.
>> WELCOME BACK POLICE FROM
DAVOS, SWITZERLAND ONE MAJOR
CONVERSATIONS ON THE GROUND IS
ABOUT THE POTENTIAL FOR A
RECESSION, BOTH GLOBAL AND
DOMESTIC MANY WALL STREET
LAYING OFF THOUSANDS RECENT
INCLUDING BANKS GOLDMAN SACHS,
MORGAN STANLEY BANK OF AMERICA
XHEET OPPOSITE NOT PERFORMINGS
LAYOFFS, WE WANT TO TALK HOW
HE SEES THINGS LIVE WITH THE
CHAIRMAN CEO OF BANK OF
AMERICA BRIAN MOYNIHAN GREAT
TO SEE YOU.
>> GOOD TO BE HERE AGAIN GOOD
TO BE HERE WITH BEAUTIFUL
VIEWS SNOW BEHIND US.
MARIA: YOU GORGEOUS THIS SHOW
YOU A IT INSURE IS.
WHAT ARE YOU DOING IN TERMS OF
THIS LABOR MARKET WE TALKED
BEFORE ABOUT THE TIGHTNESS OF
IT, SUCH PRESSURE ON WAGES AND
ON PEOPLE BUT A LOT OF
COLLEAGUES IN THE INDUSTRY ARE
CUTTING JOBS, ARE YOU?
>> WE WILL BE VERY CAREFUL
MANAGE APPROXIMATING HEAD
COUNT MANAGE BACK DOWN THE WAY
TO THINK ABOUT THAT FIRST
QUARTER LAST YEAR, YOU KNOW WE
HAD TO HIRE 4,000 PEOPLE TO
REPLACE PEOPLE AMOUNT OF
PEOPLE IN COMPANY DROPPED IN
HALF WE HAVE O TO SLOWDOWN
HIRING BRING HEADED COUNTED
DOWN GOT TOO HIGH I TOLL
FAMILY SLOW IT DOWN THEY ARE
DOING IT KEEP CRITICAL
STAFFING PEOPLE WE NEED WATCH
IT, WE CAN MANAGE THAT WITH
10% TURNOVER RATE 215,000
PEOPLE WE HAVE TO HIRE 5,000
TO KEEP NUMBER HEAD
SOUTH STABLE SLOW DOWN HIRING
LET HEAD COUNT DRIFT THE WAY I
WANT IT TO BE.
>> GIVE A SENSE OF LOAN DEMAND
LOAN GROWTH.
>> FOURTH QUARTER MODERATE
GROWTH,, PARTLY CLOUDY
PANDEMIC WE LOOK FORWARD TO
SINGLE DIGITS AS COMPANIES GOT
CAREFUL THINKING ABOUT FORWARD
VIEW THE LINE USAGE CREDIT
USAGE BACK DOWN A LITTLE BIT
INTERESTING SMALL BUSINESS
DEMAND VERY STRONG CONSUMER
DEMAND OKAY HE MORTGAGES
OBVIOUSLY, DOWN BECAUSE RATES
CHANGED OVERALL OKAY BUT
CORPORATE SIDE ALL THE TALK
YOU ARE HEARING ABOUT I WANT
TO BE MORE CAREFUL DO MORE
PLANNING MAKE SURE I DIDN’T
MISS MY VIEW OF THE ECONOMY
NOT MY VIEW BUT COMPANY’S
VIEW, SO IT IS OKAY, HAVE IN
THE BUT THAT IS MORE NORMAL WE
RECOVERED FROM PANDEMIC YOU
HAVE TO REMEMBER GROWING LOANS
HERE, AT 20%, 15% RATE NOT
WHAT A BIG MATURE BUSINESS
DOES.
MARIA: I WANT TO GET A SENSE
OF WHERE THE LOAN GROWTH IS
COMING FROM IS IT LARGELY FROM
MID CAP COMPANIES SKYING LOOK
WE WERE DOING JUST IN TIME NOW
DOING JUST IN CASE, BECAUSE OF
THE SUPPLY CHAIN ISSUES THAT
WE SAW LAST YEAR.
