WEBVTT - BofA's Moynihan on Consumer Spending, Fed, Regulation 0:00:02.400 --> 0:00:07.120 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.200 --> 0:00:10.080 For our Bloomberg audiences worldwide. I'm David Weston. I'm delighted 0:00:10.119 --> 0:00:12.280 to be here with Brian moynan. He of course his 0:00:12.360 --> 0:00:15.480 chair and CEO of Bank of America. So Brian, thank 0:00:15.520 --> 0:00:17.120 you for having us here to your trading floor. 0:00:17.840 --> 0:00:19.919 Happy holidays. First, David, thank you for coming. 0:00:20.000 --> 0:00:21.960 And all these teammates have been there all day to 0:00:22.000 --> 0:00:22.880 waiting for you, so. 0:00:23.760 --> 0:00:25.960 Waiting for something probably making money for you. So let's 0:00:25.960 --> 0:00:28.520 talk with the economy first. Overall, I think it's fair 0:00:28.560 --> 0:00:31.400 to say it's doing better than most people thought it 0:00:31.440 --> 0:00:34.800 would do. Is there any cause for concern it may 0:00:34.800 --> 0:00:37.680 be overheating, particularly as we see some new policies maybe 0:00:37.680 --> 0:00:38.240 coming our way. 0:00:38.440 --> 0:00:40.040 So I think let's start on the first part of 0:00:40.040 --> 0:00:42.040 that question. If we were sitting here last year, our team, 0:00:42.120 --> 0:00:45.720 the research team, Kansas's team had a soft landing, no 0:00:45.880 --> 0:00:47.879 landing predicted, and a lot of people say, oh, that's 0:00:47.960 --> 0:00:50.720 very optimistic. And as matter of fact, we went from 0:00:50.760 --> 0:00:52.480 that would have been like a one percent GDP growth 0:00:52.560 --> 0:00:53.680 rate this quarter and we're going to have two and 0:00:53.720 --> 0:00:56.480 a half or something like that. So we've moved up 0:00:56.520 --> 0:01:01.640 from abnormally from positive but low to now higher than trend, 0:01:01.720 --> 0:01:03.840 higher than average, And so that means the economy is 0:01:03.880 --> 0:01:05.600 not having a balance anything. It's just going on as 0:01:05.640 --> 0:01:08.240 normal growth trend, which is good news if you think 0:01:08.240 --> 0:01:10.360 about it becoming over heat. I think all the policies 0:01:10.360 --> 0:01:12.840 are yet to come in. There's enthusiasm or discussion, but 0:01:12.920 --> 0:01:15.280 everything's still out there until the policy get acted. 0:01:15.640 --> 0:01:16.600 Our team, when they. 0:01:16.520 --> 0:01:18.760 Look at taras say say, well, if tarasa are set 0:01:18.760 --> 0:01:21.240 by better regulation, they'll kind of even each other out. 0:01:21.280 --> 0:01:25.040 But even given their knowledge of the Trump present, like 0:01:25.080 --> 0:01:27.880 Trump's policies, they are still predicting next years of two 0:01:27.880 --> 0:01:29.959 and a half percent GDP growth. They predict a FED 0:01:30.280 --> 0:01:32.800 cuts rates a few times, but stays three seventy five 0:01:32.840 --> 0:01:35.600 to four, and the predicted it takes inflation all the 0:01:35.600 --> 0:01:38.320 way into twenty six to get down to the target. 0:01:39.720 --> 0:01:43.199 If the inflation's moving down and we can grow this economy, 0:01:43.240 --> 0:01:44.480 that's actually not a bad place to be. 0:01:44.680 --> 0:01:48.440 Honestly, does this economy need any physical stimulus at this point? 0:01:48.520 --> 0:01:51.080 And it looks right now like the so called Trump 0:01:51.120 --> 0:01:54.000 task cuts will get extended. And also Canada, Trump is 0:01:54.000 --> 0:01:56.880 talking about a lot more tax cuts and given the 0:01:56.880 --> 0:01:59.760 fact that we're above a trend on growth and we're 0:02:00.240 --> 0:02:02.720 to full employment, do we need any more stimulus. 