The CEOs of the six largest U.S. banks assured Treasury Secretary Steven Mnuchin on Dec. 23 that "ample liquidity is available for lending to consumer and business markets," according to a Treasury Department statement.
Mnuchin held individual calls with the heads of Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co., during which the banks confirmed that markets continue to function properly and they had not experienced any clearance or margin issues, according to the Treasury statement.
Mnuchin's calls came following recent stock market volatility, a U.S. government shutdown and reports that U.S. President Donald Trump had contemplated firing Federal Reserve Chairman Jerome Powell. However, Mnuchin clarified on Twitter that while Trump disagrees with the Fed's monetary policy decisions, the president "never" suggested firing Powell and does not he think he has the right to do so.
Mnuchin is set to convene a call with the President's Working Group on financial markets, which includes the board of the Federal Reserve System, the Securities and Exchange Commission and the Commodities Futures Trading Commission. At the Dec. 24 meeting the group will discuss coordination to assure "normal market operations." He also invited federal banking regulators the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. to join the call.
"With the government shutdown, Treasury will have critical employees to maintain its core operations at Fiscal Services, IRS, and other critical functions within the department," a statement from Mnuchin read.