U.S. Senators Elizabeth Warren and Bernie Sanders sharply criticized the nation’s six largest banks for focusing on shareholder profits instead of lending to businesses and families.
They argue this harms financial stability and economic growth.
Letters to Bank CEOs
In letters sent to the CEOs of major banks, including JPMorgan Chase, Citigroup, Wells Fargo, Morgan Stanley, Bank of America, and Goldman Sachs.
The senators condemned the banks for easing regulations to boost dividends and executive pay.
JPMorgan Chase, Citigroup, Wells Fargo, and Morgan Stanley declined to comment, while Bank of America and Goldman Sachs did not respond.
Dividend Hikes After Stress Tests
In July 2025, U.S. banks announced plans to increase third-quarter dividends after passing the Federal Reserve’s annual stress tests, which showed they had enough capital to weather a severe economic downturn.
For example, JPMorgan Chase, the largest U.S. bank, approved a $50 billion share buyback program and raised its quarterly dividend to $1.50 per share.
Concerns Over Deregulation
Warren and Sanders criticized these actions, stating they contradict claims by bank lobbyists who push for deregulation in Washington.
In a letter to JPMorgan CEO Jamie Dimon, they wrote,
“Big banks’ behavior in 2025 shows their promises of economic benefits from deregulation are misleading.”
They warned that weakening rules could threaten the economy, recalling the 2008 financial crisis when banks needed bailouts.
Push for Stronger Rules
After the 2008 crisis, stricter capital requirements and stress tests were put in place to ensure banks could support the economy.
However, under the second Trump administration, banks are lobbying to loosen these rules.
The senators urged bank leaders to answer questions about their practices by September 22, 2025, to address concerns about financial stability.
Why It Matters
Warren and Sanders argue that banks prioritizing shareholder payouts over lending limits support for businesses and households, slowing economic growth.
They call for stronger oversight to protect the economy and ensure banks serve the public’s needs.
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