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☆ 'We don’t lay off people’: This is how Bank of America's CEO plans to reduce employee levels
▼ + stars: | 2022-12-06 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Brian Moynihan, chief executive officer of Bank of America Corp., speaks during a Bloomberg Television interview at the Goldman Sachs Financial Services Conference in New York, on Tuesday, Dec. 6, 2022. Brian Moynihan is no stranger to laying off workers — it's one of the key ways he helped shape Bank of America after the 2008 financial crisis. The bank had 213,270 employees as of Sept. 30, about 3,900 more than the year earlier. Organizations as large as Bank of America are constantly losing and hiring employees, a churn that adds to expenses. Moynihan has used technology — from consolidating back-end processes to offering updated mobile apps — to help reduce noncustomer-facing employees.

NEW YORK, Dec 6 (Reuters) - The biggest U.S. banks are bracing for a worsening economy next year as inflation threatens consumer demand, according to executives Tuesday. "Those things might very well derail the economy and cause this mild to hard recession that people are worried about," he said. Consumers have $1.5 trillion in excess savings from pandemic stimulus programs, but it may run out some time in mid-2023, he told CNBC. Major banks' shares fell sharply on the day after a lineup of top bankers outlined the risks for the economy. "Economic growth is slowing," Goldman Sachs CEO David Solomon said at the same conference.

That red-hot labor market might mean more economic woes later on as the Federal Reserve steps in. "Big picture here is that the labor market still has a lot of resilience," Nick Bunker, the economic-research director at Indeed Hiring Lab, told Insider. With the thriving labor market, Bunker said "the risk of an imminent recession is relatively low." While the job market is still hot, it's not growing at the same breakneck speed as it was last year. "I don't think this report changes the Fed's view of where the labor market is today," Zhao said.

WASHINGTON, Dec 1 (Reuters) - U.S. President Joe Biden rolled out the red carpet on Thursday for celebrities, lawmakers, and titans of industry at the White House's first state dinner in honor of French President Emmanuel Macron. The guest list included actress Jennifer Garner and her daughter with Ben Affleck, Violet; singer John Legend and model Chrissy Teigen; "Vogue" editor Anna Wintour; and director Baz Luhrmann. On Thursday night, Biden and his wife, Jill, welcomed the Macrons back to the White House for the dinner after diplomatic meetings earlier in the day. [1/7] Jennifer Garner and her daughter Violet Affleck arrive for a state dinner in honor of French President Emmanuel Macron at the White House in Washington, U.S., December 1, 2022. The lavish Washington dinner is one of few events that bring together people including the president's son Hunter and Kevin McCarthy, who leads a Republican congressional delegation that has vowed to investigate his business dealings.

☆ Why Mark Zandi says the US economy will narrowly avoid a recession
▼ + stars: | 2022-12-01 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

That’s why Moody’s Analytics chief economist is increasingly confident that the American economy will — narrowly — escape a recession. None of the financial market indicators suggest we have a recession dead ahead,” Zandi said. Zandi said he wouldn’t argue with those who forecast a recession, conceding it’s going to be a “close” call. S&P reiterated it expects the US economy to fall into recession next year, though it expects a “mild” recession in line with the 1969-1970 downturn. “I bet if we weren’t worried about a recession, the president wouldn’t have been so quick to go to Congress,” Zandi said.

☆ Premarket stocks: Consumers are keeping the economy afloat... for now
▼ + stars: | 2022-11-30 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

What’s happening: Americans appear to be indulging in a healthy dose of retail therapy despite stubbornly high inflation and the possibility of a recession ahead. Consumer spending is a major driver of the economy, and the last two months of the year can account for about 20% of total retail sales — even more for some retailers, according to NRF. But when the Federal Reserve is actively trying to squash high inflation rates, they risk becoming a fly in the ointment. “Consumers’ spending is more or less unfazed not only by high inflation, but also the rate hikes intended to get prices under control,” economists at Wells Fargo wrote. The high rate of spending could agitate investors in this good-news-is-bad-news economy because it adds to inflationary pressures.

☆ Bank of America CEO predicts two years of pain ahead in the housing market
▼ + stars: | 2022-11-29 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +2 min

New York CNN Business —The CEO of one of the nation’s largest banks is preparing for an economic downturn in 2023. But Moynihan told Harlow that the worst-case fears for the economy may not materialize — thanks to the continued resilience of American shoppers. Still, Moynihan is concerned that there could be more tough times ahead for the housing market. And the way you do that is raising interest rates,” Moynihan said. “The intended outcome of [the Fed’s] policies doesn’t feel good when you are trying to buy a home.”Moynihan told Harlow that there could be two years of pain in the housing market before activity returns to normal.

