美银CEO Brian Moynihan：合规罚款已入账，核心贷款增长8%

CAROL: VERY GOOD AFTERNOON, EVERYONE, ACROSS BLOOMBERG PLATFORMS. IT IS WEDNESDAY, OCTOBER 14. YES, THE BEIGE BOOK WILL BE CROSSING IN A MOMENT. WE WILL CHECK THOSE HEADLINES AND GET YOU THAT A LITTLE LATER ON, BUT RIGHT NOW, WE HAVE A MARKET WHERE STOCKS AND BONDS ARE LOWER. TIM: SUFFICE IT TO SAY, TECH GETTING HIT MOST. THE S&P DOWN ABOUT ONE POINT 4%. THE DOW DOWN ABOUT .5%. THE CONCERN IS THAT THE FED WILL KEEP LIFTING INTEREST RATES.

KIND OF THROWS WATER ON THE IDEA WE HEARD FROM NEW YORK FED PRESIDENT JOHN WE HEARD YESTERDAY. CAROL: MOST NAMES IN THE S&P 500 ARE LOWER TODAY, SO, YEAH, EXACTLY. DOES THE FED HAVE TO HIKE RATES MORE THAN NOT? THERE IS THAT. THERE IS ALSO THAT SECOND DROP IN BIG BANK EARNINGS. WE WILL HEAR FROM BANK OF AMERICA CEO BRIAN MOYNIHAN. SHARES DROPPING THE MOST IN YEARS. YEARS OF LAPSE IS COMING TO LIGHT. TURNS OUT, BE OF A EARNINGS NOT THE HEADLINE STORY.

TIM: PLUS BANK OF AMERICA AND ALL THE BIG BANK EARNINGS, WE WILL BE SITTING DOWN WITH MEREDITH WHITNEY. CAROL: ALSO FROM ANTHROPIC'S INVESTOR DATA TO NVIDIA'S JENSEN HUANG STRUGGLING TO KEEP UP. 10: ALL THAT AND MORE COMING UP ON THIS HOUR OF "BLOOMBERG BUSINESSWEEK DAILY." CHARLIE: THANK YOU. RIGHT NOW, WE HAVE STOCKS TUMBLING. BANKS ARE STUMBLING. HIGHER ENERGY COSTS IN THE MIX, ALSO ADD SEMICONDUCTORS SELLING OFF, YOU HAVE THE RECIPE FOR A SELLOFF RIGHT NOW.

S&P DOWN 110 POINTS, WE ARE TRADING AT THE LOW OF THE DAY. IT BEARS REPEATING, DOW INDUSTRIALS TRADING LOWER BY .6%. NASDAQ DOWN TWO POINT 1%. NASDAQ 100 INDEX DOWN 2.2%. THE PHILADELPHIA SEMICONDUCTOR STOCKS INDEX DOWN 2.4%. SPOT GOLD DOWN ALMOST 2%, 4082 THE OZ. WEST TEXAS INTERMEDIATE CRUDE OIL, 1.3%. I'M CHARLIE PELLETT. THAT IS A BLOOMBERG BUSINESS FLASH. CAROL: THANK YOU SO MUCH. TURMOIL AT BANK OF AMERICA PUSHING SHARES TO THEIR WORST EARNINGS DAY IN MORE THAN A DECADE.

YOU HEARD CHARLIE WITH THE MARKET ROUND UP, PILING ON THE PAIN FOR A BANK THAT HAS BEEN ONE OF THE WORST PERFORMERS AMONG THE SIX U.S. BANKS IN THE LAST FIVE YEARS. IT'S ALSO A MAJOR BLACK EYE FOR CEO BRIAN MOYNIHAN, THE LAWYER TURNED EXECUTIVE WHO HAS LED THE BACK FOR MORE THAN 10 YEARS. TIM: THE BANK'S RESULTS ALSO HURT BY A CHARGE TIED TO REGULATORY PENALTIES OVER MONEY LAUNDERING AND SANCTIONS VIOLATIONS. CAROL: RIGHT NOW, WE HAD TO THE HOME OF BANK OF AMERICA WHERE CEO BRIAN MOYNIHAN IS SITTING DOWN WITH JONATHAN FERRO.

JONATHAN: WELCOME TO THE PROGRAM. IT IS GOOD TO SEE YOU, AS ALWAYS. WE HAVE TO START WITH THAT FINE FROM -- FINE FROM REGULATORY. THE LANGUAGE FROM TREASURY IS QUITE DAMMING. WHAT IS YOUR INTERPRETATION OF WHAT WENT WRONG HERE? BRIAN: AT THE END OF THE DAY, WE HAD AN EXAMINATION A FEW YEARS AGO. WE GOT A CEASE AND DESIST ORDER. WE HAVE TO DO THAT WORK. THERE WAS A DEBATE ABOUT WHAT EXACTLY WE HAD TO DO. THAT IS RESOLVED.

THAT IS BEHIND US. WE HAVE BEEN EXPENDING THE MONEY IN THE RUN RATE ALREADY TO DO THE REMEDIATION BECAUSE A FEW MONTHS AGO, WE STARTED PICKING UP THE COST STRUCTURE AND PUTTING IT IN, SO WE WILL GET IT DONE. WE TAKE IT SERIOUSLY, AND AS TIME GOES BY, PEOPLE WILL UNDERSTAND IT BETTER. JONATHAN: I IMAGINE YOU WANT TO DRAW A LINE UNDER THE WHOLE ISSUE, BUT TO EXTEND THE TOPIC A LITTLE FURTHER, I IMAGINE YOU ALSO DO NOT WANT TO BE DRAWN INTO HOW MUCH OF THIS THERE IS TO BE COMPLETED.

THIS AFTERNOON GIVEN WHERE THE STOCK IS, THERE NEEDS TO BE SOME CONFIDENCE FOR INVESTORS THAT THE COSTS ASSOCIATED WITH REMEDYING THIS ARE IN THE BASELINE AND THERE WILL NOT BE ANY MORE SURPRISES IN THE FUTURE. HOW CONFIDENT CAN INVESTORS BE THAT'S THE CASE? BRIAN: FOR THE OPERATIONAL COST TO DO THE WORK, WE HAVE HAD A LOT OF EXPENSE AND IT IS IN OUR BASELINE. IT DOES NOT OF ADDITIONAL EXPENSE THAT WE HAVE BEEN RUNNING THROUGH.

WE HAVE BEEN COMPLETING A LOT OF TASKS OVER THE LAST SEVERAL MONTHS, AND WE WILL CONTINUE TO FINISH IT UP. IT CAME UP A LOT ABOUT HOW THRESHOLDS ARE SET. THERE'S A LOT OF TECHNICAL DISCUSSION, BUT AT THE END OF THE DAY, WE UNDERSTAND WHAT WE NEED TO DO, WE ARE DOING IT, AND WE WILL DELIVER. JONATHAN: WHAT ARE DISCUSSIONS LIKE WITH THE BOARD AROUND ACCOUNTABILITY, AND WOULD YOU BE OPEN TO ALIGNING REMUNERATION WITH SOME OF THESE DIFFICULTIES?

BRIAN: WE HAVE ACCOUNTABILITY FOR EVERYTHING WE DO IN THE COMPANY, INCLUDING A FINE. WE'VE GONE THROUGH IT BEFORE. IN 2004, THERE WAS ACCOUNTABILITY FOR THE EXAMINATION OF THE ORDER ALREADY TAKEN. JONATHAN: THIS WAS OVERSHADOWING WHAT WAS OTHERWISE A MIXED QUARTER FOR THE BANK. TRADING, CAPITAL MARKETS, NEXT TO BANKING, THAT IS ONE SIDE OF THE BUSINESS. THE MAINSTREAM -- MAIN STREET SIDE OF THE BUSINESS SEEMS TO BE PERFORMING WELL.

THE PATH TO NET INTEREST INCOME LOOKS PRETTY GOOD FOR HERE. CAN WE SIT ON THAT A MOMENT? DO YOU SEE THE PATH TO IMPROVING EVEN MORE AS DURABLE? BRIAN: THE MARKET'S CONTRIBUTION, WHICH OTHER PEOPLE HAVE, TOO, WAS BASICALLY FLAT, SO AS YOU LOOK FORWARD, WHAT IS HAPPENING IS THE CORE LOAN BOOK IS GROWING. THE COURT DEPOSIT BOOK IS GROWING. LOANS GROUP 6% TO 7%, AND CORE BUSINESSES GREW. THAT'S GREAT ACTIVITY AND ALSO BODES WELL FOR THE U.S.

ECONOMY BECAUSE COMPANIES ARE BORROWING, BUT WHAT WE SAID LAST FALL WAS THIS YEAR WOULD BE 5% TO 7% INCREASE OVER 2025. WE HAVE RAISED THAT AND CONFIRM 8% FOR THE YEAR. AT THE SAME TIME, WE SAID 5% TO 7% 2027 AND JUST RAISED THAT TIP 8% PLUS, AND THAT IS JUST CLAMMING UP STAIR STEPS TO PUT MORE LOANS, MORE DEPOSITS, AND REPRICING OF THE BALANCE SHEET. WE ARE UP 15 BASIS POINTS ON NET INTEREST YIELD WHILE OTHERS ARE FALLING.

