WEBVTT - Bloomberg Wall Street Week: Blankfein & Moynihan 0:00:00.160 --> 0:00:03.360 This is Bloomberg Wall Street Week. What's the state of 0:00:03.400 --> 0:00:06.360 corporate governments? The deficit is a real issue. The US 0:00:06.400 --> 0:00:09.760 economy continues to send mixed signals to the financial stories 0:00:09.800 --> 0:00:12.680 that cheap our world fed action to con concerns over 0:00:12.760 --> 0:00:16.239 dollar liquidity and encouraging China data. The five hundred wealthiest 0:00:16.239 --> 0:00:18.360 people in the world. Through the eyes of the most 0:00:18.480 --> 0:00:22.520 influential voices Larry Summers, the former Treasury Secretary, Start CEO, 0:00:22.640 --> 0:00:26.360 Kevin Johnson sec Chairman j Clayton. Bloomberg wool Street Week 0:00:26.480 --> 0:00:30.600 with David Weston from Bloomberg Radio. The American economy starts 0:00:30.640 --> 0:00:34.400 to open its doors, but are consumers ready to come back? 0:00:35.000 --> 0:00:38.280 This is Bloomberg Wall Street Week. I'm David Weston. Every 0:00:38.320 --> 0:00:40.680 state in the Union opened its doors this week, at 0:00:40.760 --> 0:00:43.280 least a little bit, and the markets held their breath 0:00:43.320 --> 0:00:45.840 to see whether the consumers felt comfortable off to come 0:00:45.880 --> 0:00:50.680 back outside. The numbers of cases were down, testing was up, 0:00:51.000 --> 0:00:54.320 and there was even talk of a possible vaccine. But 0:00:54.680 --> 0:00:57.800 is this an indication of a true pivot toward recovery 0:00:57.880 --> 0:01:01.080 or are we just wishing ourselves to success us One 0:01:01.120 --> 0:01:04.240 thing that everyone could agree on, the answer the question 0:01:04.440 --> 0:01:07.640 lies with the consumer, and so in the end, it's 0:01:07.680 --> 0:01:10.240 not an economic question at all. It's a question of 0:01:10.280 --> 0:01:13.959 public health and whether people feel safe enough to re 0:01:14.160 --> 0:01:18.479 enter the marketplace. Former Goldman Sachs chairman and CEO Lloyd 0:01:18.480 --> 0:01:21.720 blank Find has spent a career assessing and managing risk, 0:01:22.080 --> 0:01:24.280 and he says that there is health risk to be 0:01:24.319 --> 0:01:29.240 incurred whenever we open the economy. It's not whether it's when, Well, 0:01:29.360 --> 0:01:34.200 there's a there's a lot that's unknown and unknowable, and moreover, 0:01:34.319 --> 0:01:36.360 I know that no one knows, and so that's a 0:01:36.480 --> 0:01:38.319 that's an aspect of this because you can dig and 0:01:38.360 --> 0:01:42.559 dig and dig. But basically, I think with this current moment, 0:01:42.959 --> 0:01:45.680 we're not so much in the realm of forecasting. I 0:01:45.680 --> 0:01:48.680 think we're in the realm of contingency planning. And I 0:01:48.680 --> 0:01:51.800 think one of those contingentis you have to plan for, is, 0:01:51.880 --> 0:01:54.360 you know, the surprise. Most of the time in my 0:01:54.480 --> 0:01:59.280 in my former life, surprises were almost always bad surprises. 0:01:59.360 --> 0:02:01.760 Something would go wrong, and of course we were so 0:02:01.800 --> 0:02:04.240 big and extensive. There's nothing that could go wrong anywhere 0:02:04.280 --> 0:02:07.120 in the world that wouldn't affect us um. But I 0:02:07.120 --> 0:02:09.079 would say, in this particular moment, it was seeing a 0:02:09.120 --> 0:02:12.919 little bit of that today. Uh, the tail i e. 0:02:13.520 --> 0:02:17.640 The possibility of something highly improbable happening, Uh, could actually 0:02:17.639 --> 0:02:20.600 be good for the market. So somebody announces they're making 0:02:20.600 --> 0:02:24.280 progress with a vaccine. So it's a funny situation where 0:02:24.400 --> 0:02:27.240 something flat. I was watching the news and something flashed 0:02:27.240 --> 0:02:30.560 on and there was some surprise coming. I'm actually looking 0:02:30.560 --> 0:02:33.320 forward to hear it, hearing it, whereas before it was 0:02:33.400 --> 0:02:35.960 almost always going to be negative. One of the aspects 0:02:35.960 --> 0:02:38.040 we're seeing in this is what appears to be a 0:02:38.160 --> 0:02:41.400 very difficult choice