Bank of America’s CEO says the US economy is ‘vibrant’ — and you should thank the banks

Bank of America CEO Brian Moynihan

Bank of America CEO Brian Moynihan.John Lamparski/Getty Images
  • Bank of America CEO Brian Moynihan said the US economy is resilient, thanks in part to its banks.
  • He shrugged off calls for more regulation after NYCB wobbled.
  • Banks have helped the economy remain ‘vibrant’ amid the financial crisis and pandemic, he said.

New York Community Bancorp (NYCB) may have sent a scare through Wall Street, but Bank of America CEO Brian Moynihan shrugged off suggestions that banks need to be more regulated.

In fact, the US economy is “vibrant” and bounced back from the pandemic thanks in part to its banking sector.

“We don’t need to keep moving the rules around — we’re clear about that,” Moynihan said in an interview with Bloomberg Television on Tuesday.

He argued that the US banking system and economy “coexist with each other” — and said the economy has been resilient in the face of great challenges.

It’s bounced back more than Europe after the financial crisis of the late 2000s — “the US economy is much more vibrant,” he said — and recovered from the pandemic aftershock faster, too.

It’s also weathered fast-rising interest rates, two wars, trade debates, and shipping restrictions around the world, he said.

“The reality is it’s because the kind of capitalism practice in the country is good, and the kind of banking system — financial system more broadly — helps that happen.”

Moynihan said Bank of America hasn’t seen depositors pulling their money out of regional banks, emphasizing that “the quality of the banking system is strong.”

Moynihan spoke weeks after the turmoil at NYCB, which raised concerns about another collapse like those of three regional banks last year.

NYCB recovered after an investor group led by Steven Mnuchin’s Liberty Strategic Capital struck a deal for a $1 billion equity investment, but the incident prompted fresh questions for regulators.

Read the original article on Business Insider

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