Bank of America (BOA)'s CEO Brian Moynihan was on Bloomberg to discuss constant policy bickering in Washington and its impact on business behavior, consumer behavior and the U.S. economy. He also discussed his bank's progress towards resolving the legacy bad debt, mortgage and charges and BAC earnings power going forward.
-- Momentarily, the lack of confidence in markets around happenings in Washington does not worry him.
-- Consumer confidence is high, as they continue to spend and they are not changing their behavior around the events in Washington. They will continue to drive the economy forward.
-- Main thing he is worried about is that these debates in Washington impacts the budget cycles of companies who tend to bake in very conservative spending plans in their next year budgets due to all the uncertainty created by policy bickering in Washington.
-- On Bank of America: Our earnings power is in tact and continues to grow every day. Don't let the charges underestimate that.
-- We are very focused on resolving legacy issues and taking stuff out which will propel our earnings power further.
-- We continue to resolve our mortgages issues. Today only 1/5th of workers are deployed on resolving Mortgage issues versus 50,000 workers we deployed at the peak of crisis. That expense will get reduced going forward and that as well, will propel our earnings power
Credit and Source: www.bloomberg.com, Bloomberg TV
Here is the video:
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