1
00:00:02,440 --> 00:00:06,399
Speaker 1: Bloomberg Audio Studios, podcasts, radio.

2
00:00:06,440 --> 00:00:10,040
Speaker 2: News alongside me, the Bank of America, Chaef Bron, Moynihan, Bront,

3
00:00:10,039 --> 00:00:10,680
Speaker 2: Good afternoon.

4
00:00:10,920 --> 00:00:13,039
Speaker 1: It's great to be here. It's a nice, nice place

5
00:00:13,080 --> 00:00:13,360
Speaker 1: that you.

6
00:00:13,440 --> 00:00:15,640
Speaker 3: Know that it's not bad. It's going to see you.

7
00:00:15,760 --> 00:00:18,480
Speaker 2: It's somewhat different President Macron. Is he trying to sell

8
00:00:18,480 --> 00:00:19,880
Speaker 2: you a French bank? What's happening here?

9
00:00:20,239 --> 00:00:22,200
Speaker 4: No, he's not trying to sell us a French bank.

10
00:00:22,320 --> 00:00:24,560
Speaker 4: What he's trying to sell us all on is doing

11
00:00:24,640 --> 00:00:25,320
Speaker 4: business in France.

12
00:00:25,400 --> 00:00:26,000
Speaker 1: Choose France.

13
00:00:26,040 --> 00:00:28,440
Speaker 4: And you know, we have moved from one hundred people

14
00:00:28,440 --> 00:00:31,040
Speaker 4: here at about seven hundred and fifty people under Vanessa

15
00:00:31,080 --> 00:00:34,640
Speaker 4: Holtz leadership for our European Broken Dealer trading operations, and

16
00:00:34,920 --> 00:00:38,480
Speaker 4: they've been great and accommodative and the rules and stuff.

17
00:00:38,479 --> 00:00:40,199
Speaker 4: It's been a great experience for us.

18
00:00:40,240 --> 00:00:42,560
Speaker 2: What have they changed? What have they done to attract

19
00:00:42,560 --> 00:00:43,720
Speaker 2: that investment from you?

20
00:00:43,760 --> 00:00:46,120
Speaker 4: Well, we needed a talent because we're locating a lot

21
00:00:46,120 --> 00:00:49,000
Speaker 4: of jobs here. Some people move, some people didn't. So

22
00:00:49,040 --> 00:00:50,239
Speaker 4: they have a lot of talent. They have a lot

23
00:00:50,240 --> 00:00:52,600
Speaker 4: of great people. They know the trading business because of

24
00:00:52,600 --> 00:00:55,520
Speaker 4: the large French banks and the regulatory framework and so

25
00:00:55,560 --> 00:00:57,480
Speaker 4: they've made it accommodative to bring it over, and then

26
00:00:57,480 --> 00:01:00,480
Speaker 4: they've made some work real changes specific to our ployees

27
00:01:00,640 --> 00:01:03,480
Speaker 4: and a financial services business made it easier and they're

28
00:01:03,480 --> 00:01:05,240
Speaker 4: always ready. Now they're trying to say can you move

29
00:01:05,280 --> 00:01:07,440
Speaker 4: a back office and other things here? So they're pitching

30
00:01:07,440 --> 00:01:10,200
Speaker 4: a different style of economic development. But they've done a

31
00:01:10,240 --> 00:01:13,440
Speaker 4: good job in changing France's reputation around the business community.

32
00:01:13,480 --> 00:01:15,759
Speaker 4: There's a few hundred CEOs out there, all of whom

33
00:01:15,760 --> 00:01:17,360
Speaker 4: have expand their operations in France.

34
00:01:17,520 --> 00:01:19,280
Speaker 3: The reputation used to be pretty terrible.

35
00:01:19,400 --> 00:01:21,360
Speaker 2: In fact, you know what the perception was, why would

36
00:01:21,440 --> 00:01:23,320
Speaker 2: you hire anyone in France when you can do that

37
00:01:23,400 --> 00:01:25,560
Speaker 2: in London. Was it Brexit that changed that in the

38
00:01:25,640 --> 00:01:28,240
Speaker 2: last ten years? Is it something else as France actually

39
00:01:28,240 --> 00:01:30,319
Speaker 2: got better as opposed to the UK get and worse.