between the one hand public health, safety, 0:02:41.480 --> 0:02:44.880 well being, lives and the other hand the economy. Do 0:02:44.919 --> 0:02:47.440 you think that we're striking that balance more or less 0:02:47.480 --> 0:02:50.720 the right way. Well, just to question the predicate of that, 0:02:50.760 --> 0:02:53.600 I think that's a real you know, that juxtaposition is 0:02:53.720 --> 0:02:57.040 it's sometimes a bit off. I think there's health issues 0:02:57.040 --> 0:02:59.680 on both sides, obviously, and a lot has been talked 0:02:59.680 --> 0:03:04.080 about this now wherein you know, you know, extreme poverty obviously, 0:03:04.400 --> 0:03:06.080 you know is a is a health risk and all 0:03:06.160 --> 0:03:09.600 the things that proceed from it, and also you know, depression, uh, 0:03:09.800 --> 0:03:13.360 drug addiction, UM, I mean suicide had an extreme but 0:03:13.440 --> 0:03:18.200 basically life expectancy UH comes from uh, you know, a 0:03:18.320 --> 0:03:21.320 fall off, a collapse in GDP, and this is unprecedented, 0:03:21.320 --> 0:03:23.240 so this would be off any of those charts. So 0:03:23.280 --> 0:03:27.160 I think it's not just health versus economy. It's health. 0:03:27.280 --> 0:03:30.200 It's economy on both sides. And by the way, the 0:03:30.240 --> 0:03:34.200 health issues maybe more neutral in some people think, you know, 0:03:34.280 --> 0:03:37.600 once the curve is you know, the original intent to 0:03:37.680 --> 0:03:41.240 flatten the curve was just to stretch out the exposures 0:03:41.280 --> 0:03:43.640 that people would have so it didn't overwhelm the health 0:03:43.680 --> 0:03:46.040 care system. But the fact of the matter is, I 0:03:46.040 --> 0:03:50.520 think unless we're going to hunker down until a vaccine 0:03:50.600 --> 0:03:53.360 comes up or until the virus is obliterated from the 0:03:53.400 --> 0:03:55.200 face of the earth, which I think is too long 0:03:55.320 --> 0:03:58.560 to keep the whole country unwelfare, eventually people are gonna 0:03:58.600 --> 0:04:01.360 go back, and when they come back, the infection rate 0:04:01.440 --> 0:04:02.800 is going to go up. So I think we're just 0:04:02.840 --> 0:04:07.760 postponing the exposures and the infections. Well, that's actually one 0:04:07.760 --> 0:04:09.640 of my questions, which is whether it's on the health 0:04:09.680 --> 0:04:12.960 front or for them on the economic fund. Extraordinary efforts 0:04:12.960 --> 0:04:16.400 are being made. Are we postponing what happens? We're actually 0:04:16.520 --> 0:04:19.600 changing what happens. This is a timing matter only well 0:04:19.680 --> 0:04:22.280 to some degree. Look if d s X makin a 0:04:22.320 --> 0:04:25.279 vaccine appears, and I know there was some positive news today, 0:04:25.279 --> 0:04:27.080 but just think it has to go through trials for 0:04:27.800 --> 0:04:29.520 you know, we have to make sure it doesn't kill people, 0:04:29.680 --> 0:04:31.920 make sure it's effective, it has to be manufactured. Just 0:04:31.960 --> 0:04:35.240 stre that's really the country can't be unwelfare even that long. 0:04:35.279 --> 0:04:37.919 Even if there was you know that was uh, something 0:04:37.960 --> 0:04:41.279 that was magical. We are postponing it. But that doesn't 0:04:41.320 --> 0:04:45.520 mean it's without help. They're learning things about treating viruses. 0:04:45.560 --> 0:04:47.680 Even if there's not a vaccine, there are treatments that 0:04:47.720 --> 0:04:50.359 people are aware of, so there is some benefit to it, 0:04:51.120 --> 0:04:54.000 but not as huge as if there were an ultimate 0:04:54.080 --> 0:04:56.920 vaccine that would make people comfortable. So too, I think 0:04:56.920 --> 0:05:01.200 to a greater extent, we're postponing people's fosure to it, 0:05:01.640 --> 0:05:04.280 and to some extent, uh, you know, we're eliminating the 0:05:04.720 --> 0:05:06.960 diarist of risk that would happen if the health care 0:05:07.000 --> 0:05:10.240 system was overwhelmed while people had it. But I think 0:05:10.240 --> 0:05:12.560 in the long run, you know, we have to contemplate 0:05:12.600 --> 0:05:15.440 that people will go back to work, what kind of 0:05:15.480 --> 0:05:17.360 economy will have face and no matter when you do it. 0:05:17.360 --> 0:05:19.800 Look what happened some of these Asian countries where they 0:05:19.839 --> 0:05:23.159 almost they were high fiving because they the virus, the 0:05:23.240 --> 0:05:27.080 new exposures were way way down, and notwithstanding that, the 0:05:27.160 --> 0:05:29.680 second to go back to work, they spike up again. 