Here’s Bank of America CEO Brian Moynihan, defending Jamie Dimon.
Asked about JPMorgan’s trading loss and trading risks in the market Moynihan said, “Jamie has the skill to get out of it. The loss concerned the market but did not disrupt it.”
Moynihan is the CEO of a major competitor to JP Morgan Chase, but when it comes to regulations and the government, they are as brothers.
And then there’s this.
This afternoon Moynihan was asked to defend the universal banking model which marries retail banking with investment banking. The CEO of the nation’s second largest bank said the model is the “most important” model there is because it gives consumers access to global information, capital markets, investment advice and basic banking all in one place.
“We can’t be competitive if we can’t provide all those services to our consumers,” he says.
Moynihan argued that the dialogue on banking has gone from concerns about “too big to fail to too big to manage.” He noted that regulations brought forth by Dodd-Frank have addressed the former and added that BofA has dramatically narrowed down the scope of its business to address the later.
“Three years ago when we merged [with Merrill Lynch] our balance sheet was $2.7 billion. Now we are down to a $2.18 billion balance sheet, and we’ve doubled liquidity and capital,” he says.
He pointed out that the bank no longer has a private equity business and that it wound down its prop trading business in the second quarter of last year.
Pretty much everyone, even its proponents, admits that Dodd-Frank has not yet fixed our banking system. Everyone, that is, except Bank of America CEO Brian Moynihan. For him, Dodd-Frank is just fine.