Up next remarks from bank of america Ceo Brian Moynihan on the state of the economy in the us financial system. Other topics include capitalism and crypto currency as well as banking trends among millennials and jens hes, this is hosted by the city club of cleveland. Good afternoon, we are devoted conversations of consequence that help democracy thrive. It is thursday, june 29th. Im the chief executive here, daniel moulthrop. Im here to introduce our speaker, brian moynihan, ceo of bank of america. The country and world grapple with the aftermath of the pandemic, inflation, supplychain disruptions, the Banking Industry has felt its share of volatility. In march, several small to midsize banks failed leading to a chain of events we refer to as the 2023 banking crisis. On top of this, the widespread calls for increased equity, access to economic opportunity, increasing reliance on emerging technologies, evidence the world of banking and finance is changing quite a bit. Brian moynihan became ceo of bank of america in january 2010. Feels like a century ago, honestly. That was a long time ago. Bank of america is the secondlargest bank in the us. You wonder what is the first, its jpmorgan chase. You lead a team of approximately 215,000 employees dedicated to making Financial Lives better for people, companies of all sizes, Institutional Investors across the us and around the world. We are grateful to have him here today to get his perspective on the economy, industry and global trends. If you are part of our live stream audience during the second half of the program you can get a question and by texting it to 330540 onefifty 794, you can tweak your question at the city club and we will work it into the program. Please join me in welcoming brian moynihan. [applause] a pleasure to be here in cleveland. It is great to be here, good to see the city. Welcome back to ohio. Brian was born in marietta. Lets start by talking about where the economy is right now. As you see it with a lot more data than the rest of us see it. Bank of America Research team run by Candace Brown is the best in the world and they continue to look at the situation and pretty consistent for year and a half that there will be a mild recession. The question is when will that occur . They have continually pushed that out a little bit. Most recently they moved two quarters of recession, the first 2 quarters to next year from the third, fourth, first 3 quarters. It is a mild recession. Happens a few quarters out. That has been the thing, keep a peek keep predicting if you quarters out and it keeps pushing out. That comes down to we could talk about what you see in the data, what consumers are doing, employment levels are strong. Any possibly there wont be a recession if we keep pushing it out . Interesting question, people ask what will feel like. Inflation already makes consumers feel different, higher Interest Rates make consumers feel different. The belief is two things had to happen to get inflation under control, you had to raise Interest Rates, you had to pool some money out of the system and both are being accomplished and they are having the impact people want, housing slows down, car purchases slowdown, everything moves quickly and takes time to get through but the interesting thing is consumers are still spending. If you look at our consumers, you spent 4. 5 trillion a year on debit cards, writing checks, cash on the atm etc. That goes out at the end of the un you look from 20 one to 22 a group of 9. 5 . If you look at it yeartodate is 5 and if you look at it in the month of june so far it is 4 , and that is more consistent with where it was in 1819 with more Interest Rates and slowing down the economy, taking a monetary combination out so the consumer change in activity is an indicator that the effect of the rate of different factors. Thats a hard thing, American Consumer likes to spend money, travel, do a lot of good things. Employees at level 3 unemployment, hard to slow them down, that means inflation should get under control. There was a lot of excess liquidity for consumers during post pandemic. If you listen to experts, the 30 drop in the economy in covid for the quarter and the next quarter was down double digits and basically came back and almost recovered. It was very needed to put a lot of work fast because you didnt know what the next quarter would look like. It is hard to remember all the things that came into the economy. Host is emotionally triggering. Guest then you got away the way through 20 and the economy is opening up, still high unemployment, things that were very serious and an uncertain pathway to what would happen next. If you look back, we knew that. We knew none of that. Masks were to thing. The first 3 or 4 weeks. Everything was moved by hands. We didnt know, what we think we know now we didnt know. What happened as they kept throwing things at it. What next . In early 20 one, two big stimulus and if you look backwards, all that stimulus far exceeds the whole. The economic whole is a pothole. We didnt just fill the pothole. We went host it looks like and overcorrection. s guest it is hard to criticize because we didnt know but that drove inflation but feds on the other side say even our consumer accounts when you look today for customers at the beginning of 20 that had 5000 in account, average 3500 at that time, 13,000. So they spend it down and it moved down a little last year and backup so that an indicator that what is happening will take longer to get through the system so the slowing down, the spending now, student loan payments, a lot of things drag the core Interest Rate environment and secondly the fed taking money out of the Banking System by raising rates to the point the direct ownership thats why it is coming back down. Host it sounds like a pretty resilient economy managed by fairly capable people. It is extremely resilient economy because of what america is. Its entrepreneurship, capitalism, profitmaking and all of that creates a lot of activity that is sizable, we are 3. 