WEBVTT - Bank of America Chair & CEO Brian Moynihan 0:00:00.080 --> 0:00:03.240 Bank of America Traders posted a record second quarter as 0:00:03.240 --> 0:00:05.960 the company reaped the benefits of volatile markets and net 0:00:06.000 --> 0:00:09.360 interest income top analyst estimates. For more, we sent things 0:00:09.360 --> 0:00:11.639 on over to David Weston. He's standing by with Bank 0:00:11.680 --> 0:00:13.920 of America Chair and CEO Brian moynahan. 0:00:14.000 --> 0:00:17.000 Hey, David, thanks so much Tim for our Bloomberg is worldwide. 0:00:17.040 --> 0:00:19.760 This is Bloomberg. I'm David Weston, and this is Brian 0:00:19.800 --> 0:00:22.840 moyhan who's the chair CEO of Bank of America. Brian, 0:00:22.920 --> 0:00:24.520 thank you so much for being back with this, really 0:00:24.520 --> 0:00:25.800 appreciating this busy day for you. 0:00:27.840 --> 0:00:29.639 That's great to be here. David, good to see you again. 0:00:30.480 --> 0:00:32.600 So let me start with one of the favorite questions 0:00:32.640 --> 0:00:34.400 I have for you. Because you, at Bank of America 0:00:34.479 --> 0:00:37.800 have a window into so much of America, consumers and 0:00:37.920 --> 0:00:40.280 businesses of all sizes, you sort of have a sense 0:00:40.360 --> 0:00:42.960 of where the pulse of America is. There's been a 0:00:43.000 --> 0:00:45.960 lot of changes announced and talked about in Washington. Do 0:00:46.000 --> 0:00:48.800 you see from your customers much reaction to that, either 0:00:48.840 --> 0:00:50.919 to the tak of tariffs, to the one big beautiful 0:00:50.920 --> 0:00:53.960 bill to consumers or business Are they changing their plans 0:00:54.000 --> 0:00:54.440 because of that? 0:00:56.520 --> 0:00:59.000 So if you look on the consumer side, in our 0:01:00.200 --> 0:01:03.600 seventy million consumers who engage with the economy every day 0:01:03.880 --> 0:01:07.199 and they send through their accounts and their and spend 0:01:07.200 --> 0:01:10.440 the cash and everything about four trillion, five trillion dollars 0:01:10.480 --> 0:01:14.040 a year. That grew up four percent plus the second 0:01:14.120 --> 0:01:16.520 quarter twenty five or the second course of twenty four. 0:01:16.880 --> 0:01:19.399 So they because they're employed and because wage growth, and 0:01:19.440 --> 0:01:22.240 that's not every single consumer, it's but in the in 0:01:22.319 --> 0:01:24.960 the large, in the main, they are continuing to grow 0:01:25.160 --> 0:01:27.960 and spend more and that helps the economy. 0:01:28.080 --> 0:01:29.839 And so you're seeing in some. 0:01:29.800 --> 0:01:33.320 Of the modern income households there's a little bit of 0:01:33.400 --> 0:01:35.959 chef moving around to different things. You're seeing people trade 0:01:36.000 --> 0:01:38.960 for one thing another, less planes, more cruises earlier, that's 0:01:39.000 --> 0:01:41.199 leveling out now, a lot more going to movies because 0:01:41.200 --> 0:01:42.000 the movies are good. 0:01:42.200 --> 0:01:44.200 But the end of the day, they're spending. 