Sen. Elizabeth Warren, D-Mass., is probing CEOs of 16 of the largest financial institutions on their stance regarding the Consumer Financial Protection Bureau's rule limiting banks' ability to require customers to resolve disputes in arbitration.
Warren wants to know about the firms' use of arbitration clauses in consumer agreements as well as the outcomes of their arbitration proceedings.
In her letters to the CEOs — at firms including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup Inc. and Charles Schwab — Warren states that "a number of lobbying groups representing big banks and financial firms have condemned the rule, asserting that it will harm consumers … These organizations represent your bank and your industry, but you — and other CEOs of large banks — have remained silent on the rule."
Warren asked the CEOs: "If your lobbyists are taking such strong positions against the rule, is there a reason both you and your bank have been unwilling to take a public position?"
