Bank of America's New CEO Makes His Doomsaying Debut
Kind of sucks for Bank of America because I don't know about them but I've been popping a cork all over the place since early 2009. Guess that's just me...
Bank of America Corp.'s new chief executive, Brian Moynihan, said he expects the beginning of his tenure running the Charlotte, N.C., bank to be marked by a "long, slow (economic) recovery" that will include a high unemployment rate.
"We continue to be worried about the fragility of the economy," Mr. Moynihan said Monday in prepared remarks for delivery to the North Carolina Bankers Association. "We still have a way to go before we can pop the cork."
He said the bank expects U.S. gross domestic product to grow more than 3% this year.
According to a transcript of his remarks, Mr. Moynihan will deliver a rather muted recognition of his first working day at Bank of America. He is speaking in Raleigh, N.C.
The bank's new chief planned to thank his predecessor, Ken Lewis, before resolving to see the company through the financial crisis and trying to head off a growing campaign to re-regulate financial giants that combine commercial banking with investment banking. U.S. Senators John McCain (R., Ariz.) and Maria Cantwell (D., Wash.) proposed in December to reinstate the 1933 Glass-Steagall Act that prohibited traditional banks from underwriting securities like new stock issues.
Mr. Moynihan said he is "concerned with the view that somehow the integration of capital markets and commercial banking is a flawed structure for companies in our industry. It is not."