Bank of America CEO Says Crisis ‘Too Strong a Word’ for Bank Turmoil
- Deposit insurance paid for by banks has ‘worked pretty well’
- BofA was one of 11 firms that shored up First Republic Bank
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The recent turmoil that hit regional banks in the US didn’t rise to the level of crisis, and the deposit insurance covered by lenders did a good job of protecting customers, Bank of America Corp. Chief Executive Officer Brian Moynihan said.
“Crisis is too strong a word, and words like that get used a lot,” though there was “a fair amount of disruption for a few weeks there,” Moynihan said Thursday at Bloomberg’s Sell-Side Leaders Forum in New York. Deposit insurance “worked pretty well. The industry pays for the deposit premiums. We insure ourselves. The government is the go-between to make sure people believe it’s there. And they get the money back from us.”