0:05:29.720 --> 0:05:31.760 So that's gonna be an expectation no matter when you 0:05:31.800 --> 0:05:34.680 do it. I think when we go forward and look 0:05:34.720 --> 0:05:37.640 back at this from sometime in the future, if we're 0:05:37.640 --> 0:05:41.000 gonna go through that anyway, people will be very critical 0:05:41.240 --> 0:05:46.400 if the official sector UH sacrificed more of the economy 0:05:46.400 --> 0:05:49.240 than they needed to, even because at the end of 0:05:49.279 --> 0:05:51.040 the day, I think the exposures are going to be, 0:05:51.240 --> 0:05:54.520 you know, almost the same. We've heard a fair amount 0:05:54.360 --> 0:05:57.120 of both President Trump and the Federal Reserve, particularly j 0:05:57.279 --> 0:05:59.880 Pal the chair recently, and it seems from the Chair 0:06:00.000 --> 0:06:01.760 how we're hearing two things. One is the Fed will 0:06:01.760 --> 0:06:04.320 do pretty much whatever it can, whatever it needs to 0:06:04.320 --> 0:06:06.320 to really support the economy as best it can. But 0:06:06.400 --> 0:06:08.560 on the other hand, a lot of caution that this 0:06:08.640 --> 0:06:10.360 may take longer than we think, it may be, more 0:06:10.400 --> 0:06:13.680 difficulty think and even the possibly of long term damage. 0:06:13.720 --> 0:06:16.400 How do you assess the possible damage to the U 0:06:16.440 --> 0:06:20.159 S economy over the longer term. Well, obviously it depends 0:06:20.160 --> 0:06:22.240 on how long this goes on. And you know, you 0:06:22.240 --> 0:06:25.360 could see it's easy to see what damage would be. 0:06:25.440 --> 0:06:28.640 You know, you have rest certain businesses that come into 0:06:28.640 --> 0:06:30.599 contact with the public that are going to go away 0:06:30.600 --> 0:06:34.240 that we're operating at tight margins anyway, Uh, that won't, 0:06:34.040 --> 0:06:36.960 so that won't that can't afford to wait until they reopen, 0:06:37.040 --> 0:06:39.400 and some businesses that will reopen at such a reduced 0:06:39.480 --> 0:06:42.279 level that they won't be profitable, so they won't reopen. 0:06:42.560 --> 0:06:45.800 That was former chairman and CEO of Goldman Sachs Lloyd 0:06:45.920 --> 0:06:48.840 blank find coming up. The head of Bank of America, 0:06:48.960 --> 0:06:52.240 Brian Wynihan says that government efforts to cushion the blow 0:06:52.279 --> 0:06:55.119 to the economy are working. The question is how people 0:06:55.120 --> 0:06:58.640 will react as we start the economy back up. That's 0:06:58.680 --> 0:07:07.200 next on Wall Street Week on Bloomberg. This is Bloomberg 0:07:07.320 --> 0:07:11.360 Wall Street Week with David Weston from Bloomberg Radio. We 0:07:11.440 --> 0:07:13.480 aren't seeing the kinds of stress of the credit markets 0:07:13.600 --> 0:07:16.239 we might have expected, and that's because the massive fiscal 0:07:16.280 --> 0:07:19.120 and monetary support is having at least some effect. But 0:07:19.240 --> 0:07:22.280 Bank of America chairman and CEO Brian moynihan says that 0:07:22.360 --> 0:07:24.760 the real test will come as we start the economy 0:07:24.800 --> 0:07:28.120 back up and we discover whether the consumer is willing 0:07:28.160 --> 0:07:31.760 to become fully engaged. Our view hasn't changed, but it 0:07:31.800 --> 0:07:34.040 comes back to what I said before. This is a 0:07:34.160 --> 0:07:37.520 healthcare crisis. And as you're starting to see the healthcare 0:07:37.600 --> 0:07:40.840 crisis be mitigated not solved yet, you're starting to see 0:07:40.880 --> 0:07:43.840 the economy start to recover. And we can talk about that. 0:07:43.920 --> 0:07:46.840 But the approach to winning UH, the war against the 0:07:46.840 --> 0:07:50.560 crisis UH for us has been a customer centric, community centric, 0:07:50.560 --> 0:07:53.320 employee centric move and so you know, we've been out 0:07:53.360 --> 0:07:55.440 there driving. We've been supporting our clients and trying to 0:07:55.480 --> 0:07:57.560 make sure they have the credit and capital to UH 0:07:58.680 --> 0:08:01.120 to do what they need to do and help them 0:08:01.120 --> 0:08:03.320 through this trough of activity in the second quarter. And 0:08:03.320 --> 0:08:05.080 you can see that in a loan balance and extended 0:08:05.120 --> 0:08:07.760 the P P P loans and how the things we've done. 0:08:07.840 --> 0:08:10.200 We've helped our consumer clients through waivers so they have 0:08:10.600 --> 0:08:12.600 the ability to have better cash flow in the house. 0:08:12.680 --> 0:08:15.200 We helped our teammates by saying no layoffs so they 0:08:15.200 --> 0:08:17.760 know their job is secure, and then getting them safe 0:08:17.760 --> 0:08:20.080 and working from home. And then we've helped our communities 0:08:20.120 --> 0:08:23.760 by contributions and a hundred million dollars and c d 0:08:23.840 --> 0:08:27.480 f I investments which are community development financial institutions at 0:08:27.480 --> 0:08:30.000 two fifty million dollars of which about a D seventy 0:08:29.960 --> 0:08:33.360 millions already out. So all that is offsetting the impacts 0:08:33.360 --> 0:08:36.800 of the current second quarter down drafted you've seen with 0:08:36.840 --> 0:08:39.440 the unemployment numbers, and we don't see it much differently, 0:08:39.480 --> 0:08:41.000 It's just that we're starting to see us come out 0:08:41.040 --> 0:08:43.439 the other side of this. Frankly. So we have heard 0:08:43.440 --> 0:08:46.000 from the Federal Reserve and they've expressed some concern at 0:08:46.080 --> 0:08:49.079 least that as this pandemic continues, there may be some 0:08:49.160 --> 0:08:52.160 threat to the overall system and specifically talks for example 0:08:52.200 --> 0:08:55.360 about commercial real estate. Are you seeing some parts of 0:08:55.360 --> 0:08:58.000 the market that are particularly vulnerable on the credit side. 0:08:58.200 --> 0:09:01.360 Remember that the US economy is going to be depended 0:09:01.400 --> 0:09:05.079 on the activity the consumer base, and and so yeah, 0:09:05.120 --> 0:09:06.840 I always have to start there when you talk about 0:09:06.880 --> 0:09:09.600 the US. So even though we have this year from 0:09:09.600 --> 0:09:11.760 the Bank American research team, which is the best in 0:09:11.760 --> 0:09:15.160 the world, you know, being minus five percent five and 0:09:15.200 --> 0:09:17.559 a half percent this year and plus five percent next year, 0:09:18.200 --> 0:09:20.560 the real question will be how to consumers behave, and 0:09:20.760 --> 0:09:23.680 in what we've seen since the low point in the 0:09:23.720 --> 0:09:26.640 second couple first couple weeks of April, in terms of 0:09:26.720 --> 0:09:29.320 everything in terms of their spending because of the stay 0:09:29.320 --> 0:09:32.920 at home edicts, in terms of their borrowing activity, UH, 0:09:32.960 --> 0:09:35.640 in terms of the transfer of money. UM, you saw 0:09:35.679 --> 0:09:38.560 all that fall to a lowest level, and obviously things 0:09:38.559 --> 0:09:41.560 like travel and hotels and things were most affected. But 0:09:41.640 --> 0:09:43.880 as you've seen steadily as you went through the third 0:09:43.880 --> 0:09:46.120 week April then on into the first part of May, 0:09:46.240 --> 0:09:49.200 you're seeing their activities pick up, even in the states 0:09:49.240 --> 0:09:51.520 that are still under stay from home, and you're seeing 0:09:51.520 --> 0:09:53.920 the activity pick up much quicker in the places they're 0:09:53.920 --> 0:09:57.040 going back to work. And so for the month of May, 0:09:57.080 --> 0:09:59.080 we're seeing it down about you know, two or three 0:09:59.160 --> 0:10:01.760 or four percent verst was last year UH for the 0:10:01.880 --> 0:10:03.760 year today, it's down a couple of percent. And that's 0:10:03.760 --> 0:10:05.440 the question. The length of this is going to be 0:10:05.480 --> 0:10:09.680 how