(Missed this week’s Leadership Summary? This interview was sent to The Leadership Brief subscribers’ inbox on the morning of Sunday, August 9; for weekly emails of conversations with the world’s leading CEOs and resolution managers, click here).
Banks will offer a front-row seat in front of the state of the economy. After a brutal quarter in the United States, Bank of America CEO Brian Moynihan believes the worst thing is the country. However, economists at your bank expect the unemployment rate to be 10% by the end of the year and the economy will not return entirely to 2019 grades until early 2023.
The BofA, like other banks, has played a key role in securing the government stimulus budget for companies with liquidity problems: it has processed 334,000 loans from the Payment Check Coverage (PPP) program, offering $25 billion in financing to small businesses. At that time, the bank has worked with giant corporations for its balance sheets, raising $461 billion in capital for clients (earning record rates for its investment banking unit).
Moynihan, who at the university co-captained Brown University’s rugby team, worked as a corporate lawyer before joining the bank and became CEO of BofA in 2010 and led a radical change in the bank after an almost paralyzing acquisition of subprime in trouble in 2008. National financial lender, which attracts Warren Buffett as the main investor along the way. Buffett’s conglomerate, Berkshire Hathaway, has increased its stake in BofA in recent days, bringing its total stake to approximately 12% of the company. Moynihan, 60, joined TIME for a verbal exchange about the need for more stimuli, why it is positive about the United States and its economy, and why Winston Churchill is a smart role style for that time.
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This interview with Bank of America CEO Brian Moynihan was edited and condensed for clarity.
We are positive as a company. We continue to see consumers grow; We continue to see the tension in the formula decrease as a result of fed paintings and stimulus paints that have been made.
Now you can just say, “How positive is that?” The answer is that the positive thing about this is that the worst thing is us, April was the worst month, May was a month less worse, June was bigger and, in fact, July was even bigger than June. and flows based on the trace of the virus, however, I think you should be sure that you are seeing that the U. S. client is spending.
Let’s start at the beginning, that the administration, Congress and the Fed did a very clever task in intervening in late March, to put a lot of cash in the economy, directly into the hands of the other people who needed it. most of them, to maintain their ability with an unemployment rate that has risen to 15%. If you think the analogy is a river that we have to cross from pre-COVID to post-COVID, and that we have to go beyond COVID, and the intermediate river is the COVID period, some industries have already outperformed COVID because of the nature of what they are doing. The concept is to maintain cash flow to other people who are still crossing the river, unlike other people who have crossed.
I think we want to make sure the world’s largest economy recovers quickly. If you communicate with colleagues around the world, they are very involved in what the US is doing. But it’s not the first time Because the U. S. economy. It’s so big and creates a call for everyone for the rest of the economy. The concept of being concerned about the final deficit right now, when you have to take us to the other side of the situation, I think we can address it later.
It’s time to make sure you spend cash to keep the economy on track.
It’s time to make sure you spend cash to keep the economy on track.
It’s a political factor in making it more served for the political advisers we have. Our task is to get us to manage everything that results from it.
The number one issue is that corporations want to do what we can do within our own businesses to help mitigate this for our teammates. That’s why we don’t announce layoffs; we announce a breakthrough in childcare. We have made progress in payment in our branches; we’ve taken a step forward with overtime. The first thing you need to do is take care of your employees, make sure they are, and make sure they can serve their consumers well, and then take care of their consumers.
The team has done a wonderful task in helping others overcome this scenario and helping to provide more than $25 billion in budget to our customers. At one point, we probably had another 10,000 people running on it. We spend a lot of resources, a lot of time, a lot of effort. We had to take other people somewhere else. Volunteers People who paint every weekend. Easter, Saturday and Sunday. Overnight. It was all based on the fundamental precept that the networked paintings of small businesses in the US have been a major factor in doing so. But it’s not the first time They needed to put this program in their hands, and our task was to pass it on. We saw a legal responsibility to help the government do that, and we did.
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What happened from mid-March to mid-April is that companies came in and borrowed billions of dollars from the banking system, adding $70 billion in two weeks from us, with advertising loans.
As July approaches, it is beginning to see more mergers and acquisitions due to market stability. In the third quarter, we expect an increase in M&A activity. You will see more IPO: IPO in the health sector. , as well as IPO from other generations
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We communicate periodically. But he needs us to run the company and do a task with it.
He’s a wonderful philosopher for a long time. The only thing he talks about at the same time, but also gives him confidence, is simply to see where the long-term price of his business is and make sure he’s headed for it, and not get carried away by the unrest of the moment. . . It is the paintings we have made over the last decade that position us well for the COVID-19 crisis; that’s not what we’re going to do today.
We had as much money at ATMs in July this year as last July, $200 million, plus a day, but the virtual component of this has grown thanks to online virtual purchases, online payments. It’s a very smart thing if Americans are informed that they should use less money, and what you do is when you go to a coffee shop and pay with your phone, you see it grow at a fast and smart pace.
Yes, the silver coin is vital, it’s as big as the credit card currency.
It’s helpful to pay for things. People use the money to buy things every day, not necessarily the $300 item, but the $10 item. It has evolved slowly but surely, but there is still money available, so one of the most productive facilities we offer are 18,000 ATMs and 4,000 branches that help others manage the flow of money. Small businesses collect money, deposit it; and other people use it. In the long run, however, the tendency to transfer from dollar spending to virtual dollar spending is relentless.
Passive-aggressive people. If you have a point, do it in front of everyone. Life is full; there’s not much time. People who go through an argument and faint and retire to contact me later and say, “Well, that’s what I’m thinking. “It doesn’t make me any smart because we have to treat it in combination like a team.
It’s amazing how he kept the homeland together. You have to appreciate that kind of tenacity. One of my favorite things when we communicate about charities, museums and culture, and if the story is one hundred percent true, because many of Churchill’s stories can be decorated over the years, however, there was a year in which they discussed Parliament’s budget and cut. investment for the arts. And Churchill, in the midst of World War II, when they were bombed and destroyed, said, “If we don’t fund the arts, why are we fighting?”
I’m sure I can tell you.
The United States is the most productive position to be recognized. Capitalism provides a wonderful opportunity. We will have to continue to target capitalism as a solution to deep problems, but we will have to be aware that we will have to manage capitalism to fully align it with what society expects of capitalism. I completely believe in controlling our business, and I think that’s what America stands for: the ability to solve the world’s wonderful problems. It is an unfinished dream and continues to provide wonderful opportunities. We want to refine it; we have to fix it where it doesn’t paint properly.
That’s what America stands for: the ability to solve the world’s wonderful problems.
BUSINESS BOOK: Jim Collins books make you think.
AUTHOR: The three I’ve read the most are James Patterson, David Baldacci and John Grisham. It’s not a world I’ve ever played in, spy novels, but it’s fun to read them.
APPLICATION: ESPN
EXERCISE: I exercise in the morning in a kind of CrossFit nature.
ONE LAST SURPRISE QUESTION: IF YOU ACKNOWLEDGE AGAIN, what would you do instead?
If I was talented, I’d have to be an architect.
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