Brian Moynihan, CEO of Bank of America.John Lamparski/Getty Images
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Bank of America CEO Brian Moynihan said the U.S. economy is resilient, thanks in part to its banks.
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He rejected calls for more regulation after NYCB faltered.
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Banks have helped keep the economy “vibrant” amid the financial crisis and pandemic, he said.
New York Community Bancorp (NYCB) may have caused a scare on Wall Street, but Bank of America CEO Brian Moynihan rejected suggestions that banks needed to be more heavily regulated.
In fact, the US economy is “vibrant” and has recovered from the pandemic thanks in part to its banking sector.
“We don’t need to keep changing the rules — we’re clear about that,” Moynihan said in an interview with Bloomberg Television on Tuesday.
He argued that the U.S. banking system and the U.S. economy “coexist” – and said the economy has been resilient in the face of major challenges.
After the financial crisis of the late 2000s, the country recovered more strongly than Europe – “the U.S. economy is much more dynamic,” he said – and also recovered more quickly from the aftershocks of the pandemic.
It has also weathered rapidly rising interest rates, two wars, trade debates and shipping restrictions around the world, he said.
“The reality is that the type of capitalism practiced in the country is good and the type of banking system – financial system in the broader sense – contributes to this.”
Moynihan said Bank of America has never seen depositors withdraw their money from regional banks, emphasizing: “The quality of the banking system is strong.”
The story goes on
Moynihan spoke weeks after turmoil at NYCB, which raised concerns about another collapse like that of three regional banks last year.
NYCB rebounded after an investor group led by Steven Mnuchin's Liberty Strategic Capital struck a deal for a $1 billion equity investment, but the incident raised new questions for regulators.
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