Bank of America CEO Brian Moynihan is still optimistic about the economy and Lure of Cash

(Miss this week was in the lead was short This interview served in the short leadership mailbox participants on the morning of Sunday, August 9;?. Email weekly interviews with leading CEOs and business decision makers, click here) banks they offer the first row to the state economy. After a brutal second quarter for the US view that the Bank of America CEO Brian Moynihan that the worst is behind the country. However, his bank economists expected that the unemployment rate will be 10% at the end of the year, and not that the economy completely to 2019 levels by the beginning of 2023. Bank of America, like other banks will recover, He has played a crucial role in the government stimulus funds in the hands of cash-starved companies: it processes 334,000 Paycheck protection program (PPP) loan to provide $25 billion in financing for small businesses. At the same time, the Bank has worked with large companies to strengthen their balance sheets for the customer $461 billion dollars of raising capital (earning record fee for its investment banking unit in the process). Moynihan, of Brown University rugby team at school, a co-captain, worked as a corporate lawyer before moving into banking and CEO was the Bank of America in 2010. He has a turn at the bank after a narrow win for paralyze ‘2008 acquisition of troubled subprime lender Countrywide Financial, Warren Buffett as a major investor on the road. Buffett’s conglomerate, Berkshire Hathaway, in recent days has increased its stake in Bank of America to bring its total ownership stake to approximately 12% of the company. , 60, connected Moynihan time to talk about the need for further stimulus, because he is optimistic about America and its economy, and why Winston Churchill is a good role model for these times. Sign up short by clicking the command here. This interview with Bank of America CEO Brian Moynihan has been edited for clarity and condensed. How would you describe your economic outlook now? We are optimistic that as a company. We will continue to make customers see progress; we continue to see the tension in to come due to the working system, the Fed and the labor charm that has been done. Even with an expected rate of unemployment in double digits later this year? Now you might say: “As is so optimistic?” The answer is that he is optimistic about it is the worst is behind us. April was the worst month was in May, a less bad month of June was better, and do better in July than in June was still. You’ll still spend some ebbs and flows have on the tracking-based viruses, but I think you have to be optimistic that the American consumer can be seen. How important is it that the government has a new round of stimulus? [This interview was Monday, made on August 4, when he was still ongoing negotiations on the new stimulus package.] Start the administration, Congress and the Fed were doing a great job to pass, at the end, with ‘ beginning of March, putting a lot of money in the economy, directly into the hands of the people for real, as it is necessary their ability to keep up with a survival rate of unemployment, which rose to 15% . When you think the river analogy is that we have to cross the COVID kindergarten to send COVID, and obtain necessary COVID past, and the flow between COVID There are some industries COVID already passed due to the nature of what we do. The idea is the money for people to continue to flow, crossing the river are still in progress, in terms of people, in contrast, it has passed. What is your opinion on the newfound concern about deficit spending? I think we certainly have the world’s largest economy is recovering in hurry. When you talk with colleagues around the world, we are very concerned that the United States is obtained because the US economy is so large, creating demand around the world for the rest of the economy. The idea to start thinking about the latest deficit now if you have to get us to the other side of this thing is something that I think we can deal with later. So now is not the time to get religion on deficits? It ‘s the time to ensure that you are spending money to keep the economy recovered. It ‘s the time to ensure that you are spending money to keep the economy recovered. – Brian Moynihan, CEO of Bank of America CEO, demand excellence from your employees. Because we can not expect as citizens, a higher level of excellence by our government? This is done by a political issue in terms of getting this, they are better served political consultants us. Our task is to ensure that we have a lot to do with what is good. I hear you, but what is the economy going to do in Washington to launch its considerable weight to ensure there are no good results for the country? The No. 1 thing is to do business, what can we do to help our society to smooth this for our players. And so we have not announced any layoffs; we announced better care of children. We have strengthened the payment in our stores; we increased overtime. The No. 1 thing is to take care of your people and make sure they are safe and to do so they can serve their customers pretty well so you take care of your customers. BofA will be there to get a particularly good PPP funds credited rapidly disseminated work. You can talk about these efforts? The team did a great job getting people through this and for our customers to help provide $25 billion-plus funds. At one point, we had to work probably 10,000 people in it. We have a lot of resources, a lot of time, a lot of effort. We had to get people from many other places. Volunteers. People work