OR IS IT THE CONSUMER.
>> IT IS BOTH SO, LOOK, AGAIN
MORTGAGE LENDING DOWN, CREDIT
CARD LENDING UP CONSUMERS
ESPECIALLY FOURTH QUARTER USE
CREDIT CARDS MORE CORPORATE
SAID TO YES, SIZE COMPANIES
SOLID LARGE COMPANIES GO TO
MARKET THE MARKET SHUT DOWN,
FOR LEVERAGE FINANCE
INTERESTING TO GET THROUGH
SOLID BUT EVERY OUR SPENDING,
AND ACTIVITY IS MORE
CONSISTENT WITH LOWER GROWTH
ECONOMY MORE NORMAL ECONOMY
INFLATION NOT OVER YET BUT
WHAT YOU ARE SEEING ACTIVITY
STARTING TO SHOW, BECAUSE FED
RAISED RATES A LOT TO SLOW
DOWN ECONOMY THAT IS WHAT YOU
ARE SEEING.
MARIA: A REALLY QUICK WAY,
WE’VE HAD ZERO RATES FOR SO
LONG, LIKE A 15-YEAR PERIOD
AND ALL OF A SUDDEN IN A YEAR
THEY ARE, FROM ZERO TO 5.
>> 5,000-YEAR LOW RATES WORLD
TO ONE ANALYST 5,000 LOW IN
RATES THEY GOT TO COME OFF
BOTTOM SOME POINT, THE RATE
STRUCTURE HAS TO GET BACK TO
NORMAL SITUATION YOU ARE
SEEING THAT, HAPPEN BUT IT
WILL TAKE A FEW YEARS TO GET
THERE.
MARIA: WHY OCCUR PUSHING BACK
ON ANY IDEA FEDERAL RESERVE
WILL START CUTTING RATES LATER
THIS YEAR, HOW LONG CAN YOU
CONTINUE TO CAPTURE THIS
INCREDIBLE MOVE, WITH -- RATES
WHERE THEY ARE, AND NO
MOVEMENT IN DEPOSIT RATES ARE
YOU GOING TO BE FORCED AT ANY
TIME, TO RAISE THE RATES ON
DEPOSIT ACCOUNTS.
>> WE ADMINISTRATOR HAVE,
DEPENDS THE BUSINESSES ARE
VERY DIFFERENT, IN A ZERO
INTEREST CHECKING ACCOUNT ZERO
INTEREST NEVER PAYS INTEREST
3,000 BRANCHES, ATMs ZERO
INTEREST RATE GO TO MONEY PUT
ASIDE TO SORT OF STORE KOOSH
PUT IT BACK OUT TO SAVE, THAT
IS ALREADY MOVED, THAT LARGELY
HAPPENED DURING LAST YEAR SO
THIRD QUARTER, IN TO FOURTH
QUARTER END ENDEPOSIT BALANCES
FLAT, RATE SIDE RATES KICKED
UP MIX HIGHER RATE DEPOSITS
FOR CORPORATE CUSTOMERS, EVEN SYCAMORE CUSTOMER WHAT DRIVES
SYCAMORE CUSTOMER WHAT DRIVES
OUR GROWTH IS THE FACT WE HAVE
35 MILLION YOU HOUFLTSDZYOU HOUS
IN AMERICA.
