YouSaid · the spoken record

Brian Moynihan

lines on the record: 31
first: 2025-03-13
most recent: 2025-03-13
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“When we bring the 2,000 kids in and I talk to them, I always say the same thing. You can make a lot of money doing a lot of things. You can have a great career doing a lot of things. But if you're going to come to our company, you really want to help people. Our market position is what would you like the power to do? And I said, your job at this company is to help people answer that question, whether it's a customer, whether it's a teammate, whether it's a shareholder, whether it's a community. And you've got to come and want to do that. You want to deliver a lot of profits done the right way with the purpose around it.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“What we've always been as a bank of opportunity. So we think about creating an opportunity for our teammates and how do we do that? We go out and hire from all areas and bring people into our company. So we go to 400 different schools to recruit kids. We have a program we call Pathways. So Pathways we announced in 2018 we said we'd hire 10,000 people from low and modern income neighborhoods to come work in our company. So once we have a very diverse company in terms of representation from all economic stratus, all races, all ethnicities, once they get in the opportunity is there of a lifetime. We equal pay for equal work, the ability to promote. And so the idea is just create opportunities. So we have a diverse team. We stress inclusion. So when you're at our company, you can be who you want to be and be successful, including we have 300,000 memberships in our employee resource groups, of which about 60% of people are in one.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“But our valuation difference to the S&P is it's lower than it's been, and I think our company is a great value, and the rest of the banks are pretty good value.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“It's pretty clear there's going to be a stable coin, which is going to be a flullar-backed type of thing, which is no different than a money market fund with check access. It's no different than a bank account, really. And so if they make that leave, we'll go into that business. So you'll have a Bank of America going in a U.S. dollar deposit, and we'll be able to move back and forth because now it hasn't been legal for us to do it, but it's just then like another foreign currency. The question of what it's useful for is going to be interesting.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“At the end of the day, we get 55% of our revenue, our $100 billion of revenue last year, 55% came from interest. 45% came from fees. The dominant part of those fees are trading revenue and asset management fees and things like that. We have consumer fees, but they've come down dramatically because basically it said to consumers You keep changing your behavior, we keep driving down the cost to serve and we'll give that back by low and lower fee structure.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“So we invest about $4 billion in new code every year, every weekend we'll have a couple million lines of code go in to amend our systems and change our systems or add new technology. That's not to run the systems. That's another $8 or $9 billion. That is just new activity. So the impacts have been unbelievable. So in the mid-90s, when I was ahead of strategy for the company, I remember consultants coming and saying, 20 years will be no bank branches. Well, it's 30 years, and guess what? We still have 3,700. The reality is people want it all the way. But the impact of the phone iPhone in particular was so different. And we were the first app available on the iPhone. You now have 40 million consumers who bank digitally with us all the time. Last year we had... About 90 plus percent of our interactions with consumers are digital.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“This is the classic. Do as I do not as I say, because at the end of the day, between this morning when the banks open up to tomorrow morning, 400,000 people come into our branches. So this idea that nobody goes to a bank branch just is not true. The idea that nobody uses cash will have about a quarter billion dollars will go out of our ATM machines in the next 24 hours. The idea that nobody writes checks, there were 100 million checks”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“My oldest son's an investment banker for a different firm, obviously, in my middle child is a risk manager for another firm in financial services and my youngest in communications and other stuff. But being a CEO's child is not the easiest thing. Being a CEO's spouse, and they saw me work in different ways across the years. So it's their decision, what their career is. And it's nice, my son. He's a deal-doer. He's an M&A type of guy. So it's fun because I used to do that. I haven't done that a long time.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“APG and any who was Italian descent started the Bank of Italy when he came to the country in San Francisco to help the town community that emigrated to San Francisco. And he became famous in the San Francisco earthquakes and fires in the early 1900s by setting up a barrel and starring lend money. Then fast forward to 1999, when Nations Bank, which was the North Carolina Bank, which is the bank today, and the Bank of America merged, you had two good names”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“So then in early mid January of 2009, I took over a bunch of the businesses after John Thane left and went back into business. And then by the end of 2009, MCU.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“As we negotiate with the government to figure out how to get the mayoral deal done, and then I went back in business right after.