Bank of America CEO Brian Moynihan said in a recent interview that banks should be run better in the future, adding that he could see himself as the bank’s CEO for the rest of his life.
Moynihan, who took the position in 2009 after former CEO Ken Lewis retired, said Bank of America is focused on an “organic growth” approach, which differs from the culture created under Lewis in which the bank relied on acquisitions. Lewis negotiated the bank’s purchase of Merrill Lynch in 2009, CharlotteObserver.com reports.
The bank underwent Dodd-Frank-mandated “stress tests” this month, which are designed to examine the capital adequacy of a bank during a period of severe economic adversity. Moynihan, who was being interviewed by public television’s Charlie Rose, said the principles laid out by Dodd-Frank are “all good,” according to CharlotteObserver.com.
Bank of America announced a $5 billion share buyback this month after the Federal Reserve green-lighted the bank’s capital-distribution plan, but some analysts remain concerned about the bank’s legal issues. The bank could be asked to pay $8.5 billion in a proposed settlement over mortgage abuses that occurred after it purchased Countrywide Financial, and the bank could also be required to pay up in a lawsuit involving Freddie Mac, which accused the Bank of America and other large institutions of rigging Libor.
Some analysts have pointed to the legal troubles as issues that could negatively affect the bank’s earnings. Moynihan said the bank’s problems have made it harder for the institution to compete.
“Our mobile banking and our investment banking or whatever products are as good as anybody else’s, and we’re winning market share every day,” Moynihan said, CharlotteObserver.com reports. “But we’re doing it with this heavy burden upon us. As that burden lifts, just think of how we can out-spring the competition.”
When asked by Rose if the bank had a succession plan in place, Moynihan confirmed that it did but went on to speak about the rewards of his position.
“You know, while there have been times when you sit there and say, ‘Jeez, this is a lot of pounding,’ you always keep your eye on the purpose you’re here,” Moynihan said, according to CharlotteObserver.com. “And it’s to help those people with their financial lives. And if you really keep focused on that, I could do this the rest of my life.”