From the horses mouth to your ears and eyes, Bank of America CEO Brian Moynihan talked to the great Maria Bartiromo on CNBC’s Closing Bell. Moynihan is in an unenviable position to say the least. In charge of the ugly step child of the mortgage crisis with lawsuits aplenty to deal with.
However, he seems very calm, in charge, and ready to keep fighting for his company. What gets me though is how it’s in the best interest of the government, the country and the economy on the whole for Bank of America to succeed and survive. When you talk about AIG or Fannie and Freddie looking for money due to faulty mortgages from CountryWide, you’re talking about giving money to the government, since they have substantial ownership in the former two companies. And someone is going to have to end up bailing out BAC if they can’t handle all of these lawsuits.
So, it’s everyone’s best interest for Bank of America to push through and survive. Nobody wants another Lehman Brothers disaster. In other words, it’s time to move forward and not keeping looking back at these mortgage issues when everyone was at fault and culpable on some level. Just my two cents.
For now, it seems like Brian Moynihan is very capable of steadying the BAC ship through slow growth and troubled waters.
Part I
Part II