1 00:00:02,840 --> 00:00:04,840 Speaker 1: One of the largest and most respective banks in the 2 00:00:04,880 --> 00:00:07,880 Speaker 1: world is Bank of America. For the past fifteen years, 3 00:00:07,920 --> 00:00:10,799 Speaker 1: it's been led by its CEO, Brian and Mornihan. I 4 00:00:10,840 --> 00:00:12,920 Speaker 1: had a chance to sit down with him recently to 5 00:00:12,960 --> 00:00:16,040 Speaker 1: talk about the new environment in Washington, lower interest rates 6 00:00:16,079 --> 00:00:18,360 Speaker 1: and the impact on the banking community and. 7 00:00:18,360 --> 00:00:20,919 Speaker 2: Davos, you were asking. 8 00:00:23,200 --> 00:00:27,840 Speaker 1: A question of President Trump and he didn't quite answer 9 00:00:27,840 --> 00:00:30,160 Speaker 1: the question that he asked you a question. So the 10 00:00:30,280 --> 00:00:33,199 Speaker 1: question he asked you was something like, why are you 11 00:00:33,280 --> 00:00:36,640 Speaker 1: not banking certain groups? What is the answer? I don't 12 00:00:36,640 --> 00:00:38,640 Speaker 1: think he gave you a chance to really answer that question. 13 00:00:38,720 --> 00:00:40,360 Speaker 1: But what is the answer to that question? 14 00:00:40,880 --> 00:00:43,960 Speaker 3: Well, first off, the Bank of America has seventy million 15 00:00:44,000 --> 00:00:47,159 Speaker 3: consumer customers and millions of small businesses all over the country, 16 00:00:47,200 --> 00:00:50,800 Speaker 3: all over the world, and so we bank everybody. But 17 00:00:51,159 --> 00:00:55,520 Speaker 3: the real question was about over regulation, frankly, and so 18 00:00:55,640 --> 00:00:58,840 Speaker 3: as you look at what's happened is because the interpretations 19 00:00:58,880 --> 00:01:04,319 Speaker 3: aml any money laundering BSA, Bank Secrecy Act KYC, Know 20 00:01:04,400 --> 00:01:07,640 Speaker 3: your customer, know your customer's customer. You know, there's a 21 00:01:07,680 --> 00:01:11,959 Speaker 3: lot of burden upon the banking system to both report 22 00:01:12,240 --> 00:01:16,360 Speaker 3: suspicious activity reports and do a lot of analysis, and 23 00:01:16,360 --> 00:01:17,920 Speaker 3: we have to close accounts, so we can't tell people 24 00:01:17,920 --> 00:01:20,240 Speaker 3: why we did it, and often we're told by authorities 25 00:01:20,240 --> 00:01:21,040 Speaker 3: of close accounts. 26 00:01:21,240 --> 00:01:22,400 Speaker 4: That creates confusion. 27 00:01:22,640 --> 00:01:25,959 Speaker 3: Another area comes up in this discussions in a crypto area, 28 00:01:26,000 --> 00:01:28,920 Speaker 3: where the regulator said you can't bank crypto operating companies, 29 00:01:29,000 --> 00:01:31,959 Speaker 3: employees of crypto companies, et cetera. We bank everybody. So 30 00:01:31,959 --> 00:01:33,280 Speaker 3: at the end of the day, it's about getting these 31 00:01:33,319 --> 00:01:35,320 Speaker 3: regulations right now. I think it opens a dialogue about 32 00:01:35,319 --> 00:01:36,880 Speaker 3: how to get these regulations correct. 33 00:01:37,440 --> 00:01:40,000 Speaker 4: And the end of the day, we were open for everybody. 34 00:01:40,120 --> 00:01:43,560 Speaker 3: We serve millions and millions of Americans trallions and transactions 35 00:01:43,600 --> 00:01:44,120 Speaker 3: a year. 36 00:01:44,200 --> 00:01:45,200 Speaker 4: And we continue to do so. 37 00:01:45,400 --> 00:01:48,440 Speaker 1: Okay, So when this administration was elected, there was a 38 00:01:48,440 --> 00:01:52,120 Speaker 1: lot of i would say jubilation in the streets the 39 00:01:52,160 --> 00:01:55,480 Speaker 1: banking where all the people thought that the banking regulation 40 00:01:55,600 --> 00:01:59,080 Speaker 1: had been too tough under President Biden, and some people 41 00:01:59,080 --> 00:02:02,960 Speaker 1: thought that regulation be more amenable to banks. Has that 42 00:02:03,040 --> 00:02:04,400 Speaker 1: turned out to be the case, shed or is it 43 00:02:04,520 --> 00:02:07,440 Speaker 1: still too early to know and is the Banking Committee 44 00:02:07,560 --> 00:02:10,200 Speaker 1: happy with the direction that the current administration is going 45 00:02:10,320 --> 00:02:11,359 Speaker 1: or you just don't know yet. 46 00:02:11,520 --> 00:02:14,679 Speaker 3: If you think about the Great Financial Crisis, and Dodd 47 00:02:14,760 --> 00:02:16,960 Speaker 3: Frank and a lot of capital rules and quity rules 48 00:02:17,000 --> 00:02:19,160 Speaker 3: and all that stafe came in. There was a reason 49 00:02:19,240 --> 00:02:21,880 Speaker 3: for the world ri at large to be really not happy 50 00:02:21,880 --> 00:02:25,840 Speaker 3: with banks and non banks that became banks, Golden Sacks, Morgan, Stanley, Maryland, 51 00:02:25,840 --> 00:02:28,440 Speaker 3: et cetera. So you could understand that when you go 52 00:02:28,520 --> 00:02:31,520 Speaker 3: fast forward through the fifteen years hence plus, you go 53 00:02:31,560 --> 00:02:33,720 Speaker 3: through the pandemic and the banking system stands up and 54 00:02:33,760 --> 00:02:35,080 Speaker 3: stabilizes the economy. 55 00:02:35,320 --> 00:02:36,480 Speaker 4: You go through the. 56 00:02:36,440 --> 00:02:39,200 Speaker 3: Regional banking crisis, the banking system steps up and stabilize it, 57 00:02:39,240 --> 00:02:41,560 Speaker 3: and they keep adding capital and liquidier, sort of saying, 58 00:02:41,560 --> 00:02:44,880 Speaker 3: wait a second, we are a source of strength. And 59 00:02:44,960 --> 00:02:46,960 Speaker 3: by the way, the Berican bank industry is really a 60 00:02:46,960 --> 00:02:50,200 Speaker 3: source of strength. So the Penland kept just swinging, even 61 00:02:50,240 --> 00:02:52,840 Speaker 3: though the reason why it had swung had stopped, and 62 00:02:52,880 --> 00:02:55,680 Speaker 3: so our industry was say, wait a second, why are 63 00:02:55,680 --> 00:02:59,040 Speaker 3: we have twenty percent more capital we did during the pandemic. 