ms. fraser .. hink, similarly, it's always dangerous talking about averages rather than what we see across the spectrum. but stability in the deposits, still elevated levels of spending. and equally importantly, still low credit losses across the board. >> very low rates extending out their maturity ladders to make sure they do not base upcoming maturities. have the three of you seen any stress in corporate's yet with higher rates? no? not even in sponsor high leverage scenarios? >> not but spreads her way up. collects the markets, the markets.ig it's harder to trade today? one of the things we continue to talk about appear as ensuring we are investing enough in research and development. we went to maintain the significant competitive advantage we have beenan developing new technologies. whether that's at research institutions across the country are very innovative smart companies across the country. one things we've noticed is d.c. funding is declining dramatically. in some estimates there is a ch

ms. fraser. >> thank you very much. i would say it's early days, still, in terms of seeing the impact of high interest rates on their consumer in the states. fortunately, they entered this period with pretty strong balance sheets. but we would anticipate that if interest rates remain high in order to time inflation, that we will see greater stress particularly in the lower fico scores, in credit and that we will also see the saving rates coming down further than we've done. i think we're fortunate to have had the consumer in good health entering into this, but we do expect we're going to be in for tougher times ahead. >> well, thank you, i've run out of time and i yield back. >> thank you very much. the gentleman from california, mr. sherman, who is also the chair of the subcommittee on investor protection, entrepreneurship and capital markets is now recognized for five minutes. he's an accountant who understands the inflation is --. >> thank you. two and a half decades i've been on this committee, we've brought the sec

ms. fraser, mr. moynihan and mr. scharf we are living through a climate crisis today and the commitment to netgear requires a a commit to ending fossil fuel financing. it is important it is a want you to know at the end will pay the cost of the public-health impact. these are people you're supposed to be serving, the folks you're supposed to providing and supporting yourto anything else defies all logic and scientific evidence. if her financial institutions are going toat follow through on your net zero commitment, then regulators including the federal reserve and congress must step in and make them. with that, thank you so much holding this hearing. i yield back. >> thank you. that gentlewoman from new york ms. khosrow cortez is now recognized for five minutes. >> thank you, madam chair and thank you to all of our witnesses who are here testified today. i want to die a little bit into paycheck protection program in a bit of what we seem afterwards. i have one of three reports here i would like to present today, a fo

ms. fraser. [inaudible] d >> we will someone please mute? when you look at the opportunities to improve that the way the system is done causes collateral damages for domestic countries begin have any ideas on how we can reform that if you can answer please send it. >> i wish wet had more time to talk about the banks in cash however we must move on. the gentlewoman from north carolina ms. adams is now recognized. >> thank you madam chair and thank you for holding today's hearing and were witnesses than you. i'm glad to see folks from back home from wells and bill rogers from truist and brian moynihan from bank of america. they do want to get right to it and i'd like to ask you to keep your remarks at 30 seconds we can hear from everyone. this question is to each of the witnesses. as you all may know i am founder cochair of the bipartisan hbcu caucus and the cdc we are grateful that several of you have taken up the partnership challenge and some of you wells fargo have endorsed the hbcu excellent at the this is hbcu week and the white house is

ms. fraser. >> i think you heard many of my colleagues talk about this, and this is a product in industry. the first is a no overdraft product. especially for students and younger people, we have 4 million of those, if you total it up across the board, that product allows people to have no overdraft capacity and then you have the ability for other products for people to opt in, and what we've done is reduced our overdraft fee from 35 to $10. we've reduced the ability to have the nsf type fees, number of occurrences all of that totalled up, we're down 60% this year and that will fall further but we're able to do that because of the scale and cape b abilities of our team in consumer banking the variety of banks in our system there's a variety of business models but one thing consistent the scale we've been able to achieve is allowing us to pass through to the consumer and remaining profitable. >> thank you ms. fraser. >> thank you, representative we are proud at citi to have eliminated overdraft fees and nsfs this was the right decision for our bank and is reflective of a multi-year commitm

ms. fraser. the former global head of corporate investment banking praised the chinese communist party is building a road initiative. in fact, he said quote, city strategies directly associated with 32 of the 69 countries which is more than any other global institution or financial institution. the city should play a leading role in disability and road initiative,." it's my belief the chinese communist party uses this initiative to give into the advantages of chinese companies, forced the developing companies into traps with corruption paving the way. i witnessed this on a trip toie the middle east with my grade chairwoman, maxine waters, where we were told of extreme corruption with of the chinese companies that had been involver in across the african continent. by participating in the belt and road initiative, you are supporting the risk to the national security global economy. the sup supported the belt and d initiative presents a serious conflict of interest by helping the strongest adversary

