1 00:00:05,440 --> 00:00:07,800 Speaker 1: From Bloomberg World headquarters in New York for our TV 2 00:00:07,880 --> 00:00:10,399 Speaker 1: and radio, he says worldwide. This is a special edition 3 00:00:10,440 --> 00:00:13,360 Speaker 1: of Wall Street Week our interview with Brian moynihan, chairman 4 00:00:13,400 --> 00:00:16,040 Speaker 1: and CEO of Back of America. I'm David Weston right 5 00:00:16,079 --> 00:00:19,560 Speaker 1: now present Biden is giving remarks. They are specifically about 6 00:00:19,600 --> 00:00:22,840 Speaker 1: the sanctions of Post today on Russia coming out of 7 00:00:22,880 --> 00:00:25,880 Speaker 1: the hacking and interference the election. If you want to 8 00:00:25,920 --> 00:00:28,080 Speaker 1: follow that, you can follow on your Bloomberg turn by 9 00:00:28,120 --> 00:00:30,320 Speaker 1: going to Live Go. But for right now, we want 10 00:00:30,360 --> 00:00:31,760 Speaker 1: to turn to the man of the hour, and he 11 00:00:31,840 --> 00:00:33,960 Speaker 1: is the chairman and CEO of Back of America is 12 00:00:33,960 --> 00:00:36,599 Speaker 1: Brian moynahan. Thank you, Brian for being back with us 13 00:00:36,600 --> 00:00:39,680 Speaker 1: here at Bloomberg. So you have some really strong numbers 14 00:00:39,680 --> 00:00:42,800 Speaker 1: that you reported this morning. Congratulations on those. I want 15 00:00:42,800 --> 00:00:44,920 Speaker 1: to ask you, though, specifically about what it tells us 16 00:00:44,920 --> 00:00:48,400 Speaker 1: about the economy more broadway, and specifically about lone origination. 17 00:00:48,440 --> 00:00:50,080 Speaker 1: I know that's terribly important to you. A Bank of 18 00:00:50,120 --> 00:00:53,400 Speaker 1: America that was down some I understand that was partly 19 00:00:53,400 --> 00:00:54,960 Speaker 1: because people get a lot of money from the government 20 00:00:55,000 --> 00:00:57,120 Speaker 1: so they don't have to borrow money. But it doesn't 21 00:00:57,120 --> 00:01:02,640 Speaker 1: tell us anything about where the economy is right now. Uh, David, first, 22 00:01:03,560 --> 00:01:05,320 Speaker 1: thank you for doing this again, and hope you're doing 23 00:01:05,360 --> 00:01:08,000 Speaker 1: well and staying safe. Uh, you know in the end 24 00:01:08,000 --> 00:01:10,959 Speaker 1: of the day. But the economy affects a big bank 25 00:01:11,000 --> 00:01:12,560 Speaker 1: like ours, affects the whole banking and the hope and 26 00:01:12,600 --> 00:01:15,280 Speaker 1: nancial services system, and and so the good news is, 27 00:01:15,800 --> 00:01:17,640 Speaker 1: you know, this is a healthcare crisis. And the very 28 00:01:17,640 --> 00:01:20,360 Speaker 1: good news is you're seeing the vaccine numbers go up. 29 00:01:20,400 --> 00:01:22,960 Speaker 1: You're seeing the ability then to reopen without the risk 30 00:01:23,040 --> 00:01:25,400 Speaker 1: that the governments can do in the states and cities 31 00:01:25,440 --> 00:01:28,280 Speaker 1: and towns, and you're seeing people move around. So are 32 00:01:28,360 --> 00:01:31,759 Speaker 1: spending levels for our Bank of America consumer customer base 33 00:01:32,200 --> 00:01:34,360 Speaker 1: or record in the first quarter March is the biggest 34 00:01:34,360 --> 00:01:37,600 Speaker 1: month ever. If you go back and compare to nineteen, 35 00:01:37,600 --> 00:01:40,680 Speaker 1: they're up and so divide that by two. It's up 36 00:01:40,680 --> 00:01:42,679 Speaker 1: ten percent a year, which is much faster than they 37 00:01:42,720 --> 00:01:45,800 Speaker 1: were growing in fifteen and sixteen seventeen. So there's a 38 00:01:45,840 --> 00:01:48,480 Speaker 1: bigger number growing at a faster rate. And yet people 39 00:01:48,560 --> 00:01:50,520 Speaker 1: still have a lot of the stimulus in their accounts 40 00:01:50,560 --> 00:01:52,920 Speaker 1: and haven't spent it. So the world still has a 41 00:01:52,920 --> 00:01:54,960 Speaker 1: group We have a group of Americans and a group 42 00:01:54,960 --> 00:01:57,040 Speaker 1: of people around the world who you know aren't back 43 00:01:57,080 --> 00:01:58,840 Speaker 1: to work yet, and we need to get that done. 44 00:01:59,000 --> 00:02:01,760 Speaker 1: Whose businesses can open yet because the nature of them, 45 00:02:01,840 --> 00:02:04,120 Speaker 1: We've got to get those done. But a big part 46 00:02:04,120 --> 00:02:07,160 Speaker 1: of the economy, and I think our predictions for economy 47 00:02:07,160 --> 00:02:09,200 Speaker 1: across over the next couple of quarters to be bigger 48 00:02:09,200 --> 00:02:12,280 Speaker 1: than it was before the pandemic is is open and operating, 49 00:02:12,320 --> 00:02:15,200 Speaker 1: and the consumers are spending money, and that's very good news. 50 00:02:15,360 --> 00:02:17,680 Speaker 1: And then when you translate the Bank of America, what 51 00:02:17,760 --> 00:02:19,760 Speaker 1: you're seeing is our depositor way up because that money 52 00:02:19,760 --> 00:02:22,120 Speaker 1: went into people's accounts and it's sitting there. But our 53 00:02:22,160 --> 00:02:25,560 Speaker 1: loans are not as you fell, because largely because people 54 00:02:25,600 --> 00:02:27,720 Speaker 1: are paying us off because they have so much cash 55 00:02:27,720 --> 00:02:30,560 Speaker 1: sitting around. So now the commercial side, we expect that 56 00:02:30,600 --> 00:02:32,960 Speaker 1: to change. The economy growing at seven percent, which is 57 00:02:32,960 --> 00:02:35,239 Speaker 1: what we predict, it would require companies to borrow to 58 00:02:35,320 --> 00:02:38,200 Speaker 1: service at economy. It's just that company has had a 59 00:02:38,240 --> 00:02:40,120 Speaker 1: lot of cash too. So we look for more long 60 00:02:40,120 --> 00:02:42,520 Speaker 1: growth as a year progresses. But the good news is 61 00:02:43,200 --> 00:02:46,520 Speaker 1: the customer consumers in good shape. There's an unemployment issue. 62 00:02:46,520 --> 00:02:47,680 Speaker 1: We've got to get that. The rest of the way 63 00:02:47,720 --> 00:02:49,799 Speaker 1: down to where it should be. The business has got 64 00:02:49,800 --> 00:02:51,919 Speaker 1: to get open. It couldn't be. But by and large, 65 00:02:52,080 --> 00:02:54,560 Speaker 1: a big portion economy is up and operating very well. 66 00:02:54,840 --> 00:02:57,120 Speaker 1: Beg over. Here is a very special viewpoint into the 67 00:02:57,120 --> 00:02:59,320 Speaker 1: American economy because you have such a consumer, such a 68 00:02:59,360 --> 00:03:02,079 Speaker 1: retail presence, and also the middle market. You really deal 69 00:03:02,160 --> 00:03:04,720 Speaker 1: with small and medium sized enterprise across the country. Are 70 00:03:04,720 --> 00:03:07,080 Speaker 1: you see any pick up in the borrowing from your 71 00:03:07,160 --> 00:03:12,280 Speaker 1: medium sized companies yet? If we've sent it bump along 72 00:03:12,320 --> 00:03:15,320 Speaker 1: the bottom usage of our business banking segment, which is 73 00:03:15,320 --> 00:03:17,839 Speaker 1: fifty million under revenue companies in our metal market which 74 00:03:17,840 --> 00:03:19,720 Speaker 1: is to an a half billion, we're seeing the line 75 00:03:19,800 --> 00:03:22,720 Speaker 1: usage really pretty flat. But the goodness is a quick 76 00:03:22,720 --> 00:03:25,240 Speaker 1: going down. We saw in the months during the quarter January, 77 00:03:25,280 --> 00:03:28,639 Speaker 1: f Everry March, it got a little stronger origination activity 78 00:03:28,680 --> 00:03:31,519 Speaker 1: meaning uh, you know, new clients and new deals done. 79 00:03:31,600 --> 00:03:34,200 Speaker 1: Is still is strong. Bodes well for the for the year, 80 00:03:34,240 --> 00:03:36,320 Speaker 1: but but we've got to see it come through um 81 00:03:36,400 --> 00:03:38,480 Speaker 1: And that goes back to those companies having a lot 82 00:03:38,520 --> 00:03:40,560 Speaker 1: of cash and had to run very efficiently during the 83 00:03:40,560 --> 00:03:42,920 Speaker 1: crisis because you didn't know what happened next, and and 84 00:03:43,200 --> 00:03:46,480 Speaker 1: and now they're gonna be you need to start spending 85 00:03:46,480 --> 00:03:49,960 Speaker 1: money on supplies and things to redo their inventory. Now, 86 00:03:50,080 --> 00:03:51,280 Speaker 1: the one thing I think we all have to be 87 00:03:51,280 --> 00:03:53,400 Speaker 1: mindful is we've got to get the trade. The trade 88 00:03:53,480 --> 00:03:56,040 Speaker 1: is growing fast out you know, into the country, but 89 00:03:56,120 --> 00:03:58,080 Speaker 1: the ports and things still need to get straightened out 90 00:03:58,120 --> 00:04:00,400 Speaker 1: because of just the dynamics of the iris and the 91 00:04:00,400 --> 00:04:02,560 Speaker 1: supply chains or star ironing out. So I think one 92 00:04:02,560 --> 00:04:04,600 Speaker 1: of the things I worry about from midsize companies king 93 00:04:04,680 --> 00:04:06,800 Speaker 1: that they get the supplies to do do what they do. 94 00:04:06,920 --> 00:04:09,839 Speaker 1: So you've heard about lumber prices or residant things like that. 95 00:04:10,040 --> 00:04:11,640 Speaker 1: I think it will straight now. We hope it will 96 00:04:11,680 --> 00:04:14,200 Speaker 1: straight now. But that's the next sort of channel outside 97 00:04:14,200 --> 00:04:16,200 Speaker 1: the healthcare. The next challenge to get the supply chains 98 00:04:16,200 --> 00:04:18,159 Speaker 1: really up in oil and greased and running through to 99 00:04:18,200 --> 00:04:20,560 Speaker 1: serve that fast growing economy. So, if that is the 100 00:04:20,600 --> 00:04:23,320 Speaker 1: consumer in the retail side, talk about the investment bank 101 00:04:23,400 --> 00:04:25,480 Speaker 1: the other side of your business. Here, you put up 102 00:04:25,480 --> 00:04:28,080 Speaker 1: some very big numbers this morning. Can you make up 103 00:04:28,120 --> 00:04:30,720 Speaker 1: for any shortfall on the retail side from what you're 104 00:04:30,760 --> 00:04:34,760 Speaker 1: doing investment banking? And what are you doing to do that? Well, 105 00:04:35,360 --> 00:04:37,200 Speaker 1: you know, the investment banking fees you're ever you're up 106 00:04:38,200 --> 00:04:40,480 Speaker 1: or something like that. Two billion dollars plus terrific. The 107 00:04:40,560 --> 00:04:44,280 Speaker 1: trading group had under Jimmy DeMar's leadership had working for 108 00:04:44,400 --> 00:04:48,040 Speaker 1: Tom Montagge had five billion plus the revenue Matthew Coder 109 00:04:48,080 --> 00:04:50,479 Speaker 1: and in the investment banking side had a great quarter. 