Bank of America (BAC, Financial) CEO Brian Moynihan talked with CNBC from Davos on Wednesday about Bank of America's progress and future, as well as housing. Highlights:
- Cost cuts and deleveraging: "We started a balance sheet at a high point from a couple years ago of about $2.7 trillion, down to about $2.2 trillion,$2.1, so a lot of that's done. There'll be some things in and out. In terms of reshaping the cost, we've announced things and we're in the process of implementing them. So there's no, we're doing something we're calling New BAC, which helps us reengineer our company. We took hundreds of thousands of ideas from our teammates, are putting them in place. So that's going on as we speak. That will take us really to implement over three years. The major part of its done, '12 into '13 and will continue into 14."
- Thinks his capital numbers are comfortable within their peers.
- Will find out how stress tests went when they tell him.
- Housing overall, will take time to work through everything. He thinks maybe a couple of years.
- He will turn stock price around by fine tuning the company, getting the capital ratios where people understand that they have the capital they knew they had (which he believes helped move the share price recently). The issue now is to drive core earnings by getting costs down, and as the economy continues to move along they will make more earnings.