40
00:01:30,880 --> 00:01:33,280
Speaker 1: Well, I think what they did is they made their accommodative.

41
00:01:33,319 --> 00:01:36,520
Speaker 4: They had the talent, they had the capability, schools could

42
00:01:36,520 --> 00:01:38,840
Speaker 4: expand and take people. Those are real things, But what

43
00:01:38,880 --> 00:01:41,119
Speaker 4: they really did is they said we need to be attractive,

44
00:01:41,440 --> 00:01:42,679
Speaker 4: save lower tax rates.

45
00:01:43,040 --> 00:01:44,919
Speaker 1: They've worked on some of the work rules.

46
00:01:44,959 --> 00:01:47,560
Speaker 4: Those are longer term strategies that will help the country.

47
00:01:47,720 --> 00:01:49,920
Speaker 2: They're trying to close the gap clearly with the United States.

48
00:01:50,040 --> 00:01:52,480
Speaker 2: Let's talk about the United States as well. I got

49
00:01:52,480 --> 00:01:54,720
Speaker 2: a note from the Bank of America Institute from Liz

50
00:01:54,720 --> 00:01:56,640
Speaker 2: the great work they do over there, And I was

51
00:01:56,680 --> 00:01:59,880
Speaker 2: looking at the average balance for a customer compared to

52
00:01:59,880 --> 00:02:02,560
Speaker 2: the average back in twenty nineteen, and for lower income

53
00:02:02,920 --> 00:02:05,320
Speaker 2: the numbers that you've got show it up close to

54
00:02:05,400 --> 00:02:08,680
Speaker 2: sixty percent. What on earth is going on? How are

55
00:02:08,720 --> 00:02:11,639
Speaker 2: the balances that much high now versus say, five years ago.

56
00:02:12,080 --> 00:02:15,360
Speaker 4: Well, the thing is that count that was here in nineteen,

57
00:02:16,160 --> 00:02:18,359
Speaker 4: lived through all the stimulus benefits and all the deposits

58
00:02:18,400 --> 00:02:21,239
Speaker 4: within has also been ostensibly.

59
00:02:20,760 --> 00:02:22,120
Speaker 1: Working since nineteen.

60
00:02:22,120 --> 00:02:24,600
Speaker 4: Therefore they've gotten a wage increases and will inflation is

61
00:02:24,639 --> 00:02:28,600
Speaker 4: tough on people, especially in the lower medium incomeing down

62
00:02:29,040 --> 00:02:31,919
Speaker 4: in terms of increases. The wages have been growing. They

63
00:02:31,960 --> 00:02:35,119
Speaker 4: just grew first, honestly, and then the prices grew after.

64
00:02:35,200 --> 00:02:37,240
Speaker 4: So people remember the price growth, don't remember the wage

65
00:02:37,280 --> 00:02:39,760
Speaker 4: growth so much. But I think, you know, it shows

66
00:02:39,800 --> 00:02:41,920
Speaker 4: the brasilience the American consumer. And if you look at

67
00:02:41,919 --> 00:02:45,200
Speaker 4: the spending through the month so far in May, they're

68
00:02:45,240 --> 00:02:47,040
Speaker 4: spending about three or four percent more than they did

69
00:02:47,120 --> 00:02:47,560
Speaker 4: last May.

70
00:02:47,560 --> 00:02:49,640
Speaker 1: In the first part of May April was similar.

71
00:02:49,960 --> 00:02:53,000
Speaker 4: It's slower, it's more consistent with lower growth, lower inflation economy,

72
00:02:53,080 --> 00:02:55,840
Speaker 4: but it's still positive and positive means people are spending more.

73
00:02:55,880 --> 00:02:57,080
Speaker 1: That means our economy is growing.

74
00:02:57,120 --> 00:02:59,359
Speaker 4: And you know, in the rate structure, maybe higher and

75
00:02:59,400 --> 00:03:00,919
Speaker 4: we can talk about that, but the reality is it's

76
00:03:00,960 --> 00:03:02,840
Speaker 4: in decent shape. There's a thousand things that can go

77
00:03:02,840 --> 00:03:05,080
Speaker 4: wrong tomorrow. For right now, everything's in pretty good shape.