110 00:04:50,880 --> 00:04:53,160 Speaker 1: The activity still seems to be strong in terms of 111 00:04:53,160 --> 00:04:55,520 Speaker 1: the investment bank and hopefully that bodes well carries in 112 00:04:55,560 --> 00:04:58,560 Speaker 1: the second quarter. Trading always goes settles down as you 113 00:04:58,600 --> 00:05:01,160 Speaker 1: go through the years, just the way we're but there's 114 00:05:01,200 --> 00:05:04,479 Speaker 1: there's enough activities, so you know, those made up for it. 115 00:05:04,560 --> 00:05:06,760 Speaker 1: Now the question is now you'll see more roll through 116 00:05:06,800 --> 00:05:09,000 Speaker 1: from the other sides of the house because they had 117 00:05:09,000 --> 00:05:11,080 Speaker 1: to put up big provisions last year, because they'll worry 118 00:05:11,080 --> 00:05:13,479 Speaker 1: about credit that's gone and they're taking credits back and 119 00:05:13,520 --> 00:05:15,919 Speaker 1: that the deposit base grew and we can put it 120 00:05:15,960 --> 00:05:18,120 Speaker 1: to work and finally earn some money. So as the 121 00:05:18,120 --> 00:05:21,280 Speaker 1: investment bank activity could stay strong because lots of them 122 00:05:21,320 --> 00:05:23,800 Speaker 1: and activity has to take place. But you know, if 123 00:05:23,839 --> 00:05:26,240 Speaker 1: the markets settled down a little bit, that's fine because 124 00:05:26,240 --> 00:05:28,680 Speaker 1: they've had such a great year. The other parts will 125 00:05:28,720 --> 00:05:30,120 Speaker 1: roll through and make up for it. But we made 126 00:05:30,120 --> 00:05:33,720 Speaker 1: eight billion dollars on twenty three billion dollars of revenue, 127 00:05:33,760 --> 00:05:36,040 Speaker 1: and that's not a bad quarter. So when you're talking 128 00:05:36,040 --> 00:05:38,000 Speaker 1: about settling down, one thing that doesn't seem to be 129 00:05:38,040 --> 00:05:41,440 Speaker 1: settling down the spacks, those special purpose acquisition companies. How 130 00:05:41,520 --> 00:05:43,400 Speaker 1: much of your equity business, because you had a pretty 131 00:05:43,440 --> 00:05:45,680 Speaker 1: robust quarter and equities, how much of other spacks? And 132 00:05:45,720 --> 00:05:50,279 Speaker 1: do you expect that to continue? You know, whether it 133 00:05:50,320 --> 00:05:52,440 Speaker 1: continues not going to do some of the dynamics, and 134 00:05:52,520 --> 00:05:55,040 Speaker 1: we do. We do selective ones were not as big 135 00:05:55,040 --> 00:05:57,640 Speaker 1: in the business as other people, and and that's fine. 136 00:05:57,680 --> 00:06:01,200 Speaker 1: And in different times we're stronger and investment grade issuance 137 00:06:01,240 --> 00:06:03,800 Speaker 1: and other people are stronger and and spacts, and that's 138 00:06:03,839 --> 00:06:05,919 Speaker 1: fine with us, and we go forward. But you know, 139 00:06:05,920 --> 00:06:08,880 Speaker 1: it seems to be holding on right now. Let's talk 140 00:06:08,880 --> 00:06:12,719 Speaker 1: about yields. The yields have been pushing up on fixed income, 141 00:06:13,160 --> 00:06:14,839 Speaker 1: despite the fact that this week actually we had a 142 00:06:14,920 --> 00:06:17,720 Speaker 1: downturn that maybe a flip flip or not. But it's 143 00:06:17,720 --> 00:06:20,000 Speaker 1: really important to Bank of America, given the way your 144 00:06:20,000 --> 00:06:22,960 Speaker 1: business works, what the tenure yield on this treasury is 145 00:06:23,000 --> 00:06:25,080 Speaker 1: and what the yield curve is the spread between the 146 00:06:25,120 --> 00:06:27,600 Speaker 1: twos and the tens. What are you projecting for the 147 00:06:27,640 --> 00:06:29,600 Speaker 1: rest of the year. Many people think the yields are 148 00:06:29,640 --> 00:06:34,240 Speaker 1: just going to keep marching up. Well, we're all projecting that, 149 00:06:34,480 --> 00:06:36,839 Speaker 1: and so we're up over the tenure got up to 150 00:06:36,920 --> 00:06:40,680 Speaker 1: one seventy plus and now it's back to one today. 151 00:06:40,800 --> 00:06:43,160 Speaker 1: One of the reasons why the bank, you know, companies 152 00:06:43,160 --> 00:06:44,800 Speaker 1: like ours you have took it on the chin a 153 00:06:44,839 --> 00:06:47,400 Speaker 1: little bit, but that's transient. Will move back and forth, 154 00:06:47,440 --> 00:06:49,880 Speaker 1: and there were some reasons for that happening today, I'm told, 155 00:06:49,880 --> 00:06:52,480 Speaker 1: But we'll see what happens tomorrow. But the raity is 156 00:06:52,520 --> 00:06:55,960 Speaker 1: if the economic activities picking up and and prices are 157 00:06:55,960 --> 00:06:59,000 Speaker 1: picking up, what you've seen unemployments going down, you know, 158 00:06:59,560 --> 00:07:01,840 Speaker 1: the yield curvel start to normalize, and you saw that 159 00:07:01,880 --> 00:07:03,880 Speaker 1: start to happen as we came in out of last 160 00:07:04,080 --> 00:07:06,560 Speaker 1: year fourth quarter in the first quarter. That helps us 161 00:07:06,600 --> 00:07:09,520 Speaker 1: because as a curve gets higher, that we can make 162 00:07:09,520 --> 00:07:11,640 Speaker 1: more money from the loans and other things we do. Now, 163 00:07:11,920 --> 00:07:14,440 Speaker 1: what's really important to us, honestly is short rates and 164 00:07:14,480 --> 00:07:17,120 Speaker 1: the questions when the Fed raises rates, the market has 165 00:07:17,160 --> 00:07:19,720 Speaker 1: it pretty well deferred, and they've been clear that they 166 00:07:19,800 --> 00:07:22,800 Speaker 1: want to see the inflation levels. They've share pals talked 167 00:07:22,840 --> 00:07:25,680 Speaker 1: about they want to see the unemployment numbers, and they've 168 00:07:25,680 --> 00:07:27,960 Speaker 1: been clear about that. The question is whether it will 169 00:07:27,960 --> 00:07:30,480 Speaker 1: happen faster than they they have in their projections as 170 00:07:30,520 --> 00:07:32,960 Speaker 1: that even they have projections at six percent plus for 171 00:07:33,000 --> 00:07:36,480 Speaker 1: GDP growth this year, and so we'll see when those rates. 172 00:07:36,480 --> 00:07:39,120 Speaker 1: But that's the that's the quicker route to success for 173 00:07:39,200 --> 00:07:41,000 Speaker 1: us because we have all we have all these no 174 00:07:41,080 --> 00:07:44,160 Speaker 1: interest bearing deposits that instantaneously are worth more that we 175 00:07:44,200 --> 00:07:45,600 Speaker 1: don't have to do any more work. So I was 176 00:07:45,640 --> 00:07:48,280 Speaker 1: gonna ask you about risks actually, because right now it 177 00:07:48,280 --> 00:07:50,720 Speaker 1: looks like things are going gangbusters for Bank of America 178 00:07:50,760 --> 00:07:52,840 Speaker 1: and some of the other big banks. What do you 179 00:07:52,880 --> 00:07:54,560 Speaker 1: look at his risk is one of the risks, the 180 00:07:54,600 --> 00:07:57,040 Speaker 1: possibility that, in fact, the Fed may have to move 181 00:07:57,280 --> 00:07:59,520 Speaker 1: sooner than the markets think, because there are some people 182 00:07:59,520 --> 00:08:04,920 Speaker 1: who are saying that they will. Well, the question is 183 00:08:04,920 --> 00:08:06,320 Speaker 1: why do they have to move. They have to move 184 00:08:06,360 --> 00:08:08,760 Speaker 1: because the growth is strong and they are comfortable the 185 00:08:08,880 --> 00:08:12,600 Speaker 1: inflation view will hold. You remember they change the monetary 186 00:08:12,640 --> 00:08:15,400 Speaker 1: policy to do an average inflation and and it's the 187 00:08:15,440 --> 00:08:18,120 Speaker 1: first time we had a chance to put that to work. 188 00:08:18,200 --> 00:08:20,720 Speaker 1: So I think if the raisin rates because the economy 189 00:08:20,760 --> 00:08:26,480 Speaker 1: is strong and because they inflation outlook everything is higher 190 00:08:27,000 --> 00:08:29,520 Speaker 1: than their targets, you know that's that's not a bad thing. 191 00:08:29,680 --> 00:08:32,280 Speaker 1: If they're raising because inflation and other things got out 192 00:08:32,280 --> 00:08:34,719 Speaker 1: of control and wasn't temporary, that's probably not a good thing. 193 00:08:34,800 --> 00:08:37,160 Speaker 1: So you know it, Really the question of raising rates 194 00:08:37,160 --> 00:08:40,400 Speaker 1: is a risk in certain circumstances and extreme benefit and others, 195 00:08:40,440 --> 00:08:42,959 Speaker 1: just because it means the economy is normalizing. If you 196 00:08:43,000 --> 00:08:45,600 Speaker 1: talk about other risks, there's always a cybersecurity risk, there's 197 00:08:45,640 --> 00:08:49,480 Speaker 1: always you know, good deal structure, and credit risk, operational risks, 198 00:08:49,600 --> 00:08:51,800 Speaker 1: all the types of things you have. But the number 199 00:08:51,800 --> 00:08:54,560 Speaker 1: one risk to the world is still is getting this 200 00:08:54,640 --> 00:08:58,000 Speaker 1: healthcare crisis behind us because the enthusiasm we feel in 201 00:08:58,040 --> 00:09:00,600 Speaker 1: the United States and the GDP growth rates have gone 202 00:09:00,640 --> 00:09:03,760 Speaker 1: from four percent to seven percent across a hundred twenty days, 203 00:09:03,760 --> 00:09:07,400 Speaker 1: and the estimates out there are due to the path 204 00:09:07,520 --> 00:09:10,880 Speaker 1: of the vaccine in the in the miracle of the 205 00:09:10,920 --> 00:09:13,600 Speaker 1: science that the big farm that pulled off in nine 206 00:09:13,640 --> 00:09:17,040 Speaker 1: states and drove through and got deployed, getting deployed in 207 00:09:17,040 --> 00:09:20,440 Speaker 1: people's arms. That is what's giving us optimism. If that 208 00:09:20,480 --> 00:09:22,439 Speaker 1: went in a different direction, that's we have to be careful, 209 00:09:22,480 --> 00:09:24,120 Speaker 1: and that's the risk we have to monitor more than 210 00:09:24,400 --> 00:09:26,240 Speaker 1: all the other risks right now. That's the risk that 211 00:09:26,240 --> 00:09:29,040 Speaker 1: we've got to pursue the vaccine path and and get 212 00:09:29,080 --> 00:09:31,440 Speaker 1: this disease behind it. The war that started last year, 213 00:09:31,800 --> 00:09:34,360 Speaker 1: we've got to win it, and we've got the ammunition 214 00:09:34,440 --> 00:09:36,160 Speaker 1: and we're winning, and we just got to pursue it 215 00:09:36,160 --> 00:09:38,280 Speaker 1: and finish it off. At the same time, that war 216 00:09:38,880 --> 00:09:41,559 Speaker 1: has been relatively expensive for Bank of America and for others. 217 00:09:41,600 --> 00:09:43,920 Speaker 1: Your costs have gone up. You've always prided yourself and 218 00:09:44,000 --> 00:09:46,640 Speaker 1: how you manage the costs at Bank of America. You've 219 00:09:46,640 --> 00:09:49,200 Speaker 1: had some costs really go up. How long do you 220 00:09:49,240 --> 00:09:51,719 Speaker 1: think that will continue the war against pandemic? And when 221 00:09:51,720 --> 00:09:54,760 Speaker 1: do you think you can return to your cost of 222 00:09:55,040 --> 00:10:01,360 Speaker 1: prudency prudence so level well up. We told people today 223 00:10:01,400 --> 00:10:04,280 Speaker 1: that we we had about a billion a half costs 224 00:10:04,360 --> 00:10:05,920 Speaker 1: that we had to add for the first quarter for 225 00:10:05,960 --> 00:10:08,080 Speaker 1: a whole series of things. Some are accelerating, some costs 226 00:10:08,080 --> 00:10:10,720 Speaker 1: in the future. Some are some things where we changed 227 00:10:10,760 --> 00:10:14,280 Speaker 1: some compensation plans and causing acceleration. But you know, and 228 00:10:14,320 --> 00:10:15,839 Speaker 1: we told people just to add that to the fifty 229 00:10:16,720 --> 00:10:19,160 Speaker 1: five and a half billion dollar a target we had 230 00:10:19,160 --> 00:10:21,000 Speaker 1: for this year, which has been flat toil last year. 231 00:10:21,280 --> 00:10:23,840 Speaker 1: And that's done, but you're asking more fundamental questions. So 232 00:10:23,880 --> 00:10:26,079 Speaker 1: that's that puts US around fifty seven for the year. 233 00:10:26,280 --> 00:10:29,560 Speaker 1: And we told people that. But the reality is, when 234 00:10:29,600 --> 00:10:31,480 Speaker 1: did the costs come back down? Well, the good news 235 00:10:31,600 --> 00:10:34,120 Speaker 1: is we're seeing the head count and the company's flattened 236 00:10:34,120 --> 00:10:36,040 Speaker 1: out and start to come down again. We had to 237 00:10:36,080 --> 00:10:38,360 Speaker 1: build a major amount of resources for the p P 238 00:10:38,400 --> 00:10:41,640 Speaker 1: P program, for the I P distribution programs to handle 239 00:10:41,920 --> 00:10:45,800 Speaker 1: the call volumes because we had branches closed and and 240 00:10:45,800 --> 00:10:48,720 Speaker 1: and you know, people called more often, especially with all 241 00:10:48,760 --> 00:10:51,280 Speaker 1: these payments from the government stuff. So those costs now 242 00:10:51,320 --> 00:10:53,319 Speaker 1: are starting to tip over. We had to raise costs 243 00:10:53,320 --> 00:10:57,360 Speaker 1: and anticipation of whether the credit UH collections and other 244 00:10:57,400 --> 00:11:00,400 Speaker 1: things will persistent. They went away. So you see that 245 00:11:00,440 --> 00:11:02,440 Speaker 1: in this quarter next quarter. But the good news the 246 00:11:02,480 --> 00:11:04,959 Speaker 1: head count was down slight in the first quarter, managed 247 00:11:05,000 --> 00:11:07,840 Speaker 1: to attrition and that those costs are going and any 248 00:11:08,080 --> 00:11:10,320 Speaker 1: the nonfund the costs we did there are good things 249 00:11:10,320 --> 00:11:13,240 Speaker 1: for our teammates. We we gave a hundred dollars a 250 00:11:13,360 --> 00:11:15,040 Speaker 1: day for people to hire people take care of the 251 00:11:15,080 --> 00:11:16,920 Speaker 1: kids so they could do a great job for the customers. 