0:01:43.880 --> 0:01:47.760 Discretion necessary about the same percentage they traditionally spent. They've 0:01:47.800 --> 0:01:50.680 got money in their accounts, they're employed, and the wage 0:01:50.680 --> 0:01:53.760 growth has been relatively strong, and you know, so they're 0:01:53.800 --> 0:01:56.040 pretty good shape. The credit quality is good, they have 0:01:56.080 --> 0:01:59.440 equity in their homes. They're rate financing, and the mortgage 0:01:59.480 --> 0:02:01.720 so it was pretty good. When you go to small businesses, 0:02:01.720 --> 0:02:04.520 that's more of the question small medium sized businesses because 0:02:04.800 --> 0:02:08.440 the interest rate environment hits them harder because they borrow 0:02:08.440 --> 0:02:10.360 on lines of credit short term for a lot of 0:02:10.400 --> 0:02:13.840 their activities, and that rate went up substantially. And anythink 0:02:13.880 --> 0:02:16.160 about the if I'm a one hundred million dollar company, 0:02:16.160 --> 0:02:18.360 a fifty million dollar company here in North Carolina, and 0:02:18.400 --> 0:02:21.239 I'm engaging in the world finance, I'm importing goods and 0:02:21.320 --> 0:02:25.880 manufacturing them, further manufacturer, I'm selling them. You know, it 0:02:26.000 --> 0:02:27.800 got pretty interesting here trying to figure out all the 0:02:28.040 --> 0:02:30.399 trade and tariffs. So I think certainly on the tax 0:02:30.480 --> 0:02:33.600 rate helps them, meaning the big beautiful bill passing and 0:02:33.639 --> 0:02:35.679 the tax rate that's a very good thing. The alternative 0:02:35.639 --> 0:02:38.160 would have not been good if their tax rates would change. 0:02:38.720 --> 0:02:42.560 A satisfactory resolution to the trade so that they could 0:02:42.680 --> 0:02:44.160 learn the rules of the road over the next thirty 0:02:44.200 --> 0:02:46.639 sixty ninety days and get their plans for next year 0:02:46.680 --> 0:02:49.600 put together. And I think ultimately they're gonna we've got 0:02:49.600 --> 0:02:52.880 the satisfactory resolution on immigration and population growth because the 0:02:52.960 --> 0:02:54.680 end of the day, when I'm hearing more from the 0:02:54.720 --> 0:02:59.680 construction companies, farming companies and travel entertainment type companies. Is 0:02:59.840 --> 0:03:02.480 I'm starting to worry about I'm starting to struggle with 0:03:02.520 --> 0:03:07.160 labor availability at any price, and that's that we got 0:03:07.200 --> 0:03:09.440 to make sure they have the workers because they will 0:03:09.440 --> 0:03:10.320 supply great service. 0:03:10.360 --> 0:03:11.480 Economy continue to grow. 0:03:12.040 --> 0:03:14.400 One of the things you reported today was net interest income, 0:03:14.440 --> 0:03:17.200 which is really important to all banks, but particularly Bank 0:03:17.240 --> 0:03:20.120 of America and just steady growth that you're showing in 0:03:20.160 --> 0:03:22.880 that how sensitive are you to the rates set by 0:03:22.919 --> 0:03:27.239 the Fed? If that comes down substantially, does that affect 0:03:27.280 --> 0:03:28.280 Bank of America. 0:03:28.000 --> 0:03:33.720 Much so embedded in our estimates. So we've told the 0:03:33.760 --> 0:03:36.840 world that this quarter we had fourteen point eight billion 0:03:36.880 --> 0:03:40.360 dollars in net interest income, and that is the fourth 0:03:40.360 --> 0:03:42.960 straight quarter of growth and came off the floor last year. 0:03:43.040 --> 0:03:45.280 This quarter, when I was talking to was the lowest 0:03:45.280 --> 0:03:47.920 it's been. This quarter was a record in the company's history, 0:03:48.160 --> 0:03:50.080 and we're saying we're going to grow from that record 0:03:50.360 --> 0:03:53.160 to fifteen five to fifteen seven and two more quarters 0:03:53.160 --> 0:03:55.760 the third quarter and the fourth quarter. That embeds in 0:03:55.800 --> 0:03:57.840 it the rate cuts in the market that are expected 0:03:57.880 --> 0:03:59.960 by market. We don't we only show it that one 0:04:00.200 --> 0:04:03.000 if you have rate cuts over above that that would 0:04:03.040 --> 0:04:06.480 hurt that number, but