0:02:02.960 --> 0:02:04.640 I'm not sure you need more stimulus, just like we 0:02:04.680 --> 0:02:07.920 didn't need the stimulus probably in twenty one because the 0:02:07.920 --> 0:02:10.280 pandemic goes through the system. But the question is if 0:02:10.280 --> 0:02:12.679 you lower taxes and use it to reduce the debt. 0:02:12.919 --> 0:02:15.320 You know, there are questions how stimiative those activities are. 0:02:15.360 --> 0:02:19.359 And that's where the Terasury Secretary of appointee has got 0:02:19.360 --> 0:02:21.079 to figure it all out, because he's got to call 0:02:21.080 --> 0:02:22.919 the balls and strikes about how it all fits together, 0:02:22.960 --> 0:02:25.000 and that he's a market's orient person, he knows that 0:02:25.040 --> 0:02:27.320 if it gets too far on line. We just ran 0:02:27.800 --> 0:02:29.600 for the last fiscal year in the United States and 0:02:29.639 --> 0:02:32.240 operating deficit of one point eight trillion, which is equally 0:02:32.280 --> 0:02:33.040 the entire. 0:02:32.840 --> 0:02:34.720 GDP of the country of Australia. 0:02:34.960 --> 0:02:37.520 So we got to realize that the impact we have 0:02:37.639 --> 0:02:39.960 if we don't get this debt back in line. So 0:02:40.280 --> 0:02:42.560 I think everything on one side has to be governed 0:02:42.600 --> 0:02:44.200 with whether they're do on the other side off set 0:02:44.240 --> 0:02:46.320 it whether it has that much effect. Right now, the 0:02:46.320 --> 0:02:49.640 economy is moving along, consumers are spending it's up for 0:02:49.720 --> 0:02:52.720 a two week period around the holiday Thanksgiving holiday. It's 0:02:52.800 --> 0:02:54.760 up five percent of it last year. That is good 0:02:54.760 --> 0:02:58.079 and solid, that is not overheated at all. But that 0:02:58.120 --> 0:03:00.359 came off the lows a little bit the sum where 0:03:00.360 --> 0:03:02.800 I was a little nervous that they're going to let 0:03:02.800 --> 0:03:05.280 the consumer drift too far down. So between interest rates 0:03:05.320 --> 0:03:08.760 being cut a little bit between through his rats around 0:03:08.760 --> 0:03:11.440 the election, the market's being up. The consumers are spending more, 0:03:11.440 --> 0:03:13.120 and talents are going to spend more for the holidays, 0:03:13.120 --> 0:03:14.560 which is good for the general economy. 0:03:14.680 --> 0:03:15.960 We've got to keep them in the game. 0:03:15.880 --> 0:03:19.079 By not by overstimulating, by overdoing, by keeping the game 0:03:19.160 --> 0:03:22.359 just by getting a good core economy going with good 0:03:22.400 --> 0:03:26.800 deregulation activities, good tax policy, good immigration policy. These are 0:03:26.800 --> 0:03:28.840 hard things, but I think they're off working on it. 0:03:28.960 --> 0:03:30.760 Let's stand the consumers here, because you know so much 0:03:30.800 --> 0:03:33.639 about the consumers here at back of America, giving your relationships. 0:03:34.400 --> 0:03:36.880 How is the consumer doing. I know they're spending, but 0:03:36.920 --> 0:03:39.640 I've seen numbers that suggest they're borrowing more, and in fact, 0:03:39.840 --> 0:03:42.040 Saint Luis FED has new numbers out from it as 0:03:42.080 --> 0:03:44.160 of October. The defaults are up as well, are you 0:03:44.200 --> 0:03:45.440 worried at all about the consumer. 