US senators Elizabeth Warren and Jack Reed are accusing seven major American banks of not passing on the benefits of a high interest-rate environment to customers. In a letter to the CEOs of Bank of America, Citibank, JPMorgan Chase, US Bank, PNC Bank, Truist, and Wells Fargo, the senators claim that the banks have increased interest rates for borrowers but kept rates for savings accounts low. The senators argue that the gap between deposit rates and the federal funds rate is larger for customers of big banks compared to regional and community banks. They also accuse the CEOs of the banks of not fulfilling their promise to increase interest rates for savers after testifying before the US Senate three years ago. The senators point out that the banks have made record profits by charging borrowers more, paying savers less, and pocketing interest paid by the Federal Reserve.



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