7 unemployment or whatever. Thats all time low levels. We rarely spend below this level. Its not resilience. Its because this country attracts capital and activity. Host the crisis earlier this year. How did that look from your point of view, from your vantage. As ceo of an euros Financial Institution . Guest when the rate structure went up so fast and they couldnt sustain, thats not unusual because those of you who are as old as i am go back and remember voter crisis, the dot. Com crisis, the fallen angels crisis, marge, needs failed in 2000, there are always things that happen, the rate rise went to levels that were very different than people experienced. 2008 to 201718, the rate structure was 0. They thought they had overshot or bouncing back so the idea of 5 fed funds rate caught people with Business Models that were consistent, that is what people saw. You werent sure how far this would go but once you got by the first few weeks, a group stepped in to help, things took place, sales took place, people took a look at it. We still have the question what the economy looks like, will there be a deep recession or shallow recession. Host three quarters ahead. Guest by tomorrow the question will come up. We just got the stress test results for the industry yesterday but if you look at it, what it says, 900 billion of capital, the loss was 130 billion, if you look across 30 banks, that is against multiple capital. Its a pretty impressive thing. That scenario is basic unemployment up to 10,000 overnight. Home prices down 20 , 30 or Something Like that. These factors, bond prices dropping by 300 basis points. And yet the ability of the industry to withstand that is demonstrated by this testing but the real ability was demonstrated by the fact that we are where we are when we had the massive movement, huge monetary buildup and huge monetary take outcome Interest Rates rising fast. The intended outcome, to shrink the size of the Banking Industry so it cant lend as much. That took place, the theoretical test. Thats a pretty good outcome. Guest the theoretical test these models, nothing compared to what we have all been through. Host the model will show you the framers and outcomes. Guest to the crisis earlier this year you mentioned the best Research Team on the planet that is predicting this two quarter recession next year. Did they predict failures of some of these other Smaller Banks . I dont think anybody, nobody really, when things change, look under the mattress, you try to figure out what this change will cost to the system. Our chief risk officer, that happens, wheres the collateral damage. I didnt see a lot of people have that. Thats because the rate of change because the uniqueness of the system. That is why it hasnt gone elsewhere and we will see it play out but right now, people forget that if you go back from the 80s to now, there have been 2000 bank failures. They are businesses which sometimes it works and sometimes it doesnt work. Large ones have failed. The bank of new england in 1991, different republic in texas, the time frames, you go through, there have been large like you are naming the players from the 1948 indians. Host i was a reds fan growing up. I was very fortunate, the glory years. I was a cleveland fan at the time. Host for the benefit of our radio audience, we are talking with reds fan brian moynihan. He also happens to be the ceo of bank of america. In the wake coming up here, the Little League days. I remember coming up three hours, four hours up here, to watch a doubleheader and drive back. It was always april and may, it was always cold but it was always a lot of fun, baseball was a good day. Host the same field where larry doby played. Guest i think he hit two homeruns. I think he did. Host i want to ask about housing, the Banking Industrys role in supporting the Housing Market both around Housing Production which is a challenge right now, housing affordability, mortgage lending and in particular in a market like cleveland where i want to point out a couple things, bank of america opened the two branches in Greater Cleveland that are low to moderate income neighborhoods, really meaningful. I should point out bank of americas city Club Programming closed out, but what do you think the bank can do to provide more access to that kind of homeownership opportunities with low to moderate income families that are looking for the 50,000 house or the 100,000 house . Guest a couple things. One thing we come to a market like cleveland and have 12 Financial Centers going to 15. That is representative of different businesses coming, bringing everything, all the businesses to cleveland because before, we had commercial banking, Private Banking and that was like a lot of space but by complete historical accident we had a company somewhere along the road, a thousand banks got consolidated, we didnt purchase companies that had things in the buckets. Just by pure accident, there was no reason, get done with all that and it is time to do that but when we do that what we want to see is what we have in places Like Washington dc, charlotte or la or boston or where, you build up with a balance towards all the customers you serve and that means 4000 branches we have, 30 , in cleveland the same percentage just because that is how you do that. I was at the branching carnegie and 79 food, i went into the community him it was important to the city and those are good things. So talk about it. If you look across all the cities, im on the ceo groups of different cities, talk to people, housing stock, availability, affordability, whatever the particular issue is a different issue. That issue is typically development on the one hand and 30,000 units short, just dont have the units. Other places the units you have arent to the purpose and then not in the right location so theres always work so how do we play that . Three big things. One is the regular business which we do all types of things. Agents qualified, general mortgage and everything so you are doing that and that is standard credit, 20 down payment and what goes for the programs. Then you have in a specialized program, what weve learned over the years, specialized programs especially for homebuyers is we need to work with agencies in local communities to identify and counsel the buyers because buying a home is a big step in the worst thing about buying a home is not having a workout line and that is where we work, thats a 15 billion commitment we use the we will do again and do several things like that every year with a bunch of different agencies and those programs will be available in this market and be available. The third element is development, 5 million of housing develop and work a year, Loan Monitoring development all sort of in that vein. Stuff done in the regular commercial real estate business and that business goes on and has a role and we have lack of equity, Developers Take more risk really in parts of the city so we put up equity fund to get equity to develop faster and those are good programs our team can figure out how to do so it takes all of that type of stuff. Youve got to do it well and to take specialized programs and developing of unit stuff and takes putting developers in times the otherwise might not be able to do it. I want to go to a bigger question. In your annual report, headline says we are capitalists at bank of america which seems selfevident to me but not everybody. Why did you have to call that out in the annual report in that way . I get asked the question a lot at congressional testimony, by both sides of the aisle, are you capitalist which is a funny question if you are running a bank. Our sole purpose in life is to help everybody participate in capitalism, individuals, companies. Hourly workers, small companies, big companies, Capital Market participants. Why are they asking the question . The debate is about how you do capitalism, stakeholder capitalism and all these things. The reality is capitalism is the only system that is going to solve the problems we are trying to solve. Thats the thing everyone is trying to work on. If you are going to have an energy transition, governments dont have the money, you cant regulate it because its very hard, it is across every place in the world. Where are you going to get the money to do it . Do have the Oil Companies do it . No Energy Companies do it . By showing those, having equity come in . The lending . So talk about more funding, people say you are not a capitalist, youre doing that to be green, im doing it because one hundred 50 million last year, 150 billion last year. If you look and we disclose the tax benefits from that are worth 3 quarters of 1 billion, pretty interesting. Host congress is enacting tax benefits to do these deals and you dont do the deals you are leaving money on the table. Are bad capitalist. Guest thats the debate. I think week on the i am getting old, but we as people have been around a while, have to show what is behind us, but Major Companies who are Strong Companies who can do great things can do it in a way society benefits and it is the same purpose. Jim collins, a great business writer, all the books he did in 1986, talked about that purpose. If you go back and talk about stakeholder capitalism, people say how can you what do you think of this . Its a pretty good thing to do great things for the climate. Do great things for our teammates mode do great things for our shareholders, oh yeah. Great things for our communities, that is stakeholder capitalism. How can you say that the bad . Host Milton Friedman said it was bad. Guest he says more than that. You have to deliver profits and purpose, not profits for purpose. So the manifesto, which everybody, that was really, he and milton have an intellectual debate what to say but coming forward a bunch of years, Major Companies trying to run their business in a way that they are doing what is right which is showing how capitalism will solve the problem by driving them. Think about 190 countries signed on to Sustainable Development. Not many countries in the world past that. A total split they want from the system. The point is if you look at that, 6 trillion a year, theres a lot. Charity is wonderful. 