0:03:45.680 --> 0:03:47.760 So this is also this is go back to what 0:03:47.760 --> 0:03:51.600 you're thinking about, which is if you say the levels 0:03:51.640 --> 0:03:53.680 of consumer credit card debt are above whether we are. 0:03:53.560 --> 0:03:55.360 In nineteen, it's almost it's five years later. 0:03:55.520 --> 0:03:57.160 They should be above where they are in nineteen because 0:03:57.160 --> 0:04:00.480 economy is thirty percent bigger, So a lot is not numbers. 0:04:00.480 --> 0:04:01.600 Forget to put them relative scale. 0:04:01.600 --> 0:04:03.520 If you look at on a relative basis, it's still 0:04:03.600 --> 0:04:05.400 far below er it was nineteen. 0:04:05.240 --> 0:04:06.840 And the credit was very good. 0:04:06.880 --> 0:04:09.040 Then if you look at the defaults, they picked up 0:04:09.040 --> 0:04:12.160 and normalized the faults and delinquencies to where they were 0:04:12.240 --> 0:04:15.720 nineteen nineteen. Twenty nineteen was a fifty year low, and 0:04:15.720 --> 0:04:18.520 credit costs in our company fifty years we had to 0:04:18.520 --> 0:04:19.800 go back to find. So we got to be a 0:04:19.839 --> 0:04:22.800 little careful about what we're compared to. Everything's steady and 0:04:22.839 --> 0:04:25.680 fine now. Credit quality, consumers, the ability to borrow the 0:04:25.720 --> 0:04:29.080 household income they feel pinch them in the higher prices. 0:04:29.279 --> 0:04:31.840 Part of that is real and part of that's just mental. 0:04:31.880 --> 0:04:34.719 You know, if the price of eggs doubled, it's hard 0:04:34.720 --> 0:04:36.600 to ever tell anybody it's okay because they have more 0:04:36.640 --> 0:04:38.360 wages they're just never going to agree with us, And 0:04:38.360 --> 0:04:41.680 that's the economist viel of an economy versus human beings view. 0:04:42.480 --> 0:04:44.560 But you know, all things, if they weren't, they wouldn't 0:04:44.560 --> 0:04:47.840 be spending money the way they are in a rational way. 0:04:47.880 --> 0:04:49.760 At five percent year of the year, for the last 0:04:49.800 --> 0:04:51.800 couple of weeks, three and a half four percent for 0:04:51.839 --> 0:04:54.520 the month of November, and likewise it looks like that'll 0:04:54.560 --> 0:04:56.719 be December if they didn't feel confident. 0:04:56.760 --> 0:04:58.520 And why is that? All comes back to one thing. 0:04:58.920 --> 0:05:01.200 Four point one percent on the deployment rate, wage growth 0:05:01.240 --> 0:05:03.080 of three percent, that's the court. 0:05:03.120 --> 0:05:04.680 Now, what could disrupt that a lot. 0:05:04.560 --> 0:05:07.200 Of things, but that right now, that's the condition of 0:05:07.240 --> 0:05:09.400 American consumer. They have the ability to borrow, and they're 0:05:09.440 --> 0:05:12.960 borrowing rationally. They are employed, their wages are going up, 0:05:13.080 --> 0:05:14.920 they feel the pinch of inflation. They're trying to work 0:05:14.960 --> 0:05:16.400 that all through, and they're trying to have a decent, 0:05:16.520 --> 0:05:17.560 a good holiday season. 0:05:18.000 --> 0:05:20.440 So we'll play that. What will hurt that worse is. 0:05:20.440 --> 0:05:22.760 An unemployment moving up, and right now that's not predicted 0:05:22.800 --> 0:05:23.440 to happen at all. 0:05:23.440 --> 0:05:23.800 Next year. 0:05:23.800 --> 0:05:26.080 It's supposed to go. Our team has a four point 0:05:26.080 --> 0:05:28.360 three year end next year. You and I have been 0:05:29.000 --> 0:05:32.279 for most of our business careers. We'd been jumping over 0:05:32.320 --> 0:05:35.440 this the moon if we thought unemployment was four point 0:05:35.040 --> 0:05:37.280 three for the two or three years in a row 0:05:37.360 --> 0:05:37.720 or less. 0:05:38.240 --> 0:05:41.200 Take all that economic data, put it all together, and 0:05:41.240 --> 0:05:43.320 tell me what the Fed should be doing. They're meeting today, 0:05:43.720 --> 0:05:46.400 we'll get a decision tomorrow. Twenty five basis points seems 0:05:46.400 --> 0:05:48.640 to be baked in as a cut, but should it 0:05:48.680 --> 0:05:50.880 be cutting further? Beyont the twenty five base points given 0:05:50.960 --> 0:05:52.400 the strength of the economy and all the things you 0:05:52.520 --> 0:05:52.919 just said. 0:05:53.160 --> 0:05:54.960 If the economist view is you have to have a 0:05:55.000 --> 0:05:58.200 real rate structure across the curve of seventy five basis 0:05:58.240 --> 0:06:00.920 points one hundred basis points. If you're four seventy five 0:06:00.960 --> 0:06:04.039 four fifty now and the invition rates three point three, 0:06:04.040 --> 0:06:04.520 that's bigger. 0:06:04.520 --> 0:06:06.000 So you've got to start to bring it in normalized. 0:06:06.040 --> 0:06:08.599 We've got to get to, you know, positive soap and curve, 0:06:08.640 --> 0:06:11.000 a curve that has real rates across it. An inverted 0:06:11.040 --> 0:06:13.200 curve means something anticipatory is going. 0:06:13.120 --> 0:06:15.119 To go the other way. All that's got to happen. 0:06:15.120 --> 0:06:16.240 So I think they need to bring it down a 0:06:16.240 --> 0:06:16.560 little bit. 0:06:16.600 --> 0:06:19.080 They just have to be more careful because the economy 0:06:19.120 --> 0:06:21.240 is stronger than we thought three months ago, six months ago, 0:06:21.279 --> 0:06:24.320 but it still has potential weaknesses. You and I haven't 0:06:24.360 --> 0:06:27.039 even talked about what's going on outside the United States 0:06:27.080 --> 0:06:29.760 that can affect the United States. Not terrorists stuff, but wars. 0:06:29.880 --> 0:06:32.400 You know, what happened in the Middle East is the week. 0:06:32.440 --> 0:06:34.359 What happened in Korea, what happened, what's happened in Germany. 0:06:34.400 --> 0:06:37.239 All these political changes could impact the United States ultimately 0:06:37.279 --> 0:06:39.760 because and reverberate with them, because we sell a lot 0:06:39.760 --> 0:06:41.560 of goods in the LED countries, and by the way, 0:06:41.760 --> 0:06:43.480 we buy a lot of stuff from these countries, and 0:06:43.520 --> 0:06:46.040 so you know, we're inextra could be linked with the 0:06:46.040 --> 0:06:47.520 outcomes of some of these things, and so we. 0:06:47.480 --> 0:06:48.720 Have to be careful. But if you look at the 0:06:48.839 --> 0:06:49.600 USA out of cut. 0:06:49.560 --> 0:06:52.200 Rates, bring them our view, our teams views that bring 0:06:52.200 --> 0:06:55.279 them down to three seventy five ish type of level 0:06:55.520 --> 0:06:58.440 three more cuts from where they are today, but they'll 0:06:58.480 --> 0:07:01.039 be higher in the current context. 0:07:01.160 --> 0:07:04.520 But if you look back excluding two thousand. 0:07:04.200 --> 0:07:07.279 And eight till now, three and a half percent, three 0:07:07.279 --> 0:07:09.800 percent FED funds rate is the norm, not the exception. 0:07:09.960 --> 0:07:12.440 It's only been the exception in the last fifteen years. 