WHEN: TODAY, TUESDAY, MARCH 8TH
WHERE: CNBC'S "CLOSING BELL WITH MARIA BARTIROMO"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Brian Moynihan, Bank of America President & CEO, on CNBC's "Closing Bell with Maria Bartiromo." All references must be sourced to CNBC.
Moynihan on the Consumer:
YOU'RE SEEING THE ACTIVITY FROM THE CONSUMER IN A CREDIT QUALITY AND PROGRESSING WELL. WHEN YOU THINK ABOUT IN TERMS OF WHAT THEY ARE DOING WITH THEIR MONEY, THEY ARE OUT THERE SPENDING. IN FEBRUARY 2011, THE SPENDING IS UP 6% VERSUS FEBRUARY 2010 AND THE 6% IS PEOPLE WOULD SAY IT'S ALL GAS PRICES AND THE REALITY IS, THE DISCRETIONARY PART HAS NOTHING TO DO WITH GAS OR FOOD AND IT'S UP 5%. THAT'S ALL GOOD FOR OUR ECONOMY.THAT'S ALL GOOD FOR THE COMPANY AND FOR THE GROWING ECONOMY.
Moynihan on our Reserves:
WE DOUBLED OUR RESERVES FROM THE LAST COUPLE OF YEARS AND OUR RATIOS HAVE IMPROVED. WE'RE ABOUT 4% OF ASSETS LOANS, IN OUR COVERAGE AND CHARGE OFFS IS 2.5 TIMES WHAT IT WAS. WE'VE BUILT THIS BALANCE SHEET THAT HAS RESERVES IN IT. AS CREDIT CONTINUES TO IMPROVE, WE'RE ABLE TO TAKE IT THROUGH THE BOTTOM LINE.
Moynihan on Peace Dividend:
WE'VE DONE MANY MAJOR ACQUISITIONS, MBA, COUNTRYWIDE, FLEET BOSTON. YOU JUST CAN ADD UP SMALLER ONES THAT ARE IN THERE. THAT CAUSED US A LOT OF WORK AND NOW ALL OF THAT IS BEHIND US THE MERRILL LYNCH TRANSACTION IS COMPLETELY INTEGRATED BY THE MIDDLE OF THIS YEAR. THE PEACE DIVIDEND IS THAT YOU CAN TAKE ALL OF THAT EXPERTISE AND IMPROVE OUR COMPANY FROM INSIDE OUT.
Moynihan on Housing:
WHAT HASN'T RECOVERED IS THE CONSTRUCTION INDUSTRY AND THAT I THINK WE WILL HAVE TO GRIND THROUGH BECAUSE WE SHOULDN'T BUILD AS MANY HOMES THAT WE WERE BUILDING AT THAT TIME BECAUSE WE DIDN'T HAVE THE POPULATION TO SUSTAIN IT. HOUSING MAY GO UP OR DOWN BUT IT'S HAD A BIG FALL OFF AND NOW WE HAVE TO WORK OUR WAY THROUGH IT. WE HAVE A BUBBLE OF FORECLOSURES AND MODIFICATIONS THAT WE'VE GOT TO GET THROUGH. WE HAVE CONSUMERS THAT WE'VE GOT TO WORK WITH TO RESTRUCTURE HOME OWNERSHIP.
Moynihan on Business Abroad:
IT'S EUROPE, IT'S JAPAN, IT'S AUSTRALIA. WE HAVE A VERY GOOD BUSINESS IN INDIA. WE HAVE A BIG BUSINESS IN -- IT'S TOP 20 ECONOMIES IN THE WORLD. AND SOUTH AFRICA WE HAVE NICE BUSINESS. IT'S BECAUSE THE SIZE OF THE MIDDLE EAST, ALL OF THOSE ECONOMIES FIT IN THERE AND IT'S ACTIVITY THAT REQUIRES CAPITAL MARKET EXPERTISE, MA EXPERTISE, CAPITAL RAISING EXPERTISE AND WE HAVE OUR TALENT AND TEAMMATES AROUND THE WORLD DOING IT. WE'RE ALREADY DOING IT.
Moynihan on the Dividend:
WE HAVE GOT TO GET THE CLEARANCE TO THE FED AND WE'LL SEE WHAT THEY SAY-- WHAT I TOLD THE ANALYSTS, THERE'LL BE MODEST DIVIDEND INCREASES WHENEVER WE CLEAR THE HURDLES AND GET THERE UNTIL WE GET TO THE POINT WHERE IT'S NAILED AND THEN WE START TO DECIDE WHAT TO DO WITH ALL OF THE CAPITAL FROM THAT POINT FORWARD. THAT'S WHERE INVESTORS WERE QUESTIONING -- ARE YOU REALLY THAT SERIOUS? ARE YOU NOT GOING TO DO ACQUISITIONS, THAT YOU COULD RETURN THE CAPITAL THAT THIS FRANCHISE GENERATES AFTER BASEL 3IS DONE , AND THE ANSWER IS ABSOLUTELY YES.
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