☆ Conscious capitalism falls behind in the polls
▼ + stars: | 2022-11-04 | by ( John Foley | ) www.reuters.com time to read: +5 min

NEW YORK, Nov 4 (Reuters Breakingviews) - As America heads to the polls on Tuesday, and the political climate gets more acrimonious, powerful companies have two choices. Their bid to avoid unwanted attention comes with a cost, because the alternative to conscious capitalism isn’t democracy but apathy. BlackRock affirmed its commitment on Thursday to letting individual customers vote shares in companies at annual meetings, rather than BlackRock voting on their behalf. Ron DeSantis, the governor of Florida, has taken aim at “woke” capitalism by barring state pension funds from investing based on non-pecuniary goals. From the other side, New York’s City comptroller is “reassessing” its relationship with Fink’s firm because BlackRock isn’t being progressive enough.

☆ Americans are spending record amounts at casinos and airlines — but recent warnings from Amazon and Apple suggest the party may soon be over
▼ + stars: | 2022-11-03 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

Despite inflation, Americans are still shelling out at casinos, airlines, and restaurants. In October, both American and Southwest Airlines reported record operating revenues for their respective companies in the third quarter. Following "record summer leisure travel demand," consumers continued to hit the skies in September, Southwest CEO Bob Jordan said. A Deloitte survey of nearly 5,000 Americans found that Americans plan to buy 44% fewer gifts — an average of nine versus 16 last year. "Spending should slow down significantly with the holiday hangover and as savings continue to dwindle," RSM economist Tuan Nguyen told USA Today.

☆ US economy seeing a 'mitigation' in growth not a slowdown, says Bank of America CEO
▼ + stars: | 2022-10-28 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

The U.S. economy is experiencing a "mitigation of growth" but not a slowdown, Bank of America CEO Brian Moynihan said Friday. "If you raise rates and slow down the economy to fight inflation, the expectation is you have a slowdown in consumer spending. "You're seeing a mitigation of the rate of growth, not a slowdown. Bank of America expects the Fed to hike rates by 75 basis points and 50 basis points at its two remaining meetings this year, followed by two 25 basis point hikes next year. Economists, politicians and business leaders are split on whether the U.S. economy is heading for a recession or is already in one.

☆ 'I don't lose sleep': Bank of America CEO isn't worried about financing the Twitter deal
▼ + stars: | 2022-10-28 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +1 min

The CEO of Bank of America , one of the financiers of Elon Musk's Twitter takeover, doesn't appear worried about the deal. In an interview with CNBC on Friday, Bank of America CEO Brian Moynihan, seemed unfazed however. When asked if he would lose sleep over the deal, he said: "I've got experts that handle the clients and I don't lose sleep on them. I lose sleep for a lot of other things, but not for that." When the acquisition closes, the funds will be handed to Musk to finance the deal.

☆ U.S. consumer spending seeing a 'mitigation' in growth not a slowdown, says Bank of America CEO
▼ + stars: | 2022-10-28 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

U.S. consumer spending is experiencing a "mitigation of growth" but not a slowdown, Bank of America CEO Brian Moynihan said Friday. But he stressed that consumer spending remains strong. "If you raise rates and slow down the economy to fight inflation, the expectation is you have a slowdown in consumer spending. "You're seeing a mitigation of the rate of growth, not a slowdown. One basis point equals 0.01%.

☆ Bank of America CEO: Seeing a 'mitigation' of growth, not a slowdown
▼ + stars: | 2022-10-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of America CEO: Seeing a 'mitigation' of growth, not a slowdownBrian Moynihan, CEO of Bank of America, discusses the liklihood that Europe and other major economies are entering a recession.

☆ Bank of America CEO says he doesn't lose sleep over Musk's Twitter deal
▼ + stars: | 2022-10-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of America CEO says he doesn't lose sleep over Musk's Twitter dealBrian Moynihan, CEO of Bank of America, discusses the bank's involvement in financing Elon Musk's $44 billion Twitter takeover and the wider landscape for corporate dealmaking.

Bank of America CEO Brian Moynihan will give an exclusive live interview on CNBC's "Squawk Box Europe" at 8.00 a.m. London time. The bank released its third-quarter earnings on Oct. 17 and stressed that the resilience of the U.S. consumer was a reason to lower concerns for an economic recession. You can watch the interview live on CNBC here. — Hannah Ward-Glenton

☆ Overwhelming workloads, back-to-office complaints, and frustrations over pay: Why Merrill Lynch's support staff is leaving
▼ + stars: | 2022-10-26 | by ( Rebecca Ungarino | Hayley Cuccinello | ) www.businessinsider.com time to read: +13 min

Less visible, though just as much the lifeblood of the firm, are Merrill's client associates. But we're not treated that way, and we're not stupid," an associate who recently left the firm said. "Our client associates are essential to the fabric of the firm, how we serve clients and grow," a company representative said. Yagyaev said client associates were "grossly underpaid" across the industry and their base should really be in the area of $80,000 to $90,000. An advisor who recently left Merrill and worked with CAs said some were leaving for raises of about $30,000 to work at other banks.