the consumers behave given the high levels unemployment that 0:10:09.720 --> 0:10:12.440 you've seen published when people get back to work, jobs 0:10:12.480 --> 0:10:15.560 coming back in the stimulus payments which are all hitting 0:10:15.559 --> 0:10:17.439 the street of the last few weeks, and how all 0:10:17.520 --> 0:10:19.839 works together to see if the consumer's behavior changed. And 0:10:19.880 --> 0:10:22.800 when I hear when you hear Government Chair Pale and others, 0:10:22.920 --> 0:10:25.480 the concern I have is have we changed consumer behavior 0:10:25.480 --> 0:10:27.240 as we look out across the next you know, four 0:10:27.320 --> 0:10:30.280 or five, six quarters. Well, that is a key question, 0:10:30.320 --> 0:10:32.800 maybe the key question, Brian, clearly when it comes to 0:10:32.840 --> 0:10:34.640 the consumer. I know you've already taken about four point 0:10:34.679 --> 0:10:38.240 eight billion dollar reserve against credit possible losses given the 0:10:38.320 --> 0:10:40.880 level unemployment, which is really quite stunning. Do you think 0:10:40.880 --> 0:10:43.200 that's gonna be enough? Well, what you've seen so far 0:10:43.360 --> 0:10:47.319 is with the consumer help, we've we've granted about a 0:10:47.360 --> 0:10:50.040 million a half payment deferrals. But if you look at 0:10:50.080 --> 0:10:53.679 the actual interesting statistics about thirty or five or the 0:10:53.679 --> 0:10:55.640 people ask for a credit card payment deferral when I 0:10:55.679 --> 0:10:57.199 had made the payment. And if you go and a 0:10:57.280 --> 0:11:00.079 look at those consumers, what you see is because of 0:11:00.160 --> 0:11:04.760 the UH leave aside the issue of where the money 0:11:04.840 --> 0:11:06.920 is coming from, you're seeing higher balance in our account. 0:11:07.280 --> 0:11:10.080 And that's because the stimulus between you know, the I 0:11:10.160 --> 0:11:14.320 P payments, between the enhanced unemployment, these measures taken by 0:11:14.360 --> 0:11:17.800 Congress and by the administration, by the FED have worked 0:11:18.000 --> 0:11:22.880 offset the unfortunate aspects of very high unemployment, and so 0:11:22.880 --> 0:11:25.200 so far you're not seeing the delinquent seas and things 0:11:25.360 --> 0:11:29.920 rise vs. You've seen payment deferrals UH increase, but you're 0:11:29.920 --> 0:11:31.720 seeing them start to level off and come down in 0:11:31.760 --> 0:11:34.640 our book, and so we we expect to see you 0:11:34.840 --> 0:11:38.000 charge offs coming later on as as as this thing 0:11:38.040 --> 0:11:40.240 goes on. But the reality is right now you're not 0:11:40.720 --> 0:11:42.920 seeing the kind of credit damage that you'd expect to 0:11:42.960 --> 0:11:45.240 see with this amount of down draft and activity. The 0:11:45.320 --> 0:11:47.480 question is what happens next, and that's we're all watching. 0:11:48.040 --> 0:11:49.920 And to that very point you said in the past, 0:11:50.000 --> 0:11:52.200 China to some extent may give us some indication. We've 0:11:52.240 --> 0:11:54.800 seen numbers coming out at China, Brian and indicate the 0:11:54.800 --> 0:11:57.439 industrial production has come back pretty quickly. All consumption is 0:11:57.480 --> 0:11:59.600 coming back as well. But on the other hand, consumer 0:11:59.640 --> 0:12:01.960 maybe not so much with the retail sales. Does that 0:12:02.000 --> 0:12:04.559 give you cause for concern back here in the United States, Well, 0:12:04.559 --> 0:12:07.360 it does because the question is how did you change behavior? 