500 million in charity, in the city, that had been around for years. It is 1 trillion, cant to do it and good things, account and stuff. Governments are on the floor but 1 trillion structural deficit. When you think about it. Where does it come from . All these Business People are employing good people, investing money, doing it in a way that the livers the profits of a need plus pays attention to what else they do. That is our purpose in doing right by clients. Thats hard to argue about. That is how we run our company and have responsible growth, four companies in the us and 108 billion, theres only four out of all the companies to give you a sense. You can do it and those other companies do the same thing. The idea of doing both, when you do that, 6 trillion can be found. If you do that, the Oil Companies use their expertise to figure out how to change the way to put gas in place of call by thinking through trans formation. That is important. You got to work with these companies. That is the debate. You help Companies Make the transition for that element or how do we help do great things for employees. 26,000 a year. It is an economic teammate who works for 50 years in our company. Host got to hire 200,000 people, a person is not really affected. Guest 6 month, 3 months, you start to say, 1 , 15 to 7 which is what we went back to. 15,000 people, had the same head count. That is because of the mindset. Host coming back for a second, the purpose of capitalism, the questions you were getting from senators and house members asking you during committee meetings, what would you this is essentially macro partnership to make capitalism work better for the benefit of all. What would you like to see our elected Office Holders focusing their attention on . Guest to make it concrete instead of theoretical, i work at a bunch of private companies consistently, to outperform this. A bunch of people saying how do we think about this. We put positions in front of the g7. I went to speak to the g7 to make it concrete. The opening phrase, i said we dont need money, we get stuff built until you get that faster. It took seven years. From start to finish. That should take longer than that. From 201516. Think about how little you talked about energy transition. You see numbers you cant be leave. s take something thats going to be deployed 7 yards out the economics change, think about with your purchase power. Uk post office agreed to purchase a bunch of Hydrogen Powered trucks. And to perform the this is not a us question. And what you wanted to be, to put the capital up and this is the Public Private partnership. These are elected officials to do these things, we can crowd a lot more private capital. If we do what we did, bunch of solar installation this, across the countries in africa. It is tricky to go through these geographies and put together political risks. The money comes flying out, trillions of dollars, thats what youre trying to do, the partnership can work between democratically elected officials and elected officials, to think about whether they enable or accelerate, not where they try to contain that. The last thing, take the disclosure they took from industry, companies weve done through the National Business council but we are not going to afford and use those and figure out disclosure. The reason that is, spent all this time and effort trying to write down disclosures as opposed to doing the work and when somebody changes rules, you put international setting, you try to be pragmatic about that. That makes partnerships work. The ira is a catalytic Investment Vehicle will take money to make it work. There is Research Dollars and other things but all the money will come from all the people in this room to get it done. Tax cut and other things provide a catalyst to make it happen. Host questions from all of you in a second. My last question, what are you worried about . What are we worried about . We have 7,000 teammates at risk. They help us worry about everything. If you look, the idea of a mild recession some said it is optimistic, some say it is pessimistic. There was time to be optimistic with the idea of mild recession has dependencies and those dependencies are the fed doesnt overshoot too far and the situation, the ground war in europe doesnt get worse or escalate to other countries, china ends up, china, taiwan, between the us and china break down with sanctions, those are things they depend on but if you keep the us stable, World Consumers relatively stable and the biggest economies are stable and those economies are a big part of the stability and india is in pretty good shape and china hangs in. All those have geopolitical risks that you cant control. Host brian moynihan, ceo of bank of america. The chief executive at city club, we welcome questions from everyone, see club members, students, cityclub. Org, if you are listening on radio it is friday. There is no questions from you. If you would like to get in a question, tweet it city club or text it to 3305415794 and we will work it into the program. We have our first question. I thought we were on the other side. It is it is a