252 00:11:17,280 --> 00:11:21,480 Speaker 1: We funded three point seven million days of child care 253 00:11:21,520 --> 00:11:24,480 Speaker 1: for our our teammates. That benefit as schools go back 254 00:11:24,480 --> 00:11:27,480 Speaker 1: in session and summer camps open up, will normalize down. 255 00:11:27,520 --> 00:11:28,960 Speaker 1: And that's that's the type of thing. But it was 256 00:11:29,000 --> 00:11:30,800 Speaker 1: the thing we had to do to preserve the franchise 257 00:11:30,840 --> 00:11:33,599 Speaker 1: and make it operate. Well. That's why we have more customers, 258 00:11:33,800 --> 00:11:35,880 Speaker 1: that's why we have we have better customer scores, and 259 00:11:35,880 --> 00:11:38,320 Speaker 1: frankly why we have better employee scores than we did 260 00:11:38,400 --> 00:11:41,079 Speaker 1: before the crisis. So we're on. That's the cost of 261 00:11:41,120 --> 00:11:42,880 Speaker 1: Bank of America settling down. Let me ask a well, 262 00:11:42,920 --> 00:11:45,880 Speaker 1: growth settling down right now? A lot of the projections 263 00:11:45,920 --> 00:11:47,959 Speaker 1: I'm curious about where your projections are now. You give 264 00:11:48,000 --> 00:11:50,439 Speaker 1: them projection in the past, what the GDP growth will 265 00:11:50,440 --> 00:11:53,720 Speaker 1: be this year, but will that continue? Are we seeing 266 00:11:53,760 --> 00:11:56,800 Speaker 1: potentially a change in the long term potential of the 267 00:11:56,840 --> 00:12:01,760 Speaker 1: economy or will that settle back down in a year? Well, right, 268 00:12:01,960 --> 00:12:04,200 Speaker 1: that's kind of the interesting thing, David. You're asking a 269 00:12:04,280 --> 00:12:06,400 Speaker 1: very extent question. There isn't a lot of discussion about. 270 00:12:06,440 --> 00:12:09,960 Speaker 1: But if you're sitting here. You know, after our October 271 00:12:10,000 --> 00:12:13,960 Speaker 1: earnings report for two thousand twenty one, the prediction for 272 00:12:14,000 --> 00:12:17,080 Speaker 1: growth wouldin four percent, having come off of a second 273 00:12:17,080 --> 00:12:20,560 Speaker 1: a third quarter last year of a recovery oft and 274 00:12:20,600 --> 00:12:23,080 Speaker 1: it was sort of four percent, but you're you're twenty 275 00:12:23,120 --> 00:12:26,680 Speaker 1: two was sorted down into two three range. What's happened 276 00:12:26,720 --> 00:12:29,760 Speaker 1: is one has been raised up by our team up 277 00:12:29,760 --> 00:12:32,680 Speaker 1: to seven percent. But the big news is they've raised 278 00:12:32,720 --> 00:12:34,760 Speaker 1: twenty two up to five and a half percent. That 279 00:12:34,960 --> 00:12:38,160 Speaker 1: is due to the additional stimulus, the pace at which 280 00:12:38,320 --> 00:12:41,400 Speaker 1: people are coming out, the fact that the vaccine works 281 00:12:41,600 --> 00:12:44,800 Speaker 1: and is getting in people's arms and is seemed frankly 282 00:12:44,800 --> 00:12:47,080 Speaker 1: easier to distribute than I think people thought at the time, 283 00:12:47,600 --> 00:12:49,560 Speaker 1: you know, So that's the major change. So you're putting 284 00:12:49,600 --> 00:12:52,199 Speaker 1: your finger on this is a if this works the way. 285 00:12:52,240 --> 00:12:55,680 Speaker 1: The economists to study this hard, and our team is 286 00:12:55,840 --> 00:12:58,160 Speaker 1: one of the best in the business. If it works 287 00:12:58,160 --> 00:13:00,040 Speaker 1: the way they're saying, you're going to have another a 288 00:13:00,240 --> 00:13:03,079 Speaker 1: year of really outside growth. Because remember where we were 289 00:13:03,080 --> 00:13:05,920 Speaker 1: in seventeen and eighteen when attacks reform came through, every 290 00:13:05,960 --> 00:13:08,560 Speaker 1: thought to be exposed. We didn't get to three percent there. 291 00:13:08,880 --> 00:13:10,760 Speaker 1: And you're saying I'm gonna have a seven percent year 292 00:13:10,920 --> 00:13:13,480 Speaker 1: on economy which is about the same size, are slightly 293 00:13:13,480 --> 00:13:16,280 Speaker 1: bigger by year end a five and a half percent year, 294 00:13:16,320 --> 00:13:18,160 Speaker 1: and then we'll see what follows on because people don't 295 00:13:18,160 --> 00:13:20,440 Speaker 1: go out that far. That is a lot of economic 296 00:13:20,600 --> 00:13:24,320 Speaker 1: activity in a huge US economy. And and that's gonna 297 00:13:24,360 --> 00:13:26,360 Speaker 1: be the interesting question if we fill that word a 298 00:13:26,400 --> 00:13:29,120 Speaker 1: different different place. Frankly, it sure is. And I'm curious 299 00:13:29,120 --> 00:13:31,400 Speaker 1: about that because a lot of stimulus was not going 300 00:13:31,480 --> 00:13:34,400 Speaker 1: in investment that you would normally think would increase productivity. 301 00:13:34,640 --> 00:13:37,000 Speaker 1: Are the projections you're making before you get to a 302 00:13:37,040 --> 00:13:42,760 Speaker 1: possible stimulus package of perhaps two point two five trillion dollars, Well, 303 00:13:42,920 --> 00:13:44,839 Speaker 1: I mean in the next stimulus, there's been a lot 304 00:13:44,880 --> 00:13:49,600 Speaker 1: of infrastructure. I think, Yeah, I don't think our estimates 305 00:13:49,640 --> 00:13:52,520 Speaker 1: on an infrastructure stimulus, I don't think those estimates have 306 00:13:52,559 --> 00:13:55,440 Speaker 1: a lot infra infrastructure only because a it's takes time 307 00:13:55,440 --> 00:13:58,120 Speaker 1: to get that money deployed and be it's still it's 308 00:13:58,160 --> 00:14:00,480 Speaker 1: still got to take form and shape. So they estimates 309 00:14:00,480 --> 00:14:02,760 Speaker 1: they have are off the you know, the last stimulus 310 00:14:02,880 --> 00:14:04,760 Speaker 1: in the in the in the one before that. But 311 00:14:05,280 --> 00:14:07,280 Speaker 1: you know, so I think there could be room for upside, 312 00:14:07,320 --> 00:14:09,960 Speaker 1: and I think that's that. You know, if that happens 313 00:14:09,960 --> 00:14:12,680 Speaker 1: and it's aimed right, it should provide the productivity and 314 00:14:12,679 --> 00:14:15,559 Speaker 1: and and work if it's aimed in the right places. Um, 315 00:14:15,600 --> 00:14:18,000 Speaker 1: the good the best news about the economy, honestly is 316 00:14:18,040 --> 00:14:20,520 Speaker 1: the unemployment rate keeps coming down. The new claims today 317 00:14:20,560 --> 00:14:25,040 Speaker 1: came down again. It's normalizing as restaurants can open fully 318 00:14:25,120 --> 00:14:27,040 Speaker 1: and you know, those of us that live in the 319 00:14:27,200 --> 00:14:28,960 Speaker 1: upper part of the United States, you know it's been 320 00:14:28,960 --> 00:14:31,440 Speaker 1: pretty cold, eat outside and things like that, So as 321 00:14:31,480 --> 00:14:33,720 Speaker 1: you can actually eat outside and it's warmer, you know, 322 00:14:34,040 --> 00:14:37,200 Speaker 1: the er the travel and entertainment industries, hotel bookings, and 323 00:14:37,200 --> 00:14:40,240 Speaker 1: our commercial side charge of our merchant business and our 324 00:14:40,240 --> 00:14:43,760 Speaker 1: consumer you can see those up. So you're starting to 325 00:14:43,760 --> 00:14:46,840 Speaker 1: see people move and travel. Those are all good things. 326 00:14:46,840 --> 00:14:49,480 Speaker 1: And now bring unemployment. That's that's that's very good news 327 00:14:49,520 --> 00:14:51,960 Speaker 1: because that means we can actually get people back to 328 00:14:52,000 --> 00:14:53,960 Speaker 1: work and then we can worry about reskilling them and 329 00:14:53,960 --> 00:14:55,760 Speaker 1: giving them the judge. We've got to get people back 330 00:14:55,800 --> 00:14:58,040 Speaker 1: to work, down back down to the you have more 331 00:14:58,080 --> 00:15:02,320 Speaker 1: normal four percent more or target four percent unemployment or so, Brian, 332 00:15:02,360 --> 00:15:04,400 Speaker 1: You've always prided yourself. Not only am be able to 333 00:15:04,440 --> 00:15:07,440 Speaker 1: call costs but also control risk, manage risk. You talk 334 00:15:07,480 --> 00:15:10,280 Speaker 1: about responsible growth for Bank of America. We've had some 335 00:15:10,320 --> 00:15:12,960 Speaker 1: instances in the recent past of some other banks that 336 00:15:13,160 --> 00:15:16,520 Speaker 1: raised questions about managing I'm talking about course about Archibos. 337 00:15:17,200 --> 00:15:19,560 Speaker 1: I understand from your chief financial officer that you weren't 338 00:15:19,560 --> 00:15:22,400 Speaker 1: involved in that. But but knowing you when you first 339 00:15:22,480 --> 00:15:26,000 Speaker 1: heard about that, did you ask Tom Montage others say, 340 00:15:26,120 --> 00:15:28,400 Speaker 1: do we have any exposure not just to Archibos, not 341 00:15:28,480 --> 00:15:30,440 Speaker 1: just to that one, but to other similar ones. How 342 00:15:30,440 --> 00:15:34,440 Speaker 1: do you know that you don't have that kind of risk? Uh, 343 00:15:34,560 --> 00:15:36,920 Speaker 1: that's that's a case. But every one of these cases, 344 00:15:36,920 --> 00:15:40,480 Speaker 1: whether it's operational things that happen or or in that case, 345 00:15:40,760 --> 00:15:44,760 Speaker 1: a lending arrangement, a prime brokersh type arrangement that goes awry, 346 00:15:45,200 --> 00:15:47,680 Speaker 1: whatever the case is, we were Look, we don't think 347 00:15:47,680 --> 00:15:50,240 Speaker 1: we have all the answers all we we we immediately say, 348 00:15:50,440 --> 00:15:52,120 Speaker 1: could that have happened here? How do we know what 349 00:15:52,200 --> 00:15:55,120 Speaker 1: didn't happen here? Let's go double check, let's recheck all 350 00:15:55,120 --> 00:15:58,480 Speaker 1: our systems, make sure, et cetera, cybersecurity attack, whatever the 351 00:15:58,600 --> 00:16:00,720 Speaker 1: case is. And that so one of the ways you 352 00:16:00,760 --> 00:16:02,560 Speaker 1: have to you know, you have to be curious. You 353 00:16:02,600 --> 00:16:04,800 Speaker 1: have to ask a question if you think whether it's 354 00:16:04,800 --> 00:16:07,200 Speaker 1: even on the competitive side, new products, new services, what's 355 00:16:07,200 --> 00:16:09,200 Speaker 1: out there, what a customers need? You have to be curious. 