64 00:02:59,080 --> 00:03:01,760 Speaker 3: The risk is the same, it's just by mathematical creep 65 00:03:01,800 --> 00:03:03,000 Speaker 3: of calculations. 66 00:03:03,240 --> 00:03:05,760 Speaker 1: So many people when they talk about the Federal Reserve, 67 00:03:06,280 --> 00:03:08,560 Speaker 1: they wonder whether the Fed are going to increase interest 68 00:03:08,639 --> 00:03:11,760 Speaker 1: rates or decrease interest rates. But in the banking community, 69 00:03:11,760 --> 00:03:14,840 Speaker 1: you're often worried about the stress tests. And do you 70 00:03:14,880 --> 00:03:18,520 Speaker 1: think the FED has pushed stress tests to two tough 71 00:03:18,560 --> 00:03:20,640 Speaker 1: a limit on banks? Are you okay with the current 72 00:03:20,639 --> 00:03:21,440 Speaker 1: stress tests? 73 00:03:21,720 --> 00:03:27,120 Speaker 3: It's so the stress tests are publicly available were I 74 00:03:27,160 --> 00:03:29,680 Speaker 3: think the first one was twenty ten and then picked 75 00:03:29,760 --> 00:03:31,960 Speaker 3: up an earnest eleven or twelve, and so every year 76 00:03:32,000 --> 00:03:34,600 Speaker 3: you can see this report card in the bank industry's health, 77 00:03:34,639 --> 00:03:36,240 Speaker 3: and every year the bank industry has great health. 78 00:03:36,680 --> 00:03:38,160 Speaker 4: The rules kept changing. 79 00:03:37,800 --> 00:03:40,720 Speaker 3: The test, so you if you think of the last 80 00:03:40,760 --> 00:03:43,680 Speaker 3: four or five years, you had volatility and capital requirements 81 00:03:44,080 --> 00:03:48,040 Speaker 3: that were you went from fifty to seventy five basis 82 00:03:48,040 --> 00:03:50,200 Speaker 3: points up and down a year with basically tests said 83 00:03:50,200 --> 00:03:54,560 Speaker 3: ten percent employment, fifty downturn in the equity markets, thirty 84 00:03:54,560 --> 00:03:56,840 Speaker 3: percent drop in housing, thirty to forty percent drop in 85 00:03:56,880 --> 00:04:01,560 Speaker 3: commercial real estate, highield spreads blown out by a thousand, 86 00:04:01,640 --> 00:04:04,400 Speaker 3: two thousand basis points, whatever it was. You look at 87 00:04:04,400 --> 00:04:06,280 Speaker 3: all it the same test produced as different results. It 88 00:04:06,280 --> 00:04:09,520 Speaker 3: didn't make sense. So behind the scenes, the transparency wasn't there, 89 00:04:09,520 --> 00:04:11,160 Speaker 3: and that's what we end up suing them on. So 90 00:04:11,480 --> 00:04:13,400 Speaker 3: the stress tests are a very good thing. Frankly gives 91 00:04:13,440 --> 00:04:15,280 Speaker 3: a state of health for thirty one banks, which cover 92 00:04:15,360 --> 00:04:18,000 Speaker 3: most the industry. The way the United States run was 93 00:04:18,000 --> 00:04:21,600 Speaker 3: far superior. We do stress tests every quarter, multiple scenarios, 94 00:04:22,120 --> 00:04:24,440 Speaker 3: and our trading book. 95 00:04:24,279 --> 00:04:25,080 Speaker 4: Is stressed every day. 96 00:04:25,120 --> 00:04:26,839 Speaker 3: So if you think about it's a good thing, it's 97 00:04:26,839 --> 00:04:29,120 Speaker 3: just that behind the scenes, what was happening is that 98 00:04:29,440 --> 00:04:31,840 Speaker 3: dials are being turned on us and the numbers were 99 00:04:31,839 --> 00:04:34,040 Speaker 3: becoming irrational to the market, and we have investors and 100 00:04:34,080 --> 00:04:36,280 Speaker 3: we have to raise capital and have capital available for 101 00:04:36,320 --> 00:04:36,839 Speaker 3: the industry. 102 00:04:36,960 --> 00:04:39,640 Speaker 1: So there was somebody there's a vice chairman of the 103 00:04:39,680 --> 00:04:42,400 Speaker 1: Federal Reserve who's in charge of regulating the banks and 104 00:04:42,400 --> 00:04:47,400 Speaker 1: so forth. That person has given up that position recently, 105 00:04:47,960 --> 00:04:50,679 Speaker 1: and was that something in the banking community was happy 106 00:04:50,720 --> 00:04:52,720 Speaker 1: with that he stepped aside or you didn't really care 107 00:04:52,760 --> 00:04:53,880 Speaker 1: whether he stepped aside or not. 108 00:04:54,160 --> 00:04:55,599 Speaker 3: Well, the ind of the day is, I think he 109 00:04:55,680 --> 00:04:57,760 Speaker 3: had a year left on his term, and the new 110 00:04:57,760 --> 00:04:59,920 Speaker 3: administrative president would point someone for that BASI. 111 00:05:01,520 --> 00:05:02,960 Speaker 4: We'll get it today. 112 00:05:03,680 --> 00:05:06,279 Speaker 3: As when people always ask me, do you have different 113 00:05:06,279 --> 00:05:09,320 Speaker 3: approaches for different administrations, and you say, well, in the 114 00:05:09,360 --> 00:05:12,159 Speaker 3: long term, we've been around since Washington as president. So 115 00:05:12,760 --> 00:05:15,240 Speaker 3: if we geared ourselves up for this president, not that presdent. 116 00:05:15,240 --> 00:05:17,560 Speaker 4: We'd have to change forty five times whatever it is. 117 00:05:18,000 --> 00:05:19,800 Speaker 3: And if you think even in the foreign soil, think 118 00:05:19,839 --> 00:05:21,960 Speaker 3: how many different prime ministers there's been in. 119 00:05:21,920 --> 00:05:24,799 Speaker 4: England or so even in my tenure CEO. 120 00:05:25,000 --> 00:05:26,640 Speaker 3: So the end of the day, you run the company 121 00:05:26,640 --> 00:05:27,920 Speaker 3: the right way, and what we're trying to say is 122 00:05:27,960 --> 00:05:29,039 Speaker 3: get us to rational. 123 00:05:28,880 --> 00:05:32,920 Speaker 4: Gatory structure that and have it stick to the ribs. 124 00:05:33,000 --> 00:05:36,279 Speaker 3: If you keep swinging like this, our clients can't be 125 00:05:36,320 --> 00:05:38,400 Speaker 3: as it can't depend on us when adias. 