Listen: Geoff Colvin, Brian Moynahan, Fortune Magazine discussed on 24 Hour News
"Here's why I'm Geoff Colvin of fortune magazine with inside business when Brian moynahan became Bank of America's chief in twenty ten he was widely dismissed as a colorless attorney who lacked the operating expertise to rescue the struggling colossi. Sus. But he has defied the skeptics recently reporting a big jump in profits, even without including the boost from the two thousand seventeen federal tax cut. His strategy has been a return to the kind of low risk grow with your customers. Banking that prevailed in the nineteen fifties. Banks should take the money the depositors, hand them and blended to credit card holders. Companies investors homeowners and consumers simple. But over the past two decades. Many banks had squandered the prophets made in good times by taking big risks, especially in speculative, trading and underwriting, exotic securities moynahan thought he could skip all that and still make a respectable profit turned out. He was right despite a tough environment of record low interest rates that squeezed the spreads between the costs of deposits and the revenue from loans. He also figured he could return all the profits to shareholders and let the Bank grow with the economy. He isn't yet paying out one hundred percent of profits. But he has certainly repudiated. The doubters who thought he wasn't up to the job inside business. I'm Geoff Colvin. For CBS new w w j news time eleven fifty five as we check business on this late Sunday from the suburban Cadillac of Troy business."