0:12:07.480 --> 0:12:10.319 So when you saw Chinese UH, you know, they went 0:12:10.360 --> 0:12:13.080 into this earlier, they locked down earlier, they came out earlier, 0:12:13.520 --> 0:12:15.960 and you know, we're back in our offices in China 0:12:16.040 --> 0:12:19.679 moving from people back towards so you're starting to see 0:12:20.520 --> 0:12:23.079 normalization of activity and in the questions what's the underlying 0:12:23.120 --> 0:12:26.480 activity and restaurants and shopping and things like that. And 0:12:26.559 --> 0:12:29.400 so you saw an immediate burst of activity as they 0:12:29.440 --> 0:12:31.560 open back up and the say it fall back down. 0:12:31.559 --> 0:12:33.000 And that's what we have to watch in the United 0:12:33.000 --> 0:12:34.840 States is there will be a burst of activity in 0:12:34.840 --> 0:12:37.439 some of these places as people who have been do 0:12:37.480 --> 0:12:39.720 in their homes for six, five, six sevent eight weeks 0:12:39.760 --> 0:12:41.760 go back out and do things, and then will let 0:12:41.800 --> 0:12:44.240 sustain And that's where you need to look more fundamentally 0:12:44.360 --> 0:12:47.760 on things like car purchases and things like house purchases 0:12:47.800 --> 0:12:49.480 and see where they start to end up over time. 0:12:49.520 --> 0:12:52.920 But remember the baseline projection for most people is the 0:12:52.920 --> 0:12:56.640 economy doesn't get back to its current size until you 0:12:56.679 --> 0:12:58.520 get to sort of the end of next year. That's 0:12:58.559 --> 0:13:02.080 the definition of recovery. So but each quarter from this 0:13:02.200 --> 0:13:05.320 quarter forward is increased economic activity. In what we have 0:13:05.400 --> 0:13:08.160 to make sure and all the policies and stimulus have 0:13:08.200 --> 0:13:10.280 been put in place or making sure is that despite 0:13:10.280 --> 0:13:13.079 the very hig unemployment, despite the issues of who's unemployed, 0:13:13.080 --> 0:13:15.240 despite the issues getting that we need to get people 0:13:15.240 --> 0:13:16.960 back to work in the human toll of all that 0:13:17.520 --> 0:13:20.360 these stimulus is off setting. It is an attempt off 0:13:20.360 --> 0:13:22.040 set that and you have to see that play out 0:13:22.040 --> 0:13:24.439 of our time, Brian, you have something like a hundred 0:13:24.480 --> 0:13:26.520 eighty thousand I think people working from home right now. 0:13:26.559 --> 0:13:29.040 You talked about what you're doing over in Asia. When 0:13:29.040 --> 0:13:30.840 do you expect him to come back? And how and 0:13:30.880 --> 0:13:33.080 by the way, how many will they all come back? Well? 0:13:33.080 --> 0:13:35.680 That the ideas we have. We've always had people who 0:13:35.840 --> 0:13:39.600 worked outside the standard office setting, and that's something we do. Um. 0:13:39.960 --> 0:13:42.720 There's a great debate you know, with us change forever 0:13:43.040 --> 0:13:45.720 the workforce in America and where they want to work. 0:13:46.000 --> 0:13:47.920 We'll see that play out. But that is that is 0:13:47.960 --> 0:13:50.360 further out there. And then your term. We have we 0:13:50.400 --> 0:13:52.360 have been open every day. We have not shut down 0:13:52.520 --> 0:13:55.599 except for the branches we closed out of concerns to 0:13:55.679 --> 0:13:58.840 keep our teammates safe in those in those branches. Um, 0:13:59.280 --> 0:14:03.840 we which is about the branches. Everything else has been open. 0:14:03.840 --> 0:14:05.880 We've been functioning every day and we're beginning to open 0:14:05.880 --> 0:14:09.160 those branches, especially in the States, are reopening slowly but surely. 0:14:09.240 --> 0:14:12.240 So we have the ability to operate very well, very 0:14:12.280 --> 0:14:15.480 much under control. Our technops team under Kathy Bisson's leadership, 0:14:15.480 --> 0:14:17.319 to the fablished job of putting us a position to 0:14:17.360 --> 0:14:19.280 have a hundred and eighty thousand people work from home 0:14:19.760 --> 0:14:21.520 so we can operate this way. So we have the 0:14:21.600 --> 0:14:25.640 luxury to go back slowly and with social distancing requirements, 0:14:25.680 --> 0:14:29.200 with temperature taking while all the policies that all employers 0:14:29.200 --> 0:14:31.720 want to put in place, you know, the the ability 0:14:31.720 --> 0:14:34.400 of the luxury putting people back in place carefully also 0:14:34.440 --> 0:14:36.640 takes the burden off of the communities we operate in, 0:14:36.720 --> 0:14:40.800 not to have high level of cases or perfections and 0:14:40.920 --> 0:14:43.880 having people move around and creating pressure on the community. 