78
00:03:05,080 --> 00:03:07,160
Speaker 3: Are we living pretty well? Then? With interest rates not

79
00:03:07,240 --> 00:03:08,280
Speaker 3: to five percent.

80
00:03:09,200 --> 00:03:11,720
Speaker 1: We're living pretty well with them, and people are getting.

81
00:03:11,480 --> 00:03:12,320
Speaker 3: Used to it.

82
00:03:12,360 --> 00:03:14,320
Speaker 4: But the reality is, at some point I've had asked

83
00:03:14,360 --> 00:03:16,640
Speaker 4: to bring to frontend rate to get to a normalized curve,

84
00:03:16,639 --> 00:03:20,880
Speaker 4: because an inverted curve forever doesn't sort of economically compute.

85
00:03:21,000 --> 00:03:22,120
Speaker 1: But I think our.

86
00:03:21,919 --> 00:03:23,960
Speaker 4: Team thinks that the terminal rate, the end rate that

87
00:03:23,960 --> 00:03:25,400
Speaker 4: they'll get to, will be more than a three and

88
00:03:25,440 --> 00:03:27,880
Speaker 4: a half percent range as opposed to fifty basis point

89
00:03:28,000 --> 00:03:30,840
Speaker 4: range or one percent range. And we haven't really had

90
00:03:30,840 --> 00:03:33,360
Speaker 4: that since before the financial crisis. So there was a

91
00:03:33,400 --> 00:03:35,480
Speaker 4: moment in sixteen seventy to eighteen when they raised rates

92
00:03:35,520 --> 00:03:38,800
Speaker 4: and they already started bringing them down nineteen. So frankly

93
00:03:38,800 --> 00:03:40,640
Speaker 4: in our team, I say, if you're under forty, you've

94
00:03:40,680 --> 00:03:43,000
Speaker 4: never seen this kind of rate environment, and this is normal.

95
00:03:43,120 --> 00:03:45,160
Speaker 4: And so three percent front end, three and a half,

96
00:03:45,360 --> 00:03:46,680
Speaker 4: four and a half percent tenure, and.

97
00:03:46,720 --> 00:03:49,040
Speaker 1: People will get used to it because America did a.

98
00:03:49,040 --> 00:03:51,480
Speaker 4: Lot of economic activity prior to two thousand and seven

99
00:03:51,640 --> 00:03:54,240
Speaker 4: for the two hundred plus years of existed, so people

100
00:03:54,280 --> 00:03:55,840
Speaker 4: have been used to it. It's just we're in a

101
00:03:55,920 --> 00:03:59,040
Speaker 4: very unusual time and so the adjustments are taking place

102
00:03:59,120 --> 00:04:00,440
Speaker 4: and it's running through the economy.

103
00:04:00,440 --> 00:04:02,320
Speaker 2: We're hearing from some companies that maybe the ross and

104
00:04:02,360 --> 00:04:05,160
Speaker 2: cracks we had from Stobucks McDonald's offering a similar view

105
00:04:05,440 --> 00:04:08,600
Speaker 2: on the US consumer. You've got some sixty nine million customers,

106
00:04:08,880 --> 00:04:10,320
Speaker 2: what do you see? Do you see those cracks that

107
00:04:10,400 --> 00:04:11,760
Speaker 2: so we're starting to emerge this year.

108
00:04:11,960 --> 00:04:14,000
Speaker 1: So if you think about it, where were the cracks emerged?

109
00:04:14,000 --> 00:04:16,240
Speaker 4: You talked about the average account balance is there're still

110
00:04:16,440 --> 00:04:19,760
Speaker 4: especially for household seventy five one hundred thousand and below,

111
00:04:20,120 --> 00:04:22,680
Speaker 4: the account bouncers are higher than the pandemic by a lot.

