Brian Moynihan rarely mentions growth without attaching a word like “responsible” or “sustainable,” usually followed by a mention of risk management. Appointed CEO of
Bank of America
in the aftermath of the global financial crisis, he ran the business cautiously, focusing on retail banking and wealth management. Its shareholders prospered, with returns exceeding
index over the past one, five and ten years.
“We have weathered this crisis by providing great support to our clients – two million client deferrals, $ 75 billion in panic borrowing, massive amounts of capital markets and business activity – and we have never had to worry about the liquidity of capital, ”he said.
The pandemic prompted what Moynihan calls the digitally hesitant to start using their phones for check deposits and the like. Investment bankers, commercial bankers and wealth managers have learned that video conferencing can increase productivity.
Moynihan, 61, asked BofA to invest $ 1.25 billion over five years to advance racial equality, adding capital and creating private equity funds for deposit-taking institutions and businesses belonging to minorities. It’s granular work and designed to be profitable. As Moynihan says, “This is capitalism well done. ”
Write to Jack Hough at [email protected]