356 00:16:09,200 --> 00:16:11,200 Speaker 1: But also on the risk side. And Jeff Green are 357 00:16:11,280 --> 00:16:14,000 Speaker 1: chief risk officer, along with Tom and Jimmy Tamara and 358 00:16:14,720 --> 00:16:16,480 Speaker 1: the team and the lending side of Fellow and Robert 359 00:16:16,520 --> 00:16:19,840 Speaker 1: Slicer and Boz Thompson and mc ancram, these guys, you know, 360 00:16:20,440 --> 00:16:23,160 Speaker 1: his team and and Cheryl Boucher and this team is 361 00:16:23,200 --> 00:16:26,440 Speaker 1: just very good at understanding risk. And so sometimes the 362 00:16:26,480 --> 00:16:29,920 Speaker 1: opportunity is that you take it. Sometimes you don't. But 363 00:16:29,920 --> 00:16:32,120 Speaker 1: but whenever anything happens, you've got to go in and 364 00:16:32,120 --> 00:16:35,000 Speaker 1: look and say, Okay, let's not act like we're too smart, 365 00:16:35,080 --> 00:16:37,120 Speaker 1: Let's not think we're too smart. Let's doubt. Let's have 366 00:16:37,240 --> 00:16:39,320 Speaker 1: serious doubt about how good we are and go look 367 00:16:39,360 --> 00:16:41,760 Speaker 1: at it and confirm that didn't happen instead of saying 368 00:16:41,800 --> 00:16:43,760 Speaker 1: it couldn't have happened, because and that's the way you 369 00:16:43,840 --> 00:16:46,720 Speaker 1: run good risk management. You had an extraordinary experience at 370 00:16:46,720 --> 00:16:48,560 Speaker 1: Back of America. Others did as well, where you had 371 00:16:48,560 --> 00:16:50,800 Speaker 1: to go to work from home almost overnight with an 372 00:16:50,800 --> 00:16:53,160 Speaker 1: awful lot of employees. You give a lot to support 373 00:16:53,200 --> 00:16:56,200 Speaker 1: to those employees. Is it necessary to bring them all back? 374 00:16:56,240 --> 00:16:57,960 Speaker 1: And if so, do you need to give more support 375 00:16:58,000 --> 00:17:03,600 Speaker 1: in that process? Well, I think let's think about a 376 00:17:03,600 --> 00:17:06,200 Speaker 1: couple of ways. One is our you know, our teammates 377 00:17:08,000 --> 00:17:11,040 Speaker 1: want to work and we're work from office company because 378 00:17:11,040 --> 00:17:14,520 Speaker 1: of productivity and the culture and the in the mentoring 379 00:17:14,560 --> 00:17:16,920 Speaker 1: that can take place. It's just it's just better. Now. 380 00:17:17,800 --> 00:17:20,040 Speaker 1: Maybe that changes over another couple of decades. Maybe we're 381 00:17:20,040 --> 00:17:21,919 Speaker 1: in this condition for a decade. We'd have to just 382 00:17:22,080 --> 00:17:23,560 Speaker 1: but you know, on the end of the day, you know, 383 00:17:23,560 --> 00:17:25,720 Speaker 1: we're already saying to people you've got to get you know, 384 00:17:25,760 --> 00:17:27,400 Speaker 1: you get your vaccines, and we get half of people 385 00:17:27,440 --> 00:17:29,520 Speaker 1: in office vaccinated. You can open the office, and we're 386 00:17:29,560 --> 00:17:31,919 Speaker 1: having people trying to get through that window on some 387 00:17:31,960 --> 00:17:33,960 Speaker 1: of the field office and stuff. So we're you know, 388 00:17:34,000 --> 00:17:37,200 Speaker 1: we're letting people just make their decisions. We're encouraging, and 389 00:17:37,200 --> 00:17:38,879 Speaker 1: then we're showing them lots of data. We're trying to 390 00:17:38,880 --> 00:17:41,479 Speaker 1: get appointments for our team and things like that so 391 00:17:41,520 --> 00:17:43,520 Speaker 1: they can get back to work. And then we're work 392 00:17:43,560 --> 00:17:45,840 Speaker 1: from office company. Now we are already in the mode 393 00:17:45,840 --> 00:17:49,520 Speaker 1: of high performing work places in sort of hoteling office 394 00:17:49,520 --> 00:17:52,640 Speaker 1: and all the different discussion we think people will think 395 00:17:52,640 --> 00:17:55,560 Speaker 1: about commuting differently. I always tell the story that we had, 396 00:17:55,960 --> 00:17:58,840 Speaker 1: you know, our big buildings in midtown at one Bryant Park, 397 00:17:58,880 --> 00:18:01,080 Speaker 1: and we're doing a billing across the street, and when 398 00:18:01,080 --> 00:18:03,440 Speaker 1: we ask people to move to Jersey City or something 399 00:18:03,480 --> 00:18:05,440 Speaker 1: like that, they might Hope Well, they might think, oh 400 00:18:05,440 --> 00:18:07,720 Speaker 1: my gosh, you're sending me to out of Mongolie or 401 00:18:07,720 --> 00:18:10,040 Speaker 1: something like that. You know, the reality is they now 402 00:18:10,080 --> 00:18:12,840 Speaker 1: have gone from home and they're much more adaptable. At 403 00:18:12,840 --> 00:18:14,280 Speaker 1: wall a cutmate in the city. A couple of days, 404 00:18:14,320 --> 00:18:16,480 Speaker 1: I'll commute you know, the Jersey City or I'll go 405 00:18:16,520 --> 00:18:18,760 Speaker 1: to Hope Well. So we have to think about our 406 00:18:18,760 --> 00:18:21,159 Speaker 1: real estate configuration and retool it. In the end of the 407 00:18:21,119 --> 00:18:23,640 Speaker 1: the day. Ten years ago, we had a hundred thirty 408 00:18:23,640 --> 00:18:25,720 Speaker 1: million square feet of real estate for Bank of America. 409 00:18:25,840 --> 00:18:28,760 Speaker 1: Today we have about seventy and so we can just 410 00:18:29,080 --> 00:18:32,440 Speaker 1: keep making that real estate more efficient and more dedicated, 411 00:18:32,480 --> 00:18:35,199 Speaker 1: team better real estate for our teammates to work in 412 00:18:35,359 --> 00:18:39,119 Speaker 1: and then work with them on their personal decisions. But 413 00:18:39,440 --> 00:18:41,800 Speaker 1: in the day, we have found in our work from 414 00:18:41,840 --> 00:18:45,280 Speaker 1: office strategies, work from home strategies, which we've had for years, 415 00:18:45,320 --> 00:18:47,240 Speaker 1: that you know, certain types of jobs and certain types 416 00:18:47,240 --> 00:18:49,680 Speaker 1: of activity are better served than we have about twenty 417 00:18:49,680 --> 00:18:53,520 Speaker 1: thousand people working from home before the pandemic, but that 418 00:18:53,600 --> 00:18:54,800 Speaker 1: it has to be a certain type of job in 419 00:18:54,880 --> 00:18:57,040 Speaker 1: certain activity and we'll we'll see how it plays out. 420 00:18:57,040 --> 00:19:00,840 Speaker 1: But my big expectations after after LA day, we'll you know, 421 00:19:00,920 --> 00:19:05,040 Speaker 1: we'll be back to you generally moving towards them being 422 00:19:05,040 --> 00:19:07,360 Speaker 1: back to normal. Between now and then will be partial, 423 00:19:07,480 --> 00:19:09,399 Speaker 1: but the key is then you flip it for the 424 00:19:09,400 --> 00:19:11,760 Speaker 1: good of cities and towns and stuff. We you know, 425 00:19:11,880 --> 00:19:14,000 Speaker 1: as those people who are vaccinated come back to work 426 00:19:14,000 --> 00:19:15,560 Speaker 1: and go to restaurants, that will just be good for 427 00:19:15,600 --> 00:19:18,080 Speaker 1: the broncity of downtown. So in Charlotte, you know, I 428 00:19:18,119 --> 00:19:20,920 Speaker 1: was talking to other CEO. You know, we need to 429 00:19:20,920 --> 00:19:24,000 Speaker 1: get the people commuting downtown and and then the restaurants 430 00:19:24,000 --> 00:19:26,960 Speaker 1: in downtown life can come back. In great cities need that. 431 00:19:27,240 --> 00:19:29,119 Speaker 1: You've got a lot of real estate in Boston and 432 00:19:29,160 --> 00:19:31,400 Speaker 1: in New York and Charlotte. Are you gonna have more 433 00:19:31,440 --> 00:19:33,359 Speaker 1: in Florida Because we're seeing a fair number of financial 434 00:19:33,400 --> 00:19:36,399 Speaker 1: institutions are moving south. Is that on the Is that 435 00:19:36,520 --> 00:19:40,920 Speaker 1: on the table for Back of America? Not not really, 436 00:19:40,960 --> 00:19:43,879 Speaker 1: we would you know, our operations are pretty well sitting 437 00:19:44,320 --> 00:19:46,280 Speaker 1: site of where they are. And by the way, we 438 00:19:46,320 --> 00:19:47,840 Speaker 1: have a big lot of people in Florida and a 439 00:19:47,880 --> 00:19:49,920 Speaker 1: lot of people in Jacksonville and places like that that 440 00:19:50,240 --> 00:19:55,399 Speaker 1: big operations centers for years. So we're largely site of 441 00:19:55,400 --> 00:19:57,560 Speaker 1: where we are. We don't see that our our new kids. 442 00:19:58,080 --> 00:19:59,840 Speaker 1: I think I was sick about New York the other day. 443 00:19:59,880 --> 00:20:01,880 Speaker 1: We have kids that you came to work at Bank 444 00:20:01,920 --> 00:20:04,480 Speaker 1: of America and our you know, our New York offices 445 00:20:04,560 --> 00:20:06,880 Speaker 1: in nineteen twenty and twenty in a new class coming 446 00:20:06,880 --> 00:20:10,639 Speaker 1: in twenty one, and by the fall the night you know, 447 00:20:10,800 --> 00:20:14,360 Speaker 1: think about the night kids came into mid nineteen. They 448 00:20:14,359 --> 00:20:16,480 Speaker 1: only spent you know, six eight months in the office 449 00:20:16,480 --> 00:20:18,520 Speaker 1: and then went to work from home. The twenty kids 450 00:20:18,560 --> 00:20:20,440 Speaker 1: never came in. The twenty one kids were only hiring. 451 00:20:20,440 --> 00:20:23,200 Speaker 1: Now all those kids will be descending on New York 452 00:20:23,280 --> 00:20:25,920 Speaker 1: and and that you know, once they get them vaccinated, 453 00:20:25,920 --> 00:20:28,240 Speaker 1: we'll bring in the office in the fall. And you 454 00:20:28,400 --> 00:20:31,359 Speaker 1: think about the dynamics of New York and so having 455 00:20:31,400 --> 00:20:34,480 Speaker 1: them together, having learned from each other, having them engaged 456 00:20:34,840 --> 00:20:38,000 Speaker 1: the commradity they developed. It's in the commodity do by 457 00:20:38,000 --> 00:20:40,239 Speaker 1: walking down the hall. But we we need to keep 458 00:20:40,280 --> 00:20:42,240 Speaker 1: critical mass in the place that we are and get 459 00:20:42,240 --> 00:20:44,560 Speaker 1: the people to work. Let's talk about social values. That's 460 00:20:44,560 --> 00:20:46,600 Speaker 1: another thing you've prided yourself on the way you express 461 00:20:46,640 --> 00:20:49,320 Speaker 1: your social values. Because I understand you've expanded your commitment 462 00:20:49,560 --> 00:20:52,680 Speaker 1: to pursue racial equality and economical recery from one billion 463 00:20:52,680 --> 00:20:55,280 Speaker 1: to one point to five billion. Now various investments you're 464 00:20:55,320 --> 00:20:57,679 Speaker 1: making around the country with people who really needed you. 465 00:20:57,760 --> 00:21:00,920 Speaker 1: Now have an invitation, a kind invitation for um the Congress, 466 00:21:00,960 --> 00:21:02,600 Speaker 1: both the House and the Senate, to come down and 467 00:21:02,640 --> 00:21:04,600 Speaker 1: testify with your fellows. C. E O. S. I don't 468 00:21:04,600 --> 00:21:06,040 Speaker 1: know what they're gonna ask you about. Maybe you know, 469 00:21:06,119 --> 00:21:07,520 Speaker 1: but I think they might say, well, you're making a 470 00:21:07,560 --> 00:21:08,880 Speaker 1: lot of money. What are you doing for the people 471 00:21:08,920 --> 00:21:10,320 Speaker 1: who need it the most? What are you going to 472 00:21:10,400 --> 00:21:14,760 Speaker 1: tell them? Well, there's a couple of things about that. 473 00:21:14,880 --> 00:21:18,960 Speaker 1: So first start about what do you directly have control over. 474 00:21:18,960 --> 00:21:21,000 Speaker 1: That's the people you employ and what you do with 475 00:21:21,080 --> 00:21:25,440 Speaker 1: your first and so we start during this crisis last 476 00:21:25,520 --> 00:21:27,920 Speaker 1: year this time we went finally completed the move from 477 00:21:27,960 --> 00:21:29,480 Speaker 1: seventeen and a half to twenty dollars an hour and 478 00:21:30,119 --> 00:21:31,760 Speaker 1: eighteen nink. It was the twenty dollars an hour and 479 00:21:31,800 --> 00:21:34,000 Speaker 1: closed out in four years of what we're gonna do 480 00:21:34,000 --> 00:21:35,639 Speaker 1: in five years. So we start every job in our 481 00:21:35,640 --> 00:21:39,080 Speaker 1: company twenty dollars an hour. Are our teammates get full benefits, 482 00:21:39,280 --> 00:21:42,680 Speaker 1: um full foreign k match and everything for the people. 483 00:21:43,040 --> 00:21:46,760 Speaker 1: We we stratify our healthcare benefits by compensation levels, so 484 00:21:46,840 --> 00:21:50,160 Speaker 1: people under fifty thousand have it, had a change, had 485 00:21:50,200 --> 00:21:52,880 Speaker 1: their their premium for lack of better term or self 486 00:21:52,920 --> 00:21:55,439 Speaker 1: a jurb, but their premium dropping half in two thousand 487 00:21:55,480 --> 00:21:58,840 Speaker 1: and eleven and it's never gone up the same price, 488 00:21:58,880 --> 00:22:00,920 Speaker 1: even though there's been a sixer sent cost to carry. 489 00:22:01,160 --> 00:22:03,120 Speaker 1: And we've done that beginning more and more people well 490 00:22:03,440 --> 00:22:05,080 Speaker 1: and being able to afford it. So we reinvest that 491 00:22:05,160 --> 00:22:06,919 Speaker 1: back into people. So we take great pride in that. 492 00:22:07,040 --> 00:22:10,439 Speaker 1: So we employ a very diverse population from top to bottom. 493 00:22:10,480 --> 00:22:12,720 Speaker 1: We hire a lot of people. We have specialized programs 494 00:22:12,760 --> 00:22:15,200 Speaker 1: like our Pathways program were ten thousand people we hired 495 00:22:15,240 --> 00:22:19,280 Speaker 1: in from lower modern communities, veterans, women, uh. We do 496 00:22:19,359 --> 00:22:21,720 Speaker 1: a lot with schools and recruiting. They are very broad 497 00:22:21,800 --> 00:22:23,680 Speaker 1: So that's one thing we know we can control is 498 00:22:23,680 --> 00:22:25,840 Speaker 1: who we hired. Then we have our vendors. We require 499 00:22:25,880 --> 00:22:28,200 Speaker 1: them to pay fifteen dollars and we've been moving all 500 00:22:28,200 --> 00:22:30,040 Speaker 1: of them up to do that because we think they 501 00:22:30,080 --> 00:22:32,120 Speaker 1: should be able to do it. And that's that's that's 502 00:22:32,119 --> 00:22:34,159 Speaker 1: what we say. Then you go to you know what 503 00:22:34,240 --> 00:22:36,400 Speaker 1: we do outside, and that's more we're talking about. So 504 00:22:36,960 --> 00:22:39,680 Speaker 1: after last year in the racial social justice issues, after 505 00:22:39,720 --> 00:22:42,920 Speaker 1: the George Floyd killing, any other killings and what happened, 506 00:22:43,520 --> 00:22:46,600 Speaker 1: we basically made a billion dollar commitment with three things. 507 00:22:46,640 --> 00:22:49,560 Speaker 1: We denounced racism. Second, we we we gave a fun 508 00:22:49,760 --> 00:22:53,960 Speaker 1: foundational grant to the Smithsonian Institute to start a Courageous 509 00:22:53,960 --> 00:22:58,520 Speaker 1: conversation platform with Lonny Bunch at the Smithsonian across African Americans, 510 00:22:58,960 --> 00:23:02,480 Speaker 1: DAT Americans, has Spanics, and Asian Americans across all their platforms. 511 00:23:02,880 --> 00:23:05,639 Speaker 1: Then we put a billion dollar program together along the 512 00:23:05,640 --> 00:23:09,880 Speaker 1: pillars of jobs, health, small business, entrepreneur small business entrepreneurship, 513 00:23:09,960 --> 00:23:13,040 Speaker 1: in housing, and we have now deployed about three fifty 514 00:23:13,080 --> 00:23:15,679 Speaker 1: million of that as we moved through the year. That 515 00:23:15,800 --> 00:23:19,000 Speaker 1: money went to the minority deposit institutions. We've we've done 516 00:23:19,000 --> 00:23:21,320 Speaker 1: about fourteen of those to the things called the c 517 00:23:21,400 --> 00:23:24,000 Speaker 1: d f ies. We kept our levels up. That's not 518 00:23:24,000 --> 00:23:25,560 Speaker 1: even part of the billion dollars that's above. We have 519 00:23:25,640 --> 00:23:28,000 Speaker 1: one point seven billion with them. We put money into 520 00:23:28,119 --> 00:23:32,240 Speaker 1: twenty one colleges and community colleges to help HBCU colleges 521 00:23:32,280 --> 00:23:35,040 Speaker 1: for your people helping get jobs with big companies like ours, 522 00:23:35,040 --> 00:23:38,399 Speaker 1: and then community colleges skill set an entrepreneurship center with 523 00:23:39,000 --> 00:23:41,480 Speaker 1: in Atlanta with the lack of etive alliance, and and 524 00:23:41,640 --> 00:23:45,520 Speaker 1: more houses Spellman. And then we did million mass delivered 525 00:23:45,520 --> 00:23:49,040 Speaker 1: to community centers and to help keep people safe. Then 526 00:23:49,080 --> 00:23:51,360 Speaker 1: we did sixty one private equity funds coming up from 527 00:23:51,359 --> 00:23:53,360 Speaker 1: all our market presence bringing them to us. And that's 528 00:23:53,359 --> 00:23:56,760 Speaker 1: all done. And so now then we have the Asian 529 00:23:57,200 --> 00:24:00,440 Speaker 1: American people of Asians Ascent Pacific Eye and Ascent issues 530 00:24:00,480 --> 00:24:02,439 Speaker 1: come up, and we said, look, we've got to dedicate 531 00:24:02,480 --> 00:24:05,320 Speaker 1: even more and spanned a dollar amount of of program 532 00:24:05,400 --> 00:24:08,080 Speaker 1: and also make it clear that we're covering those colleagues 533 00:24:08,080 --> 00:24:10,160 Speaker 1: and teammates in society. And we've done that for billion 534 00:24:10,200 --> 00:24:12,440 Speaker 1: a quarter. It sounds like you've got your testimony pretty 535 00:24:12,440 --> 00:24:14,159 Speaker 1: well written for you already, just as soon as you 536 00:24:14,240 --> 00:24:15,880 Speaker 1: got the invitation. I want to ask one, of course, 537 00:24:15,920 --> 00:24:18,760 Speaker 1: about crypto, because it's come up quite a bit. I mean, 538 00:24:18,800 --> 00:24:20,639 Speaker 1: you and I've talked before about bitcoin. You always say 539 00:24:20,680 --> 00:24:23,399 Speaker 1: it's not bitcoin, it's blockchain, it's distributed ledger. At the 540 00:24:23,400 --> 00:24:26,000 Speaker 1: same time, we had the Chairman of the FED talked 541 00:24:26,000 --> 00:24:28,080 Speaker 1: to us just this week and say, you know, it's 542 00:24:28,080 --> 00:24:31,480 Speaker 1: not cryptocurrency of crypto access assets that you speculated about. 543 00:24:31,800 --> 00:24:34,399 Speaker 1: How do you see the dynamic from bitcoin on the 544 00:24:34,400 --> 00:24:37,880 Speaker 1: one hand to cryptocurrency of any sort of the other, 545 00:24:38,520 --> 00:24:44,120 Speaker 1: perhaps a central bank digital currency. Where is this going? Well, 546 00:24:44,240 --> 00:24:47,960 Speaker 1: I think they're multiple facets. Obviously, is an asset people 547 00:24:47,960 --> 00:24:51,439 Speaker 1: are investing in. Our clients are asking iscamely invest in 548 00:24:51,440 --> 00:24:54,119 Speaker 1: this asset, and you put it in our accounts and 549 00:24:54,160 --> 00:24:55,840 Speaker 1: look at it. And that's those are issues we have 550 00:24:55,920 --> 00:24:59,440 Speaker 1: to to consider. And you're seeing some of our colleagues, 551 00:24:59,560 --> 00:25:02,080 Speaker 1: uh start to do formal custody and you've seen those 552 00:25:02,080 --> 00:25:04,359 Speaker 1: announcements and things like that which enable us to do 553 00:25:04,440 --> 00:25:07,119 Speaker 1: some things. And so that that's the investment side, and 554 00:25:07,119 --> 00:25:10,399 Speaker 1: that's for large institutions and you know, affluent investors and 555 00:25:10,720 --> 00:25:13,720 Speaker 1: people looking at it. Then you have the transactional side 556 00:25:13,720 --> 00:25:15,840 Speaker 1: and the question of moving money digitally is not new 557 00:25:16,080 --> 00:25:19,600 Speaker 1: more than I think probably of our consumer money move 558 00:25:19,640 --> 00:25:22,639 Speaker 1: digitally this last quarter, and on their commercial side is 559 00:25:22,640 --> 00:25:27,959 Speaker 1: probably all moves digitally, very little paper movement. So the 560 00:25:28,000 --> 00:25:32,120 Speaker 1: idea of moving money digitally, think about Zell and the 561 00:25:32,240 --> 00:25:34,280 Speaker 1: volumes going through that now and the number of users 562 00:25:34,280 --> 00:25:36,520 Speaker 1: not only to our company but in the industry total, 563 00:25:36,880 --> 00:25:39,160 Speaker 1: that's not a new concept. Then the question is you know, 564 00:25:39,320 --> 00:25:42,280 Speaker 1: an anonymous currency or currency that doesn't have attribution. That's 565 00:25:42,280 --> 00:25:45,960 Speaker 1: a different question, and I think, uh, you've heard Chair 566 00:25:46,000 --> 00:25:50,080 Speaker 1: Pale and Secretary of Treasuries in the past reflect on that. 567 00:25:50,080 --> 00:25:53,480 Speaker 1: That's a different question. A central point, central bank digital currency, 568 00:25:53,960 --> 00:25:57,359 Speaker 1: you know, it's just we already anyway, you already have that. 569 00:25:57,359 --> 00:25:58,880 Speaker 1: We have a bunch of accounts with them. They're ones 570 00:25:58,880 --> 00:26:01,040 Speaker 1: and zeros, we know where they are. There's a huge 571 00:26:01,040 --> 00:26:03,199 Speaker 1: amount of money represented by it. So the idea of 572 00:26:03,240 --> 00:26:06,520 Speaker 1: making it available more more granular. I think we'll see 573 00:26:06,520 --> 00:26:08,280 Speaker 1: what they decided to do and we'll react to it. 574 00:26:08,320 --> 00:26:11,679 Speaker 1: But the reality is we make money. Movement digitally is 575 00:26:11,720 --> 00:26:14,280 Speaker 1: the dominant way money moves in our franchise today and 576 00:26:14,320 --> 00:26:16,680 Speaker 1: it will be in the future. Brian, just one quick 577 00:26:16,680 --> 00:26:18,520 Speaker 1: one here, at the end, if you can. Was it 578 00:26:18,600 --> 00:26:20,680 Speaker 1: hard to decide to sign on to that level about 579 00:26:20,680 --> 00:26:22,919 Speaker 1: the Georgia voting law because you've signed with a lot 580 00:26:22,960 --> 00:26:28,000 Speaker 1: of other companies protesting what's going on. Oh yeah, we've 581 00:26:28,000 --> 00:26:30,359 Speaker 1: made a statement a few weeks ago, and then and 582 00:26:30,400 --> 00:26:32,760 Speaker 1: then we approached to sign along with all those other 583 00:26:32,800 --> 00:26:36,520 Speaker 1: companies about the basic fundamental principle of of voting and 584 00:26:36,560 --> 00:26:40,080 Speaker 1: the right to vote. Now, you know, David is as 585 00:26:40,119 --> 00:26:43,480 Speaker 1: you've watched this play out, you know, I looked back 586 00:26:43,480 --> 00:26:45,520 Speaker 1: at history and and you know some of them and 587 00:26:45,560 --> 00:26:48,960 Speaker 1: I'm so sorry, so much for our TV and radiotists. 588 00:26:48,960 --> 00:26:52,040 Speaker 1: This is Bloomberg. Thank you to Brian moynihan, CEO of 589 00:26:52,160 --> 00:27:01,200 Speaker 1: Bank of America. Hi. This Rick Davis the Bloomberg News. 590 00:27:01,240 --> 00:27:03,959 Speaker 1: And UH we want to pick up where David Weston 591 00:27:04,359 --> 00:27:08,720 Speaker 1: just finished a very expansive interview with Brian moynihan, UH, 592 00:27:08,760 --> 00:27:12,920 Speaker 1: the CEO of Bank of America. His interview was very comprehensive. 