112
00:04:23,080 --> 00:04:26,280
Speaker 4: If you think about the spending, the spending settled into

113
00:04:26,279 --> 00:04:28,280
Speaker 4: a more normal where it was in sixteen, seventeen eighteen,

114
00:04:28,320 --> 00:04:32,279
Speaker 4: the FEBEs raising raids inflation, they're pushing inflation was higher,

115
00:04:32,279 --> 00:04:34,640
Speaker 4: they're pushing it down or holding it steady, you know.

116
00:04:34,760 --> 00:04:37,800
Speaker 4: So that's normal. And then on the credit side, we're

117
00:04:37,800 --> 00:04:40,120
Speaker 4: just normalizing to where we were nineteen. So in twenty

118
00:04:40,240 --> 00:04:42,760
Speaker 4: nineteen is a fifty year low on credit customer company

119
00:04:42,960 --> 00:04:44,880
Speaker 4: and basically last quarter we were a little bit higher

120
00:04:44,920 --> 00:04:47,960
Speaker 4: than that, and so we're normalizing. So it's increasing off

121
00:04:47,960 --> 00:04:50,359
Speaker 4: a base and people say, oh, your charge offs are

122
00:04:50,360 --> 00:04:51,760
Speaker 4: going up, but they're getting back to where they were

123
00:04:51,800 --> 00:04:54,160
Speaker 4: in nineteen and frankly, people thought that was a very

124
00:04:54,160 --> 00:04:57,039
Speaker 4: good credit and it actually was. And so the question

125
00:04:57,080 --> 00:04:58,520
Speaker 4: is where they go next. The good news is we're

126
00:04:58,520 --> 00:05:00,640
Speaker 4: starting to see delinkednies flatten back out. Are you either

127
00:05:00,680 --> 00:05:03,680
Speaker 4: not growing anymore? They normalize and then they're staying. That's

128
00:05:03,720 --> 00:05:06,240
Speaker 4: good news on the consumer side, So it's all okay.

129
00:05:06,320 --> 00:05:08,320
Speaker 4: It's just higher rates are tough on people on a

130
00:05:08,360 --> 00:05:11,000
Speaker 4: mortgage market we you know, mortgage originations or way down.

131
00:05:11,080 --> 00:05:14,800
Speaker 4: Higher rates are tough on corporations using their lines a

132
00:05:14,839 --> 00:05:17,560
Speaker 4: little bit less because you know, small medium sized companies

133
00:05:17,760 --> 00:05:19,680
Speaker 4: because it costs more and if it costs more, you're

134
00:05:19,680 --> 00:05:22,040
Speaker 4: going to be more gedicious about it. So that kind

135
00:05:22,040 --> 00:05:24,880
Speaker 4: of adjustment, what the FED is doing with rate structure

136
00:05:25,000 --> 00:05:27,120
Speaker 4: is having the impact they want. On the other hand,

137
00:05:27,120 --> 00:05:28,640
Speaker 4: the economy's kind of there, and now we got to

138
00:05:28,640 --> 00:05:30,080
Speaker 4: be careful we don't overshoot the other way.

139
00:05:30,200 --> 00:05:32,520
Speaker 1: It's right now we have a no landing.

140
00:05:32,600 --> 00:05:34,640
Speaker 4: Honestly a two percent growth right because you can't say

141
00:05:34,640 --> 00:05:37,440
Speaker 4: it's a soft landing, but that's been pushed out and

142
00:05:37,480 --> 00:05:39,640
Speaker 4: pushed out to when it occurs, and we got to

143
00:05:39,680 --> 00:05:41,640
Speaker 4: be careful that we don't overshoot. Because you see the

144
00:05:41,640 --> 00:05:44,040
Speaker 4: consumer confidence numbers tipping download it. That's what you got

145
00:05:44,080 --> 00:05:46,280
Speaker 4: to be careful. The consumer leaves the game, it's hard

146
00:05:46,279 --> 00:05:47,120
Speaker 4: to get them restarted.

147
00:05:47,400 --> 00:05:49,799
Speaker 2: So when I look at your consumer and whenever we repay,

148
00:05:49,880 --> 00:05:52,400
Speaker 2: report on your numbers Q one, Q two, Q three,

149
00:05:52,520 --> 00:05:55,320
Speaker 2: Q four. We look at the average FIICO score of

150
00:05:55,400 --> 00:05:58,120
Speaker 2: some of the lending that happens, and it's really really high,

151
00:05:58,120 --> 00:05:59,839
Speaker 2: like close to way one hundreds for vehicle lending.