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“So, what happened was. December of 2008. Remember, we bought Merrill on the Lehman weekend and everything, so we were originally trying to buy Lehman. We said we couldn't do it as a company. I was running at that point a corporate investment bank and other parts of Bank of America. We couldn't do that. And then over the weekend, that's when the world became very ugly. And so we bought Merrill. Around the time Merrill showed up without with a $7 billion loss in the quarter and with a lot less capital than you're supposed to have. We started telling the government we couldn't do the deal and stuff. And so Ken asked me a big general counsel because we were limiting a lot of jobs and I actually eliminated my job. And I was basically out of the company and said, you know what, stay and become general counsel because we need somebody from December 9th to...”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“That was the last deal I did. I was ahead of MA and strategy. Terry Murray and Chad Gifford put together that deal. Chad ultimately took a liking to me as a great mentor and said, you've got to run a business and put me in running a business. And we were merging two companies together and I survived and ran the wealth management business for a few years.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“I just went to work for Fleet and I was Deputy General Accounts for like three months and I went on a special project to re-engineer the company and came to have the strategy.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“One of my mentors is named Terry Murray, who ran Fleet. And I did corporate law. A lot of work I did for Fleet. And then Terry, after we did a transaction called the Bank of New England, a transaction with KKR, I put money into the bank industry, and we bought the Bank of New England, and Mini Fleet bought the Bank of New England from the federal government in the early 90s after the real estate crisis. I'd structured that deal in a way that I'd structured private equity deals for our private equity firm, which was a thing called dual convertible preferred stock. It convert into parent company stock or bank stock. Never been done in a public array. Terry said to the general counsel, he's too smart to be a lawyer, which I never figured out what the general counsel thought about. He was a brilliant guy. And he said, get him in here, and we'll figure out if he's going to do something.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“I've been on the board for 15 years, and at the end of the day, the chair of a board, Chris Paxson runs university, does a spectacular job.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“I played rugby at Brown. I played rugby at law school, and I played rugby after. It's a great sport. It is, in a way, the most intense, what looks like disorganization out there is extremely organized, but it's unique in that it's physical and tackling. You kick, you run, everybody gets to handle the ball, and you run for 80 minutes. And so it's a very demanding game. And so it was a lot of fun.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“He was a research chemist for DuPont. And so he spent his whole life on plastic. So the graduate, you know, plastics young man, my dad was at.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“I was set up to get my own bedroom for the first time in my life, and my younger brother decided he wanted to move in the bedroom because he was scared to sleep alone, probably when I was in college, his first time I ever had a bedroom to myself. So yes, it was crowded.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“On top of that, we have a trillion dollars of commercial loan commitments, a half a billion plus of drawn loans. We don't fear any competitor, and we work with those companies, including yours, to generate assets for them. But it's just a different style. I think the world should be concerned to make sure that those enterprises making loans to billion-dollar operating company have the ability to work with them in times of stress, that's going to be an interesting question. We haven't gone through a stress period with this practice.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“I think I care about your firm. Look, it is a day. Private capital has grown because they can do something we can't along a couple dimensions. One is they can finance companies that may have more leverage. And we are basically stopped out at six times leverage. And that used to be a rule that it was taken back. Then it was guidance, and then it was like, wait till we examine you. And we do go above it for certain credits and stuff like that. So that's one thing. The second thing is the ability to bring the whole capital structure, debt, equity, mezzanine, a whole nine yards. That's hard for a bank because we don't engage in equity business.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“Our team right now Basically, says there will be no further rate cuts through their forecast period, which is this year and next year. Inflation is coming down, but is a bigger fight. And in that day, the dual mandate, employment inflation, employment, they're in great shape on inflation. It's been coming down. It's working its way down. It takes multiple years to squeeze inflation out. And there's a drag on the economy today. And so you're seeing economic growth from 3% in the last couple quarters to 2%. We have it moving down to 2%. Our expectation is they won't cut rates.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“The toughest time to be a bank with a $2 trillion deposits is when interest rates are zero. Because we can't charge people to store their money. We're not like a self-storage unit or something like that. So at the end of the day, you have a floor on interest rates. And so when interest rates came down, you started squeezing margins. So the loan rates came down, but the deposits have a zero floor. When rates move up, that changes and so the zero interest checking accounts, all that stuff become worth more and loan rates go up.