0:07:12.760 --> 0:07:14.720 But it is different from what we thought it was 0:07:14.760 --> 0:07:16.760 going to be. It's higher, I think the neutral rates 0:07:16.800 --> 0:07:18.559 higher than it was. How does that affect your business 0:07:18.600 --> 0:07:19.040 if at all? 0:07:19.600 --> 0:07:22.760 Well, the question of everyone says to higher rates help 0:07:22.800 --> 0:07:24.720 high rates, the question is why they're there. If we 0:07:24.760 --> 0:07:27.680 had a normal rate curve from say three and a 0:07:27.720 --> 0:07:29.000 half percent on the front end of four and a 0:07:29.040 --> 0:07:31.480 half to percent of the ten year you know, and 0:07:31.520 --> 0:07:33.600 it was and the economy has growing two percent, that's 0:07:33.640 --> 0:07:33.920 a very. 0:07:33.880 --> 0:07:34.679 Good place for banking. 0:07:34.720 --> 0:07:36.640 The lincolns is to be low cost of credit and 0:07:36.720 --> 0:07:40.360 its availability is there. Your deposits are better suited at 0:07:40.360 --> 0:07:42.720 a higher nominal rate because when they go down, we 0:07:42.760 --> 0:07:44.800 have zero fours on a third to half of our 0:07:44.840 --> 0:07:46.920 deposits that just can't go any lower and zero unless 0:07:46.960 --> 0:07:48.560 we start charging people to give us their. 0:07:48.520 --> 0:07:50.320 Money, which isn't going to happen. 0:07:50.720 --> 0:07:52.920 So it's better force. But if the reason why they're 0:07:53.000 --> 0:07:55.240 hire is to choke off inflation, that can be not 0:07:55.280 --> 0:07:57.640 so good because that will probably lead to recession. And 0:07:58.040 --> 0:08:00.440 so the question what's the underline of and be doing 0:08:00.480 --> 0:08:02.440 less than the rate structure and the unline economy? Right 0:08:02.480 --> 0:08:03.760 now going two and a half with a three and 0:08:03.800 --> 0:08:05.920 a half to four percent fed funds rate in the 0:08:06.360 --> 0:08:08.560 four and a half percent tenure rate would be great 0:08:08.560 --> 0:08:09.160 for our industry. 0:08:09.160 --> 0:08:10.960 And that's why I just keep growing every quarter. 0:08:11.000 --> 0:08:14.080 We're thirteen nine, fourteen one, fourteen three, and you expect 0:08:14.080 --> 0:08:15.920 that growth to continue, and it's just walking up a 0:08:16.000 --> 0:08:19.160 ladder back to a level and you know, a peak. 0:08:19.200 --> 0:08:20.679 We're like fourteen eight or fifteen. 0:08:20.800 --> 0:08:23.160 So we have people out right now saying not four 0:08:23.200 --> 0:08:25.160 and a half, maybe five percent or even six percent 0:08:25.280 --> 0:08:27.360 of the tenure Do you put any credence in that. 0:08:28.080 --> 0:08:30.120 Our team doesn't see that, you know, and I have 0:08:30.160 --> 0:08:32.400 to rely on the experts that spent you know, we 0:08:32.440 --> 0:08:35.079 wrote research paper with a five thousand year interest rate 0:08:35.200 --> 0:08:36.760 low in interest rates, and I said, how do you 0:08:36.800 --> 0:08:36.960 know that? 0:08:37.000 --> 0:08:38.520 And they said, well, we went back and did research. 0:08:38.520 --> 0:08:40.880 So we have Kansas's teams, a powerful team and the 0:08:40.880 --> 0:08:43.480 best in the business. So they think it's four and 0:08:43.520 --> 0:08:44.839 a half is just kind of what it is. And 0:08:44.960 --> 0:08:48.040 as the rate structure comes in, is there potential for that, Yeah, 0:08:48.040 --> 0:08:50.120 that's probably when something else is going on that is 0:08:50.160 --> 0:08:52.720 not good and therefore there'll be at faster adjustments which 0:08:52.800 --> 0:08:53.720 might bring it back. 0:08:53.559 --> 0:08:55.920 In, but you know, you think about it. To go 0:08:55.960 --> 0:08:56.240 from a. 0:08:56.240 --> 0:08:58.360 One one and a half percent ten yure to a 0:08:58.440 --> 0:09:00.719 four four and a half percent tenure, that's a lot 0:09:00.760 --> 0:09:04.120 of movement, and it's very restrictive on activity till the 0:09:04.160 --> 0:09:06.240 activity just out of that, and that's what we're seeing now. 0:09:06.440 --> 0:09:09.560 You mentioned Donald Trump returning to the presidency next month. Now, 0:09:10.320 --> 0:09:12.440 how do you take the new account at Bank of America? 