it would still grow frankly and 0:04:06.520 --> 0:04:09.160 so and that the good thing about that is because 0:04:09.160 --> 0:04:11.320 a great loan of Positi growth seven percent loan growth 0:04:11.360 --> 0:04:14.120 four percent to Posit growth over the last year. That's 0:04:14.120 --> 0:04:15.600 in the system that's capitalized it. 0:04:15.640 --> 0:04:17.200 I mean, that's here. It doesn't go away. 0:04:17.440 --> 0:04:19.920 And as that continues to stay and we add to it, 0:04:20.160 --> 0:04:21.880 what you're starting to see is that sets us up 0:04:21.920 --> 0:04:24.120 great for next year for further ANII growth and further 0:04:24.200 --> 0:04:27.440 EPs growth. So this quarter was the trickiest quarter to 0:04:27.440 --> 0:04:29.680 get through because you every year we finally got some 0:04:29.760 --> 0:04:32.200 MENI growth, but you every year the market's business doing 0:04:32.200 --> 0:04:34.960 strong expense growth is a little more robust. That'll get 0:04:35.080 --> 0:04:37.120 lined and then you'll see NI dropped the bottom line 0:04:37.160 --> 0:04:39.159 and it will set up for twenty twenty six we 0:04:39.200 --> 0:04:39.960 do the more growth. 0:04:40.120 --> 0:04:41.760 When you talk about twenty twenty six, one of the 0:04:41.760 --> 0:04:43.920 things we're going to have is at all likely a 0:04:43.960 --> 0:04:46.719 new FED chair. There's been a lot of talk even 0:04:46.760 --> 0:04:49.280 today in Washington by the FED chair, and you said 0:04:49.400 --> 0:04:52.200 you believe in an independent FED. But if in fact 0:04:52.279 --> 0:04:56.080 President Trump gets his wish, as is his right under law, 0:04:56.160 --> 0:04:58.920 to appoint a new chair who will be more in line. 0:04:58.720 --> 0:04:59.480 With his views. 0:04:59.520 --> 0:05:01.680 He said he thinks the interest rate really at one 0:05:01.720 --> 0:05:04.560 percent or even below that, is that good for Bank 0:05:04.560 --> 0:05:06.120 of America? Is that good for the economy. 0:05:07.960 --> 0:05:10.719 Well, let me make two things. One is you're absolutely 0:05:10.800 --> 0:05:13.160 right and may have next year. The term the curve 0:05:13.160 --> 0:05:17.120 FED chair ends after being reappointed, and it's the right 0:05:17.160 --> 0:05:20.320 of the elected president to appoint the next successor and 0:05:20.360 --> 0:05:23.400 go through Congress. And I think in that dialogue around 0:05:23.440 --> 0:05:25.240 that there will be a lot of dialogue about, Okay, 0:05:25.279 --> 0:05:26.960 how do you set interestrates? What do you think about 0:05:27.000 --> 0:05:29.919 interest rates? Because the FED is an independent agency and 0:05:29.920 --> 0:05:32.080 they're they're meant to be outside the purview of the 0:05:32.120 --> 0:05:35.480 executive and Congress. They are called a task and are 0:05:35.480 --> 0:05:37.520 monitored and they're reviewed and. 0:05:37.560 --> 0:05:38.200 All the things. 0:05:38.520 --> 0:05:40.920 But the really reality was set up to be independent 0:05:41.000 --> 0:05:42.080 so that our Central Bank. 0:05:41.880 --> 0:05:42.960 Of America was independent. 0:05:43.080 --> 0:05:45.440 So I think no matter who gets in, they're going 0:05:45.520 --> 0:05:46.960 to look at it and have to look at the 0:05:47.000 --> 0:05:48.920 facts and make a decision because if you drop rates 0:05:48.960 --> 0:05:51.120 too far, inflation you may kickup and then you're gonna 0:05:51.120 --> 0:05:53.239 have to raise them back quickly. On the other hand, 0:05:53.360 --> 0:05:55.480 if you think the prior FED has been slow to 0:05:55.520 --> 0:05:57.400 the lower rates you might lower and faster. Our team 0:05:57.760 --> 0:05:59.680 believes that the Fed will lower rates in a second 0:05:59.680 --> 0:06:01.960 half of next year by one hundred basis points. No 0:06:02.120 --> 0:06:04.560 change until then because inflation is still going through the system. 