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“I'd like to spend time when they're telling us we're doing good stuff. We all spend a lot of time, and I have great chief risk officer, Jeff Greener, who organized that for the company. All my senior executives spent time with them. And look, the day-to-day regulators are trying to help us be better, and we understand that. We are on the road to perfection as a company. And as Vince Lombardi said, you strive for perfection, so we found that's what we're trying to. If they've got ideas, we're all ears. Simplifying the organization would allow, frankly, cost to be taken out from the regulatory side, and we pay fees to support it. And it wouldn't be the worst idea.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“Just take the Consumer Bureau. In 2010, with Dodd-Frank 10 or 11, they set up the Consumer Bureau. The theory was that all the consumer regulatory activity would move to a new agency. Guess what? We still have the OCC regulates consumer activities to have the Fed regulates consumer activities to have the FTC on occasion and you have the Consumer Bureau and if you have the FDIC as a regular, you have the FDIC.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“When people always ask me, do you have different approaches for different administrations? And you say, well, in the long term, we've been around since Washington was president. So if we geared ourselves up for this president, not that president, we'd have to change 45 times or whatever it is. And if you think even in the foreign soil, think of how many different prime ministers there's been in England. So even in my tenure as CEO, at the end of the day, you run the company the right way. And what we're trying to say is get us to rational regulatory structure and have it stick to the ribs. If you keep swinging like this, our clients can't be can't depend on us when ANI is.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“High yield spreads blown out by 2,000 basis points, whatever it was. You look at all the same test produces different results. It didn't make sense. So behind the scenes, the transparency wasn't there, and that's what we ended up suing them on. So the stress tests are a very good thing. Frankly, it gives us state of health for 31 banks, which cover mostly industry. The way the United States run was far superior. We do stress tests every quarter, multiple scenarios. Our trading book is stressed every day. So if you think about it's a good thing, it's just the behind the scenes what was happening is that dials are being turned on us and the numbers were becoming irrational to the market. And we have investors and we have to raise capital and have capital available for the industry.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“So the stress tests are publicly available. I think the first one was 2010 and then picked up in earnest 11 or 12. And so every year you can see this report card on the bank industry's health. And every year the bank industry has great health. The rules kept changing in the test. If you think over the last four or five years, you had volatility and capital requirements that went from 50, 75 basis points up and down a year with basically a test that said 10% unemployment, 50% downturn in the equity markets, 30% drop in housing, 30 or 40 percent drop in commercial real estate.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“We are a source of strength. And by the way, the American bank industry is really a source of strength. So the Penn Lon kept just swinging, even though the reason why it had swung had stopped. And so our industry would say, wait a second, why have 20% more capital than we did during the pandemic? The risk is the same just by mathematical creep of calculations.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“If you think about the great financial crisis and Dodd-Frank and a lot of capital rules and liquidity rules and all that stuff came in, there was a reason for the world writ large to be really not happy with banks and non-banks that became banks, Goldman Sachs, Morgan Stanley, Merrill, et cetera. So you could understand that when you go fast forward through the 15 years hence, plus you go through the pandemic and the banking system stands up and stabilizes the economy. You go through the regional banking crisis, the banking system steps up and stabilizes, and they keep adding capital and liquidity. You're sort of saying, wait a second.”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source
“First off, the Bank of America has 70 million consumer customers and millions of small businesses all over the country, all over the world. And so we bank everybody. But the real question was about... Frankly. And so as you look what's happened is because the interpretations BSA Bank Secrecy Act KYC know your customer know your customer's customer There's a lot of burden upon the banking system to both report suspicious activity reports and do a lot of analysis and we have to close accounts we can't tell people why we did it and often we're told by authorities to close accounts that creates confusion Another area comes up in this discussion is in the crypto area where the regulator said you can't bank crypto operating companies employees or crypto companies etc we bank everybody so at the end of the day it's about getting these regulations right and I think it opens a dialogue about how to get these regulations correct in the end of the day we're open for everybody we serve millions and millions of Americans trillions of transactions a year and we'll continue to do so”
2025-03-13 · The David Rubenstein Show · Brian Moynihan · IDENTIFIED FROM THE TRANSCRIPT · source