text question. The millennial generations wealth is significant he behind generation x and boomers. They came of age during 9 11 and the Great Recession and setback during the pandemic. Some column the unluckiest generation. Others see it as outcomes of policies set by older generations to hoard wealth. What are you seeing in terms of wealth gain opportunities for what is currently the largest generation in the country . What will happen to the countrys Economic Situation in 10 to 20 years if millennials dont catch up . Guest i think we are Research Platforms like ours do this anytime you take a snapshot and the people who are on average agent up have more assets than people average age down. Akita key doi think that vas over time, it just does. It transfers by active versus passive earnings, it transfers by a lot of things. Going back to questions about capitalism, in this country there are entrepreneur opportunities for all people. You uca millennials create those companies and m done things that habit and likewise. These snapshots act as if everything stays the same for the exact same people over time. I have kids, to argue but who is a millennial and who is not. If you go back and look at that age bracket and you think of where any of us were at that age bracket, you would have a different view of your earning power, your wealth, your accumulation and stuff. I think these things work out. Rodney back to something although the german question, but anyway. I think if millennials in this country are going to have a chance to participate and earn, have had a chance come will have a chance and continue to have a chance in a phenomenal. Of this countries growth. What gives you some confidence when the world says and i will take away jobs . A time before when we all said and as a country and have a lot of stuff going on that wasnt good was the late 60s. You had japan was going to take over the United States come all the manufacturing. It was like everything, steel industry. You had political unrest. You at two, Martin Luther king got g assassinated. Historically Bobby Kennedy spoke here a after that and then Bobby Kennedy was assassinated and violence after that and the unrest after that. We had the vietnam war. We had can state in 1972 where the governor of the state ordered the National Guard to shoot the kids protesting. We hado an impeachment of nixo. We had the war. Had the personal computer coming up. Go back and look neater drucker said theyre still recent death and because all they do is transmit information. Okay. How many people do you think work in the United States in 1969 . 80 million. How many people work and the United States today . About 160 million. The population of the United States back then, 220 million. Population now, 300 million. 80 Million People more went to work from 1969 to now with the population requested million. Women came into the workforce. That one of my growth at a lot of immigration in it. That immigration means youre not waiting 18 years so you get an 18 euros or 21yearold. Everybody says kindergarten, okay, wait 21 years or you can use that it takes 18 years to get 18 years. That is i expect that took off. [laughing] saw that took place and by the way what happened from the personal computers that was tremendous jobs were created. And we had a constitutional crisis. An impeachment of president , had to resign. Think about all the stuff. The war in vietnam, college, shootings. And still whoe we are. Thats the power of democratic the power of having it. Long pence are too simple question, i guarantee the millennials what a great prospect but its because the system will do it. It will ship and ebb and flow inside people will have more insight what less but constant is one thing making sure people at the basement at a High Standard of living in the world and can do whatever no matter what they look like, no matter what college, whether their way to college and let it rip. We have to make sure the people at the bottom with the highest standard in the world. Thank you for coming to the city club. My question is what impact do you think cryptocracy will havep on the Banking Industry . Will it be an opportunity, a a threat, or irrelevant . Embedded in that, there are two or three different parts to that. Apart is moving money digitally. Today even our consumer business, about 60 move digitally. By our consumers. That doesnt get when you use your physical credit card. If you added that which is representation, it would be a lot higher. Its not a a new concept in te money digitally, right . On the institutional space, 99. 