126 00:05:38,760 --> 00:05:43,680 Speaker 1: So recently, another banker you probably heard of, Jamie Diamond, 127 00:05:44,040 --> 00:05:48,880 Speaker 1: and he testified on Capitol Hill that maybe the regulators 128 00:05:48,920 --> 00:05:51,360 Speaker 1: and Congress should get together and say, let's just start 129 00:05:51,400 --> 00:05:54,640 Speaker 1: afresh and take a look at all the banking regulations 130 00:05:54,640 --> 00:05:56,960 Speaker 1: from a fresh perspective, building from scratch. 131 00:05:57,240 --> 00:05:58,640 Speaker 2: Do you have a comment on that. Is that a 132 00:05:58,680 --> 00:05:59,159 Speaker 2: good idea? 133 00:05:59,279 --> 00:06:00,960 Speaker 4: Or just take Consumer Bureau. 134 00:06:01,000 --> 00:06:04,640 Speaker 3: In twenty ten with Dot Frank ten or eleven, they 135 00:06:04,640 --> 00:06:06,840 Speaker 3: set up the Consumer Bureau. The theory was that all 136 00:06:06,880 --> 00:06:09,800 Speaker 3: the consumer regulatory activity would move to a new agency. 137 00:06:11,080 --> 00:06:13,920 Speaker 3: Guess what we still have the occ regulars consumer activity 138 00:06:13,920 --> 00:06:16,119 Speaker 3: start of the federal regulars consumer activity stud the FTC 139 00:06:16,200 --> 00:06:19,000 Speaker 3: will hit consumer activity on occasion, and you have the 140 00:06:19,040 --> 00:06:19,719 Speaker 3: Consumer Bureau. 141 00:06:19,800 --> 00:06:21,400 Speaker 4: And if you have the FDIC as regular you have 142 00:06:21,440 --> 00:06:21,920 Speaker 4: the FDIC. 143 00:06:22,120 --> 00:06:26,000 Speaker 1: You're regulated by the Federal Reserve. The FDIC the comptrol 144 00:06:26,040 --> 00:06:28,080 Speaker 1: of the currency. So do you spend a lot of 145 00:06:28,120 --> 00:06:30,160 Speaker 1: time with the regulators or you try to avoid that. 146 00:06:32,800 --> 00:06:34,640 Speaker 3: I'd like to spend time when they're telling us we're 147 00:06:34,640 --> 00:06:36,320 Speaker 3: doing good stuff. We all spend a lot of time 148 00:06:36,360 --> 00:06:38,240 Speaker 3: on I have great chief risk officer and Jeff green 149 00:06:38,320 --> 00:06:41,200 Speaker 3: Or who organized that for the company. All my senior 150 00:06:41,240 --> 00:06:43,720 Speaker 3: executives spend time with them and look the day to 151 00:06:43,800 --> 00:06:46,279 Speaker 3: day regulators are help trying to help us be better. 152 00:06:46,360 --> 00:06:48,200 Speaker 3: And we understand that we are on the road to 153 00:06:48,240 --> 00:06:51,120 Speaker 3: perfection as a company. And as vincelent Party said, you 154 00:06:51,160 --> 00:06:53,400 Speaker 3: strive for perfection next since we found that's what we're 155 00:06:53,400 --> 00:06:55,599 Speaker 3: trying to do. If they've got ideas for all ears, 156 00:06:57,240 --> 00:07:01,240 Speaker 3: simplifying the organization will allow frankly, cost to be taken 157 00:07:01,240 --> 00:07:03,000 Speaker 3: out from the regatory side, and we pay fees to 158 00:07:03,040 --> 00:07:03,520 Speaker 3: support it. 159 00:07:04,080 --> 00:07:06,520 Speaker 4: Uh And it wouldn't be the worst idea. 160 00:07:06,720 --> 00:07:09,600 Speaker 1: Now, when interest rates go up, the theory is that 161 00:07:09,680 --> 00:07:13,160 Speaker 1: banks can charge more for loans and therefore their more profitable. 162 00:07:13,160 --> 00:07:15,040 Speaker 2: And banks have been very profitable in recent years. 163 00:07:15,240 --> 00:07:17,840 Speaker 1: When interest rates go down, is that a concern to 164 00:07:17,960 --> 00:07:21,360 Speaker 1: banks because you have less profitability or you really don't care? 165 00:07:21,880 --> 00:07:25,680 Speaker 3: Well, The toughest time to be a bank with a 166 00:07:25,760 --> 00:07:29,520 Speaker 3: trillion two trillion dollars deposits is when interest rates are 167 00:07:29,600 --> 00:07:34,080 Speaker 3: zero because we have we can't charge people. 168 00:07:33,880 --> 00:07:34,880 Speaker 4: To store their money. 169 00:07:35,160 --> 00:07:37,520 Speaker 3: It's it's we're not like a self storage unit or 170 00:07:37,520 --> 00:07:39,040 Speaker 3: something like that. So at the end the day, you 171 00:07:39,040 --> 00:07:41,000 Speaker 3: have a floor on interest rates. And so when interest 172 00:07:41,040 --> 00:07:43,800 Speaker 3: rates came down, you started squeezing margins, so the loan 173 00:07:43,880 --> 00:07:46,640 Speaker 3: rates came down, But the deposit rates have a zero floor. 174 00:07:47,280 --> 00:07:49,040 Speaker 4: When rates move up. 175 00:07:49,240 --> 00:07:52,080 Speaker 3: That changes and so the zero interest checking accounts all 176 00:07:52,080 --> 00:07:54,480 Speaker 3: and stuff become worth more, and the loan rates go. 177 00:07:54,520 --> 00:07:57,280 Speaker 2: Up because interest rates come down. Though you're not it's 178 00:07:57,280 --> 00:07:58,200 Speaker 2: not going to affect. 179 00:07:57,880 --> 00:08:01,040 Speaker 1: Your profitability, not not a lot, because you have right 180 00:08:01,280 --> 00:08:03,480 Speaker 1: So you don't want Jaypale's job. It sounds like, but 181 00:08:03,760 --> 00:08:07,480 Speaker 1: suppose he called you and said, should I increase interest rates? 182 00:08:07,680 --> 00:08:09,920 Speaker 2: Decrease? Interest rates are holding the same? What would your 183 00:08:09,920 --> 00:08:10,400 Speaker 2: advice be? 184 00:08:10,760 --> 00:08:15,920 Speaker 3: Our team right now is basically says it would be 185 00:08:15,920 --> 00:08:19,120 Speaker 3: no further rate cuts through their forecast period, which is 186 00:08:19,160 --> 00:08:21,880 Speaker 3: this year next year. Inflation is coming down, but is 187 00:08:21,920 --> 00:08:25,680 Speaker 3: a bigger fight. An there's the dual mandate, employment, inflation, employment. 188 00:08:25,720 --> 00:08:28,840 Speaker 3: They're in great shape on inflation. It's been coming down, 189 00:08:28,880 --> 00:08:31,240 Speaker 3: it's working some way down. It takes multiple years of 190 00:08:31,280 --> 00:08:33,800 Speaker 3: squeeze inflation out and there's a drag on economy today. 191 00:08:33,920 --> 00:08:36,400 Speaker 3: And so you're seeing economic growth from three percent in 192 00:08:36,440 --> 00:08:39,080 Speaker 3: the last couple of quarters to two percent. We haven't 193 00:08:39,120 --> 00:08:42,000 Speaker 3: moved down to two percent our expectations. 194 00:08:42,040 --> 00:08:42,920 Speaker 4: They won't cut rates. 195 00:08:43,000 --> 00:08:45,559 Speaker 1: So let me ask you. The business that my firm 196 00:08:45,559 --> 00:08:48,240 Speaker 1: has been in is private equity. But now private equity 197 00:08:48,280 --> 00:08:51,360 Speaker 1: firms have become private credit firms as well. And private 198 00:08:51,360 --> 00:08:55,800 Speaker 1: credit firms they lend money, but they're not regulated quite 199 00:08:55,800 --> 00:08:57,800 Speaker 1: the way you are. So is that a source of 200 00:08:57,880 --> 00:09:00,200 Speaker 1: concern that we can lend money and we're not as 201 00:09:00,240 --> 00:09:02,440 Speaker 1: highly regulated as you are, And you're lending money but 202 00:09:02,440 --> 00:09:03,360 Speaker 1: you're highly regulated. 203 00:09:03,440 --> 00:09:06,960 Speaker 4: You know, I think I care about your firm. 204 00:09:07,840 --> 00:09:15,960 Speaker 3: But look in a day, the private capital has grown 205 00:09:16,080 --> 00:09:18,160 Speaker 3: because they can do something we can't. 206 00:09:18,400 --> 00:09:19,800 Speaker 4: Along a couple dimensions. 207 00:09:19,920 --> 00:09:24,600 Speaker 3: One is they can finance companies that may have more leverage, 208 00:09:24,920 --> 00:09:28,360 Speaker 3: and we are basically stopped out at six times leverage. 209 00:09:28,440 --> 00:09:30,240 Speaker 3: And that used to be a rule, then it was 210 00:09:30,280 --> 00:09:32,080 Speaker 3: taken back then it was a guidance, and then it 211 00:09:32,120 --> 00:09:34,480 Speaker 3: was like wait till we examine you so and we 212 00:09:34,520 --> 00:09:36,480 Speaker 3: do go above it for certain credits and stuff like that. 213 00:09:36,520 --> 00:09:37,120 Speaker 4: So that's one thing. 214 00:09:37,160 --> 00:09:39,280 Speaker 3: The second thing is the ability to bring the whole 215 00:09:39,280 --> 00:09:43,680 Speaker 3: capital structure, debt, equity, the mezzanine, whole nine yards. That's 216 00:09:43,760 --> 00:09:45,480 Speaker 3: hard for a bank because we don't engage. 217 00:09:45,160 --> 00:09:45,920 Speaker 4: In the equity business. 218 00:09:45,920 --> 00:09:48,840 Speaker 3: But on top of that, you know, we have a 219 00:09:48,880 --> 00:09:51,079 Speaker 3: trillion dollars a commercial loan commitments, a half a billion 220 00:09:51,080 --> 00:09:54,040 Speaker 3: plus of drawing loans. We don't fear any competitor, and 221 00:09:54,080 --> 00:09:56,600 Speaker 3: we work with those companies, including yours, to generate assets 222 00:09:56,600 --> 00:09:56,800 Speaker 3: for them. 223 00:09:56,880 --> 00:09:58,480 Speaker 4: But it's just a different style. 224 00:09:59,000 --> 00:10:01,520 Speaker 3: I think the the world should be concerned to make 225 00:10:01,559 --> 00:10:06,800 Speaker 3: sure that those enterprises making loans to you know, billion 226 00:10:06,880 --> 00:10:09,760 Speaker 3: dollar operating company, have the ability to work with him 227 00:10:09,800 --> 00:10:11,760 Speaker 3: times of stress. That that's going to be a interest question. 228 00:10:11,760 --> 00:10:13,559 Speaker 3: We haven't gone through a stress period with this practice 229 00:10:13,559 --> 00:10:13,800 Speaker 3: out there. 230 00:10:14,000 --> 00:10:16,640 Speaker 1: Let's talk about in your background, I am an only child. 231 00:10:17,640 --> 00:10:19,120 Speaker 1: You have how many siblings? 232 00:10:19,240 --> 00:10:19,520 Speaker 4: Seven? 233 00:10:19,840 --> 00:10:24,920 Speaker 1: Seven, so you know, growing up with eight people in 234 00:10:24,920 --> 00:10:26,640 Speaker 1: a family, wasn't that crowd at a time. 235 00:10:26,760 --> 00:10:29,760 Speaker 3: So I was set up to get my own bedroom 236 00:10:29,800 --> 00:10:31,040 Speaker 3: for the first time in my life from my younger 237 00:10:31,040 --> 00:10:33,200 Speaker 3: brother decided he wanted to move into the bedroom because 238 00:10:33,200 --> 00:10:35,040 Speaker 3: he was scared to sleep alone. Probably when I was 239 00:10:36,280 --> 00:10:38,320 Speaker 3: in college, his first time I ever had a bedroom 240 00:10:38,320 --> 00:10:38,760 Speaker 3: to myself. 241 00:10:38,800 --> 00:10:39,560 Speaker 4: So, yes, it was grod. 242 00:10:39,880 --> 00:10:43,320 Speaker 1: What did your father do to support eight children? See 243 00:10:43,360 --> 00:10:44,800 Speaker 1: him private equity or something. 244 00:10:44,559 --> 00:10:50,040 Speaker 4: That he was He was a research chemist for DuPont 245 00:10:50,520 --> 00:10:54,160 Speaker 4: and so he spent his whole life on plastics. 