WE MADE $8 BILLION. THERE IS A LOT OF MOMENTUM. THERE'S A LOT OF GOOD THINGS AROUND THE MAIN STREET SIDE AND EVEN ON THE MARKET SIDE, WE HAD A $5 BILLION TRADING REVENUE QUARTER AGAINST OUR PEERS THAT DID NOT HOLD UP AS WELL, BUT THE REALITY AS IT WAS ONE OF THE STRONGER THIRD QUARTERS WE HAD IN TRADING. WE FEEL GOOD ABOUT THE FRANCHISE. THE PIPELINES ARE FULL, ETC., BUT IT IS A GOOD CORE ENGINE GROWING AT 8% WHEN OTHERS ARE NOT COMING CLOSE TO THAT THAT IS DRIVING OUR EARNINGS FORWARD.

JONATHAN: THIS IS AGAINST A BACKDROP OF MUCH HIGHER INTEREST RATES. THERE WAS SOME DISCUSSION INTO THE LAST MONTH AND TO SOME EXTENT, IT WAS HITTING BANK STOCKS ACROSS THE BOARD. TO WHAT EXTENT WILL THESE HIGHER COSTS EVENTUALLY EAT INTO NET INTEREST MARGINS? BRIAN: IF YOU HAVE $2 BILLION OF DEPOSITS WHICH YOU PAY 140 NINE BASIS POINTS FOR AND RATES GO UP AND YOU GO UP A LOT LESS BECAUSE A SUBSTANTIAL PART OF THOSE DEPOSITS ARE NOT INTEREST-BEARING, HIGHER RATES ARE AN OFFICIAL LESS BECAUSE HIGHER RATES ARE BECAUSE SOMETHING IS GOING WRONG IN THE ECONOMY.

WHEN RATES COME DOWN, THAT IS WHAT CRUNCHES YOU. SIMPLY PUT, OUR EXPOSURE TO HIGHER RATES IS ALWAYS POSITIVE. IT IS LESS THAN IT IS BECAUSE WE TRY TO MANAGE BOTH THE DOWN AND UP, BUT THE REALITY IS WE TOLD PEOPLE WHAT WE THOUGHT WITH A RATE ENVIRONMENT THAT WAS SORT OF FLAT, BUT WE ARE NOW SAYING BECAUSE WE SEE GOOD CORE LOAN GROWTH AND GOOD DEPOSIT GROWTH AND HAVING TO TRILLION DOLLARS OF DEPOSITS THAT ARE VERY ADVANTAGED, WE CAN SEE WE PUSH IT TO 80%-PLUS FOR NEXT YEAR.

JONATHAN: I'M NOT SURE HOW WELL UNDERSTOOD THIS ACTUALLY IS FOR PEOPLE OUTSIDE OF YOUR WORLD, BUT THE GROWTH AND OVERALL MIX IS HEAVILY SKEWED TO NON-INTEREST-BEARING ACCOUNTS. PEOPLE TALK ABOUT HOW STICKY THOSE DEPOSITS ARE AND THE THREAT OF TECHNOLOGY DISRUPTION IN THE NEXT COUPLE OF YEARS, POTENTIALLY PULLING SOME OF THOSE DEPOSITS AWAY. HOW DO YOU THINK ABOUT THINGS WITH THAT IN MIND?

FOR YOUR CUSTOMERS HAVE THE ABILITY EVERY SINGLE DAY TO MOVE THEIR MONEY TO HIGHER RATE OFF-BALANCE-SHEET MONEY MARKET FUNDS. THEY COULD DO THAT EVERY DAY. THE THING IS, WHEN YOU HAVE THE CORE OPERATING ACCOUNT, THAT IS THE MONEY TO PAY THE HOUSEHOLD BILLS WITH, THE CAR PAYMENT, THE HOUSE PAYMENT, SO THAT IS RUNNING IN AND OUT. THROUGHOUT IT COMES A BUNCH OF GRANULAR ACCOUNTS, ALL OF WHICH IS MONEY IN MOTION. EVEN IN OUR WEALTH MANAGEMENT BUSINESS, WHICH IS BY DEFINITION AFFLUENT AND WEALTHY AMERICA, IT IS 285 BILLION DOLLARS, AND A LOT OF IT IS PRICED TO YIELD A HIGHER RATE FOR CU