Brian Moynihan admits he hasn't spoken to the president since Davos

On February 12, 2025, Brian Moynihan, the Chair and CEO of Bank of America, participated in an exclusive interview with CNBC's Leslie Picker on 'Squawk on the Street'. During the conversation, Moynihan discussed the current economic conditions and the state of the banking industry. He noted a slight acceleration in economic activity compared to the previous quarter. The interview highlighted how enthusiasm in the stock market and increased consumer spending have led to a more vibrant economy, suggesting that current interest rates are likely to remain stable for the time being. Many executives, however, are still hesitant to engage in major transactions due to ongoing uncertainties connected to policies and tariffs, leading to what Moynihan described as a chilling effect within the business community. Moynihan emphasized the importance of clear regulatory frameworks, specifically mentioning the challenges posed by BSA/AML compliance. He described how excessive regulation has a negative impact on banks and their ability to serve customers effectively. According to him, the complexity of knowing a customer's customer has created difficulties that hinder growth and innovation in the banking sector. Moynihan expressed a desire to rectify these regulatory issues and foster an environment conducive to business. Additionally, he referred to the overall regulatory landscape and its implications for businesses of all sizes. There have been reports indicating that the previous administration's regulatory policies need to be rebalanced to encourage more confidence among executives. These sentiments illustrate a broader consensus among C-suite leaders regarding the need for a thorough reassessment of corporate regulations that could potentially enhance direct communications between banks, businesses, and regulators. Moynihan concluded by confirming he has not had any recent discussions with the president of the United States following the World Economic Forum in Davos, suggesting a potential gap in dialogue on pressing economic issues between major banking stakeholders and government leaders. This lack of communication underscores the importance of collaboration between sectors to navigate the challenges ahead, particularly in light of the mentioned regulatory concerns.