152
00:06:00,040 --> 00:06:01,120
Speaker 3: Can you tell me whether your.

153
00:06:01,000 --> 00:06:03,960
Speaker 2: Experience is a decent snapshot of America or whether you're

154
00:06:03,960 --> 00:06:06,919
Speaker 2: just catering to a much higher quality consumer.

155
00:06:06,600 --> 00:06:09,840
Speaker 4: On the lending side, were prime, super prime, and auto

156
00:06:09,920 --> 00:06:12,760
Speaker 4: for example, So there's a broader base of consumers out there.

157
00:06:13,200 --> 00:06:15,920
Speaker 4: Eighty twenty rule prime versus subprime, and we don't play

158
00:06:15,960 --> 00:06:18,599
Speaker 4: in the subprime at all, and that's because of.

159
00:06:18,680 --> 00:06:20,720
Speaker 1: History and how we got here. On the deposit site

160
00:06:20,760 --> 00:06:21,359
Speaker 1: completely different.

161
00:06:21,400 --> 00:06:24,040
Speaker 4: We open accounts for anybody that really wants an account,

162
00:06:24,120 --> 00:06:25,920
Speaker 4: and then we are a great started place for people

163
00:06:25,960 --> 00:06:28,279
Speaker 4: to open the first back account and then grow with us,

164
00:06:28,440 --> 00:06:31,200
Speaker 4: and we open a million of them basically over the

165
00:06:31,240 --> 00:06:33,599
Speaker 4: last twelve months a million net new accounts. They started

166
00:06:33,640 --> 00:06:36,120
Speaker 4: three thousand, they grow to seven thousand. So that's pretty

167
00:06:36,160 --> 00:06:41,000
Speaker 4: representative America. And we're ninety percent plus the corehousehold account,

168
00:06:41,040 --> 00:06:42,000
Speaker 4: meaning it's use for all.

169
00:06:41,920 --> 00:06:43,919
Speaker 1: The day to day flows. We got pretty good data there.

170
00:06:44,080 --> 00:06:47,040
Speaker 4: On lending side, we probably till just a little higher,

171
00:06:47,080 --> 00:06:48,000
Speaker 4: but it's still strong.

172
00:06:48,440 --> 00:06:50,839
Speaker 1: But eighty percent of America is prime space, so it's.

173
00:06:50,720 --> 00:06:53,760
Speaker 4: Not like it's so the difficulties you're hearing about I

174
00:06:53,800 --> 00:06:56,440
Speaker 4: can't really reflect on, but there tend to be in

175
00:06:57,160 --> 00:06:58,000
Speaker 4: the subprime space.

176
00:06:58,120 --> 00:06:58,680
Speaker 3: That's the consumer.

177
00:06:58,760 --> 00:07:01,360
Speaker 2: Let's talk about businesses seeing a ton of debt issuance

178
00:07:01,560 --> 00:07:04,160
Speaker 2: supplies for the roof that you want, what do you

179
00:07:04,200 --> 00:07:05,920
Speaker 2: think that is. We've been trying to work out whether

180
00:07:05,920 --> 00:07:08,200
Speaker 2: that's pulled forward from the back end of this year

181
00:07:08,279 --> 00:07:10,160
Speaker 2: or catch up from the back end of last year.

182
00:07:10,160 --> 00:07:10,880
Speaker 3: Which one is it.

183
00:07:11,320 --> 00:07:14,600
Speaker 4: Well, I think if you did a lot of financing

184
00:07:15,160 --> 00:07:17,360
Speaker 4: and it's coming up in the next couple of years.

185
00:07:17,880 --> 00:07:19,520
Speaker 1: Your hope would be rates would follow and you get a.