0:06:05.000 --> 0:06:07.240 That brings the FED funds rate down closer to three, 0:06:07.600 --> 0:06:10.640 which they think is probably more of a long term 0:06:10.720 --> 0:06:13.240 rate and frankly, is more similar to what we had 0:06:13.240 --> 0:06:16.240 for most of American history. What's been unusual is the 0:06:16.320 --> 0:06:19.840 period after global financial crisis, a very low interest rate structure. 0:06:20.080 --> 0:06:22.120 That is really not a good place to be. Honestly, 0:06:22.160 --> 0:06:24.240 we'd rather have a higher interest rate structure, a little 0:06:24.240 --> 0:06:26.960 more inflation, a little more robust economic growth. So I 0:06:27.000 --> 0:06:29.400 think everybody asks me a little careful about keeping that 0:06:29.440 --> 0:06:32.280 engine going, because if this engine fails, a whole world fails. 0:06:33.080 --> 0:06:36.800 You also reported increased loans from Bank of America, which 0:06:36.800 --> 0:06:39.480 is good news for you, and tell us about your 0:06:39.520 --> 0:06:42.960 competition for that. We now have private credit really coming 0:06:42.960 --> 0:06:45.839 into that area substantially. There's talk that maybe that would 0:06:45.839 --> 0:06:47.600 be peaking. Is that the way you see it? 0:06:49.560 --> 0:06:52.600 Well, I think that. So if you think about all 0:06:52.600 --> 0:06:55.080 our loans, a trillion and one of loans, say half 0:06:55.080 --> 0:06:58.320 from the consumer and so there's that competition's always been there. 0:06:58.320 --> 0:07:00.599 Half of what goes on for consumer lending goes on 0:07:00.680 --> 0:07:03.400 outside the regulated bank industry. That's been true for a 0:07:03.400 --> 0:07:06.120 long period of time. We saw growth across all the segments. 0:07:06.200 --> 0:07:08.680 We feel very good about that. We go to commercial, 0:07:08.760 --> 0:07:11.840 the private credit effects sort of the leverage finance and 0:07:12.480 --> 0:07:15.040 some of the areas, and it's been an effective competitor. 0:07:15.080 --> 0:07:15.559 It's grown. 0:07:15.840 --> 0:07:18.000 I think we in the industry and we in the 0:07:18.040 --> 0:07:20.720 company back of America have come back with a way 0:07:20.760 --> 0:07:23.160 of operating we think is consistent with our credit quality, 0:07:23.520 --> 0:07:26.440 consistent with who are customers, and will also deliver a 0:07:26.480 --> 0:07:29.640 competitive product. Then we grew commercial loans leave us side 0:07:29.680 --> 0:07:30.559 the market based business. 0:07:30.600 --> 0:07:31.960 We grew commercial loans. 0:07:31.640 --> 0:07:34.520 I think seventy eight percent excluding the Cree office that 0:07:34.560 --> 0:07:37.080 we are running down still in the middle market, which 0:07:37.120 --> 0:07:38.280 is as strong as anybody. 