593 00:27:12,960 --> 00:27:15,879 Speaker 1: It touched on the banks success in the last quarter 594 00:27:16,280 --> 00:27:19,719 Speaker 1: and UH and UH ceo one hand talked a lot 595 00:27:19,880 --> 00:27:22,680 Speaker 1: quite a bit about um, you know, the UH the 596 00:27:22,720 --> 00:27:25,920 Speaker 1: economy and its rebound. UH. He talked about a seven 597 00:27:25,920 --> 00:27:30,800 Speaker 1: percent growth rate this year and continuing uh momentum behind 598 00:27:30,880 --> 00:27:33,840 Speaker 1: that kind of growth into five percent next year. So 599 00:27:34,080 --> 00:27:38,760 Speaker 1: he was very optimistic and and and confident that that 600 00:27:38,840 --> 00:27:41,160 Speaker 1: the the economy is on the rebound. He said, there's 601 00:27:41,160 --> 00:27:44,640 Speaker 1: obviously some uh sectors of the economy that that need 602 00:27:44,720 --> 00:27:47,560 Speaker 1: to uh that need to improve. He actually talked quite 603 00:27:47,560 --> 00:27:50,439 Speaker 1: a bit about the supply chain and how important it 604 00:27:50,480 --> 00:27:52,399 Speaker 1: is that that picks up based on the amount of 605 00:27:52,440 --> 00:27:55,200 Speaker 1: trade that's going on right now, to get those ports 606 00:27:55,240 --> 00:27:57,200 Speaker 1: back in and the supply chain moving so that it 607 00:27:57,280 --> 00:27:59,960 Speaker 1: can keep up with an economy that's that's running ahead 608 00:28:00,040 --> 00:28:02,840 Speaker 1: it right now. And I think there was some really 609 00:28:02,880 --> 00:28:05,720 Speaker 1: interesting conversations about, you know, the Bank of American, the 610 00:28:05,760 --> 00:28:08,320 Speaker 1: business that they're in, whether or not people were going 611 00:28:08,359 --> 00:28:10,280 Speaker 1: to be coming back to work right away. He talked 612 00:28:10,280 --> 00:28:13,359 Speaker 1: about maybe after labor Day really encouraged to get people 613 00:28:13,359 --> 00:28:15,800 Speaker 1: back to work. That you know, even though they they 614 00:28:15,880 --> 00:28:19,760 Speaker 1: like the amount of work that they have for out 615 00:28:19,760 --> 00:28:23,199 Speaker 1: of at home workers, UH, they love the concept of 616 00:28:23,200 --> 00:28:26,120 Speaker 1: people being in the office together. And so I think 617 00:28:26,160 --> 00:28:28,879 Speaker 1: that he had a lot of optimism that you know, 618 00:28:28,920 --> 00:28:30,960 Speaker 1: after labor Day, maybe they could get a lot of 619 00:28:30,960 --> 00:28:34,000 Speaker 1: their workforce together and back into the office. Uh. And 620 00:28:34,040 --> 00:28:36,399 Speaker 1: the idea behind that is that that actually helps the 621 00:28:36,440 --> 00:28:41,600 Speaker 1: economy in these cities by returning the workers to the offices, 622 00:28:41,680 --> 00:28:44,800 Speaker 1: they then go to the shops and restaurants and and 623 00:28:44,840 --> 00:28:48,360 Speaker 1: these are areas that have been substially hurt in cities 624 00:28:48,400 --> 00:28:52,760 Speaker 1: like New York because of the COVID UH situation. I 625 00:28:52,800 --> 00:28:55,640 Speaker 1: also think, uh, it's uh, it's important to note that 626 00:28:55,840 --> 00:28:58,600 Speaker 1: uh uh. David got into some of the more softer 627 00:28:58,760 --> 00:29:01,920 Speaker 1: political issues and talk about, you know, what's Congress looking 628 00:29:01,960 --> 00:29:04,640 Speaker 1: at as far as the big banks. If you're testifying 629 00:29:04,680 --> 00:29:06,560 Speaker 1: in Congress right now, what would you be talking about? 630 00:29:06,560 --> 00:29:08,920 Speaker 1: And he really honed in on these employees again, and 631 00:29:08,960 --> 00:29:12,360 Speaker 1: he defended the work they've done to increase minimum wage, 632 00:29:12,720 --> 00:29:16,720 Speaker 1: talked about I thought, really telling, uh, they dropped healthcare 633 00:29:16,760 --> 00:29:19,200 Speaker 1: premiums in half in two thousand eleven and never let 634 00:29:19,240 --> 00:29:22,840 Speaker 1: them go back up again. A really incredible uh thing 635 00:29:22,880 --> 00:29:26,080 Speaker 1: that you wouldn't really understand about this company if not 636 00:29:26,160 --> 00:29:29,880 Speaker 1: for an interview like David's with the CEO. UH. And 637 00:29:29,920 --> 00:29:32,880 Speaker 1: then a little bit of a conversation just getting started 638 00:29:32,920 --> 00:29:36,080 Speaker 1: before the end of the interview around social justice issues 639 00:29:36,200 --> 00:29:39,480 Speaker 1: and some of the hot political issues. These days around 640 00:29:39,520 --> 00:29:44,640 Speaker 1: things like voting rights in Georgia. So we we appreciate that. Uh, 641 00:29:44,920 --> 00:29:47,720 Speaker 1: that that that interview, and I want to pick up 642 00:29:48,480 --> 00:29:51,400 Speaker 1: with uh with an air that I think is important 643 00:29:51,680 --> 00:29:55,440 Speaker 1: to note on. This is in the relatively new unemployment 644 00:29:55,440 --> 00:29:58,160 Speaker 1: news that's just come on. But uh, I first want 645 00:29:58,200 --> 00:30:02,360 Speaker 1: to bring in a law on with me my fellow 646 00:30:02,680 --> 00:30:06,600 Speaker 1: Bloomberg contributor Jeanie shn Zano. And also joining us right 647 00:30:06,640 --> 00:30:11,160 Speaker 1: now is Congressman John Jeremyandy, Uh, Democratic congressman from California's 648 00:30:11,200 --> 00:30:15,440 Speaker 1: third district. Congressman, welcome to the show. Delighted to be 649 00:30:15,520 --> 00:30:17,600 Speaker 1: with you. I was trying to catch up on what 650 00:30:17,640 --> 00:30:19,520 Speaker 1: you were talking about just a moment ago, and I'm 651 00:30:19,560 --> 00:30:22,720 Speaker 1: going what country company was that I missed that opening 652 00:30:22,880 --> 00:30:26,800 Speaker 1: piece of it? Oh? Absolutely, Bank of America. David Weston 653 00:30:26,920 --> 00:30:30,440 Speaker 1: just had a really far reaching interview with Brian moynihan, 654 00:30:30,560 --> 00:30:33,160 Speaker 1: the CEO, and uh, not only did we learn a 655 00:30:33,160 --> 00:30:36,000 Speaker 1: lot about the economy, but we also learned quite a 656 00:30:36,000 --> 00:30:39,120 Speaker 1: bit about how he operates the bank. And I wonder 657 00:30:39,160 --> 00:30:41,720 Speaker 1: if we could uh uh talk a little bit about 658 00:30:42,160 --> 00:30:45,280 Speaker 1: something that connects with what Brian wynhan was talking about 659 00:30:45,360 --> 00:30:48,880 Speaker 1: as far as the robust picture of the economy. About unemployment, 660 00:30:48,920 --> 00:30:52,920 Speaker 1: we saw some unemployment news today, a plunge in weekly 661 00:30:53,080 --> 00:30:57,880 Speaker 1: jobless claims, celebrated by President Biden, who spoke to reporters 662 00:30:57,880 --> 00:31:02,360 Speaker 1: at the White House today. And we've got sound on that. Sure, 663 00:31:02,480 --> 00:31:04,920 Speaker 1: we're still have a long way to go. We're eight 664 00:31:04,960 --> 00:31:08,960 Speaker 1: million jobs down from what it was, more than before 665 00:31:09,000 --> 00:31:14,280 Speaker 1: the pandemic began. But America is coming back, So Congressman, 666 00:31:14,320 --> 00:31:18,120 Speaker 1: I mean like what he said. Sure, we are down 667 00:31:18,200 --> 00:31:22,240 Speaker 1: from eighteen point two million unemployed to sixteen point nine. 668 00:31:22,480 --> 00:31:25,240 Speaker 1: Sixteen point nine, still a lot of unemployed, but there 669 00:31:25,240 --> 00:31:28,280 Speaker 1: does seem to be positivity in the numbers. Uh. What's 670 00:31:28,320 --> 00:31:30,560 Speaker 1: your outlook on that? And is there anything happening in 671 00:31:30,600 --> 00:31:34,800 Speaker 1: Congress today to try and improve that number? Well, there's 672 00:31:34,760 --> 00:31:37,640 Speaker 1: several things going on. One of which is extraordinarily important 673 00:31:37,680 --> 00:31:41,280 Speaker 1: for major part of our workforce was which is equal 674 00:31:41,320 --> 00:31:44,880 Speaker 1: paid for equal work. Uh. This is a major problem 675 00:31:44,880 --> 00:31:48,120 Speaker 1: across our nation where women are paid substantially less than 676 00:31:48,120 --> 00:31:50,280 Speaker 1: then when they do exactly the same work. We just 677 00:31:50,640 --> 00:31:53,400 Speaker 1: passed that off the House floor not more than twenty 678 00:31:53,400 --> 00:31:56,920 Speaker 1: minutes ago, so that'll fit into this. Uh. And it's 679 00:31:56,960 --> 00:31:59,000 Speaker 1: a really important thing because we need to get women 680 00:31:59,080 --> 00:32:03,080 Speaker 1: back into the work very biggest part of that unemployment 681 00:32:03,080 --> 00:32:05,920 Speaker 1: where women that have left the workforce, some of them 682 00:32:06,040 --> 00:32:10,200 Speaker 1: unfortunately permanently. But beyond that, we do have the effects 683 00:32:10,240 --> 00:32:13,240 Speaker 1: of the rescue Bill are just now working their way 684 00:32:13,280 --> 00:32:16,719 Speaker 1: into the economy. That a little less than two trillion 685 00:32:16,760 --> 00:32:19,600 Speaker 1: dollars hasn't yet been in the pockets of Americans, are 686 00:32:19,640 --> 00:32:23,520 Speaker 1: in the various organizations to which it is intended to go. 687 00:32:24,120 --> 00:32:26,120 Speaker 1: So that's out there, and as that works is way 688 00:32:26,120 --> 00:32:29,400 Speaker 1: into the economy, that will be a very substantial boost 689 00:32:29,560 --> 00:32:34,520 Speaker 1: and attack on the COVID pandemics. A lot of that 690 00:32:34,560 --> 00:32:38,120 Speaker 1: money is going to go into dealing with the pandemic 691 00:32:38,200 --> 00:32:40,520 Speaker 1: and related issues. There's a big piece of it for 692 00:32:40,760 --> 00:32:44,640 Speaker 1: the restaurants that you were talking about just a moment ago, 693 00:32:44,680 --> 00:32:48,080 Speaker 1: to keep get them back online. As the economy comes on, 694 00:32:48,160 --> 00:32:51,000 Speaker 1: they will be able to provide the services. Now that's 695 00:32:51,160 --> 00:32:54,520 Speaker 1: uh that is not yet fully into the economy, although 696 00:32:54,560 --> 00:32:57,600 Speaker 1: many of those four checks have been delivered but not 697 00:32:57,760 --> 00:33:01,400 Speaker 1: yet spent. The other piece of it is the big 698 00:33:01,440 --> 00:33:05,320 Speaker 1: infrastructure bill that we're working on. And while a big, 699 00:33:05,360 --> 00:33:08,040 Speaker 1: big package, nobody knows exactly where it is because it 700 00:33:08,080 --> 00:33:10,800 Speaker 1: isn't exactly anywhere. But all of the elements in that 701 00:33:10,880 --> 00:33:15,320 Speaker 1: package are underway here in the House of Representatives on 702 00:33:15,400 --> 00:33:19,600 Speaker 1: the INFRATECT, on the Transportation Infrastructure Committee. We've had several 703 00:33:19,640 --> 00:33:22,720 Speaker 1: hearings already. We're building off a major bill that we 704 00:33:22,840 --> 00:33:26,400 Speaker 1: passed last fall that didn't become law, that got hound 705 00:33:26,480 --> 00:33:29,520 Speaker 1: up in the Senate. Uh, and so we're ready to 706 00:33:29,520 --> 00:33:32,400 Speaker 1: go with a major part of that, and that's going 707 00:33:32,440 --> 00:33:35,200 Speaker 1: to be really important. I know there's some pushback from 708 00:33:35,200 --> 00:33:38,320 Speaker 1: our Republican trenchs, but I think they're just just wrong. 709 00:33:38,400 --> 00:33:42,080 Speaker 1: They're trying to define infrastructures being concrete and steel, and 710 00:33:43,080 --> 00:33:45,680 Speaker 1: I don't know. In my area, infrastructure is a royal 711 00:33:45,720 --> 00:33:49,320 Speaker 1: broadband so our farmers can become efficient. Yeah, thank you, Congressman. 712 00:33:49,360 --> 00:33:50,840 Speaker 1: I think it's a really good point. If I could 713 00:33:50,840 --> 00:33:53,880 Speaker 1: pick up on that and bring Genie into the conversation. Genie, 714 00:33:53,920 --> 00:33:56,040 Speaker 1: one of the things that Brian moynihan, the CEO of 715 00:33:56,320 --> 00:33:58,320 Speaker 1: Bank of America, who just did the interview with our 716 00:33:58,440 --> 00:34:01,560 Speaker 1: David Weston, talked to about was that the stimulus is 717 00:34:01,600 --> 00:34:05,080 Speaker 1: lifting the economy right now doesn't include infrastructure, and so 718 00:34:05,360 --> 00:34:07,560 Speaker 1: you've got a seven percent growth rate that's targeted for 719 00:34:07,600 --> 00:34:11,120 Speaker 1: this year without an infrastructure bill that the Congressman was 720 00:34:11,200 --> 00:34:12,799 Speaker 1: just talking about, Is that going to take some of 721 00:34:12,840 --> 00:34:15,640 Speaker 1: the steam out of the administration's efforts to get the 722 00:34:15,920 --> 00:34:19,640 Speaker 1: infrastructure bill, especially through the Senate. Well, that is exactly 723 00:34:19,680 --> 00:34:21,680 Speaker 1: what I was thinking. I mean, one of the things 724 00:34:21,760 --> 00:34:24,000 Speaker 1: and I would love to ask the Congressman about this, 725 00:34:24,160 --> 00:34:29,040 Speaker 1: that we have gotten some fairly good job numbers, and um, 726 00:34:29,120 --> 00:34:31,759 Speaker 1: we do hear from Republicans, We talked to some of 727 00:34:31,800 --> 00:34:34,960 Speaker 1: them on this show that with these job numbers, and 728 00:34:35,000 --> 00:34:38,200 Speaker 1: as you mentioned, Congressman, the COVID relief money not being 729 00:34:38,280 --> 00:34:41,799 Speaker 1: fully into the economy yet, is it too much to 730 00:34:41,920 --> 