Bank of America Corporation

We're going to get started. I'm delighted to welcome back Bank of America's chairman and CEO, Brian Monahan. Brian absolutely needs no introduction whatsoever. This is his 14th consecutive year. I know, Brian, it makes us feel old, but we really do appreciate you coming back. I was a lot younger then. So consistently. You're a lot wiser now. So thank you for joining us. So let me just start off with a very broad question, which is, look, I know it's been a very turbulent year for the banking industry, especially for the regional banks. You know, can you just start off with some of the things that you've learned from the events of this year, maybe touch on the role that banks play in the broader economy and society, and just talk about how that's evolved from your perspective over the 14 years that you've been CEO?

You know, I think in the end of the day, Richard, what you saw in this year and what you saw during the pandemic, because, you know, was that the banking system supported the economy and did the things we had to do. And so if you think about it, anything from distribution to government benefits, from taking care of clients and waiving fees in the toughest times, then helping people through it, then supporting the economy as it regrew through it, then this year dealing with some of the excesses of fiscal and monetary policy that ended up causing inflation and rate movements never seen. And the industry is very resilient. And that comes back to What we do is we serve our clients. If the American economy is going to be strong, the American banking system has to be strong and vice versa. And I think the last 12 months, 24 months, 36 months, 48 months have continued to prove that. And then on top of that, the capital, liquidity, and other things in the industry have been strong. And in the end of the day, it comes down to helping lead our clients and helping deliver, in our case, prosperity. a lot of money, a lot of earnings, and do it with a purpose and helping clients live their lives. And what would you like the power to do is what we ask our clients. And when they give us the answer, we try to help them do it, whether it's about their day-to-day lives, opening a checking account, learning how to manage their household finances, or the biggest companies in the world doing offerings to help make the transition take place in the environment or whatever the things are. And so I think The keys are good capital, good liquidity, managed well, got through a crisis, helped solve the crisis, especially the larger banks as opposed to being part of it, which is a good place to be. And, by the way, the U.S. economy compared to the European economy pre-pandemic to now is grown by leaps and bounds over other economies around the world, and that's due to the financial services system writ large and the banking system supporting it.

So let's talk a little bit about the economy. So obviously, we're in this transition to a world of higher interest rates, potentially, I guess, higher inflation rates. as well. Can you just touch on what you're seeing, both in terms of spending trends, both consumer and corporate, but also talk a little bit about how consumer and corporate balance sheets are holding up in this world of structurally higher interest rates?