>> ACCOUNT PEOPLE DON’T MOVE
EASILY MORE THAN IN SAVINGS
ACCOUNT GOOD NOT MOVING IT YOU
DON’T MAKE ANY MONEY
>> BY THE WAY, CONSUMERS HAVE
IN ACCOUNTS, A LOT MORE THAN
PRE-PANDEMIC BECAUSE STIMULUS
STILL BEING SPENT HASN’T BEEN
SPENT, SO, THE RAISES, BECAUSE
LABOR MARKET TIGHTNESS TO KEEP
UP WITH INFLATION, WHAT YOU
LOOK AT ACCOUNTS PRE-PANDEMIC,
IN PEOPLE, SORT OF MEDIAN
INCOME MULTIPLES THEY COME
DOWN A LITTLE BIT SINCE SPRING
OF LAST YEAR SLIGHTLY, BUT
BASICALLY MULTIPLES
PRE-PANDEMIC U.S. CONSUMER
STILL HAS PURCHASE POWER
ALTHOUGH FIGHT ABOUT INFLATION
IS THINGS GET EXPENSIVE, A
POCKETBOOK THEY CHANGE
BEHAVIOR.
>> OF COURSE, TAKE ON HOUSING
OBVIOUSLY, WE’VE BEEN REAL
WILL DEMAND DESTRUCTION, ALSO
THE CAPITAL MARKETS, AND THIS
YOU KNOW, LACK OF YOU KNOW,
MARIA: WELCOME BACK,I AM BACK
WITH CHAIRMAN CEO OF BANK OF
AMERICA BRIAN MOIN IN DAVOS
FINAL CHECK MACROSTORY YOU
HAVE HAVE BEEN EXASPERATING
REAL SLOWDOWN MODERATE
RECESSION, WHERE ARE YOU TODAY
ON THE MACROSTORY IN TERMS OF
RECESSION, WHAT ABOUT HOUSING
HOW BAD YOU HAVE SEEN A LOT OF
RECYCLES HOW LONG FOR THIS
RECOVERY TO TAKE HOLD.
>> TWO THINGS ON MACRO WE
BASICALLY HAD A MILD RECESSION
SORT OF HIT THIS YEAR ’24 WE
EXPECT TAKES FEDERAL RATES UP
OVER 5% HOLDING THERE THROUGH
PRETTY MUCH NEXT YEAR,
UNEMPLOYMENT WILL MOVE UP A
LITTLE BIT SO THAT IS HOW THEY
HAVE TO SLOW DOWN ECONOMY I
THINK PEOPLE ARE DEBATING
ABOUT GOING, PULLING BACK DOWN
THEY CAN’T PULL DOWN TO
SERVICES SIDE INFLATION
SQUEEZED OUT MUCH MORE
DIFFICULT, HOUSING, LOOK, IF
YOU BASICALLY DOUBLE COST OF A
MORTGAGE OBVIOUSLY, YOU GO
HOUSING PRICES AFFECTED PEOPLE
FORGET CONTEXT OF -- THAT WAS
LAST GUEST TALKED ABOUT, THE
OTHER DAY UP DRAMATICALLY NOW
COMING BACK IF YOU GO TO 2004,
5, 6, 7 THE POPULATION U.S.
FACIAL STABLE HOUSES CERTAIN
PLACES SO AT THE END OF THE
DAY NOT THAT MUCH AGGREGATE
DEMAND THAT IS INTEND OUTCOME
OF CHANGING RATES IF YOU DON’T
PT SLOWDOWN HOUSING WEALTH
AFFECT FEELING MORE LIKE 2007,
2008,.
CAPITAL MARKETS DEAD IN WATER
NOT A LOT OF CAPITAL RAISES
DEBT INEQUITY 35 IPOS AT NEW
YORK STOCK EXCHANGE HOW LONG
DOES THAT RECOVERY TAKE.