00:34:45,960 Speaker 1: try to infuse another two point to trillion in this 731 00:34:46,080 --> 00:34:50,279 Speaker 1: next jobs bill? Well, first of all, the rescue bill 732 00:34:50,360 --> 00:34:55,040 Speaker 1: is designed to be now and not tomorrow. Now, um, 733 00:34:55,160 --> 00:34:57,920 Speaker 1: to deal with the pandemic, to get kids back in school, 734 00:34:58,320 --> 00:35:01,160 Speaker 1: so on and so point um, that's here and now. 735 00:35:01,760 --> 00:35:06,799 Speaker 1: The infrastructure bill is is a ten year process. Most 736 00:35:06,800 --> 00:35:09,359 Speaker 1: of that will be over five year periods. So you're 737 00:35:09,360 --> 00:35:11,719 Speaker 1: not going to dump another two trillion in the next 738 00:35:11,719 --> 00:35:14,319 Speaker 1: six months or two a year. It will be over 739 00:35:14,320 --> 00:35:17,719 Speaker 1: a period of time. And the issue of it's not 740 00:35:17,800 --> 00:35:21,239 Speaker 1: just employment here, it's long term employment and is long 741 00:35:21,360 --> 00:35:25,280 Speaker 1: term competitiveness. We simply know that we are ranked thirteenth 742 00:35:25,360 --> 00:35:28,120 Speaker 1: in the world on our infrastructure, and that's just that's 743 00:35:28,239 --> 00:35:32,000 Speaker 1: just the transportation, water, sanitation infrastructure. But if you go 744 00:35:32,080 --> 00:35:36,239 Speaker 1: to the other pieces of infrastructure that are the modern infrastructure, 745 00:35:36,280 --> 00:35:42,040 Speaker 1: the communication infrastructure, that the infrastructure of of our education 746 00:35:42,080 --> 00:35:45,560 Speaker 1: and our research facilities, those things are critically imployant. If 747 00:35:45,560 --> 00:35:50,800 Speaker 1: we're going to have a competitive economy up against China, 748 00:35:51,040 --> 00:35:53,440 Speaker 1: we're going to have to have the best education system 749 00:35:53,440 --> 00:35:54,680 Speaker 1: in the world. We're going to have to have the 750 00:35:54,719 --> 00:35:57,000 Speaker 1: best research in the world. We're going to have to 751 00:35:57,040 --> 00:35:59,560 Speaker 1: make things that come out of that research. Some of 752 00:35:59,600 --> 00:36:05,040 Speaker 1: it is bio pharmaceutical, bio energy, and uh and we're 753 00:36:05,040 --> 00:36:09,359 Speaker 1: going to have to also make sure that we are 754 00:36:09,440 --> 00:36:15,239 Speaker 1: able to deal with climate change. Infrastructure package is going 755 00:36:15,280 --> 00:36:19,040 Speaker 1: to be strongly oriented to the reality of climate change, 756 00:36:19,040 --> 00:36:22,200 Speaker 1: in the necessity of a different energy system and a 757 00:36:22,239 --> 00:36:25,680 Speaker 1: different transportation system. All of it is the future and 758 00:36:25,719 --> 00:36:27,880 Speaker 1: we've got to do it if we're going to be competitive. Now, 759 00:36:27,920 --> 00:36:29,960 Speaker 1: if you don't care about being competitive, if you want 760 00:36:29,960 --> 00:36:33,120 Speaker 1: to be number thirteen, well we don't need to do infrastructure. 761 00:36:33,360 --> 00:36:35,000 Speaker 1: That's not where I am. I don't think that's where 762 00:36:35,040 --> 00:36:37,600 Speaker 1: Americans are. Congressman. I wonder if we could pick up 763 00:36:37,640 --> 00:36:40,239 Speaker 1: on that, because your your point about climate has been 764 00:36:40,320 --> 00:36:42,439 Speaker 1: a hot topic lately. Of course, we've heard a lot 765 00:36:42,520 --> 00:36:46,440 Speaker 1: in recent weeks from the administration about pressuring China to 766 00:36:46,520 --> 00:36:48,920 Speaker 1: do more on climate. But we heard today sort of 767 00:36:48,960 --> 00:36:52,160 Speaker 1: switching over to some of the news around Russia, that 768 00:36:53,160 --> 00:36:56,680 Speaker 1: the President is looking at putting together a summer summit 769 00:36:56,719 --> 00:37:00,120 Speaker 1: with Vladimir Putin and the topic being climate. And we 770 00:37:00,120 --> 00:37:03,000 Speaker 1: we don't hear climate as it relates to Russia very often, 771 00:37:03,040 --> 00:37:05,440 Speaker 1: And I'm as curious what you think the issues are 772 00:37:05,520 --> 00:37:07,520 Speaker 1: that are going to be present in that kind of 773 00:37:07,520 --> 00:37:13,439 Speaker 1: a summit. Well, it's certainly an important piece of it. Russia. Well, 774 00:37:13,520 --> 00:37:17,120 Speaker 1: it's significantly smaller than Germany and the United States and 775 00:37:17,160 --> 00:37:22,240 Speaker 1: their output. They are essentially a major source and user 776 00:37:22,920 --> 00:37:28,880 Speaker 1: of carbon fuels, and therefore it's a big, big issue 777 00:37:28,960 --> 00:37:34,000 Speaker 1: for Russia. If Europe moves away from carbon fuels, uh 778 00:37:34,040 --> 00:37:36,799 Speaker 1: and America moves away from carbon fuels, the what's the 779 00:37:36,840 --> 00:37:40,920 Speaker 1: future of the Russian economy, which is heavily dependent on 780 00:37:40,920 --> 00:37:45,480 Speaker 1: on those particular fuels. So, yes, there's much to talk 781 00:37:45,520 --> 00:37:48,759 Speaker 1: about and like you, like the rest of us, they 782 00:37:48,840 --> 00:37:54,120 Speaker 1: also are a producer of carbon emissions. It's also if 783 00:37:54,160 --> 00:37:58,080 Speaker 1: that's the subject matter, good because so we have to 784 00:37:58,160 --> 00:38:01,960 Speaker 1: open a dialogue with We've got a serious problem right now. 785 00:38:02,040 --> 00:38:04,040 Speaker 1: I spent most of the morning here in the Armed 786 00:38:04,040 --> 00:38:09,640 Speaker 1: Services Committee, uh, with a briefing about Russia and Ukraine 787 00:38:10,239 --> 00:38:14,840 Speaker 1: and Russia and Europe. So there's a serious military national 788 00:38:15,440 --> 00:38:19,080 Speaker 1: security issue here with Russia. So yeah, let's talk. What 789 00:38:19,239 --> 00:38:22,040 Speaker 1: I really really like today is that the President slammed 790 00:38:22,120 --> 00:38:27,480 Speaker 1: Russia with the with the sanctions, and that's absolutely necessary, 791 00:38:27,560 --> 00:38:31,080 Speaker 1: long time coming. Uh and he did it because of 792 00:38:31,120 --> 00:38:35,000 Speaker 1: their involvement in our election, because of their cyber hacking 793 00:38:35,600 --> 00:38:40,640 Speaker 1: and other this needs that Russia's engaged in Willy nearly 794 00:38:40,719 --> 00:38:43,880 Speaker 1: for the last four years. So it's over and Putin 795 00:38:44,200 --> 00:38:46,439 Speaker 1: knows that this this president is going to push back. 796 00:38:47,400 --> 00:38:50,800 Speaker 1: Talked to him, but keep to be aware, Congressman, I 797 00:38:51,080 --> 00:38:52,960 Speaker 1: I really want to pick on that, pick up on 798 00:38:53,000 --> 00:38:55,680 Speaker 1: that when we come back out of the break and uh, 799 00:38:55,960 --> 00:38:58,600 Speaker 1: so what I'd like to do is continue our conversation 800 00:38:58,640 --> 00:39:03,080 Speaker 1: related to Russia. Uh and uh, this is Rick Davis 801 00:39:03,320 --> 00:39:33,040 Speaker 1: and we're on Bloomberg. PA's Bloomberg sound on on Bloomberg Radio. 802 00:39:36,960 --> 00:39:41,040 Speaker 1: I'm Rick Davis, along with my fellow Bloomberg Politics contributor 803 00:39:41,120 --> 00:39:44,319 Speaker 1: Jeanie shn Zano, and we still have with US Congressman 804 00:39:44,520 --> 00:39:49,000 Speaker 1: John Jeremondy, the Democratic Congressman from California's third CD We 805 00:39:49,000 --> 00:39:51,200 Speaker 1: were just talking about some of the things that we're 806 00:39:51,239 --> 00:39:54,600 Speaker 1: announced today out of the Biden administration on sanctions on Russia, 807 00:39:54,920 --> 00:39:57,360 Speaker 1: and Congressman you were just giving us a pretty tough line. 808 00:39:57,400 --> 00:39:59,640 Speaker 1: Every day is a good day when you can attack Russia. 809 00:39:59,760 --> 00:40:02,120 Speaker 1: I I want you to maybe elaborate on that a 810 00:40:02,120 --> 00:40:05,239 Speaker 1: little bit, specifically on the fact that the one thing 811 00:40:05,360 --> 00:40:09,360 Speaker 1: left off of this plate of sanctions was talk about 812 00:40:09,440 --> 00:40:13,880 Speaker 1: the controversial nord Stream to pipeline between Russia and Germany. 813 00:40:14,239 --> 00:40:18,200 Speaker 1: Very sensitive between US and Germany on that, and yet 814 00:40:18,239 --> 00:40:21,799 Speaker 1: it wasn't mentioned as a reason to UH to UH 815 00:40:21,880 --> 00:40:26,040 Speaker 1: sanction the Russians. And why was that left off? Well, 816 00:40:26,080 --> 00:40:31,440 Speaker 1: you just said why, UH did say very controversial UH issue. 817 00:40:31,520 --> 00:40:34,200 Speaker 1: It's one in which Germany believes that they need a 818 00:40:34,800 --> 00:40:39,200 Speaker 1: supply of natural gas UH and that the economy needs 819 00:40:39,239 --> 00:40:42,080 Speaker 1: it as they move away from coal and and and 820 00:40:43,000 --> 00:40:47,239 Speaker 1: nuclear power. So UH, I think it's very wise for 821 00:40:47,239 --> 00:40:50,680 Speaker 1: the President not to UH to use a sanction against 822 00:40:50,760 --> 00:40:53,839 Speaker 1: Russia that are actually going to black Germany. This needs 823 00:40:53,880 --> 00:40:56,399 Speaker 1: to be worked out. I've said many many days that 824 00:40:57,280 --> 00:41:00,120 Speaker 1: we might very well cut a deal with Germany to 825 00:41:00,239 --> 00:41:05,520 Speaker 1: export our natural gas l n G to Germany. UH. 826 00:41:05,560 --> 00:41:09,960 Speaker 1: And as if that pipeline is not built, we can 827 00:41:10,000 --> 00:41:11,680 Speaker 1: work out some sort of a deal good for us, 828 00:41:11,680 --> 00:41:14,480 Speaker 1: good for them, and bad for Russia. Not a not 829 00:41:14,600 --> 00:41:18,480 Speaker 1: a bad solution Connors and Garmondy. I know that there 830 00:41:18,520 --> 00:41:22,640 Speaker 1: were other things that the President mentioned on his official 831 00:41:22,680 --> 00:41:26,760 Speaker 1: announcement against the Russia for interfering in American elections, hacking 832 00:41:26,800 --> 00:41:30,879 Speaker 1: American government institutions UH, an episode last year that has 833 00:41:30,880 --> 00:41:34,479 Speaker 1: since been dubbed solar Winds UH, and UH, I've got 834 00:41:34,480 --> 00:41:40,239 Speaker 1: sound on what the President was talking about today. I 835 00:41:40,360 --> 00:41:43,160 Speaker 1: told him that we would shortly be responding in a 836 00:41:43,239 --> 00:41:46,799 Speaker 1: measure in a proportunate way because we concluded that they 837 00:41:46,800 --> 00:41:49,400 Speaker 1: had interfered in the election, and Solar Winds was totally 838 00:41:49,400 --> 00:41:55,760 Speaker 1: out of the inappropriate. Additionally, UH, there were specific announcements 839 00:41:55,800 --> 00:42:00,759 Speaker 1: around these UH, around these sanctions today, and I've also 840 00:42:00,800 --> 00:42:05,520 Speaker 1: got sound on the President's mentioning what those were. I've 841 00:42:05,560 --> 00:42:09,280 Speaker 1: approved several steps, including an expulsion of several Russian officials 842 00:42:09,320 --> 00:42:13,239 Speaker 1: as a consequence of their actions. So g D, I'm 843 00:42:13,239 --> 00:42:15,880 Speaker 1: wonder if we could pick up on this. Obviously, it 844 00:42:15,960 --> 00:42:18,839 Speaker 1: was kind of a mixed bag, as as Congressman Gary 845 00:42:18,880 --> 00:42:22,480 Speaker 1: Mundy just mentioned. Um, there were some things like the 846 00:42:22,520 --> 00:42:25,000 Speaker 1: nord Stream two that was left off. There was positive 847 00:42:25,040 --> 00:42:28,080 Speaker 1: things about trying to have a a a summit this 848 00:42:28,160 --> 00:42:30,760 Speaker 1: summer to talk about climate, but there were some very 849 00:42:30,760 --> 00:42:33,399 Speaker 1: tough things. Uh, if you wanted to have a bad 850 00:42:33,480 --> 00:42:35,919 Speaker 1: day for Russia, this was it. How do you think 851 00:42:35,920 --> 00:42:38,359 Speaker 1: the administration is doing as far as rolling out this 852 00:42:38,440 --> 00:42:42,880 Speaker 1: new perspective towards Russia? You know, I think it's still early. 