0:09:12.520 --> 0:09:14.880 I mean, what do you anticipate. We don't know exactly 0:09:14.960 --> 0:09:16.880 what will happen when it will happen, So how do 0:09:16.920 --> 0:09:18.720 you plan for that? What will it mean for Bank 0:09:18.760 --> 0:09:19.680 of America? Do you think? 0:09:19.960 --> 0:09:20.520 Well? 0:09:20.679 --> 0:09:23.480 So, I think one of the larger context is the 0:09:23.520 --> 0:09:25.240 oldest part of our company has been around for every 0:09:25.240 --> 0:09:27.560 presidential transition except for George Washington. 0:09:27.640 --> 0:09:28.480 So we've been. 0:09:28.480 --> 0:09:30.600 Through this before. We'll be through it to gain. But 0:09:30.720 --> 0:09:32.600 the real fact of the matter is if you think 0:09:32.640 --> 0:09:36.160 about what the policies are that he President elect Trunk 0:09:36.200 --> 0:09:40.160 got elected on. It's inflation and immigrations, but it's also 0:09:40.160 --> 0:09:43.079 about deregulation and our industry needs to have a sober 0:09:43.120 --> 0:09:47.080 look at what the right regulation. Fifteen years ago, sixteen 0:09:47.160 --> 0:09:49.600 seventeen years ago after the financial crisis, we had to 0:09:49.600 --> 0:09:51.839 put new capital lu liquidity and restore the confidence in 0:09:51.840 --> 0:09:57.440 America Since ten twelve years ago, the people, government, the 0:09:57.559 --> 0:09:58.720 capitals about writing the industry. 0:09:58.760 --> 0:10:00.719 Yet we kept ratching it up. So we ratchet up. 0:10:00.679 --> 0:10:03.480 Capital, that draws down our ability to lend. It makes 0:10:03.559 --> 0:10:06.360 credit harder to get in, more expensive, and on a 0:10:06.400 --> 0:10:08.920 worldwide competitive basis, our capital rations are much higher. 0:10:09.000 --> 0:10:10.640 And then the data is supervision. 0:10:10.720 --> 0:10:13.000 So the idea of bringing that regulation back in the 0:10:13.000 --> 0:10:15.520 middle and then frankly for the good industry, getting is 0:10:15.559 --> 0:10:17.760 settled someplace so that we can build a model around it. 0:10:17.800 --> 0:10:20.040 What happens now is we do this and so we're 0:10:20.080 --> 0:10:21.760 hoping it brings it back to the middle. That's what 0:10:22.000 --> 0:10:24.120 our and by the way, that's what our customers like 0:10:24.120 --> 0:10:27.000 about their industry. So whether it's the FDA FTC getting 0:10:27.000 --> 0:10:29.640 deals done, the enthusiasm, it's all about wait a second, 0:10:29.720 --> 0:10:31.120 now we can swing it back to the middle and 0:10:31.120 --> 0:10:33.600 go get stuff done and make the private sector, which 0:10:33.600 --> 0:10:36.440 is the reason why America is successful, lead as opposed 0:10:36.440 --> 0:10:37.280 to the governmental sector. 0:10:37.360 --> 0:10:40.320 So when you hear about a pledge for deregulation is 0:10:40.360 --> 0:10:42.480 the main thing you hear with your Bank of America 0:10:42.600 --> 0:10:43.120 years on. 0:10:43.720 --> 0:10:44.840 Is the reserve. 0:10:44.520 --> 0:10:48.319 Requirements, capital, reserve liquidity, see Cartel. 0:10:48.320 --> 0:10:49.400 There's a thousand different things. 