0:14:44.000 --> 0:14:46.920 So we will go back slowly. We haven't said any 0:14:46.960 --> 0:14:49.520 plans yet. We have a top talent team working on 0:14:49.920 --> 0:14:52.440 the re entry back to the office. It's not back 0:14:52.480 --> 0:14:54.360 to work, We're working every day. It's back to the office. 0:14:54.520 --> 0:14:58.080 That was Brian moynihan, Bank of America Chairman and CEO. 0:14:58.640 --> 0:15:01.960 Coming up. Speaker Nancy Pelosi thinks she knows what the 0:15:02.000 --> 0:15:05.000 public needs to feel confident, and it's going to require 0:15:05.080 --> 0:15:08.440 some more help from the federal government. That's next on 0:15:08.520 --> 0:15:17.120 Wall Street Week on Bloomberg. This is Bloomberg Wall Street 0:15:17.160 --> 0:15:21.560 Week with David Weston from Bloomberg Radio. Congress has already 0:15:21.600 --> 0:15:25.120 appropriated trillions of dollars to show up the economy, but 0:15:25.200 --> 0:15:27.880 Speaker of the House Nancy Pelosi says more needs to 0:15:27.920 --> 0:15:30.320 be done to help those tens of millions of Americans 0:15:30.400 --> 0:15:32.600 who are out of work and to protect hundreds of 0:15:32.640 --> 0:15:35.480 millions of Americans across the country as they return to 0:15:35.560 --> 0:15:38.760 the marketplace. Yes, it, indeed, we want the economy to 0:15:38.880 --> 0:15:45.920 open up, and the science is the path to that. Testing, tracing, treating, isolating. 0:15:46.560 --> 0:15:49.280 It has to be a scientific answer, and of course 0:15:49.280 --> 0:15:53.120 we hope and pray for vaccine and and some therapies, 0:15:53.600 --> 0:15:56.800 but in the meantime, we have testing and that's what 0:15:56.920 --> 0:15:59.560 we need to use to get the handle on the 0:15:59.640 --> 0:16:03.000 side of the challenge. We have uh to trace it 0:16:03.160 --> 0:16:06.320 and to treat so that we have fewer deaths. That 0:16:06.480 --> 0:16:08.760 is the answer now. In addition to that, and we 0:16:08.840 --> 0:16:12.440 have that a strategic plan and our heroes at a 0:16:12.480 --> 0:16:15.440 strategic plan to do that with. As you do in business, 0:16:15.440 --> 0:16:19.920 have a goal, have a timetable, had milestones, have benchmarks. 0:16:19.960 --> 0:16:23.120 That's exactly what we have in addition to that, in 0:16:23.240 --> 0:16:26.640 order to support the economy. We honor our heroes by 0:16:26.720 --> 0:16:32.080 keeping state, local, territorial, and tribal governments functioning. Uh. These people, 0:16:32.240 --> 0:16:34.720 many of them on the front line of risking their 0:16:34.760 --> 0:16:38.600 lives to save other people's lives, now fear losing their jobs. 0:16:39.240 --> 0:16:42.760 All of these services that are rendered are not only jobs, 0:16:42.760 --> 0:16:45.800 but they are they meet the needs of the American people. 0:16:46.320 --> 0:16:49.600 That helps the economy. And then third, putting money into 0:16:49.680 --> 0:16:52.800 the pockets of the American people. We all know that 0:16:53.240 --> 0:16:58.040 issues like unemployment, insurance, food stamps and the rest really 0:16:58.080 --> 0:17:02.280 are provide stimulus to the economy, and we have to 0:17:02.320 --> 0:17:05.400 do that. Uh. And we said we think in our package, 0:17:05.560 --> 0:17:09.440 the Heroes Act, that we do just exactly that, a 0:17:09.560 --> 0:17:14.880 scientific path to open the economy safely, safely and soon, 0:17:16.119 --> 0:17:20.360 supporting our heroes, to keep those jobs in place, which 0:17:20.400 --> 0:17:23.240 is important, which are important to the economy, and again 0:17:23.280 --> 0:17:25.640 the stimulus that money in the pockets of the American 0:17:25.680 --> 0:17:30.159 people provides. Of course, the question on everyone's mind is 0:17:30.200 --> 0:17:33.200 the prospects of passage of the Heroes Act or something 0:17:33.240 --> 0:17:35.359 like it, and when it might happen. We've heard from 0:17:35.400 --> 0:17:37.760 Secretary Minution that he talked to you at least last 0:17:37.800 --> 0:17:39.880 week about something he agrees something needs to be done. 0:17:39.920 --> 0:17:42.320 I'm not sure how quickly. President Trump said he's working 0:17:42.520 --> 0:17:44.960 with Mitch McConnell as a majority