853 00:42:43,080 --> 00:42:45,520 Speaker 1: I think they're never going to make everybody happy. We 854 00:42:45,600 --> 00:42:48,279 Speaker 1: heard some criticism from some people that they didn't go 855 00:42:48,360 --> 00:42:50,840 Speaker 1: far enough with these sanctions. In Orders to two was 856 00:42:50,920 --> 00:42:53,799 Speaker 1: just one example of that. There's also a school of 857 00:42:53,840 --> 00:42:56,920 Speaker 1: thought that the United States, well before the Biden administration, 858 00:42:56,920 --> 00:43:00,440 Speaker 1: has been a little sanctioned happy um, sanctioning people and 859 00:43:00,880 --> 00:43:03,920 Speaker 1: countries and individuals were all kinds of things, but the 860 00:43:03,960 --> 00:43:07,239 Speaker 1: effect of that is not always as as as impactful 861 00:43:07,320 --> 00:43:09,920 Speaker 1: as we might like. And that's what I actually wanted 862 00:43:09,960 --> 00:43:13,880 Speaker 1: to ask representative UM, as you look at the sanctions 863 00:43:13,920 --> 00:43:17,400 Speaker 1: put out today, UM, do you think there is a 864 00:43:17,480 --> 00:43:21,080 Speaker 1: danger that the United States isn't going to have the 865 00:43:21,160 --> 00:43:24,080 Speaker 1: impact on Russia and the economy that it needs to have, 866 00:43:24,360 --> 00:43:28,160 Speaker 1: And of course announcing the potential summit, we also need 867 00:43:28,200 --> 00:43:30,200 Speaker 1: to work with Russia on other things. So how do 868 00:43:30,239 --> 00:43:36,040 Speaker 1: you balance those two equations you just did? Uh? They 869 00:43:36,040 --> 00:43:39,920 Speaker 1: are balanced. First of all, let's recognized that the general 870 00:43:40,600 --> 00:43:45,399 Speaker 1: attitude towards Russia in the previous four years was hands off. UH. 871 00:43:45,600 --> 00:43:47,560 Speaker 1: You know, I only want to get into Trump and 872 00:43:47,600 --> 00:43:51,560 Speaker 1: all all of Russia that we ended that administration wondering 873 00:43:51,600 --> 00:43:56,600 Speaker 1: why why was he so willing to go along with Prutent. 874 00:43:57,239 --> 00:43:59,160 Speaker 1: We don't We may never know that answer, but that 875 00:43:59,239 --> 00:44:02,040 Speaker 1: wasn't factful is happening and here right out of the 876 00:44:02,080 --> 00:44:05,879 Speaker 1: first three months, the President has come out with very 877 00:44:05,920 --> 00:44:10,200 Speaker 1: specific sanctions against very specific things that Russia has done. 878 00:44:10,960 --> 00:44:14,320 Speaker 1: UH and UH, and their tough sanctions and they're meaningful, 879 00:44:14,640 --> 00:44:19,160 Speaker 1: and it's particularly important in view of what Russia is 880 00:44:19,239 --> 00:44:27,920 Speaker 1: doing in the Ukraine Russia border. There's a major military 881 00:44:27,960 --> 00:44:31,800 Speaker 1: build up there UH, and it is a significant concern 882 00:44:31,880 --> 00:44:35,280 Speaker 1: to the United States and even more so to European countries. 883 00:44:35,840 --> 00:44:40,319 Speaker 1: And so the timing of this sanctions is important. It's 884 00:44:40,320 --> 00:44:43,920 Speaker 1: a clear message to putin that there's a new president 885 00:44:44,000 --> 00:44:47,360 Speaker 1: and he has a different attitude about Russia. UH. It 886 00:44:47,400 --> 00:44:50,799 Speaker 1: will play itself out over time. North Stream is is 887 00:44:50,840 --> 00:44:53,520 Speaker 1: a major issue. It is not yet resolved, it is 888 00:44:53,560 --> 00:44:57,399 Speaker 1: not yet completed, UH, and it's going to take some 889 00:44:57,640 --> 00:45:02,000 Speaker 1: very serious negotiations, particularly with Many. This is really for 890 00:45:02,080 --> 00:45:05,320 Speaker 1: the United States. This is an issue with Germany. UH. 891 00:45:05,360 --> 00:45:07,520 Speaker 1: And of course the effect would be to deny Russia 892 00:45:07,560 --> 00:45:11,400 Speaker 1: and market. However, there are other ways to deny Russia 893 00:45:11,520 --> 00:45:13,760 Speaker 1: market and that has to do with the South Stream. 894 00:45:13,800 --> 00:45:18,120 Speaker 1: These are UH new pipelines that come out of the 895 00:45:18,160 --> 00:45:21,240 Speaker 1: Caspanian Sea area and and go through a Turkey into 896 00:45:21,480 --> 00:45:25,640 Speaker 1: southern Europe. So those are other other ways of denying 897 00:45:25,760 --> 00:45:29,120 Speaker 1: Russia access to the European market. All of those are 898 00:45:29,160 --> 00:45:32,960 Speaker 1: important going forward. So actually, I'm very very pleased that 899 00:45:33,160 --> 00:45:36,920 Speaker 1: this happened today because this these sanctions tie in very 900 00:45:37,040 --> 00:45:40,160 Speaker 1: very well with what Russia's the Russian military build up 901 00:45:40,880 --> 00:45:43,279 Speaker 1: in the Ukraine area that hey, guys, we're aware of 902 00:45:43,280 --> 00:45:47,319 Speaker 1: what you're doing, and your free ride in Washington is over. 903 00:45:48,360 --> 00:45:50,759 Speaker 1: Conressman Gara Monday, I was wondering if we could sort 904 00:45:50,760 --> 00:45:55,000 Speaker 1: of move to another hot spot in the world, Afghanistan. UM. 905 00:45:55,080 --> 00:45:58,040 Speaker 1: One of the things that candidate Joe Biden talked a 906 00:45:58,040 --> 00:46:02,520 Speaker 1: lot about in criticism of the Trump administration were, UH, 907 00:46:02,600 --> 00:46:07,319 Speaker 1: the apparent bounties that Russians were paying to UH to 908 00:46:07,440 --> 00:46:10,759 Speaker 1: our opponents in Afghanistan to go after our troops. And 909 00:46:10,800 --> 00:46:15,040 Speaker 1: I know, as a member of the House Arm Services Committee, 910 00:46:15,200 --> 00:46:18,560 Speaker 1: your highest priority is to protect the well being of 911 00:46:18,560 --> 00:46:22,520 Speaker 1: our service personnel and UH, and thank you for that, UM. 912 00:46:22,560 --> 00:46:26,359 Speaker 1: But should we do more on on this issue as 913 00:46:26,360 --> 00:46:28,320 Speaker 1: it relates to Russia. It seems to me this is 914 00:46:28,400 --> 00:46:32,520 Speaker 1: one that has slipped through the cracks. I actually no, 915 00:46:32,680 --> 00:46:35,080 Speaker 1: it's one of the reasons for the sanctions. It was 916 00:46:35,239 --> 00:46:37,000 Speaker 1: it was spelled out as one of the reasons for 917 00:46:37,040 --> 00:46:41,160 Speaker 1: the sanctions. UM. It's certainly UH. There was no response 918 00:46:41,200 --> 00:46:45,719 Speaker 1: from the previous president about this issue. UH. And it 919 00:46:46,239 --> 00:46:51,919 Speaker 1: raises enormous questions and dangerous for American servicemen and other 920 00:46:52,160 --> 00:46:59,160 Speaker 1: American officials in Afghanistan. UH. Now we also know that 921 00:46:59,280 --> 00:47:05,399 Speaker 1: yesterday the Asident made a major announcement about Afghanistan. UH. 922 00:47:05,480 --> 00:47:10,680 Speaker 1: In this case, following along where President Trump had had 923 00:47:10,719 --> 00:47:13,200 Speaker 1: already staked out the ground, and that is American troops 924 00:47:13,360 --> 00:47:16,360 Speaker 1: are leaving now. The President moved it back six months 925 00:47:16,360 --> 00:47:20,960 Speaker 1: so that the departure is coordinated with our NATO allies, 926 00:47:21,160 --> 00:47:24,360 Speaker 1: which is yeah, that should have been thought about by 927 00:47:24,440 --> 00:47:28,600 Speaker 1: the previous president, but but wasn't. You can't just deal 928 00:47:28,680 --> 00:47:31,319 Speaker 1: with these issues with the tweet. It is complex, Uh, 929 00:47:31,520 --> 00:47:35,680 Speaker 1: it's complex political amongst our allies, NATO allies. We have 930 00:47:35,719 --> 00:47:41,600 Speaker 1: seven thousand troops we have so anyway, that President's announcement 931 00:47:41,680 --> 00:47:45,160 Speaker 1: yesterday that we are after twenty years, no later than 932 00:47:48,440 --> 00:47:52,680 Speaker 1: the American troops will be out of Afghanistan, that does 933 00:47:52,800 --> 00:47:55,520 Speaker 1: leave some major questions. And in answer to the major questions, 934 00:47:55,520 --> 00:47:59,840 Speaker 1: the President said, while our troops are leaving, uh, the 935 00:48:00,000 --> 00:48:05,960 Speaker 1: American interest in Afghanistan is not quitting. Will continue to 936 00:48:06,000 --> 00:48:09,600 Speaker 1: provide economic aid, will continue to divide other kinds of 937 00:48:09,719 --> 00:48:13,640 Speaker 1: support to the government, and continue to work to find 938 00:48:13,680 --> 00:48:18,920 Speaker 1: a reasonable settlement between the war and parties. You know, Congressman, 939 00:48:18,960 --> 00:48:21,359 Speaker 1: I think that's a really good point. Um. We saw 940 00:48:21,480 --> 00:48:26,040 Speaker 1: today a arrival of Secretary of State Anthony Lincoln to 941 00:48:26,360 --> 00:48:29,960 Speaker 1: Afghanistan to kind of reinforce. The day after that presidential announcement. 942 00:48:30,040 --> 00:48:34,040 Speaker 1: You mentioned about ending the America's longest war UH to 943 00:48:34,640 --> 00:48:38,960 Speaker 1: reinforce what we think is the actual terms and conditions 944 00:48:39,080 --> 00:48:42,360 Speaker 1: which we would see a Taliban involved in a political process. Jennie, 945 00:48:42,600 --> 00:48:46,839 Speaker 1: do you think that the administration can use its status now, 946 00:48:46,960 --> 00:48:49,720 Speaker 1: especially with our allies, to try and create a peaceful 947 00:48:49,719 --> 00:48:54,279 Speaker 1: process in Afghanistan? You know, I hope they. I hope 948 00:48:54,320 --> 00:48:56,400 Speaker 1: they are able. It has been as the congressman just 949 00:48:56,440 --> 00:49:00,720 Speaker 1: talking about twenty long years to trillion dollars lips lives 950 00:49:00,760 --> 00:49:03,399 Speaker 1: in the American and the Afghan side. So I hope 951 00:49:03,400 --> 00:49:06,160 Speaker 1: they are able. And and there's nobody probably better prepared 952 00:49:06,239 --> 00:49:09,040 Speaker 1: or murder at doing that with our allies than than 953 00:49:09,280 --> 00:49:12,080 Speaker 1: our current secretary. So I think there is reason to 954 00:49:12,120 --> 00:49:17,000 Speaker 1: be optimistic on that. Thank you, Jeanie. Go ahead, be 955 00:49:17,080 --> 00:49:19,400 Speaker 1: the best place to be. We need to be optimistic. 956 00:49:19,440 --> 00:49:24,200 Speaker 1: It's been twenty years of a very very long struggle, 957 00:49:24,440 --> 00:49:27,720 Speaker 1: very long UH and and deadly deadly for us, deadly 958 00:49:27,760 --> 00:49:31,120 Speaker 1: for Afghan Afghanistan. One of the things that must be 959 00:49:31,239 --> 00:49:36,760 Speaker 1: considered when whenever you talking about Afghanistan, America and NATO, 960 00:49:37,080 --> 00:49:40,200 Speaker 1: the Europeans and the and the United States, we're not 961 00:49:40,239 --> 00:49:44,399 Speaker 1: the neighbors. The neighbors are a very troublesome bunch from 962 00:49:44,480 --> 00:49:48,319 Speaker 1: China to Russia to India and uh around and uh 963 00:49:48,880 --> 00:49:53,080 Speaker 1: A Pakistan, all of them, all of them have a 964 00:49:53,200 --> 00:49:57,279 Speaker 1: serious interest in a serious Congressman John dear Mundy, I 965 00:49:57,320 --> 00:49:59,279 Speaker 1: want to thank you for being here. We've run out 966 00:49:59,280 --> 00:50:02,560 Speaker 1: of time, but this was a fantastic moment that you 967 00:50:02,600 --> 00:50:05,840 Speaker 1: gave us to talk about the foreign policy and domestic 968 00:50:05,880 --> 00:50:09,479 Speaker 1: activity in this administration. So thank you very much. Uh 969 00:50:09,680 --> 00:50:19,520 Speaker 1: it's uh Rick Davis and uh this is Bloomberg. Yeah,