>> YOU NEED STABILITY, THE
PROJECTION ECONOMY TO
STABILIZE EARNINGS PROJECTION
STABILIZE RIGHT STRUCTURE
STABILIZE ESPECIALLY HE
LEVERAGE FINANCE SIDE STARTING
TO HAPPEN STUFF GETS THROUGH
NOT AS MEANINGFUL AS SOME
PIECES WE WENT FROM TWO
BILLION DOLLARS QUARTER
INVESTMENT FEES FOR ACTIVIST
TO ONE, WE USED TO BE 1 1/2 SO
NOT LIKE LIFE ENDED DOWN 50%
FEEL GOOD THE END OF MARKET
SHARE ON THE OTHER HAND WE
HAVE A BALANCED BOOK OF
BUSINESS CORPORATE LENDING
TREASURY SERVICES, INVESTMENT
BANKING IT WILL COME BACK
GOING TO TAKE STAIKT
WHEN DEBATING WHETHER
CUTTING RATES OR RAISING END
OF THE YEAR NOT A TIME TAKE A COMPANY PUBLIC EASILY.
COMPANY PUBLIC EASILY.
>> YOU ARE A MARRIAGEGINAL LENDE
NUMBER ONE FOR MIDDLE MARKET
CUSTOMERS A NUMBER OF OIL, GAS
RELATED COMPANIES ARE WORRIED
THEY ARE GOING TO SHUT DOWN
THIS WEEK, AND DAVOS YOU SAID
THIS, ARE YOU SAID THE
OFFICIAL GLOBAL STANDARDS ON
HE SUSTAINABILITY CLIMATE WERE
NEEDED TO ALIGN CAPITALISM
WITH WHAT SOCIETY WANTS FROM
IT.
ARE YOU BUYING INTO GLOBAL
STANDARDS YOU ARE GOING TO
STOP LENDING TO OIL AND GAS
COMPANIES.
>> WE HAVE.
40 BILLION DOLLARS OUTSTANDING
BLOOENZ DO CAPITAL MARKET
TRANSACTIONS TWO DAYS ORANGE
COUNTY ARTICLE WRITTEN HOW WE
ARE A MAJOR FUNDER WE FUND OIL
AND GAS THOSE LEADERS, I SAW
OCCIDENTAL TRYING TO
TRANSITION CARBON CAPTURE
STORAGE TO SENATOR CRAMER
NEITHER ZERO COMMITMENT TAKING
THE CARBON CAPTURE, WE ARE
HELPINGFYING THAT WITHOUT WE
NEED HE BOTH LOTS OF OIL AND
GAS ENERGY SECURITY TO MAKE
TRANSITION THE KEY IS TO KEEP
IT ALL IN BALANCE, ON THE
STANDARDS OF THE ISSUE RIGHT
NOW ABOUT READY HAND ADSET OF
STANDARDS BY EUROPE WILL
APPLAUD AMERICAN COMPANIES
SUBSIDIES HERE SEC PRIVATE
SECTOR LAST FOUR, FIVE YEARS
SET STRAIGHTFORWARD ADOPT
THESE WE HAVE 200 COMPANIES
ALREADY DON’T TAKE US
DIFFERENT DIRECTIONS, THEN WE
CAN DRIVE YOU KNOW PRIVATE
MARKET CAPITALISM WILL SOLVE
THESE IF YOU LET IT GO IF YOU
TRY TO MICROMANAGE TAKE IT
AWAY SECONDLY WITH A U.S. YOU
IS THE CANNOT TO COME NATO
MAKING TRANSITION FROM ENERGY
SUPPLY SECURITY TOSHIFT TO
GERMANY CRITICALLY IMPORTANT
FOR GERMANY TO HOLD THEMSELVES
IN TO FIGHT WAR THE
CONVERSATIONS BETWEEN GERMANY
AND U.S., WE PARTICIPATED IN
THOSE TO SAY WE NEED SUPPLY,
SO THINK ABOUT THAT DEMAND THE
QUESTIONS WE HAVE TO GET
ENVIRONMENT PIECE RIGHT OR WE
WILL START BEING TAXED ON
ENVIRONMENTAL ISSUES SO HE WE
ARE TRYING TO GET BALANCE
TRYING --
>> GERMANY BUILDING COAL
PLANTS.
