Bank of America CEO Brian Moynihan Talks Credit Card Cap

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Bloomberg Talks 15 min 2 speakers 5 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

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Howard (Howard Schultz?) 0:07
This is my message to the Financial Times. They put out an article about the White House snubbing Brian Moynihan. If they'd seen the embrace between Brian and the Commerce Secretary just moments ago, I don't think they would have written that article, would they?
You know, they were talking about, saw you last night. It was great. Howard, go get him.
Howard (Howard Schultz?) 0:22
I thought we had to shut down a studio for a moment.
Yeah, they needed to reconcile or discuss all of their previous experiences together. But they were all positive.
Howard (Howard Schultz?) 0:30
Let's stick with the economy. The positive outlook. Joining us now is the Bank of America chairman and CEO, Brian Moynihan. Brian, good to see you.
Brian Moynihan 0:36
Good to see you. Howard and I were on a panel yesterday. Yesterday? Yeah. They made it the day before yesterday. Then lunch today. And actually, we're going to do another public venue where we're talking about how you raise the money to do all this investment he was talking about. So he's bullish on America. And I watched part of the interview. It sounds like he said that. You guys are too? Yes.
Howard (Howard Schultz?) 0:56
So let's start with the GDP forecast and the outlook.
Brian Moynihan 1:01
So our research team is one of the best in the world, led by a woman named Candice Browning-Platt. They all come out and they raised their GDP for the U.S. to 2.8% growth for the 26 right before we came to Davos. The world about three and a half. They raised it 0.1. And the important things, I think, to think about the U.S. is you think about the travel from the last time we were here. Last time we were here, We probably had 2.5%, 4.26%. Then Liberation Day, it drops all the way to 1.5%. And then as a settling in of the four primary policies of the Trump administration, trade and tariff, tax, immigration, and deregulation started settling in. We've raised it back to 2.6% and now 2.8%. So that's bullish.
Brian Moynihan 1:46
And then underneath it, we see what the consumer really does. We can talk about that later. The consumer spending was strong in the fourth quarter. When I talk about that, it's $4.5 trillion, our 70 million consumers, which we're blessed to have, put into the economy a year. And for the fourth quarter, that grew about 5% over the 24th fourth quarter. And so far in January, it's growing a little faster than that. Now, you've got to be careful about two weeks don't make a quarter, but it's staying up there strong.
Howard (Howard Schultz?) 2:10
Well, let's pair that GDP forecast with the bank and the business lines then. What position are you in to take advantage of that better growth story in America, and where do you expect it to show up?
Brian Moynihan 2:18
Well, because of who you are, we've been part owners of this company a long, long time ago, and Mike said, Phil, a good thing around the market's business, that's what you're always interested in, even though there's all this other stuff that makes a lot of money. But look, if you look at Jim DeMar, who's now co-president of the company, but his team, And markets this year, last quarter, had their 15th consecutive quarter of year-over-year growth. They just keep walking up 10% up for the fourth quarter. If you look at investment banking, which was kind of interesting, so Matthew Coder and team, early in December, we thought we were about a billion and a half. And I went out at a conference and told people that.
Brian Moynihan 2:51
And lo and behold, we ended up a billion six, five. And that made 2025 the second best year of investment banking fees in our company's history.

How does Bank of America's GDP outlook for 2026 affect its business strategy?

Brian Moynihan 3:01
And the only other one was pandemic when everybody did a lot of financing. And next year we think we're bullish because the pipelines are full. And the broadening out of the revenue stream into the IPO markets and other things, which got started a little bit this year, but have been pretty depressed for a while. So that's coming. And then deals, you know, just the deal flow. People can get deals done. When I was here... A couple of dollars ago, the regulatory burdens were getting so high that you couldn't honestly tell a client who's trying to do a $5 billion deal to do it. Because you said if you're going to stabilize your company for six months a year trying to get this through and you don't get it through, is that worth it?

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