9 . Ig everything those digitally. Thats three or 4 trillion a. Day. Money was digitally. The debate is what about, so whats the Business Case that these things are trying to solve . Different aspects of that but from a currency perspective because the speculation all that you guys all decide what you want to do but from a currency aspect the idea of moving money and instantaneous value is interesting, 24 7 kind off interesting. Where we has industry are thbasically moving money, you dont care whether you have a coin or a bank account if you just want to come u. S. Customs want to have access to money. Credit card system is a pretty good system. You go do all these places you never been to in your life and you have done this piece of plastic and you get a nice dinner, its pretty fantastic. [laughing] think about it. You have to rebut anything. You get your dinner. There is crossborder applications smallb balance transfers seem to have high tariffs to them. There is delay and settlement. We we have a system that Bank Industry has equivalent about. You at ppp Payment System. Zelle to get that ends going strong. Zelle transaction set by her customers exceed number of checks written by a lot. The number of transactions. You look at all that and say so whats the Business Case . Thats what we always strive and then theres blockchain so. That we have 300 pounds on so far. We will also try to find with a rupees of applications for and we have that. That technology is interesting. Public ledger and stuff like that. By the way thats not a new concept. If you have a mortgage you haver public ledger decision on that or have indeed a home that registered if someone has a mortgage. Both as a public records. Thats what the blockchain does but ultimately across a jurisdiction and alter the way automation all different way. A can of documents and stuff that we find that interesting. The actual currency question is one were still cant figure out what is going on because meanwhile, the electric gratification to cash, with vocals with amcitst and also because on weekends if t you wat to buy a car youd have to take the cashiers check come have a heck of a credit card, or you have to have a personal trust, drive the car off and give them the check on monday morning. With a realtime Payment System 24 7 wire system which the fed is building, and we hope if you dont well just have to i think you get to the point where you can do commerce all day long and sizable amount of the International Basic industries tied together realtime systems around the world so that their fight bank account in spain and cleveland can Exchange Money for those things and you will feel, it would be like doing zelle or someone else and cleveland. It will go to someone else in spain. Trying to pick up with the value of the currency. When you go to other countries that want to be a central bank card to come get away from the daughter, thats interesting. Seems dangerous. Go ahead. Mr. Moynihan, how much of an impact do you think our Current Technology has come smart phones and social media, in causing, accelerating the bank runs with earlier this a year, and how concerned are you about that technology causing our accelerating bank runs in the future . Thank you. I thinkia its something we need to study further but you havent seen have impact on other institutions. It is more to do with the individual. Two things, the movement had to do with the customer group. If you read the report a small number of customers have a lot of stuff. They can communicate fast together. Whether they did by text or calling each other wouldnt have made a lot of difference. Thats just the reality. That may change the nature of it. There were a lot ofat other factors which if you read some reports understand, but digitization has changed everything and so well keep studying. When you go outside and look elsewhere, a significant impat elsewhere so it had a something unique to this companies because everybody has digital banking. Had to do with the nature of this is an nature the Customer Base being very, very concentrated. Mr. Moynihan, thanks for your wonderful comments on capitalism that puts profits and purpose together and solve problems of worker i think that deserves a round of applause. [applause] its not new concept. But its good you are devoted to it. My question is, is environmental social governance and Business Practices are the here to stay next second, how helpful do you find it went attention seeking politicians attack those as a culture war issue . And finally, when will business investors declined to finance the campaigns of radical politicians who vandalize our democracy and our communities . [laughing] take those in order . [laughing] ill take the last oneia fir. Look, this is what democracy is all about. People have opinions and the support the opinion and to run for office. I was in American History major and had the Great Fortune of arriving at college with a guy named gordon brown, gordon would come excuse me. Gordon wood was a history professor at brown at the time. And david bid at all these guys kept talking. Gordon he wrote a lot about it. If you go back and read his book this place had a lot of wild come widely different views. Its always been likeat that. Thats why it works because it chops them up and sorts them out over time. We have to be careful that we dont do things but i think, that set. If you go back to the heart of your question, which is the first part of it is about we as companies strive things that are important to our customers or teammates, our shareholders and that is the societal part. We cant be strong in cleveland was cleveland is strong. Were just going to reflect. Our job is to make it stronger what we do about jobs or around even the arts is geared towards helping peoplee understand the value of the arts. Theres a a great quote attrid to Winston Churchill which, like all Winston Churchill things, they may its a 20 of them but everyone thinks he said 100 of them. Hes going into part of entering the red box present in the budget for whatever it is. Middle of the blitz and