0:10:49.400 --> 0:10:52.120 What I really hear about deregulation is our clients also saying, 0:10:52.520 --> 0:10:54.880 you know, let's do deals, including our banking client. You know, 0:10:54.920 --> 0:10:57.440 we have our investment banking bank clients, and you've seen 0:10:57.679 --> 0:11:01.960 four or five deals past the day. The selling company 0:11:02.440 --> 0:11:05.240 in a transaction won't sell if there's a lot of 0:11:05.280 --> 0:11:07.680 uncertainty around it. No matter what the value is a matter. 0:11:07.760 --> 0:11:09.040 If I don't think it's going to get done, I 0:11:09.080 --> 0:11:11.680 don't sell. That's what was going on for the last 0:11:11.720 --> 0:11:13.800 few years. Any deal of size was going to get 0:11:13.840 --> 0:11:16.360 hung up somehow unless it was so different. It was 0:11:16.440 --> 0:11:19.120 like a private equifirm buying a company had no other firm. 0:11:19.200 --> 0:11:22.719 And that's not good for letting these American companies get 0:11:22.760 --> 0:11:24.360 more successful and grow. It doesn't mean you're going to 0:11:24.400 --> 0:11:26.120 be into competitive, doesn't mean you're going to have that 0:11:26.559 --> 0:11:31.719 there's huge price, desire to market, there's great competition, all 0:11:31.720 --> 0:11:33.960 that stuff. What it means is our companies can grow 0:11:34.080 --> 0:11:36.439 and make the kind of strategic choices that happens in 0:11:36.480 --> 0:11:39.120 the banking system. We can't do any acquisition that happens 0:11:39.120 --> 0:11:41.360 to our clients, it happens around us, that'll be good 0:11:41.400 --> 0:11:43.400 for us. But now, as it is about capital liquidity 0:11:43.480 --> 0:11:45.360 and day to day supervision, what. 0:11:45.440 --> 0:11:47.520 Is the biggest change coming up for Bank of America 0:11:47.559 --> 0:11:48.800 because of this new administration? 0:11:48.840 --> 0:11:51.080 Do you think, Well, I think it'll be the economic 0:11:51.160 --> 0:11:54.640 atmosphere of deregulation, how applies us specifically, how it applies 0:11:54.720 --> 0:11:57.280 more generally, and that will be good. Now, we got 0:11:57.320 --> 0:12:00.480 serious issues, as I said, around the outside world, serious 0:12:00.520 --> 0:12:02.240 issues or brought the right balance to get the debt 0:12:02.280 --> 0:12:04.439 back in line with our GDP and keep it there. 0:12:05.280 --> 0:12:08.240 But those issues are not new, but they have to 0:12:08.280 --> 0:12:11.199 dealt with because we've been in some ways not dealing 0:12:11.200 --> 0:12:13.760 with the debt issues or not dealing with immigration for 0:12:13.920 --> 0:12:16.920 fifteen since I've been CEO. We've been talking about solutions 0:12:16.920 --> 0:12:19.000 here and we've got to now start to implement some 0:12:19.000 --> 0:12:21.320 of those to just bend the curve of debt growth, 0:12:24.120 --> 0:12:27.200 get more and more cash in, to cash out as 0:12:27.280 --> 0:12:30.480 more rational position, and then get the Hopefully, if you 0:12:30.559 --> 0:12:34.120 get the reguatory policies, you outgrow that. And that's basically 0:12:34.160 --> 0:12:35.960 what our research team thinks. They've added a little bit 0:12:35.960 --> 0:12:38.240 to their growth since in saying that combination of policies 0:12:38.720 --> 0:12:40.480 some offset each other, some will add to it, but 0:12:40.720 --> 0:12:41.800 at the end of the day will be a little 0:12:41.800 --> 0:12:43.559 bit more growth orient We'll see what happens. 0:12:44.000 --> 0:12:46.199 Brian, thank you so much for being on Bloomberg as 0:12:46.240 --> 0:12:49.280 Brian Moneyhand, He's chair and CEO of Bank of America. 0:12:49.400 --> 0:12:50.200 Back to you,