest. we are asking all for written responses to the question. in the meantime, mr. monahan. can you let this committee know if your commitment to agreement with these institutions. >> congressman, we have agreements with 13 black owned minority institutions representing equity commitments. that's separate from the commitments that we have made to the cdf i where we have committed another $250 million

and we have already given out $150 billion -- 150 million dollars of that 250. >> we have completed and the money is in common equity for 17 institutions up to 5% based on what they wanted. we made offers 120 or so that are out there. we are going to look at investing. many of them don't need the money. >> i yield back, madam chair. >> the gentleman from michigan is now recognized for five minutes. >> thank you madame chair. two of the participants, i intend to touch on a few issues but also my previous -- that my previous colleagues have touched on. to ms. frazier, congratulations

and welcome to the frying pan. i want to talk a little bit, i want to hear quickly from each one of you. what do you see as the greatest threat to our financial system right now? mr. monahan. >> the number one question is what is the economy going to do. >> the economy. really brief. >> cyber security. >> ok how about mr. solomon? >> i would highlight cyber, central clearing risk, glowing -- growing government around the world. >> public policy not being properly executed in the united states of america which meets we are not able to take leadership role in the world for the rest of our lives. >> what exactly? >> i think we've done public

policy not particular well. infrastructure, immigration. taxation, regulation. american leadership really matters. if we don't get our act together, we won't be a leader in 20 years. >> cyber specifically potential impact on the consumer data and data privacy. >> cyber. >> to paraphrase my friend, one of his roles is safe and sound lending for everyone. i wholeheartedly agree. what's interesting to me is only mr. diamond came close to talking about social issue side of things. yet all of you have indicated that 2050, you intend to be at a zero emission scheme within your

banking system. mr. solomon, i guess you've outdone everybody by saying 2025. i'm curious, i did not hear climates and any of that. closest, again, was mr. diamond. but what the hell, excuse me, why are you spending so much effort on this? mr. diamond, you felt frustrated that he would have to go through formal audits because it's not necessarily productive. i'm very concerned about the pressure that you all are receiving as ceos and as an organization that, by the way, i'm curious. i would like to hear if you are banking in taiwan are not. if anybody isn't banking in taiwan, i would love to hear you. any clients that are not in taiwan.

>> i don't know the answer. >> i think that is another pressure point as one of my other colleagues was talking about. all of your firm's have pledged fidelity to this notion of bowing to the witness that is going on on environment. i'm curious, madame -- madam chair i would like to submit for the record. secretary kerry, special envoy, indicating they are going to be coming back to you their financial institutions. they do -- and d.c., we are spending trillions like it's

friday night poker money. $600 billion is a significant amount of business. i'm curious, have you seen this letter? what is your response to that? if you are going to limit our ability to have companies in our state, energy sector and oil, gas, coal. we are not going to be -- we are not going to do business with you. what is your reaction to this? >> we think the climate is a serious issue. >> i understand that. are you aware of the letter? >> yes. >> is anyone unaware of the letter? >> i have not seen the letter either. >> we will make sure that it can get back. i know that my time is up. i want to hear about suffer as well. i will submit some questions in

writing. >> thank you. >> and i yield back. >> gentlemen's time is expired and your letter is submitted without rejection -- without objection. the gentleman mr. scott is now recognized for five minutes. >> thank you chair lady and i am so excited to be on this panel at this time. we have a major issue here. i want to talk about our un-banked, under banked as we apply that to that child tax credit. we have an excellent opportunity . mr. diamond, ms. frazier, mr. monahan, mr. sullivan, mr. sharp

and mr. gorman, you all represent our largest banks and i want to put this to you. we just past -- expanded the child tax credit and 199 trillion covered relief package. here's what that does. 3600 for children under six. 3000 for children under 17. each of the parents are getting guaranteed checks every month. here's your problem. they cannot receive it with direct payments. that's what i am concerned about. to help us to make sure that the child tax credit payments can

come by way of direct posits. it's dangerous out there. when they don't get it directly -- it's dangerous out there when they don't get it directly. every month, it would -- every month, they would go to a payday lender. so, we need to find out what we need to do about this so ms. sharp, let me talk with you. wells fargo has the largest numbers of branches and i also checked with our federal department insurance corporation. let me give you these statistics. 13.8% of black households are un-banked. 12.2% are -- of hispanic households are un-banked. you know what it is for white

households? less than 2.5%. my bipartisan colleagues, myself and congressman from arkansas has got a bill moving in the senate for -- for financial inclusion. it us what we must do. 70% of our african-americans live in neighborhoods with no branch bank. you may start. what are you all doing, what can we do? is this something we can add to our financial inclusion will? we will be glad to work with you. you've got the largest numbers

of branch banks. what percentage of yours is in the black neighborhoods? >> congressman, i share your concern on the issue and also the desire to make changes. we as an institution are committed to bringing about the change that's necessary to bring more of the individuals that you are talking about into the system. >> what would be that change? put more branches available, reach out to community organizations? get these accounts established. >> i think it's a combination of financial education. it's a combination of product design. it also about having the right kind of facilities and the right kind of partners outside of the big banks themselves to ensure

that what we are building is serving the needs of the community. >> mr. diamond, what about you? >> financial education. doing a better job of reaching out to the community. improve outreach. >> what about you, mr. solomon? >> we have a very small consumer business. we have no branches, but i do think at a high level financial education, network of cfi's. >> we've got to solve this problem. we can't leave this program. many of these are single, head of household, people with disability with no bank accounts. they are out there and the predators are wedding on them.

we've got to get that -- predators are waiting on them. >> the gentleman mr. barr is recognized for five minutes. >> each of you or your predecessor signed the 2019 restatement of purpose of incorporation, subordinating show heart -- shareholders -- incorporation subordinating shareholders. it emboldened them and whether you admit it or not, there are instances where the interests of shareholders and stakeholders come into conflict. for example, october 2019 senator warren wrote a letter to mr. diamond stating that because of the restatement she expects that you will endorse and wholeheartedly that wholeheartedly support her

capitalism act. -- wholeheartedly support her capitalism act. in an event where there is a direct conflict between the interests of shareholders and non-owner stakeholders, will you prioritize shareholder interest? mr. diamond, we will start with you. >> yes. >> mr. monahan? >> we deliver both for shareholders and >> when there is a conflict which one will you prioritize? >> we will prioritize the company. >> we would prioritize the shareholders. >> we will prioritize the investors. >> yes, shareholders. >> generally, shareholders. there are circumstances where there is another. >> thanks for mostly keeping in

mind your fiduciary duties. three of you signed on to the net zero. the alliance is part of the biden, john kerry misguided plan to politicize the system to choke off funding. joining the alliance requires your institution to submit information to the united nations so they can certify that you are green enough. you did not sign this. why not? >> we've already made very detailed public statement about what we are going to try to accomplish. oil companies and utilities to try to figure out how to do it the right way. signed statements is not the right way. over time, there will be better disclosure. >> i appreciate that. as we discussed your commitments on this in your letter, mr.

morning hand says that's mr. moynahan -- mr. moynahan, my question to you is should access to financial services be tied to the credit worthiness of borrowers regardless of politics? >> yes sir. >> that's good to hear. thank you. i would encourage all of you to prioritize credit risk as opposed to politics. finally, fossil energy, does anyone on the panel think it's a good idea to immediately and completely fill out financing to fossil energy. please raise your hand if you think it's a good idea to cut off financing for fossil. i want to let the record show that none of our panelists believe that is the case. unfortunately, some of your financing commitments with the desire to change