https://nypost.com/2025/03/14/business/bank-of-america-head-brian-moynihan-holding-the-bank-back/
10 replies (most recent on top)
Interesting piece, but BofA was conservative way before BTM. Without Ken Lewis's Countrywide purchase, the old BofA would have been less impacted by the financial crisis than it was. It was new to the CLO/CDO space and did not have much there at the time.
And we had exited sub-prime a few years earlier, so little on the books in that regard.
I've been hearing the front office (bankers, traders) complain about the conservatism of Credit and Risk since the '90s.
That said, the message that BTM has stayed too long is accurate. he has turned BofA into the old Fleet, but they don't know how to steer such a large boat. It sux.
You can only be so selective with a comp package like they have today…. You’re not going to get the Thoroughbred for the price of a donkey (and we have too many of those already). You’re also not going to keep the Thoroughbreds you have for very long either….
The bank needs to be more selective about the horses it chooses to pull the buggy, and geolocation...also, split between headcount vs tech spend.
BM did a good job when he first got the job, coming out of the financial crisis. However, it's clear now he has stayed too long at the fair.
Keep in mind that Nikkey Haley was on the Boeing board of directors after a few years as governor of South Carolina. Absolute putz.
@rq+1jpd3r0pj that's complete horse sheet. Most successful companies have made bazillions of benefit with questionably responsible growth. Responsible growth is just BM licking the er--t tool of the WEF
This article was clearly written by a frustrated shareholder large enough to get into the NY Post. They’ve been upset with BM for the last decade due to not raising the dividend enough, the stock not returning to pre-GFC levels, etc. Those investors would rather we all be fired so the share price would increase ever so slightly so they can sell their shares. BUT the problem there, that BM recognizes, is that you need horses to pull the buggy.
Previous post says it all. Brian has always taken a cautious conservative approach when the US economy falls, or global instability may impact BAC. I don't blame him for taking that stance.
As to the earlier post about Brian being thrown under the bus.... he has more tire tracks than we'll ever know. Yet he comes out alive every time.
The political aspiration thing is funny. I’m sorry but these CEOs really need to stop smelling their own farts.
interesting article, definitely mostly (and perhaps entirely) true because ever since the financial crisis BoA has maintained an extremely conservative risk position - and I think that strategy makes sense given you are on a lifelong track to repair and protect reputation of the bank, but hard to say when to loosen it a bit...