0:07:38.320 --> 0:07:39.480 And we feel very good about the. 0:07:39.440 --> 0:07:42.240 Credit quality of those loans, but more importantly feel good 0:07:42.240 --> 0:07:45.160 about the thirty fifty seventy year corporate relationships we have 0:07:45.320 --> 0:07:47.400 and if they want a different kind of financing, we'll 0:07:47.400 --> 0:07:49.280 bring it and take it to the market form like 0:07:49.320 --> 0:07:50.400 we've always done. 0:07:50.680 --> 0:07:53.000 You also had a great quarter in terms of trading, 0:07:54.240 --> 0:07:57.160 give us a sense about where you're going with your 0:07:57.480 --> 0:08:00.640 trading activities and your investment bank. In the past, you've 0:08:00.680 --> 0:08:03.960 added more balance sheet strength to that. You've come up 0:08:03.960 --> 0:08:06.200 in that. Do you plan to keep doing more of that? 0:08:08.160 --> 0:08:08.360 Yeah? 0:08:08.440 --> 0:08:10.840 And so Jim Damar and the global markets business, which 0:08:10.880 --> 0:08:12.760 is a trading business as you call it, they are 0:08:12.800 --> 0:08:15.440 up fifteen percent year every year. Both fixed income and 0:08:15.520 --> 0:08:19.440 equities were up, and he has had thirteenth straight quarters 0:08:19.480 --> 0:08:21.840 like it is of year over year quarter of comparison growth. 0:08:21.960 --> 0:08:24.120 And so there's some d and flows in that business. 0:08:24.680 --> 0:08:27.520 But this quarter started off a little interesting with Liberation 0:08:27.640 --> 0:08:30.280 Day and I think the first four of the biggest 0:08:30.360 --> 0:08:33.200 days ever and equity stock trading occurred in the first 0:08:33.360 --> 0:08:35.240 week of April or something like that. 0:08:35.280 --> 0:08:36.559 So it was a pretty wild time. 0:08:36.880 --> 0:08:38.880 But over the course of the quarter it got more 0:08:38.880 --> 0:08:42.040 stable and they made it. We have given him more 0:08:42.080 --> 0:08:44.840 capital and more balancing, hit him in the team more importantly, 0:08:45.040 --> 0:08:47.640 and that team, under his guidance, has has delivered on 0:08:47.720 --> 0:08:50.200 it is getting a good return on it, and we 0:08:50.240 --> 0:08:52.000 have lots of capital. If he can put it to work, 0:08:52.120 --> 0:08:54.480 there'll be more of it. The trick is he's also 0:08:54.520 --> 0:08:56.440 got to use it efficiently and get that return on 0:08:56.920 --> 0:09:00.360 table common equity, return to allocated capital straight when you 0:09:00.360 --> 0:09:03.360 go to investment banking. Look, April was kind of quiet, 0:09:03.600 --> 0:09:05.280 especially on the M and A side. For us, it 0:09:05.320 --> 0:09:07.160 came back and you saw us. You know, it was 0:09:07.200 --> 0:09:08.679 recently a three or four weeks ago we thought we 0:09:08.760 --> 0:09:11.120 do one point two billion. We did one point four billion, 0:09:11.480 --> 0:09:13.760 and with pipelines full, Matthew Coder and team are out 0:09:13.800 --> 0:09:14.640 there driving at it. 0:09:14.800 --> 0:09:16.760 We did. We lost some deals to other people in 0:09:16.800 --> 0:09:18.120 the M and A. We were on the wrong side of 0:09:18.120 --> 0:09:19.040 the trade. That happens. 0:09:19.240 --> 0:09:21.360 But the reality is what really changed over the course 0:09:21.360 --> 0:09:23.679 of the months was a financing side kicked in and 0:09:23.679 --> 0:09:26.480 that you know, that's three quarters of our revenue, and 0:09:26.520 --> 0:09:28.640 that that was good and that's why the revenue came up, 0:09:28.840 --> 0:09:30.560 and that team does a good job and there's lots 0:09:30.559 --> 0:09:32.520 of places to grow. That is going to be much 0:09:32.559 --> 0:09:35.559 more dependent upon the IPO markets being open, the M 0:09:35.600 --> 0:09:38.200 and A markets, the M and A taking place, and 0:09:38.520 --> 0:09:40.960 I think was stability again back to the tax bill, 0:09:41.320 --> 0:09:44.480 some trade stability, and then frankly deregulation. 0:09:44.920 --> 0:09:45.680 You're going to see. 0:09:45.720 --> 0:09:48.920 I think that activity keep kicking in as we moved 0:09:48.920 --> 0:09:51.880 through twenty twenty five into twenty six, which will be 0:09:51.880 --> 0:09:53.840 good for the economy because it creates a lot of activity, 0:09:53.880 --> 0:09:58.040 investment changes in businesses, and all those things that we 0:09:58.120 --> 0:09:58.600 expect to. 0:09:58.520 --> 0:10:02.280 See you It took time out from your earnings announcement 0:10:02.320 --> 0:10:05.120 to really focus on artificial intelligence, something you have been 0:10:05.120 --> 0:10:07.840 talking about for quite some time and adopting, for example 0:10:07.840 --> 0:10:10.240 with Erica that you have. Give us a sense of 0:10:10.240 --> 0:10:13.160 how that's changing the business at Bank of America, for example, 0:10:13.240 --> 0:10:17.120 on the expense side, does it really lead to saving 0:10:17.200 --> 0:10:17.800 some costs? 0:10:19.760 --> 0:10:23.920 So at the end of the day, the artificial intelligence, 0:10:23.920 --> 0:10:26.080 as we know is an extension of a series of 0:10:26.880 --> 0:10:31.079 technology capabilities that allow us to take work and have 0:10:31.160 --> 0:10:34.280 machines do the work and people and enhance the people's 0:10:34.280 --> 0:10:36.200 ability to do more work and do more things and 0:10:36.200 --> 0:10:38.320 spend more time on things that aren't capable of going 0:10:38.360 --> 0:10:41.400 through that. It just gives you a different sort of 0:10:41.600 --> 0:10:44.000 a different attack surface for lack of better term. In 0:10:44.040 --> 0:10:46.600 the past, we had three hundred thousand people fifteen years 0:10:46.640 --> 0:10:48.240 ago in our company. Today we have two hundred twelve 0:10:48.240 --> 0:10:52.080 thousand people. The companies bigger, complex, more transactions from that time, 0:10:52.360 --> 0:10:55.040 our digital logins were probably I don't know, ten twenty 0:10:55.080 --> 0:10:56.679 million a quarter and we felt good about it. They 0:10:56.679 --> 0:10:59.200 were several billion or billion a month. Just to get 0:10:59.280 --> 0:11:01.680 your sense, think of all the investment to do that. 0:11:01.920 --> 0:11:04.960 But that digitization was customers doing things on their own 0:11:05.000 --> 0:11:07.000 at ten o'clock at night and seven o'clock in the morning, 0:11:07.240 --> 0:11:09.960 and that allowed us to save our time for our 0:11:09.960 --> 0:11:12.480 people to go out and help customers solve difficult problems. 0:11:12.880 --> 0:11:13.320 What AI. 0:11:13.720 --> 0:11:15.560 The place that we think AI has real help is 0:11:15.559 --> 0:11:17.959 in the preparation of our relationship management force and our 0:11:18.320 --> 0:11:21.360 small business bankers, our business bankers, our commercial bankers, our 0:11:21.400 --> 0:11:24.720 wealth management, our investment bankers. Allows them to be much 0:11:24.760 --> 0:11:28.400 more prepared. So we're using those tools to prepare the information, 0:11:28.559 --> 0:11:31.520 pull it together because it could take text and manipulate 0:11:31.559 --> 0:11:33.960 it and put it into the forums and the capabilities. 0:11:34.120 --> 0:11:36.360 So that's a big thing in front of us. We've 0:11:36.360 --> 0:11:38.079 done five or seven hundred pitches so far, and that 0:11:38.440 --> 0:11:41.040 cranking up. We see it in employee self help. If 0:11:41.120 --> 0:11:43.720 you had a computer that went down at Bank of America, 0:11:43.720 --> 0:11:47.160 you can click on Erica from employees and a chatbot 0:11:47.160 --> 0:11:48.800 will take you all the way through the replacement of 0:11:48.800 --> 0:11:52.040 your computer process and evolve no people and you'll get 0:11:52.040 --> 0:11:54.520 the computer delivered to you. So you know, that's how 0:11:54.520 --> 0:11:56.760 we took that save Erica model that for you know, 0:11:56.800 --> 0:11:59.760 twenty million consumers use two hundred million times a quarter. 