WASHINGTON, DC — Several of the nation’s largest banks released their first 2023 quarterly earnings reports this week detailing high profits that “easily exceeded investor expectations.” JPMorgan Chase, Citigroup and Wells Fargo collectively reported over $22 billion in increased profits alone. A new analysis from government watchdog Accountable.US finds these banks are among the ten largest retail banking institutions that raked in a staggering $20.5 billion in revenue from ‘junk fees’ in 2022. Meanwhile, Accountable.US found the CEOs of these 10 megabanks earned nearly $215 million in combined salary and compensation, averaging nearly $21.6 million.
In January 2022, the CFPB announced an initiative to save consumers billions of dollars by cracking down on “exploitative junk fees.” The CFPB said these fees typically include anything from overdraft and Non-Sufficient Funds (NSF) fees, ATM and service fees, and other fees consumers incur in the banking ecosystem. These fees disproportionately harm low-income consumers. House Republicans including House Financial Services Chairman Patrick McHenry have vowed to fight the CFPB’s effort after taking substantial sums from banks that benefit from junk fees.
Big banks are padding their already obscene profits with junk fees that sap billions of dollars from the pockets of everyday Americans and the economy. Banking CEOs have seen their personal wealth explode under this exploitative practice yet with a straight face claim it’s a necessary part of doing business. Instead of working with the President to do away with junk fees, House Republicans would rather make excuses for their big bank donors who nickel and dime hard-working American families,”
Liz Zelnick, Accountable.US’ Director of Economic Security and Corporate Power.
Highlights from Accountable.US’ new report include:
- JPMorgan Chase & Co.—which collected over $5.2 billion in junk fees in 2022—rewarded CEO Jamie Dimon with $34.8 million in compensation.
- Citigroup—which raked in over $1 billion in junk fees—rewarded CEO Jane Fraser with nearly $22.1 million in compensation.
- Wells Fargo—which collected over $4.7 billion in junk fees during 2022—rewarded CEO Charles W. Scharf with $24.6 million in compensation.