everything, and didnt bond and spending every dollar rationing and everything is going to the war effort. Somebody said lets cut the funding for the art museums. And he basically said, if, what are we fighting for if we are going to cut that . So even the arts are critical to the success of great cities and communities, even world towns and now virtual space theyre available. I think i get supporting all the thingsf we support. As you make decisions we make decisions that are important in that area. The decisions we make a lot about our team, we have to hundred thousand plus people and 600,000 family members and you make decisions, if we people o believe everything politically everything in our company, we are all of the world, all over the United States, all over age groups, all overag everything. You have to do whats going to help those teammates be successful. If you make your decisions on risk, what is good for the company, what is good for the shareholder . I dont think theyre making for another purpose and thats the point were trying to make here. This is capitalism sort of done the right way. Done aligned with this and then it will be come people wont try to substitute a different system and thats the debate that goes on that makes me worry is that somebody thinks there some other systems that are definitively proven not to work that we do better. So go in an average college gecampus and ask into economics class what their view of capitalism. It will be interesting. We have to get people why a big company like ours are bunch of the companies, any companies can things the right way that actually show you the value of capitalism because you wouldnt have the great things you have any place in america without that capitalist system, thinking about how impacts society. It gets pushed back in the box. Does this, employee safety come they getts regulated back. But what you want is to fix it before that because when comes to regulation typically it goes past the point of pain. I dont know if that makes sense to you. Every four years experts talk about the effect of the president ial election on the economy. This one may be more volatile than other elections and i wondered if you could talk about what you foresee as the effect . And also from your perspective of the correlation is sometimes americans make correlation that one party is better than another, but how, without perspective comes from . Usually people are trying to cheer for one party or another is with the perspective comes from. Objective facts are it keeps going sort of the oldest part of her company was founded in 1784. When people come when the election cycle the last few years came up and everybody was really worried about it, that uses a look, if i can ask your question, we were up for toh election. The one in 1800 was really tough. [laughing] they made a nice show out of it, right . Those who know the story, ended up he was brought up for treason. Is so the Vice President of the United States brought up for treason. Not impeached, after he left for office. Interesting. So i think the idea is a company like ours is to keep trying to do the right thing, be consistent and be mindful that the elected office comes and goes, but the people with a 50 year career in the company will be through 13 election cycles. People have, our company is going to be here for a lot more election cycles. The idea is you sit and say im going to just because, youre going to swing the company so you have to be consistent. Do you want people who see the value of Free Enterprise capitalism . Yes. That doesnt mean thats restricted to one persons ideas. I think the idea is the Business Community is you make our point of no, make our advocacy known, we have to be part of the process to make sure think so go in a way that doesnt make sense for growth and prosperity. On the other hand, be mindful we also have to support the fact we have to take care of what falls out of the capitalists and have to be mindful, we have to educate, help deliver. Any politician is for. This is a wonderful company, wonderful opportunities, but wherever you go in the world the general ask of the Business Committee by the political site is to help them be successful. Thats not a hard asked to fulfill, but you cant do it based on a political view. You have to base it on its good for society. This person may or may not be there. I dont know how many prime ministers the uk in my 14 years ive seen. So its not like things are not going to change. Our uk business has 16,000 people and they cant change it based on whats going on was elected. We have a team that runs it, has to runun on a consistent basis. I tried to, its hard to understand when you get what does it mean for this for that, this person got elected, this person said that. Spend all my time chasing those things i could basically said lets go one of the company the right way. Thank you. Perhaps one final question around capitalism. Do you have any Guiding Principles as youre considering different strategies to implement that balance, the shortterm predictable gains that private investors or analysts are looking for versuss creating longterm sustainable shareholder value . So oddly enough the metrics i spoke about that the interNational Business council put out that match up to the Sustainable Development goals that we had the big