246 00:10:54,200 --> 00:10:56,400 Speaker 3: So the graduate, you know, plastics young man, my dad 247 00:10:56,440 --> 00:10:57,600 Speaker 3: was at So that's. 248 00:10:57,480 --> 00:10:58,520 Speaker 2: What he grew up in Ohio. 249 00:10:59,120 --> 00:11:01,280 Speaker 1: And then you went to college in the East Coast 250 00:11:01,960 --> 00:11:04,880 Speaker 1: and at Brown. Yes, and you were the co captain 251 00:11:04,920 --> 00:11:05,800 Speaker 1: of the rugby team. 252 00:11:06,120 --> 00:11:06,400 Speaker 4: Yes. 253 00:11:07,080 --> 00:11:09,200 Speaker 2: And do you still play rugby or not so much? 254 00:11:09,280 --> 00:11:11,559 Speaker 3: I played rugby at Brown, I played rugby at law school, 255 00:11:11,559 --> 00:11:14,720 Speaker 3: and I played rugby after. It's a great sport. It is, 256 00:11:15,080 --> 00:11:17,040 Speaker 3: in a way the most intense. It looks like this 257 00:11:17,240 --> 00:11:21,400 Speaker 3: organization out there is extreme, ill organized, but it's unique 258 00:11:21,400 --> 00:11:22,120 Speaker 3: in that it's. 259 00:11:21,960 --> 00:11:24,440 Speaker 4: Physical and tackling, you kick, you run. 260 00:11:24,559 --> 00:11:26,920 Speaker 3: Everybody gets to handle the ball and you run for 261 00:11:26,960 --> 00:11:29,360 Speaker 3: eighty minutes, and so it's a very demanding game. 262 00:11:29,559 --> 00:11:30,520 Speaker 4: It was a lot of fun. 263 00:11:30,760 --> 00:11:31,120 Speaker 2: Okay. 264 00:11:31,360 --> 00:11:35,920 Speaker 1: So now you are the chancellor of Brown University, which 265 00:11:35,960 --> 00:11:37,480 Speaker 1: means the chairman of the board essentially. 266 00:11:37,760 --> 00:11:39,040 Speaker 2: So how do you have time for that? 267 00:11:39,720 --> 00:11:42,200 Speaker 3: I've been on the board for fifteen years and at 268 00:11:42,200 --> 00:11:43,960 Speaker 3: the end of the day, the chair of the board, 269 00:11:44,440 --> 00:11:46,800 Speaker 3: Chris Packson runs university, doesn't spect calcular job. 270 00:11:47,040 --> 00:11:49,320 Speaker 1: After you graduated from Brown, you went to law schoo 271 00:11:49,320 --> 00:11:51,760 Speaker 1: at Notre Dame, Yes, sir. Then you went to practice 272 00:11:51,840 --> 00:11:54,160 Speaker 1: law back in Rhode Island. You're from Ohio. You went 273 00:11:54,200 --> 00:11:56,520 Speaker 1: to Notre Dame and the Midwest. Why did you go 274 00:11:56,559 --> 00:11:57,440 Speaker 1: back to Rhode Island? 275 00:11:57,640 --> 00:11:59,719 Speaker 3: Well, none of the Boston law firms would hire a 276 00:11:59,760 --> 00:12:01,360 Speaker 3: person from Notre Dame in law school, so I had. 277 00:12:02,559 --> 00:12:03,880 Speaker 3: So I ended up in a great law firm and 278 00:12:03,920 --> 00:12:05,400 Speaker 3: had a great short. 279 00:12:05,200 --> 00:12:05,920 Speaker 4: Legal career there. 280 00:12:06,000 --> 00:12:08,080 Speaker 2: How did you escape from being a corporate lawyer? What 281 00:12:08,120 --> 00:12:08,640 Speaker 2: did you do? 282 00:12:09,080 --> 00:12:11,200 Speaker 3: One of my mentors is named Terry Murray, who ran 283 00:12:11,240 --> 00:12:12,520 Speaker 3: Fleet and I was. 284 00:12:12,760 --> 00:12:13,680 Speaker 4: I did corporate law. 285 00:12:14,160 --> 00:12:17,000 Speaker 3: A lot of work I did for Fleet and then 286 00:12:17,360 --> 00:12:20,400 Speaker 3: Terry after we did a transaction called the bank Canoeing, 287 00:12:20,440 --> 00:12:23,199 Speaker 3: a transaction with KKR put money into the bank industry, 288 00:12:23,240 --> 00:12:24,880 Speaker 3: and we bought the Banknoeing and I mean you. Fleet 289 00:12:24,880 --> 00:12:28,280 Speaker 3: bought the Banknoeing And from the federal government in the 290 00:12:28,559 --> 00:12:29,800 Speaker 3: early nineties. 291 00:12:29,360 --> 00:12:31,480 Speaker 4: After the real estate crisis. 292 00:12:32,000 --> 00:12:34,840 Speaker 3: I'd structured that deal in a way that I'd structured 293 00:12:34,840 --> 00:12:37,520 Speaker 3: private equity eels for our bank private equity firm, which 294 00:12:37,600 --> 00:12:39,800 Speaker 3: was a thing called dual convertible per hered stock. It 295 00:12:39,880 --> 00:12:42,880 Speaker 3: converted into parent company stock or bank stock. Never been 296 00:12:42,920 --> 00:12:46,360 Speaker 3: done in the public array. Terry said to the General Council, 297 00:12:46,400 --> 00:12:47,840 Speaker 3: he's too smart to be a lawyer, which I never 298 00:12:47,880 --> 00:12:49,760 Speaker 3: figured out what the General Council thought about. He was 299 00:12:49,800 --> 00:12:51,840 Speaker 3: a brilliant guy, and he said, get him in here 300 00:12:52,360 --> 00:12:53,720 Speaker 3: and we'll figure out if he's gonna do something. 301 00:12:53,760 --> 00:12:55,920 Speaker 2: Work at Fleet, which is headquartered in Rhode Island. 302 00:12:56,160 --> 00:12:57,680 Speaker 3: I just went to work for Fleet, and I was 303 00:12:57,800 --> 00:12:59,920 Speaker 3: deputy general counsel for like three months, and I went 304 00:13:00,080 --> 00:13:02,800 Speaker 3: a special project to re engineer the company and came. 305 00:13:02,880 --> 00:13:05,280 Speaker 2: And Fleet ultimately merged with Bank Boston. 306 00:13:05,360 --> 00:13:07,120 Speaker 3: That was the last deal I did is I was 307 00:13:07,160 --> 00:13:10,440 Speaker 3: a head of M and A and strategy, and Terry 308 00:13:10,480 --> 00:13:13,400 Speaker 3: Murray and Chad Gifford put together that deal. Chad ultimately 309 00:13:13,600 --> 00:13:15,800 Speaker 3: took a liking to me as a great mentor and said, 310 00:13:15,800 --> 00:13:17,319 Speaker 3: you got to run a business, and put me in 311 00:13:17,400 --> 00:13:20,240 Speaker 3: running a business. And we were merging two companies together. 312 00:13:20,320 --> 00:13:24,320 Speaker 3: And I survived and ran the wealth management business for. 313 00:13:24,280 --> 00:13:26,360 Speaker 1: If we ran the wealth manager business for the combined 314 00:13:26,400 --> 00:13:31,480 Speaker 1: Bank Boston Fleet, and then Bank Boston Fleet combined company 315 00:13:31,640 --> 00:13:33,199 Speaker 1: was sold to Bank of America. 316 00:13:33,400 --> 00:13:35,479 Speaker 2: But then you became the general counsel. 317 00:13:35,600 --> 00:13:36,760 Speaker 4: For forty days for. 318 00:13:38,240 --> 00:13:38,640 Speaker 2: How long? 319 00:13:38,760 --> 00:13:40,240 Speaker 4: Forty days and forty nights. 