each weekend. Easter holiday weekend. Saturday and Sunday. Overnight. It was all on the basic principle of that community of small American companies needed to get this program in the hands, and it was our duty to enforce it. We took it as an obligation to help provide for the government, and we did it. The time to study, in collaboration with Columbia Business School in a number of on-line, to provide on-demand courses, on topics such as effective leadership, negotiation and customer-oriented marketing. To sign up or learn more, click here. They also actively help their enterprise customers budgets beef. What happened in mid-March to mid-April it is that the company came and borrowed hundreds of billions of dollars from the banking system, including $70 billion in two weeks with us, with commercial loans. What is wrong with M & A and advisory activities? How do you get started in July, the most M & A due to the stability of the market to see. The third quarter, we expect to see M & A for more. They will sign up by clicking here increased IPO Health IPO activity, as well as some other technology IPO guide See letter. How much interaction you have with the yield Warren Buffett, just another series of investments in BofA? You have two for a normal call? We speak regularly. But it wants to run the business and do a good job. Any particularly memorable cues shared with you? He is a great long-term thinkers. The one thing that both calls, but it is also available in the trust, will see where trapped in long-term value of your company and make sure that you are moving, and do not get in the prevailing issues. And ‘the work we have in the last ten years or so positions us well for the 19-COVID crisis; That’s not what we’re going to do today. They are people still in cash? We had so much money out of the ATMs in the month of July this year than we did in July last year, and this is $200 million-plus a day. But the digital part of this reality has grown through online digital purchases, online payments. And by the way, it is a very good thing if the Americans learn how to use less money, and what you do is when you go to a coffee shop and pay with your phone, you will grow to see a good, fast pace. Wait until the money is not dead? I thought people do not want to touch the money and that contactless payments were all the rage. Yes, even big money, is as big as the credit piece. I know that the answer is “you spend”, but you do not have a particular insight into what people do with money? Maybe buy print newspapers and news magazines. It ‘still useful to pay for things. People still use the money to buy things every day. Not necessarily the article $300, but the $10. This item has been changing slowly but surely, but money is still out there, and so a good service that we provide 18,000 ATMs and 4,000 branches, which help people to manage money. Small businesses raise funds, settle them; and people use it. In the long term, but the trend of the movement of dollar bills on digital dollar is relentless. What kind of behavior will not be tolerated on your management team? People who are passive-aggressive. If you have a point to make it in front of everyone. Life is busy; There is not much time. People sitting in an argument, and then come and try me talk about two then say, “Well, that’s what I thought.” I never mind me well because we process that, as a team need together. I understand that a fan of Winston Churchill are. It ‘was amazing how he held the country together. You have to admire that kind of tenacity. One of my favorite things when we get into the discussion of non-profit organizations, museums and cultural interplay and if the story is true 100%, but because a lot of Churchill embellished stories of the year can get through it was a year in where the budget discussed and Parliament cut funding for the arts. And Churchill, in the midst of World War II, when they get bombed and scraping by, he said: “If we do the art of financing what are we fighting?” What is the biggest, most complicated decision this week on the plate? I’m not sure I can say that. Forgive me on a philosophical note at the end, but it’s your name, Bank of America. What’s media in America now? I was in a Home Depot on the weekend and experience a comparison of rage-filled mask, an ugly, ugly exchanges. What it is stand in America for now? America must be as recognized before the best place for opportunities. Capitalism offers great opportunity. We must always be aware concentrated on capitalism as the solution to the deep problems, but we have to manage capitalism to complete Align with what society wants from capitalism. We have to produce profits and get goals. We are fully convinced that our company in the management, and I believe in what America stands for: the world’s ability to solve big problems. It is offering an unfulfilled dream and continue great opportunity. We need to develop to get it; We have to solve the problem where it did not work properly. I think what America stands for the ability to solve major world problems. – Brian Moynihan, CEO of Bank of America Moynihan Favorites Business Book: Jim Collins’. She always thought-provoking. Author: The I, most of James Patterson, David Baldacci, and John Grisham read three. It is not a world that I never, but played in spy novels, are fun to read. APP: ESPN EXERCISE: I train in the morning in a sort of CrossFit nature. SURPRISE ONE LAST QUESTION: SE started over again, what would you do instead? If I had a talent, I would gladly have been an architect. Sign up short by clicking the command here.
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