ms. fraser and mr.iamond and i will be anxious to hear your comments because you are against and you've made these comments against regulation so you think it's a good idea that this whole non-bank sector competes no regulatory oversight at all? >> i've never been against regulations i think we need proper regulations to improve and enhance. sometimes they go too far and sometimes it's not enough and i've given credit to parts of dodd frank. lehman brothers wouldn't happen again. if you look at some of these things, it's an honest assessment not a complaint. a lot of the folks know the social requirements, ftc, transparency requirements, they don't have a regulatory, the same kind of cyber requirements. that's your decision. we will deal with whatever you all decide so it's driven a lot of stuff outside of banking which is fine. we can deal with it. i'm not sure it's the right policy for the united states. >> i would also say i think some of us may be need to revisit this in terms of concerns about wate

ms. fraser of a global front part partner in jurisdictions that have rampant persistent inflation there'suge pressures placed on consumers and businesses in that environment. what are those economic consequences and challenges of a high inflation environment? >> thank you very much for the question congressman.nm we are very concerned about the high prices consumers are facing in america and indeed around the world. we certainly have lived through very unusual times through the pandemic, through the recovery from that and then the impacted greatly exacerbated by the war in ukraine. for the impact of the higher rates that are required to try to tame thear inflation, it is likely to be moderating growth in america and around the world. and will be putting pressure on many of the drivers of the recovery we've been looking for. >> you have this backdrop of the economy. you're making decisions for institutions but in our economic system in america, banks are a key piece of our economich system. in the multiplier affect you all apply in the risk you take a narcotic print let's talk about regula

ms. fraser get is that a good idea do you like that idea? >> a challenge at the moment as we just do not have the data. >> is not comparable is it. these proposals are not comparable withinn an industry r between industries is that a fair statement? >> the record shows they are nodding. you can buy at the european gdp or privacy rules, is that correct bank of america's operations in europe? >> yes we do. >> you are a big bank in california to comply with california privacy laws, right? >> we have to pray. >> and i'm sure you do a>> magnificent job there. do you think we need a federal preemption and federal privacy law will that aid generally? >> think the financial and other issues are having. does a pretty good job and frankly we are exempted from some of those rules because of that long history. >> it's pretty powerful for privacy. >> yes, sir. >> help madam chair may be the next congress we can work to make sure we are all on the same page. you made some good comments about the mortgage and banking their comments today at morgan banking

ms. fraser? utely. >> you remember i asked everybody what their one issue was they thought was going to be the biggest barrier. you said thehe economy, ms. facr you touched on cyber security, you spokean about public policy. i'dhe like to give you a momento clarify that. it's multifaceted. there are different elements. i'd appreciate it. >> public policy in the last 20 years it grew 2% or 3%. that lack of growth and household income by 15 to $20,000 by the end of the 20 years. it lifted up our citizens. there are structure planning for school educations. it's expensive healthcare. we have the best healthcare in the world. 50 million uninsured. litigation isal 1% of the world. you want to make mortgages more accessibles to minorities reduce thee burden regulation, bring down the cost. >> as a licensed realtor or someone involved in-housing and construction. for the love of everything holy don't offer a 50hing year mortgage. you folks will get all of the interest. homeownership is the key. i agree o

ms. fraser next we'll go to mr.ou're now recognized for five minutes to present your oral testimony. >> thank you chairwoman waters, ranking member mcwrenry and distinguished members of the committee. good morning to all of you it's an honor to be here to represent my 210,000-plus teammates at bank of america and talk to you about how we deliver responsible growth this is how we run our company, the same thing i told you last year and the year before every time we've done these hearings we deliver for our clients, our teammates, for our communities and for our shareholders we believe in building both profits and purpose. that includes being a great place to work which is a core tenet of responsible growth. we invest heavily in our teammates and families this year we raised our minimum wage to $22, on track to increase it to $25 by 2025 we also made an across-the-board pay adjustment for all employees in the midyear and late spring that earn $100,000, to increase wages by 3% to 7% based on years of service for the fi