>> BECAUSE THEY -- ABOUT
SINGLE SOURCE 134R50I FREELY
ADMIT THAT NOW DIVERSIFYING
SUPPLY CONTINUE TO DEPLOY WIND
OTHERS BUT YOU THE REALLY
DOING BRINGING LNG TO UNITED
STATES GREAT OPPORTUNITY ON
THE OTHER HAND, WE ABOUT 18%
ALL CLEAN ENERGY UNITED STATES
RUNS THROUGH US TEXAS,
OKLAHOMA WIND SOLAR ARE WHERE
WE DO STUFF IS A WONDERFUL
THING WITH KEVIN OTHERS HAVING
TALKED TO GROUP OF CEOS ABOUT
THIS THERE IS A BALANCE HERE
WE ARE DRIVE EVEN SENATOR MAN
MANCHIN WE NEED ALL, A COT OF
-- WE BELIEVE OIL COMPANIES
HAVE TO BE AT TABLE.
>> WE SPOKE WITH SENATOR MAPGS
YESTERDAY OBVIOUSLY, WEST
VIRGINIA IMPORTANT STATE WHEN
IT COMES TO THIS PRODUCTION
HERE IS WHAT HE SAYS ABOUT
GETTING TO THE OTHER SIDE
WATCH THIS.
>> I DO NOT I DO NOT SUBSCRIBE
THAT YOU CAN ELIMINATE I
SUBSCRIBE YOU CAN INNOVATE
YOUR WAY TO CLEANER LESS
CARBON RECOGNIZE YOU’VE GOT TO
HAVE HORSE TO RUN THE SKUN.
>> REACTIONARY?
>> HAVE, BY THE WAY, IF YOU
PUT OTHER, KEVIN CRAMER WOULD
SAY INNOVATE DRIVE INNOVATION
HE SAID MANY OCCASIONS I THINK
A BIG MIDDLE TO DRIVE THIS
CHANGE WHAT SENATOR MANCHIN
SAID IS IMPORTANT IN THAT
STATE BIG BATTERY FACILITIES
RIGHT NOW IN OUR STATE WE
BUILD A SOLAR INSTALLATION
DUKE POWER TO SUPPLY THERE IS
A LOT OF GREAT ACTIVITY CAN
HAPPEN A HE SUSTAINABLE
INNOVATION PLANT GOT COMING
OUT OF GROUND EASTERN GEORGIA
WE FINANCED NETWORK IN
SOUTHEAST MIKE ROV WE NEED HE
THE PLANE CAN.
>> WITH NO CHANGE IN
INFRASTRUCTURE HOW CHEAP THAT
IS WRITING THE TO FIGURE OUT
FROM BUSINESS STANDPOINT IF
PEOPLE GIVE US A BUNCH
STANDARDS TAKE US DIFFERENT
DIRECTIONS TAKE US TO
STANDARDS BUSINESS COMMUNITY
AGREES WITH LET’S GO.
MARIA: WE TALKED CAPITAL
MARKETS ARE BONUSES DOWN BIG
THIS YEAR?
>> 99% YES A GOOD SOLID YEAR,
THIS WILL BE TOP OF THE HOUSE
THE STOCKS DOWN WE HAVE TO
TAKE IT WHEN REVENUE BASE
BUSINESS INVESTMENT BANKERS
CLEAR WHAT OAT OUTCOME AT THE
END OF THE DAY MADE 27 BILLION
DOLLARS, TEAM HAD A GOOD YEAR
BROAD-BASED TEAM IN PRETTY
GOOD SHAPE.
>> ABOUT PERFORMANCE, BY THE
WAY.
>>.
>> LAST FOUR, FIVE YEARS
SHARES TO TEAMMATES ALL
200,000 EVERY SINGLE YEAR SEE
WHAT HAPPENS THROUGH THE BOARD
BUT AMAZING IT IS OVER A
BILLION 1/2, BASICALLY --
STOCK EVER YEAR GIVING,
REDUCED SHARE CUT CAPITALISM