186
00:07:19,520 --> 00:07:21,480
Speaker 4: Lot more nominal rate because you may have done it,

187
00:07:21,560 --> 00:07:24,160
Speaker 4: you know, in twenty twenty or something, when there's a

188
00:07:24,160 --> 00:07:26,600
Speaker 4: massive amount of issues. The problem is it's not clear

189
00:07:26,640 --> 00:07:28,080
Speaker 4: that's going to happen. So now people are saying, I

190
00:07:28,080 --> 00:07:29,800
Speaker 4: don't want to run to the wall and then find

191
00:07:29,800 --> 00:07:33,480
Speaker 4: out the market closes because some external event or something.

192
00:07:33,520 --> 00:07:35,640
Speaker 4: So people are just financing it forward. They're probably was

193
00:07:35,720 --> 00:07:38,120
Speaker 4: some pull through of the year when people said all

194
00:07:38,200 --> 00:07:40,360
Speaker 4: rates may not go down, that won't we just get

195
00:07:40,400 --> 00:07:40,840
Speaker 4: it done and.

196
00:07:40,760 --> 00:07:42,960
Speaker 1: Get it over with. You know. The market's business is

197
00:07:43,040 --> 00:07:43,640
Speaker 1: kind of fascinating.

198
00:07:43,640 --> 00:07:45,000
Speaker 4: The first half of the year is always much more

199
00:07:45,000 --> 00:07:46,520
Speaker 4: active in the second half a year, And he keeps saying,

200
00:07:46,520 --> 00:07:49,040
Speaker 4: there's four quarters. Why wouldn't space out. It's just natural

201
00:07:49,120 --> 00:07:52,120
Speaker 4: human behavior. People like to get things done. But I

202
00:07:52,120 --> 00:07:54,320
Speaker 4: think it's been pretty strong and we feel pretty good

203
00:07:54,320 --> 00:07:56,760
Speaker 4: about it. We had a good investment banking fee first quarter,

204
00:07:56,760 --> 00:08:00,600
Speaker 4: which reallyflects financing activity, equity and debt. But I'm not.

205
00:08:00,520 --> 00:08:01,800
Speaker 1: Sure there's any right answer there.

206
00:08:01,880 --> 00:08:04,320
Speaker 4: But the reality is that it was very high, so

207
00:08:04,360 --> 00:08:06,280
Speaker 4: the assumption would be go lower. But on the other hand,

208
00:08:06,400 --> 00:08:08,040
Speaker 4: there's people have to look forward and say, am I

209
00:08:08,080 --> 00:08:11,800
Speaker 4: going to wait till twenty twenty six to refinance that debt?

210
00:08:12,000 --> 00:08:14,520
Speaker 4: Or frankly they're investing. You know, there's lots of capital

211
00:08:14,520 --> 00:08:16,600
Speaker 4: improvements going on. People want to turn that out. There's

212
00:08:16,600 --> 00:08:18,960
Speaker 4: lots of M and A is starting to kick up

213
00:08:18,960 --> 00:08:20,560
Speaker 4: a little bit. People want to pay for those deals,

214
00:08:20,640 --> 00:08:22,720
Speaker 4: So there's stuff going on too that requires them to

215
00:08:22,800 --> 00:08:24,240
Speaker 4: raise incremental new money.

216
00:08:24,240 --> 00:08:25,120
Speaker 3: Can we touch on M and A.

217
00:08:25,280 --> 00:08:27,480
Speaker 2: We talked about this a few months ago when we

218
00:08:27,560 --> 00:08:30,920
Speaker 2: visited you, and you talked about the reality for some

219
00:08:31,040 --> 00:08:33,120
Speaker 2: companies that they can't make deals right now because they

220
00:08:33,120 --> 00:08:35,600
Speaker 2: don't know if those deals will close. Do you sense

221
00:08:35,640 --> 00:08:37,680
Speaker 2: that there is some momentum in the business now going

222
00:08:37,679 --> 00:08:39,720
Speaker 2: into November or is there a sense that people are

223
00:08:39,720 --> 00:08:41,920
Speaker 2: just going to wait to see how this washes out.

224
00:08:42,400 --> 00:08:44,719
Speaker 4: The activity going on in the business is very high.