Accounting Firms got some new companies could do this because we had them go find 20 20 odd metrit would prove that we t are doing whate they want from the sdg. In those metrics, thats what we look at. We originally built those as a sort of debate between shorttermism. That was the rage for a while. As the Business Community the ideas were like lets force longterm, quit doing corollary reports come stuff that was just not going happen. If you show people that overtime your competition both a shortterm and longterm. Thats profits in profits. Thats not profits in purpose because you have to be profitable in both dimensions. You have to show people you are making progress and that was disclosure. When you can sayur look, heres our diversity, heres how we pay our taxes, heres our scope emissions at our control scope for emissions. Heres the third surgeon h is closest. It reflects progress. We built that. You can get out of the shortterm. When we think about decision of the company, you mentioned business youre always thinking multiple years out or you will read about tomorrow afternoon. But you cant, our business doesnt move fast enough to do shortterm stuff. If you go back and talk about what we dug around teammates over the w years, i started with the management team. We took over the company in 2010. With 285,000 people. Went up85 to 305,000. With 213,000 people this quarter. That sounds like we just let attrition work. In that Time Starting which has gone up from about 10 an hour to 22. The average which has got a 25 . 25 . The ownership by employees, six straight your other specialized bonus around tax changes. We have been six years interval four owe 5 billion the stock ogiveaways. Get the ownership interest to get them s online. You always have things come so the change we made with a benefit plans in 2011, we drop the premium cost for selfinsured. In half. We never wasted. Its directly resulted in turnover rate and entrylevel jobs dropping 30 to 10 . That safely a lot of money. You have to be thinking about that. The health and wellness stuff we do will not pay any minimum measured team because its going to save things 20 20 years on terms of healthcare costs. But yet we think about that stuff. Thats right thing to do for employees and their families. Youre you always think abe longterm shortterm. They are not, its not as binary. Think you do intimately that build up to be longterm. Investment we did made ages ago before anybody knew what it was, now its 20 million Customers Using it. We have the only thing that really, its a very simple form of it but that was because we made it years ago but made it based on aas customer decision. It wasnt where going to wait ages to see if it works. We deployed it after couple f years. Inye our industry you are always making longterm decisions but you want to make them consistent, a consistent, do it with an eye on both but you have to do both. Because this company has been around for 240 years. Im going to be here like a nanosecond in the life of it in my management team, same thing. 30 years in the company. 30 out of 240 years is not a lot. It will go on. Rs you have to leave a better woodpile, woodpile bigger, that analogy. Great, thank you. Thats it. You asked me or if you would survive. I think you. Brian. Moynihan, nice job. [applause]us i would just urge one thing, go out into something that drives capitalism and shows people that works right. Thats what we need to keep doing. Really glad we got to talk about that. We want to thank bank of america, the staff and for the partnership on todays forum. Thank you so much. Up next at the city club, tomorrow june 30 for the 2023 state of the county, county executive, i rescheduled event was supposed be yesterday. We had to shifted due to air quality. We are thinking good thoughts about our friends to the north, by which i mean canada, not michigan. [laughing] after the Holiday Weekend we were turn on friday speedy g have bad thoughts for speeders no. I dont think much at the hollywood return on friday, jule mcbride and live for you is in a Community Led efforts to reduce gun violence in our neighborhoods. Alan burnettnc with third space will moderate. You can learn more about these forms and others at city club. Org. Once again thank you members and friends of the city club. Thank you brian moynihan. Our forum is now adjourned. [applause] and look at whats coming up live on the cspan networks. At any an easter will join the coirtion and fourth general charles ceq brown junior to be chair of theoi chiefs of staff on cspan. At noon the house that back for genera seches followed by legislative business at to pick members workingn Financial Services related bills. On cspan2 the senateeturns at can begin to continue on president ids executive nominations of Xochitl Torres small to be deputy secretary of agriculture. A final confirmation vote i expected at 11 30. On cspan3 at canadian pga tour executive test undergirds recent partnership with the new golf to he fest by saudi arabia. These events also streamed live on the cspan now video app and online at cspan. Org. Cspan chapter or to cspans online store. Rouse her latest collection of cspan products, apparel, books, home decor and accessories. The something for every cspan fan, and every purchase helps support our nonprofit operations. Shop now or anytime at