0:12:00.040 --> 0:12:02.400 Turn it internal and so there's all. 0:12:02.280 --> 0:12:04.760 These applications and we think it has high application for 0:12:05.240 --> 0:12:07.760 the services business that Bank of America's in and the 0:12:07.760 --> 0:12:10.000 ability to keep doing work. And in the end of 0:12:10.040 --> 0:12:13.240 the day, we'll have teammates who will harness it and 0:12:13.280 --> 0:12:15.920 take it and use it to their advantage to make 0:12:15.960 --> 0:12:17.600 themselves even more successful. 0:12:17.679 --> 0:12:19.720 So you know, we talk to teammates, we say. 0:12:19.559 --> 0:12:22.800 Embrace this, let's drive it, and then let's figure out 0:12:23.160 --> 0:12:25.120 you know, what jobs are, what job you're going to do, 0:12:25.160 --> 0:12:26.400 but you're going to need this to be able to 0:12:26.400 --> 0:12:27.520 do any job in this company. 0:12:27.760 --> 0:12:30.040 As you move forward with our visual intelligence, is it 0:12:30.200 --> 0:12:32.800 changing what you're looking for and the people coming in 0:12:32.800 --> 0:12:34.240 the door, the entry level people. 0:12:37.040 --> 0:12:39.160 Now we're just in the process of bringing in our 0:12:39.160 --> 0:12:40.640 two thousand plus kids. 0:12:41.920 --> 0:12:44.280 New hires that just started Hick this week. So think 0:12:44.280 --> 0:12:44.640 about that. 0:12:44.679 --> 0:12:48.360 Two thousand kids arrive one percent of applications and less 0:12:48.360 --> 0:12:50.240 than one percent we're accepted. So weet one hundred and 0:12:50.240 --> 0:12:53.320 tinety thousand applications and a lesson and around two thousand 0:12:53.320 --> 0:12:55.880 people coming in. So we're getting the best of the brightest. 0:12:56.120 --> 0:12:59.640 We love them, they're coming in. The point I'm making 0:12:59.720 --> 0:13:01.520 is there is a group that has to use computer 0:13:01.559 --> 0:13:04.079 skills and data skills, and that that's once, I think, 0:13:04.200 --> 0:13:06.240 but everybody has to be able to use AI to 0:13:06.240 --> 0:13:08.559 help them be a better employee at Bank of America. 0:13:08.679 --> 0:13:11.880 So as you think about that, you know every teammate 0:13:11.920 --> 0:13:14.199 and I have high confidence kids coming out of colleges 0:13:14.240 --> 0:13:15.800 are going to be a lot better AI than you 0:13:15.840 --> 0:13:17.960 and I might be, David, but we'll catch up to 0:13:18.000 --> 0:13:18.520 them someday. 0:13:18.920 --> 0:13:21.880 One last question, Brian, you've said that you're moving towards 0:13:21.920 --> 0:13:25.240 stable coin, as some other banks are as well. You 0:13:25.280 --> 0:13:27.800 saw mister Bailey, who's the Government Bank of England, really 0:13:27.800 --> 0:13:30.240 said that might have systemic risks because they take some 0:13:30.240 --> 0:13:32.280 of the money out of the banking system. You're better 0:13:32.360 --> 0:13:34.120 off going in a different direction. Are you worried about 0:13:34.120 --> 0:13:36.040 systemic risks from stable coin? 0:13:37.600 --> 0:13:41.480 So one of the questions, and I think what mister 0:13:41.520 --> 0:13:44.400 Bailey was talking about is a question. I think the 0:13:44.440 --> 0:13:46.800 banking system the United States, a policy makers have to 0:13:46.800 --> 0:13:49.760 think about, which is think about the money market mutual fund. 0:13:49.800 --> 0:13:52.440 About six trillion dollars of deposit banks moved to money 0:13:52.480 --> 0:13:55.440 market mutual funds, and their utility was to invest in 0:13:55.480 --> 0:14:00.360 short term you know, deposits, treasury bonds, et cetera, commercial paper. 