Bank of America (BOA)'s CEO Brian Moynihan was on CNBC to discuss Fiscal Cliff and its impact on business behavior, consumer behavior and the U.S. economy. He also discussed his bank's plan for the dividends.
-- He is more concerned about the impact of the fiscal cliff on business behavior versus the consumer behavior. Thinks consumers are feeling more confident and spending money.
-- Businesses are conscious and in a hold pattern for spending. They are putting in place plans since August on how they will deal with the fiscal cliff, assuming that congress will not be able to reach a consensus.
-- Even if congress cuts some kind of deal on the fiscal cliff, it will still impact the spending environment in 2013 leading to a slow or flat economic growth.
-- This will spiral into a further slowdown into 2014 as well as all the business spending decisions for 2013 have already been made.
-- The environment is very uncertain due to the fiscal cliff and constant push of the can down the road by the congress.
-- Bank of America has fared very well last year, is very well capitalized and dividends are surely in play in the near term.
Credit and source: www.cnbc, CNBC
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