Bloomberg News

BofA’s Moynihan ‘Confident’ Bank Can Handle Europe Turmoil

October 05, 2011

(Updates to add comments in second and fourth paragraphs.)

Oct. 5 (Bloomberg) -- Bank of America Corp. Chief Executive Officer Brian T. Moynihan said he’s confident the nation’s biggest lender can withstand any fallout from the European sovereign debt crisis, even if it hurts the U.S.

“That contagion stuff is real,” Moynihan said during an event today in Washington. “It wouldn’t be good for the American economy to have an economy that represents one third of the world stay in the condition it’s in.”

Financial shares are under pressure as European regulators struggle to quell concern that lenders may be hurt by sovereign debt defaults. The crisis and signs that U.S. economic growth is stagnating have helped drive down Charlotte, North Carolina- based Bank of America 57 percent this year in New York trading, the worst performance in the Dow Jones Industrial Average.

“We feel confident” that the company can weather Europe’s turmoil, Moynihan said. “The amount of liquidity in the American system, the way we are situated is far different” than in Europe.

European authorities drew lessons from the way the U.S. handled the credit crunch in 2008, and countries such as Germany and France are working on solutions “with reasonable pace,” Moynihan said. Ensuring that there is adequate liquidity is “critical,” he said.

--Editors: David Scheer, Peter Eichenbaum

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus