Big bank CEOs are testifying before Congress on pandemic response. Yahoo Finance’s Brian Cheung shares the details.

Video Transcript

AKIKO FUJITA: We're going to begin this hour, though, on Capitol Hill today. The CEOs of major banks testifying before the Senate Banking Committee. It is the first time they'll be testifying or they are testifying since Democrats took control of the Senate there. And our very own Brian Cheung monitoring all the developments on that front. Brian.

BRIAN CHEUNG: Well, Akiko, the hearing just started around 10:00 AM Eastern time. Most of it was opening statements, so the actual questioning did not begin until about 10 minutes or so. But six major US bank CEOs testifying to the Senate Banking Committee. That's Wells Fargo's Charlie Scharf, Goldman Sachs's David Solomon, Citigroup's Jane Fraser, JPMorgan Chase's Jamie Dimon, Bank of America's Brian Moynihan, and lastly, Morgan Stanley's James Gorman.

And their introductory remarks were really talking about how they have contributed to the bounce back in the economy. They were trying to toot their horns in terms of the lending that they've done and also their initiatives on trying to advance racial equality. All six of these banks have been trying to prioritize their attention to those matters, especially in light of the George Floyd killing around this time last year.

Now what's been interesting is that we have heard from other bank CEOs, specifically Jamie Dimon from JPMorgan Chase, about where they would like to see policy going forward and where their initiatives are. Take a listen to his remarks just a few minutes ago.

JAMIE DIMON: Our country is poised for strong economic rebound, but we must ensure that the economic recovery benefits all and that we address longstanding inequities that threaten the promise of America. Access to affordable healthcare and education systems [INAUDIBLE] our children, crumbling infrastructure, climate change, and racial inequality are just some of the problems facing our great nation. All of us, government, business, and civil society, must work with a common purpose to address these challenges. The actions we take together will determine the future of our country for generations.

BRIAN CHEUNG: So a few things worth paying attention to in those notes. Obviously, he was reading off of those prepared statements. But remarkable that he was kind of talking about the idea of infrastructure. This is the nation's largest bank maybe trying to place its thumb on the scale for some sort of infrastructure package, which we know the Biden administration has been prioritizing.

But guys, I want to emphasize that this is a broad oversight hearing. The topics have been all over the place as far as the first few questions. There's been questions about climate change and CEO pay. And it's expected that there will be other questions about ESG investing, maybe even cryptocurrency. So this could be really all over the place and definitely worth watching in the next few hours to come. And of course, we'll have the full coverage of that right here on Yahoo Finance.

ZACK GUZMAN: Yeah, and Brian, I know you're going to be giving us the updates, even as we go and carry this coverage beyond the noontime hour here. But as far as expectations go around it, I mean, these things always tend to be heated. Of course, Democrats upping their push here to maybe increase regulations when it comes to banking now. But what's maybe the temperature check? Because this time around, they were all in cahoots in kind of rolling out some of these programs, mainly the Paycheck Protection Program, so it doesn't seem like a lot of attacks could come there. But what are your expectations when it comes to how this one might be a bit more muted?

BRIAN CHEUNG: And this is exactly the tone that I think a lot of people are watching when it comes to this hearing because on one hand, yeah, the big banks have always been in fire. They are typically used as a punching bag on Capitol Hill, especially by Democrats. And keep in mind that the Senate Banking Committee, in addition to the House Financial Services Committee, where the same six will be testifying tomorrow, are currently run by the Democrats because they have control of both of those chambers.

But on the other hand, it is a fact that this particular crisis that we had with the economy falling into the rut last year was triggered by the virus, not triggered necessarily by some sort of large Wall Street contagion, which was certainly the case in 2008. So that's going to be something that the banks are probably going to push hard on and saying that we were not part of the problem. In fact, if anything, we were part of the solution. Now whether or not the politicians that will be quizzing them ultimately align themselves with that particular narrative is definitely going to be seen.

But of course, all the big banks, at least from their prepared remarks that they had at the beginning of this hearing, saying that we were definitely part of the solution here, and maybe that's why we should get a pat on the back, as opposed to a rebuke. But of course, that's all up for subjectivity when it comes to viewing Wall Street's role, especially as we continue to have the wealth inequality and the issues that we've seen with just the unequal distribution of capital and the recovery throughout this country, guys.

AKIKO FUJITA: Brian Cheung following that testimony for us on the Hill. We're going to check in with you a little later in the show for any updates.