320 00:13:40,080 --> 00:13:43,240 Speaker 1: All right, So we became the general counsel of the 321 00:13:43,280 --> 00:13:44,240 Speaker 1: combined Bank of America. 322 00:13:44,400 --> 00:13:48,240 Speaker 3: Yeah, and then well then, so what happened was in 323 00:13:48,280 --> 00:13:53,360 Speaker 3: December of two thousand and eight, Remember we bought Marylyn 324 00:13:53,400 --> 00:13:55,480 Speaker 3: the Lehman Weekend and everything. So we were originally trying 325 00:13:55,520 --> 00:13:58,199 Speaker 3: to buy it Lehman. We said we couldn't do it 326 00:13:58,520 --> 00:14:01,040 Speaker 3: as a company. I was running that point the corporate 327 00:14:01,040 --> 00:14:04,240 Speaker 3: Investment Bank and other parts of Bank of America. 328 00:14:04,800 --> 00:14:05,600 Speaker 4: We couldn't do that. 329 00:14:05,760 --> 00:14:09,600 Speaker 3: And then over the weekend that's when the world became 330 00:14:09,720 --> 00:14:13,959 Speaker 3: very ugly, and so we bought Merrill. And then around 331 00:14:14,000 --> 00:14:17,760 Speaker 3: the time Merrill showed up without with a seven billion 332 00:14:17,800 --> 00:14:20,080 Speaker 3: dollar loss in the quarter, and with a lot less 333 00:14:20,080 --> 00:14:22,760 Speaker 3: capitainer's supposed to have, we started telling the government we 334 00:14:22,800 --> 00:14:25,600 Speaker 3: couldn't do the deal and stuff, and so Ken asked 335 00:14:25,600 --> 00:14:27,880 Speaker 3: me to be a general counsel because we were limiting 336 00:14:27,880 --> 00:14:29,880 Speaker 3: a lot of jobs, and I actually eliminated my job 337 00:14:30,280 --> 00:14:32,440 Speaker 3: and I was basically out of the company. Said you 338 00:14:32,480 --> 00:14:35,480 Speaker 3: know what, stay and become general counsel because we need somebody. 339 00:14:35,520 --> 00:14:36,880 Speaker 4: And from December ninth to. 340 00:14:37,560 --> 00:14:40,000 Speaker 2: Came the general counsel the Combined Bank of America. 341 00:14:39,800 --> 00:14:41,760 Speaker 3: As we as we negotiate with the government to figure 342 00:14:41,800 --> 00:14:43,080 Speaker 3: out how to get the Meryl deal done. 343 00:14:43,200 --> 00:14:44,960 Speaker 4: And then I went back in business right after. 344 00:14:45,080 --> 00:14:47,520 Speaker 2: But then you left after that for a while. 345 00:14:47,880 --> 00:14:52,200 Speaker 3: So then in early mid January of nine I took 346 00:14:52,200 --> 00:14:54,240 Speaker 3: over a bunch of the businesses after John Thane left 347 00:14:54,280 --> 00:14:55,360 Speaker 3: and went back into business. 348 00:14:55,400 --> 00:14:56,760 Speaker 4: And then by the end of a nine MCU. 349 00:14:57,000 --> 00:14:59,560 Speaker 1: Let's talk about the beginning of Bank of America. So 350 00:14:59,680 --> 00:15:04,120 Speaker 1: Bank America started as Bank of Italy. So who started 351 00:15:04,120 --> 00:15:05,880 Speaker 1: Bank of America and why did you name it after 352 00:15:05,920 --> 00:15:07,600 Speaker 1: Italy as opposed to America. 353 00:15:07,760 --> 00:15:11,280 Speaker 3: Well, apg And who was Italian descent, started the Bank 354 00:15:11,280 --> 00:15:12,720 Speaker 3: of Italy when he came to the country in San 355 00:15:12,760 --> 00:15:16,400 Speaker 3: Francisco to help the local the Italian community that emigrated 356 00:15:16,960 --> 00:15:20,000 Speaker 3: to San Francisco, and he became famous in the San 357 00:15:20,000 --> 00:15:24,160 Speaker 3: Francisco earthquakes and fires in the early nineteen hundreds by 358 00:15:24,160 --> 00:15:27,960 Speaker 3: setting up a barrel and starting lend money. And then 359 00:15:28,560 --> 00:15:33,480 Speaker 3: fast forward to nineteen ninety nine when Nations Bank, which 360 00:15:33,560 --> 00:15:37,360 Speaker 3: was the North Carolina Bank which is the bank the 361 00:15:37,400 --> 00:15:41,560 Speaker 3: bank today, and the Bank of America merged. You had 362 00:15:41,560 --> 00:15:42,200 Speaker 3: two good names. 363 00:15:42,240 --> 00:15:45,600 Speaker 1: Now on the personal side, you've been there fifteen years. 364 00:15:46,200 --> 00:15:48,520 Speaker 1: You haven't announced any time, and you might step back 365 00:15:48,560 --> 00:15:50,800 Speaker 1: and you're not prepared to announce that today, right, No, 366 00:15:50,880 --> 00:15:55,320 Speaker 1: I don't, so I'll tell you first, Okay, So have 367 00:15:55,400 --> 00:15:57,080 Speaker 1: you been able to convince your children to go in 368 00:15:57,120 --> 00:15:58,200 Speaker 1: the banking world. 369 00:15:58,760 --> 00:16:01,720 Speaker 3: My oldest son's and investment b anchor for a different firm. Obviously, 370 00:16:01,800 --> 00:16:05,800 Speaker 3: in my uh, my middle child is a risk manager 371 00:16:06,160 --> 00:16:09,560 Speaker 3: for another for in financial services, and my youngers and 372 00:16:09,600 --> 00:16:12,800 Speaker 3: communications and other stuff. But they look, being a CEO's 373 00:16:12,880 --> 00:16:15,480 Speaker 3: child is not the easiest thing being a CEO's spouse. 374 00:16:15,600 --> 00:16:19,160 Speaker 4: And they saw me work in different ways across the years. 375 00:16:19,200 --> 00:16:22,560 Speaker 3: And ye, so it's their decision with their careers and 376 00:16:22,560 --> 00:16:23,960 Speaker 3: and it's it's nice. 377 00:16:24,040 --> 00:16:26,240 Speaker 4: My son, he's a deal doer, he's an m and 378 00:16:26,280 --> 00:16:28,160 Speaker 4: a type of guy. So it's it's fun. Because I 379 00:16:28,240 --> 00:16:29,760 Speaker 4: used to do that, I haven't done that long time. 380 00:16:29,880 --> 00:16:33,960 Speaker 2: So let's say ask i't ask you about this banking today. 