The U.S. Senate Committee on Banking, Housing and Urban Affairs’ minority released letters from Ranking Member Elizabeth Warren and Senator Bernie Sanders to the chief executives of six major Wall Street banks questioning large share buybacks and higher dividends following a reduction in capital requirements under the Trump Administration. The letters argue that increased payouts to shareholders and executives could weaken bank capital positions and raise risks to US financial stability. The correspondence, sent to Goldman Sachs, JPMorgan, Bank of America, Citi, Morgan Stanley, and Wells Fargo, challenges the banks’ claims that lower capital buffer requirements would expand lending or improve customer pricing, asserting instead that the freed-up capacity was used to boost buybacks and dividends. It also links lower capital to greater vulnerability to economic shocks and recalls the role of undercapitalized banks in the 2008 financial crisis and the subsequent taxpayer support, including Troubled Asset Relief Program bailouts. The Senators requested responses by September 22, 2025.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-09-08
U.S. Senate Committee on Banking, Housing and Urban Affairs minority demands answers from six Wall Street banks on buybacks and dividends after capital requirement cuts
The U.S. Senate Committee on Banking, Housing and Urban Affairs released letters from Senators Elizabeth Warren and Bernie Sanders to CEOs of six major Wall Street banks. They question large share buybacks and higher dividends following reduced capital requirements under the Trump Administration. The letters argue these actions could weaken bank capital positions and increase risks to U.S. financial stability, challenging claims that lower capital buffers would enhance lending or customer pricing.