New BoA chief blames growth
(8 January 2010 – USA) The new chief executive officer for the Bank of America, Brian Moynihan, made his views clear on his first day on the job Monday, stating he believes growth in the US banking industry was to blame for the collapse of financial stability.
The Charlotte Observer published an opinion piece in which the new CEO said that too much growth in financial services was no doubt a major factor in the demise of the US banking system.
Mr Moynihan also said that a balance of credit with responsible lending, and a clarity, consistency and simplicity in banking, with an aggressive response to the home mortgage crisis, was needed.
The bank’s new CEO added that banks needed to put themselves in a position where they never need government support again.
While Mr Moynihan did not comment on the specific steps the bank would be taking to achieve this position, he highlight that the bank would be addressing the issues and would support regulators’ efforts to ensure that all banks do the same.
Mr Moynihan also said that a balance of credit with responsible lending, and a clarity, consistency and simplicity in banking, with an aggressive response to the home mortgage crisis, was needed.
The bank’s new CEO added that banks needed to put themselves in a position where they never need government support again.
While Mr Moynihan did not comment on the specific steps the bank would be taking to achieve this position, he highlight that the bank would be addressing the issues and would support regulators’ efforts to ensure that all banks do the same.
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