leader on some sort 0:17:44.960 --> 0:17:48.320 of package. Are you in active negotiations? How much hope 0:17:48.320 --> 0:17:51.560 do you have the will have something relatively soon? Well, 0:17:51.600 --> 0:17:55.640 I'm optimistic because American people fully support what we are 0:17:55.680 --> 0:18:00.800 doing two to one already just it's just newly passed. Uh. 0:18:00.840 --> 0:18:05.080 They support the provisions of our bill and oppose the 0:18:05.200 --> 0:18:09.560 Senate obstructing it. So I have confidence in public opinion 0:18:10.000 --> 0:18:13.560 also when it's by partisan across the country, we have 0:18:14.080 --> 0:18:17.840 less than a trillion dollars that goes to states, localities, tribes, 0:18:17.880 --> 0:18:24.680 and territorial governments that provide jobs for people across the country. 0:18:24.720 --> 0:18:29.760 So we have democratic and Republican mayors, governors, county executives 0:18:29.760 --> 0:18:33.720 and the rest very enthusiastic about the legislation and making 0:18:33.760 --> 0:18:37.879 their voices known, uh to the members of the United 0:18:37.920 --> 0:18:41.359 States Senate. This is very unusual that we have such 0:18:41.400 --> 0:18:48.320 a strong bipartisan advocacy for legislation of this kind, which 0:18:48.359 --> 0:18:52.200 is meeting resistance in the Senate. But I don't think 0:18:52.280 --> 0:18:55.800 for long because what we have in the bill is disciplined, 0:18:56.119 --> 0:19:00.679 it's focused, its own necessary, and it has brought bipartisan 0:19:00.720 --> 0:19:03.480 support in the country. It's just a matter of time. 0:19:03.600 --> 0:19:06.720 They want to pause. But as I've said here before, 0:19:07.880 --> 0:19:10.840 hunger doesn't take a pause, Losing your job doesn't take 0:19:10.880 --> 0:19:14.120 a pause. All of the paying the rent doesn't take 0:19:14.160 --> 0:19:16.960 a pause. We really need to meet the needs of 0:19:17.000 --> 0:19:20.600 the American people and at the same time provide stimulus 0:19:20.680 --> 0:19:25.040 to the economy. You mentioned minuting, but also the head 0:19:25.040 --> 0:19:27.160 of the FED, the Chairman of the Fed, Powell has 0:19:27.200 --> 0:19:31.680 said that is responsibility of elected representatives to use the 0:19:31.720 --> 0:19:35.880 tax and spend responsibilities that we have in a way 0:19:35.920 --> 0:19:40.280 that helps the economy, and he has indicated that there's 0:19:40.359 --> 0:19:44.520 need for more. Just one quick thought about China, because 0:19:44.520 --> 0:19:46.639 another thing that pious to have bipartisan support right now 0:19:46.720 --> 0:19:49.960 the Capitol Hill is the legislation including possibly delistings some 0:19:50.080 --> 0:19:51.919 Chinese company. Is that going to make it. It's been 0:19:51.920 --> 0:19:53.680 through the Senate, is it gonna make it through the House, 0:19:53.880 --> 0:19:57.920 and might have ramifications for the markets overall I have 0:19:58.240 --> 0:20:01.600 this is something we just learned of past uh with 0:20:01.760 --> 0:20:06.080 unanimous consent, so it isn't much debate or uh, we 0:20:06.119 --> 0:20:09.280 don't know who voted if unanimous consent, so we'll review 0:20:09.320 --> 0:20:11.440 it in the House. I've asked my committees to take 0:20:11.480 --> 0:20:13.840 a look at what that is. I take second place 0:20:13.880 --> 0:20:17.359 to No. One UH in the Congress, House or Senate, 0:20:17.440 --> 0:20:22.399 and my criticisms of China's UH trade policies visit the 0:20:22.520 --> 0:20:26.160 United States over decades, or human rights policies, or proliferation 0:20:26.480 --> 0:20:29.879 of weapons of mass destruction right now, whether it's the 0:20:29.960 --> 0:20:32.560 weed ares, the people of Hong Kong to bet, you 0:20:32.680 --> 0:20:35.920 name it. They have been very oppressive and even more so. 0:20:36.400 --> 0:20:38.840 But the fact is that we have to judge every 0:20:39.240 --> 0:20:41.399 We have to have a relationship with China, and we 0:20:41.520 --> 0:20:44.520 judge every action as to what it means to us 0:20:44.600 --> 0:20:46.680 as well as what it means to them. So I 0:20:46.800 --> 0:20:49.800