381 00:16:34,200 --> 00:16:39,600 Speaker 1: Why do we need all these bank facilities, bank branches, buildings, 382 00:16:39,640 --> 00:16:42,440 Speaker 1: financial centers because everything is done online, it seems do 383 00:16:42,480 --> 00:16:44,680 Speaker 1: you actually have a lot of buildings? You really need 384 00:16:44,720 --> 00:16:46,400 Speaker 1: all those buildings you have where you have your bank. 385 00:16:47,000 --> 00:16:50,240 Speaker 3: This is this is the classic do as I do, 386 00:16:50,320 --> 00:16:54,200 Speaker 3: not as I say, Because in the day between this 387 00:16:54,360 --> 00:16:58,280 Speaker 3: morning when the banks open up to tomorrow morning, four 388 00:16:58,360 --> 00:17:01,080 Speaker 3: hundred thousand people come into a branch. So this idea 389 00:17:01,160 --> 00:17:03,880 Speaker 3: nobody goes to bank branch just is not true. The 390 00:17:03,920 --> 00:17:06,480 Speaker 3: idea nobody uses cash. We'll have about a quarter billion 391 00:17:06,520 --> 00:17:08,600 Speaker 3: dollars and we'll go out of our ATM machines in 392 00:17:08,600 --> 00:17:11,280 Speaker 3: the next twenty four hours, the idea, but nobody writes checks. 393 00:17:12,160 --> 00:17:13,840 Speaker 4: There were one hundred millions. 394 00:17:13,960 --> 00:17:15,679 Speaker 2: How many How many banks do you have around the 395 00:17:15,680 --> 00:17:16,320 Speaker 2: country an hour? 396 00:17:16,400 --> 00:17:17,760 Speaker 4: You have three thy seven hundred. 397 00:17:17,760 --> 00:17:19,880 Speaker 2: What about ATMs? You have a lot of them, We. 398 00:17:19,840 --> 00:17:21,080 Speaker 4: Have about fourteen thousand of them. 399 00:17:21,080 --> 00:17:23,560 Speaker 3: At the high point, you had eighteen thousand, and that's technology. 400 00:17:23,600 --> 00:17:28,000 Speaker 1: How has the world of technology affected the banking world? 401 00:17:28,080 --> 00:17:32,879 Speaker 1: So right now so called fintech. Has fintech dramatically changed 402 00:17:32,880 --> 00:17:35,000 Speaker 1: the way Bank of America operates. 403 00:17:34,720 --> 00:17:38,160 Speaker 3: It's so we invest about four billion dollars in new 404 00:17:38,240 --> 00:17:41,200 Speaker 3: code every year. Every weekend, we'll have a couple million 405 00:17:41,240 --> 00:17:43,879 Speaker 3: lines of code go in to amend our systems and 406 00:17:43,960 --> 00:17:47,680 Speaker 3: change our systems or add new technology that's not to 407 00:17:47,760 --> 00:17:49,720 Speaker 3: run the systems. That's another eight or nine billion dollars 408 00:17:49,800 --> 00:17:52,680 Speaker 3: that is just new activity. 409 00:17:53,080 --> 00:17:54,520 Speaker 4: So the impacts have been unbelievable. 410 00:17:54,520 --> 00:17:56,400 Speaker 3: So in the mid nineties, when I was the head 411 00:17:56,440 --> 00:17:59,640 Speaker 3: of strategy to the company, I remember, you know, consultants 412 00:17:59,680 --> 00:18:01,840 Speaker 3: coming in saying twenty years will be no bank branches. 413 00:18:01,840 --> 00:18:03,639 Speaker 3: Well it's thirty years and guess what we still have 414 00:18:03,640 --> 00:18:06,719 Speaker 3: thirty seven hundred. And the reality is people wanted all 415 00:18:06,800 --> 00:18:07,160 Speaker 3: the ways. 416 00:18:07,240 --> 00:18:07,960 Speaker 4: So but the. 417 00:18:07,920 --> 00:18:13,320 Speaker 3: Impact of the phone iPhone in particular was so different, 418 00:18:13,600 --> 00:18:17,040 Speaker 3: and we were the first app available on the iPhone. 419 00:18:17,119 --> 00:18:20,399 Speaker 3: You now have forty million consumers who bank digitally with 420 00:18:20,520 --> 00:18:21,200 Speaker 3: us all the time. 421 00:18:21,680 --> 00:18:26,400 Speaker 4: Last year we had about you know, about ninety. 422 00:18:26,359 --> 00:18:29,399 Speaker 3: Plus percent of our interactions with consumers are digital. 423 00:18:29,520 --> 00:18:31,760 Speaker 2: So if I want to go to using ATM and 424 00:18:31,840 --> 00:18:34,600 Speaker 2: I have a Bank of America ATM CAR, but I 425 00:18:34,640 --> 00:18:37,320 Speaker 2: don't see any Bank of America ATMs. I go to 426 00:18:37,480 --> 00:18:40,119 Speaker 2: some other bank ATM, I pay a fee. 427 00:18:40,840 --> 00:18:43,520 Speaker 3: Is that you wouldn't, David, Because you're right, you wouldn't 428 00:18:43,520 --> 00:18:44,360 Speaker 3: that other people might. 429 00:18:45,600 --> 00:18:47,680 Speaker 1: I thought that to pay a fee pray fee? I mean, 430 00:18:47,800 --> 00:18:50,080 Speaker 1: is that a profit center for banks? Those fees are? 431 00:18:51,119 --> 00:18:53,320 Speaker 3: You know, at the end of the day, we get 432 00:18:53,320 --> 00:18:56,880 Speaker 3: fifty five percent of our revenue or one hundred million 433 00:18:56,920 --> 00:18:59,040 Speaker 3: dollars of revenue last year, fifty five percent came from 434 00:18:59,119 --> 00:19:03,000 Speaker 3: interest five percent fees. The dominant part of those fees 435 00:19:03,040 --> 00:19:07,800 Speaker 3: are trading revenue and asset management fees and things like that. 436 00:19:08,000 --> 00:19:11,160 Speaker 3: We have consumer fees, but they've come down dramatically because 437 00:19:11,160 --> 00:19:14,920 Speaker 3: basically you said that the consumers, you keep changing your behavior, 438 00:19:14,920 --> 00:19:16,840 Speaker 3: We keep driving on the cost to serve, and we'll 439 00:19:16,840 --> 00:19:18,640 Speaker 3: give that back by low and lower fee structure. 440 00:19:18,680 --> 00:19:21,800 Speaker 2: And do you think we will have in our collective 441 00:19:21,840 --> 00:19:25,760 Speaker 2: lifetime no more currency, Everything will be digital or you 442 00:19:25,800 --> 00:19:26,360 Speaker 2: think that's. 443 00:19:26,200 --> 00:19:28,240 Speaker 4: Not likely, not in our lifetime? 