225
00:08:44,800 --> 00:08:47,280
Speaker 4: A lot of conversations a lot of deals being signed up,

226
00:08:47,600 --> 00:08:50,800
Speaker 4: there's still the concern still applies of whether deals which

227
00:08:51,240 --> 00:08:53,839
Speaker 4: would appear to any in the past so to speak,

228
00:08:53,960 --> 00:08:57,120
Speaker 4: have gone through without challenge out delay. To stay with

229
00:08:57,200 --> 00:08:59,120
Speaker 4: the deal for a year plus takes a lot of

230
00:08:59,120 --> 00:09:01,120
Speaker 4: intestinal for it to A lot of things can happen

231
00:09:01,120 --> 00:09:03,720
Speaker 4: in your company, can happen the other company, People can

232
00:09:03,760 --> 00:09:06,080
Speaker 4: lose enthusiasm for the deal. All things can go on,

233
00:09:06,480 --> 00:09:08,000
Speaker 4: and so people have to sit there and say can

234
00:09:08,040 --> 00:09:08,480
Speaker 4: I do that?

235
00:09:08,640 --> 00:09:09,560
Speaker 1: Large companies can.

236
00:09:09,440 --> 00:09:11,720
Speaker 4: Hang on longer because they just have more resiliency, especially

237
00:09:11,720 --> 00:09:14,160
Speaker 4: if they're buying a smaller company. But a companies buying

238
00:09:14,160 --> 00:09:16,080
Speaker 4: a company might be thirty forty percent of the size.

239
00:09:16,120 --> 00:09:18,360
Speaker 4: They have to be very careful and they're cautious. They

240
00:09:18,480 --> 00:09:20,440
Speaker 4: want to do it. The questions can they get it done?

241
00:09:20,520 --> 00:09:22,679
Speaker 4: And that's one of the things we say to policymakers

242
00:09:22,800 --> 00:09:25,280
Speaker 4: is clarify the rules and let people get through because

243
00:09:26,000 --> 00:09:28,200
Speaker 4: in that men transaction, people think, well, it's just about

244
00:09:28,200 --> 00:09:31,760
Speaker 4: getting bigger. Remember, on a sales side, that's obvious. The

245
00:09:31,880 --> 00:09:34,120
Speaker 4: payment goes out to the shareholders and the employees a lot.

246
00:09:34,280 --> 00:09:35,000
Speaker 1: That's good for them.

247
00:09:35,240 --> 00:09:36,880
Speaker 4: But on a buy side, what does it mean that

248
00:09:36,920 --> 00:09:40,120
Speaker 4: companies make an acquisition, getting bigger, going to dominate the world.

249
00:09:40,120 --> 00:09:41,600
Speaker 4: We're going to go over and we're going to become

250
00:09:41,640 --> 00:09:44,160
Speaker 4: the best at X, Y or Z. Without being able

251
00:09:44,200 --> 00:09:45,520
Speaker 4: to make acquisitions, they can't.

252
00:09:45,320 --> 00:09:46,480
Speaker 1: Get that strategic growth.

253
00:09:46,559 --> 00:09:49,640
Speaker 4: So it's especially when you're talking to America. Only those

254
00:09:49,679 --> 00:09:52,480
Speaker 4: American companies are looking to be the best companies in

255
00:09:52,480 --> 00:09:53,640
Speaker 4: the world, and M and A is one of the

256
00:09:53,679 --> 00:09:55,720
Speaker 4: ways they do it. If you stop them, you're stopping

257
00:09:55,760 --> 00:09:57,200
Speaker 4: America's prosperity and growth.

258
00:09:57,360 --> 00:09:58,680
Speaker 1: And I think, frankly, the.

259
00:09:58,559 --> 00:10:01,840
Speaker 4: Theme here in Frances need business, we need labor, we

260
00:10:01,880 --> 00:10:04,120
Speaker 4: need government, we need all work together. We need green

261
00:10:04,200 --> 00:10:06,280
Speaker 4: we need oil and gas, we need nuclear, we need

262
00:10:06,320 --> 00:10:07,000
Speaker 4: all work together.

263
00:10:07,240 --> 00:10:09,400
Speaker 1: That idea of trying to figure out how it all works.

