Looking for guidance and ideas on the state of the economy, President Donald Trump recently hosted a group of banking executives and trade association representatives at the White House to gather feedback.
“We are having a meeting — a very important meeting — with the, I would say, the greatest bankers in the world, the most important banks in the world, financial centers, and having a good discussion,” Trump said, according to remarks from the meeting made public by the White House. “We’re discussing the economy. We’re discussing how it relates to jobs and all of the things that are happening right now.”
Among those gathered were leaders of Bank of America, Citigroup, Goldman Sachs, U.S. Bank and Wells Fargo, as well as leaders of the Consumer Bankers Association and the Independent Community Bankers of America.
“I’d just say it’s great to always have the bankers in because you have tremendous visibility into the economy and what’s going on,” Treasury Secretary Steve Mnuchin said. “And we are interested in hearing that feedback, particularly in small- and medium-sized businesses in particular industries.”
Bank of America CEO Brian Moynihan began the public discussion at the meeting.
“The CEOs of the large banks here want you to know that because of all the work done on the capital, liquidity, and all the things, as we look forward to uncertainty due to the virus and oil price changes, we’re very strongly capitalized,” he said. “We are in a great position, in terms of liquidity, capital, and strength. But more importantly, we’re doing what we do best, which is helping our teammates, importantly, but also our clients and our small-business customers and our medium-sized business customers to continue to have access to credit.
“And we can tell you that, up until the last couple of weeks, the activity has been very strong, and it’s still strong. We’re still seeing people spend money. We’re still seeing people go out. Small-business loans are continuing to grow. Auto loans are growing. Mortgage loans are obviously very strong.”
Citigroup CEO Michael Corbat assured the president that despite volatility in the markets, things were moving along as expected.
“I think the good news is that the markets have performed in an orderly way. The infrastructure that supports the markets, I think, has held up through some pretty good tests,” he said. “And, as Brian said, from the banking perspective, we’re here to help. We want to provide liquidity. We want to lend to our small businesses. We want to be supporting our consumer clients.”
JPMorgan Chase co-President Gordon Smith told the president that the bank had lent $26 billion to consumers and small businesses in the past 40 days.
“We looked a little bit at Seattle, which, you know, has been, you know, a center of the virus. And economic growth is still continuing,” Smith said. “So, you know, we see it’s slowed down significantly, but people are still going to restaurants, for example. We still see that. People are buying food to be delivered by the new delivery services.”
ICBA President and CEO Rebeca Romero Rainey pledged the support of her industry.
“I might just add, as I represent the community banks across this country rural markets, urban markets, suburban markets, they’re there; they’re staying ready, strong to support their communities, whether it be your very smallest businesses, the ag communities. The community banks are here to support. They’re here to help,” she said.
After the meeting Romero Rainey was among the trade associations to issue statements about the discussion.
“Community banks have been around for generations and have weathered many storms. They are well-capitalized and well-positioned to continue to serve their customers and communities,” she stated. “In fact, this is a textbook reason why community banking matters — community banks are known for providing flexibility and accommodations to their customers when they need it, including individuals, families, small businesses and farmers. The job of community bankers will not change amid the coronavirus pandemic. They will continue to be community leaders who focus on providing credit and needed services to help their customers and communities continue to thrive.”
CBA President and CEO Richard Hunt thanked regulators for recent guidance around emergency actions institutions can take.
“Banks have implemented emergency measures to assist impacted customers and small businesses and appreciate statements from regulators allowing for increased flexibility to do so,” Hunt stated. “Over the last decade, banks have built strong foundations, including the doubling of capital reserves, passing increasingly strong stress tests and a continued decline in problem institutions.”
Finally, American Bankers Association President and CEO Rob Nichols said the association appreciated the chance to meet with the president and his team.
“Nothing is more important than the safety and health of our employees and customers, and America’s banks have taken prudent steps to prepare for this difficult situation,” Nichols stated. “Banks of all sizes stand ready to support the customers and communities they serve as well as the broader economy and help the nation overcome this challenge.”