‘Fiscal Cliff’ a Drag on Banking Business: BofA’s Moynihan

Bank of America CEO Brian Moynihan said on Tuesday that the rising potential for a surge in both higher taxes and reduced government spending was a restraint on banking activity.

‘Fiscal Cliff’ a Drag on Banking Business: BofA’s Moynihan
Fabrice Coffrini | AFP | Getty Images

Moynihan, speaking at the Bank of America/Merrill Lynch banking conference in New York, echoed the fears voiced by numerous other business and financial leaders in recent days about the U.S. "fiscal cliff."

Recently, JPMorgan Chase CEO Jamie Dimon said that a fix of the problem could lead to an economic boom. (Read More: Here's How the Economy 'Can Go Boom': JPMorgan's Dimon.)

Bank of America's CEO said that while a slow and steady recovery in the housing market was underway, concerns about the so-called fiscal cliff were holding back client participation in markets. He added that his bank has shed business where capital investment does not benefit its clients.