☆ U.S. consumer is soldiering on despite soaring inflation and recession risk, credit card giants say
▼ + stars: | 2022-10-21 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The company said overall customer spending jumped 21% year over year, driven by growth in goods and services as well as travel and entertainment. "Card member spending remained at near-record levels in the quarter," American Express CEO Stephen Squeri said Friday on an earnings call. "We expected the recovery in travel spending to be a tailwind for us, but the strength of the rebound has exceeded our expectations throughout the year." Bank of America isn't experiencing any slower growth in spending either, despite inflation having reached historic highs. "Analysts might wonder whether the talk of inflation, recession and other factors could [result] in a slower spending growth," Moynihan said Monday during a conference call.

☆ Jeff Bezos is the latest to warn on the economy, saying it's time to 'batten down the hatches'
▼ + stars: | 2022-10-19 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Amazon founder Jeff Bezos has become the latest corporate leader to warn about the state of the economy, cautioning that rougher times are likely ahead. "Yep, the probabilities in this economy tell you batten down the hatches," Bezos said in a comment attached to a clip of Solomon's "Squawk Box" interview. Solomon, the head of the Wall Street financial giant, said it's time for both corporate leaders and investors to understand the risks building up, and to prepare accordingly. Solomon spoke after his firm had just posted quarterly earnings results that beat Wall Street estimates. Moynihan acknowledged that the Fed's efforts could slow the economy, but noted that "the consumer's hanging in there."

"There's a reasonable chance of a recession in the U.S., but it's not certain," Solomon said on Tuesday after the company released third-quarter earnings. "Fitch expects the U.S. economy to enter genuine recession territory — albeit relatively mild by historical standards — in 2Q23." David Solomon, Chairman and CEO of Goldman Sachs, speaks at the 2022 Milken Institute Global Conference, in Beverly Hills, California, U.S., May 2, 2022. "Private equity activity gets reset at a time like this because values have to come down because financing costs have gone up," he said. "So there's been less private equity activity right now."

☆ Bank of America CEO’s Optimism Defies Economic Gloom
▼ + stars: | 2022-10-17 | by ( Ben Eisen | ) www.wsj.com time to read: 1 min

High inflation and rising interest rates haven’t done much to weaken the health of the American consumer, Bank of America Chief Executive Brian Moynihan said Monday. The company’s data show that spending growth remains strong in terms of both amounts and number of transactions. Americans are spending in particular on travel and entertainment, which tend to be discretionary items. Deposit balances remain higher than prepandemic levels by multiple times and delinquencies remain low.

Oct 17 (Reuters) - Bank of America Corp (BAC.N) on Monday reported a smaller-than-expected 9% drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking. BofA holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. "Consumers remain resilient," Bank of America Chief Executive Officer Brian Moynihan told analysts on a conference call. The bank, however, added $378 million to its loan-loss reserves as it braces for a weakening economy. Citigroup Inc (C.N) wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

Bank of America holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates. Its net interest income jumped 24% in the third quarter. JPMorgan Chase & Co (JPM.N) Citigroup Inc (C.N), and Wells Fargo & Co (WFC.N) also saw their net interest income rise in the same period. read moreThe bank's leveraged loan losses were lower in the third quarter than in the second, Borthwick said. Peer Citi also wrote down $110 million on leveraged loans in the third quarter, down from $126 million in the previous quarter.

The second-largest U.S. bank added $378 million to its loan-loss reserves as it braces for a weakening economy. The U.S. Federal Reserve's aggressive monetary policy actions to tamp down inflation have sparked concerns that the economy could slip into a recession as interest rates rise. The bank's consumer business reported a 12% jump in revenue, helped by higher balances and a rise in interest rates. Investment-banking fees fell 46% as global dealmaking shrank for the third consecutive quarter after a blockbuster 2021. Net profit applicable to common shareholders was $6.6 billion, or 81 cents a share, for the quarter ended Sept. 30, compared with $7.3 billion, or 85 cents a share, a year earlier.

☆ Current consumer environment is quite strong, says Bank of America CEO Brian Moynihan
▼ + stars: | 2022-10-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCurrent consumer environment is quite strong, says Bank of America CEO Brian MoynihanBank of America CEO Brian Moynihan joins 'Power Lunch' to discuss the company's performance this quarter, its plans to initiate stock buybacks in Q4 and the bank's readiness for a recession.

☆ Bank of America CEO says latest spending and savings data show that the U.S. consumer is healthy
▼ + stars: | 2022-10-17 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Consumers are financially resilient, despite high inflation and concerns the U.S. is nearing a recession, according to Bank of America CEO Brian Moynihan. "Analysts might wonder whether the talk of inflation, recession and other factors could [result] in a slower spending growth," Moynihan said Monday during a conference call to discuss third-quarter results that topped analysts' expectations. Customers' account balances remain higher than before the coronavirus pandemic struck in early 2020, Moynihan said, indicating that they were in a good position to continue spending. That is especially true for those who had the smallest balances, which were about 5 times higher than before the pandemic, according to a Bank of America chart. "We're just now seeing [a] gradual move off these lows in early-stage delinquencies; late-stage delinquencies are still 40% below pre-pandemic," Moynihan said.

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