444 00:19:28,320 --> 00:19:28,800 Speaker 2: What about a. 445 00:19:28,800 --> 00:19:32,680 Speaker 1: Digital currency which doesn't preclude other things, but a digital currency. 446 00:19:33,080 --> 00:19:34,880 Speaker 3: It's pretty clear there's going to be a stable coin, 447 00:19:34,920 --> 00:19:37,280 Speaker 3: which is going to be a full of dollar backed 448 00:19:37,680 --> 00:19:39,800 Speaker 3: type of thing, which is no different than a money 449 00:19:39,800 --> 00:19:41,720 Speaker 3: market fund, a check access is no different than a 450 00:19:41,760 --> 00:19:45,320 Speaker 3: bank account really, and so if they if they make 451 00:19:45,320 --> 00:19:47,240 Speaker 3: that legal, we'll go into that business. So you'll have 452 00:19:47,280 --> 00:19:51,359 Speaker 3: a be a Bank of America coin a and a 453 00:19:51,480 --> 00:19:53,640 Speaker 3: US dollar deposit, and we'll be able to move them 454 00:19:53,840 --> 00:19:56,439 Speaker 3: back and forth, because now it hasn't been legal for 455 00:19:56,480 --> 00:19:58,520 Speaker 3: us to do it, but it's just then like another 456 00:19:58,560 --> 00:20:01,000 Speaker 3: foreign currency. The question of it's useful for it's going 457 00:20:01,040 --> 00:20:01,560 Speaker 3: to be interesting. 458 00:20:01,720 --> 00:20:04,240 Speaker 1: So if I wanted to buy and make an investment 459 00:20:04,240 --> 00:20:07,560 Speaker 1: in a bank stock, would you say it's a good 460 00:20:07,600 --> 00:20:09,040 Speaker 1: idea to invest in bank stocks? 461 00:20:09,040 --> 00:20:14,080 Speaker 3: Now our valuation difference to the SMP is lower than 462 00:20:14,119 --> 00:20:16,520 Speaker 3: it's been, and I think our company is a great 463 00:20:16,600 --> 00:20:18,640 Speaker 3: value and US the banks are pretty good value. 464 00:20:18,760 --> 00:20:19,000 Speaker 4: Hey. 465 00:20:19,119 --> 00:20:23,959 Speaker 1: So now there's an acronym today that some people in 466 00:20:24,040 --> 00:20:26,360 Speaker 1: Washington don't like, called DEI. 467 00:20:27,680 --> 00:20:30,080 Speaker 2: Do you have a DEI policy or not? Anymore? 468 00:20:30,400 --> 00:20:32,560 Speaker 3: We've always been as a bank of opportunity, So we 469 00:20:32,600 --> 00:20:36,560 Speaker 3: think about creating an opportunity for our teammates, and. 470 00:20:36,480 --> 00:20:38,560 Speaker 4: How do we do that. We go out and. 471 00:20:38,560 --> 00:20:42,280 Speaker 3: Hire from all areas and bring people into our companies. 472 00:20:42,280 --> 00:20:44,520 Speaker 4: So we go to four hundred different schools to recruit kids. 473 00:20:44,840 --> 00:20:48,119 Speaker 4: We go. We have a path program we called Pathways. 474 00:20:48,119 --> 00:20:50,360 Speaker 3: So Pathways we announced in twenty eighteen we said we'd 475 00:20:50,400 --> 00:20:53,399 Speaker 3: hire ten thousand people from low and modern income neighborhoods 476 00:20:53,440 --> 00:20:56,000 Speaker 3: to come work in our company. So once we have 477 00:20:56,040 --> 00:20:58,080 Speaker 3: a very diverse company in terms of representation from all 478 00:20:58,119 --> 00:21:02,119 Speaker 3: economic status, all races as, once they get in, the 479 00:21:02,160 --> 00:21:02,840 Speaker 3: opportunity is. 480 00:21:02,840 --> 00:21:03,600 Speaker 4: There of a lifetime. 481 00:21:04,240 --> 00:21:06,680 Speaker 3: We equal pay for equal work, the ability to promote, 482 00:21:06,760 --> 00:21:09,439 Speaker 3: and so the idea is just great opportunity. So we 483 00:21:09,520 --> 00:21:12,880 Speaker 3: have a diverse team. We stress inclusion, so when you're 484 00:21:12,920 --> 00:21:14,399 Speaker 3: at our company, you can be who you want to 485 00:21:14,440 --> 00:21:18,160 Speaker 3: be and be successful. Including we have three hundred thousand 486 00:21:18,280 --> 00:21:22,200 Speaker 3: memberships in our employee resource groups, of which about sixty 487 00:21:22,240 --> 00:21:23,400 Speaker 3: percent of people are in one. 488 00:21:23,520 --> 00:21:26,119 Speaker 1: A young professional, young person's graduate in college. Why should 489 00:21:26,119 --> 00:21:29,439 Speaker 1: they go into the banking profession as opposed to private 490 00:21:29,480 --> 00:21:33,080 Speaker 1: equity investment, banking, healthcare? 491 00:21:33,200 --> 00:21:35,359 Speaker 2: What's the appeal of working in a bank? 492 00:21:35,680 --> 00:21:39,040 Speaker 3: Well, when we bring the two thousand kids in and 493 00:21:39,480 --> 00:21:41,360 Speaker 3: I talked to them, I always say the same thing, 494 00:21:41,680 --> 00:21:43,000 Speaker 3: you can make a lot of money doing a lot 495 00:21:43,000 --> 00:21:46,040 Speaker 3: of things. You can have a great career, do a 496 00:21:46,080 --> 00:21:47,879 Speaker 3: lot of things, but if you're going to come to 497 00:21:47,960 --> 00:21:49,840 Speaker 3: our company, you really want to help people. 498 00:21:50,040 --> 00:21:53,000 Speaker 4: Our market position is what would you like the power 499 00:21:53,080 --> 00:21:53,320 Speaker 4: to do? 500 00:21:53,560 --> 00:21:55,760 Speaker 3: And I said, your job at this company is to 501 00:21:55,800 --> 00:21:59,080 Speaker 3: help people answer that question, whether it's a customer, whether 502 00:21:59,119 --> 00:22:02,760 Speaker 3: it's a teammate, whether it's a shareholder, whether it's a community, And. 503 00:22:02,720 --> 00:22:04,040 Speaker 4: You've got to come and want to do that. 504 00:22:04,080 --> 00:22:06,879 Speaker 3: You want to deliver a lot of profits done the 505 00:22:06,920 --> 00:22:09,440 Speaker 3: right way, with the purpose around it. 506 00:22:11,240 --> 00:22:13,760 Speaker 1: Thanks for listening to hear more of my interviews. You 507 00:22:13,800 --> 00:22:17,919 Speaker 1: can subscribe and download my podcast on Spotify, Apple, or 508 00:22:17,920 --> 00:22:18,760 Speaker 1: wherever you listen.