0:14:00.400 --> 0:14:02.640 They can't invest long term, so their ability to help 0:14:02.640 --> 0:14:05.720 the economy is really a limited amount. That six trillion 0:14:06.160 --> 0:14:08.280 is outside the system. If you said we're going to 0:14:08.320 --> 0:14:10.480 take the eighteen trillion or whatever is the banking syst today, 0:14:10.520 --> 0:14:12.439 another six trillion out, you have to think through the 0:14:12.480 --> 0:14:15.320 pol cerifications because to keep it stable you have to 0:14:15.320 --> 0:14:17.880 have it invested in a very narrow place. And I 0:14:17.920 --> 0:14:20.800 think that's what mister Bailey was talking about. 0:14:20.960 --> 0:14:23.280 I think that dialogue is going on now. 0:14:23.640 --> 0:14:25.800 There's another side of this, which means those deposits will 0:14:25.800 --> 0:14:28.440 come back in the system if we hold the deposit's 0:14:28.960 --> 0:14:33.560 effectively an escrow custody for our customers who are out 0:14:33.560 --> 0:14:35.800 engaging stable coins. So I think there's a lot of 0:14:35.800 --> 0:14:37.720 turns in the track between where we are today and 0:14:37.720 --> 0:14:40.680 where we might be on this. Our view is pretty simple. 0:14:42.000 --> 0:14:44.920 Ten years ago you would have said the clients don't 0:14:44.960 --> 0:14:46.880 need a thing called zel and now they use it, 0:14:47.920 --> 0:14:50.240 you know, twice as much as they use checks, and 0:14:50.640 --> 0:14:53.120 it is used more times than the amount of checks 0:14:53.160 --> 0:14:56.040 written by our consumers in amount of cash transactions, taking 0:14:56.080 --> 0:14:56.640 the cash. 0:14:56.400 --> 0:14:56.840 All of the ms. 0:14:56.840 --> 0:15:01.080 So it's become the dominant payment network for consumers outside 0:15:01.080 --> 0:15:04.800 of card that didn't exist ten years ago. So we've 0:15:04.840 --> 0:15:07.080 got to have the consumers adopt us. If they want it, 0:15:07.240 --> 0:15:09.960 we'll build it and they'll use it. And if it's 0:15:10.000 --> 0:15:13.680 a way to transact, we'll be there to help them transact. 0:15:14.000 --> 0:15:16.240 We think, you know, small bounce, cross border transfers in 0:15:16.280 --> 0:15:19.400 app sort of patient purchases, all these types of things 0:15:19.440 --> 0:15:21.600 and applications for but the end of the day, it's 0:15:21.640 --> 0:15:24.040 our customer who needs to say, I want to move money, 0:15:24.040 --> 0:15:26.040 I want to move money into euro euros, I want 0:15:26.080 --> 0:15:27.280 to move money into stable coin. 0:15:27.560 --> 0:15:28.680 So we've got to be able to do both. 0:15:28.880 --> 0:15:31.320 For Brian, great pleasure to talk to you, Thanks again 0:15:31.360 --> 0:15:33.720 on a busy day for joining us. That is Brian moynan. 0:15:33.880 --> 0:15:36.440 He is Chairman and CEO of Bank of America. 0:15:36.480 --> 0:15:38.720 And now back to you, thanks so much. That of 0:15:38.720 --> 0:15:42.040 course is David Weston of Bloomberg Wall Street. We catch 0:15:42.080 --> 0:15:45.720 new episodes every Friday at six pm Wall Street Time 0:15:45.800 --> 0:15:48.360 on Bloomberg Radio and television. Also a big thank you, 0:15:48.440 --> 0:15:51.160 of course, to Brian moynihan for joining us there as well.