264
00:10:09,200 --> 00:10:11,199
Speaker 4: Together because the end of the day, the numbers of

265
00:10:11,200 --> 00:10:13,600
Speaker 4: employees for our companies and us growing on a worldwide

266
00:10:13,640 --> 00:10:15,280
Speaker 4: stage is critical to health of America.

267
00:10:15,400 --> 00:10:17,400
Speaker 3: Do you know get that message from Washington right now?

268
00:10:17,840 --> 00:10:18,280
Speaker 3: You get it.

269
00:10:18,280 --> 00:10:20,400
Speaker 4: It's mixed, It's mixed, And I think that's been the

270
00:10:20,440 --> 00:10:24,000
Speaker 4: debate is how do you America is has a chance

271
00:10:24,040 --> 00:10:25,840
Speaker 4: to win like it's never had to win because of

272
00:10:25,960 --> 00:10:28,360
Speaker 4: the resilience of our economy, So when you look at

273
00:10:28,600 --> 00:10:30,800
Speaker 4: two thousand and seven to now, you look at the

274
00:10:30,800 --> 00:10:33,120
Speaker 4: size of European economy US a conment back then roughly

275
00:10:33,120 --> 00:10:35,760
Speaker 4: the same size. Now America's fifty to sixty percent bigger.

276
00:10:35,920 --> 00:10:38,120
Speaker 4: That's the resiliency of the American economy. So we have

277
00:10:38,200 --> 00:10:41,319
Speaker 4: to have capitalism done right, and I think policies that

278
00:10:41,400 --> 00:10:43,840
Speaker 4: promote that are what's going to drive America to stay

279
00:10:43,840 --> 00:10:45,640
Speaker 4: great and be great. We can solve any problem and

280
00:10:45,679 --> 00:10:47,959
Speaker 4: get through everything if we're growing. And one of the

281
00:10:47,960 --> 00:10:49,800
Speaker 4: ways we grow is by letting them and a happen,

282
00:10:49,840 --> 00:10:52,480
Speaker 4: by letting our companies do it fairly with the consumer,

283
00:10:52,559 --> 00:10:53,920
Speaker 4: fairly with other companies, but.

284
00:10:54,160 --> 00:10:54,880
Speaker 1: Do it the right way.

285
00:10:54,960 --> 00:10:56,160
Speaker 3: You sound like a policy Mica.

286
00:10:57,240 --> 00:10:59,480
Speaker 4: I just look, I've been at this a long time now,

287
00:10:59,520 --> 00:11:01,520
Speaker 4: and I've seen ups and downs, you know. I think

288
00:11:01,559 --> 00:11:04,920
Speaker 4: it's really interesting when you think about countries companies around

289
00:11:04,920 --> 00:11:05,600
Speaker 4: the world, they want to.

290
00:11:05,559 --> 00:11:06,480
Speaker 1: Invest in the United States.

291
00:11:06,480 --> 00:11:10,400
Speaker 4: Talent work rules, uh, big market, you know, huge market,

292
00:11:10,760 --> 00:11:13,360
Speaker 4: And I think there's real opportunity for American companies if

293
00:11:13,360 --> 00:11:13,920
Speaker 4: we get this right.

294
00:11:14,040 --> 00:11:16,600
Speaker 2: Every time we talk, the interview ends in the same place.

295
00:11:18,160 --> 00:11:20,440
Speaker 2: Treasury Secretary thoughts on Washington.

296
00:11:20,720 --> 00:11:22,600
Speaker 4: I have the greatest job in the world, and I've

297
00:11:22,600 --> 00:11:24,319
Speaker 4: got a lot of work to do for Bank of America,

298
00:11:24,440 --> 00:11:25,959
Speaker 4: so I'll let somebody else.

299
00:11:25,800 --> 00:11:26,360
Speaker 1: Have that honor.

300
00:11:26,480 --> 00:11:28,800
Speaker 2: I imagine that was a bottled answer ready the guy Brian.

301
00:11:28,840 --> 00:11:30,160
Speaker 3: It's good to see it. Thank you.

302
00:11:30,240 --> 00:11:32,840
Speaker 2: Sir Brian had that the Bank of America Chief Executive