Bank of America CEO Brian Moynihan goes one-on-one with Jim Cramer

>> THESE DAYS. THERE'S SO MUCH SPECULATION ABOUT THE STATE OF THE CONSUMER. I DON'T LIKE TO SPECULATE. I PREFER TO GO STRAIGHT TO THE SOURCE. AND NOBODY TAKES THE PULSE OF THE CONSUMER AND THE BROADER ECONOMY BETTER THAN THE BANK OF AMERICA, THE NATION'S SECOND LARGEST BANK BY ASSETS, WHICH, BY THE WAY, HAS PUT UP A NICE 14% GAIN YEAR TO DATE. EARLIER TODAY, I HAD A CHANCE TO SIT DOWN WITH BRIAN MOYNIHAN, CHAIRMAN AND CEO OF BANK OF AMERICA, RIGHT HERE AT THE NEW YORK STOCK EXCHANGE. OUR CONVERSATION COMES AS WE APPROACH THE 25TH ANNIVERSARY OF SEPTEMBER 11TH, WITH BANK OF AMERICA MAKING NEW COMMITMENTS TO ORGANIZATIONS DEDICATED TO HONORING THE VICTIMS, FIRST RESPONDERS, AND THEIR FAMILIES. TAKE A LOOK. I WANT TO TALK ABOUT NINE OVER 11. WE'RE ON THE EVE OF IT. I THINK YOUR BANK, BOTH CHARITABLY AND AS A COMMERCIAL ENTERPRISE RESPONSIBLE FOR A LOT OF THE REBIRTH HERE. WHY DON'T YOU TALK TO ME ABOUT BANK OF AMERICA AND YOUR ROLE IN AN AMAZING TURN THAT IS DOWNTOWN? >> SO IF YOU THINK. >> ABOUT BANK OF. >> AMERICA IN THIS BUILDING IS AN IMPORTANT PART OF THE TRAGIC LEGACY AROUND NINE OVER 11. BECAUSE, YOU KNOW, THIS IS WHERE AMERICA'S EPICENTER OF THE FINANCIAL MARKETS HAPPENED. AND THE JOB WAS TO GET THIS BACK UP AND OPERATING. THAT WAS THE JOB BECAUSE WE HAD TO GET THE SECURITIES MARKET STARTED. BUT IF YOU THINK ABOUT THE LEGACY WE HAD, MERRILL LYNCH IS NOW PART OF THE COMPANY. WE HAD FLEETBOSTON, WHICH WAS THE QUICK AND SPECIALIST BUSINESS. AND THEN WE HAD BANK OF AMERICA, WE HAD U.S. TRUST. AND SO ALL THOSE COMPANIES WERE ARE NOW PART OF ONE COMPANY. SO AS WE LOOK BACK, THE STORIES FROM MY TEAMMATES ABOUT GOING THROUGH THAT DAY ARE AMAZING. AND THE STORY IS IMMEDIATE. WE'RE GOING TO NOT LET THEM GET US DOWN. WE'RE GOING TO BEAT THIS BACK. WE'RE GOING TO REOPEN. WE'RE GOING TO PUT AMERICA BACK IN. AND ALL OF US WORKED IN THIS INDUSTRY WHO ARE FIERCE COMPETITORS WORK TOGETHER TO SAY, HOW CAN WE GET THE SECURITIES MARKETS BACK UP? A LOT OF CORPORATE ISSUERS REMEMBER, SAID, WE'RE GOING TO BUY BACK A BUNCH OF STOCK ON MONDAY. WE GOT TO GO GO AND THEN RECOVERED. AND THERE WAS A LOT OF WORK AND THERE WAS A LOT MORE WORK. BUT IT WAS A STORY OF RESILIENCY, UNITY AMONG THE COUNTRY AND JUST FABULOUS PERSONAL STORIES OF RECOVERY AND RESILIENCY, HORRIBLE STORIES OF LOSS AND GRIEF. JUST AND, YOU KNOW, I THINK BACK ABOUT A LOT BECAUSE I WAS LITERALLY ON MY WAY DOWN HERE WHEN THAT PLANE HIT AND I AND I AND YOU JUST WONDER, IT JUST THAT WAS TERRORISM AT ITS TERRORISM WORST BECAUSE THEY TOOK SOMETHING AS ORDINARY AS FLYING AND TURNED IT INTO TERRORIST ACT. AND AMERICA FELT UNSAFE. AND THE PRESIDENT BUSH, THE CITY, THE STOCK EXCHANGE, ALL THE FINANCIAL SERVICES COMPANIES, ALL LOWER MANHATTAN RECOVERED. AND THEN SINCE THEN, YOU'VE SEEN THIS. THIS IS A VIBRANT PLACE. NOW, MY DAUGHTER LIVED DOWN HERE FOR A BUNCH OF YEARS. KIDS ARE BACK DOWN HERE RUNNING AROUND. IT'S JUST A WHOLE DIFFERENT PLACE THAN IT WAS IN THE AFTERMATH. IT WAS LIKE IT'S NEVER COMING BACK. AND THEN EVEN WE BUILT OUR BUILDING AT AT BRYANT PARK IN A PLACE THAT WAS NOT WELL BUILT BACK THEN. YOU KNOW, OFTEN TIMES SQUARE, WE BUILT THAT BUILDING WITH LIBERTY BONDS. THEY WERE CALLED TO HELP REBUILD MANHATTAN BECAUSE NOBODY WAS INVESTING IN MANHATTAN. AND WE PUT THE BUILDING OUT, AND WE ENDED UP OCCUPYING BY 2007 OR 8 OR WHATEVER IT WAS. SO THINK ABOUT HOW FAST FOR A 51 FLOOR SKYSCRAPER TO GO UP. SO AND WE'RE NOT ALONE, BUT IN OUR COMPANY SUPPORTED VETERANS, FIRST RESPONDERS. AND WE JUST RECENTLY ANNOUNCED ANOTHER GRANT TO TUNNELS TO TOWERS. AND WE'VE BEEN DOING A LOT OF WORK ACROSS THE LAST 15 YEARS, PROBABLY $100 MILLION FOR VETERANS AND FIRST RESPONDERS. >> YOU'RE ALWAYS I FELT A SOFT TOUCH. >> WELL, WE WE'RE A HARD BUSINESS PEOPLE, BUT WE HAVE A HARD. >> I YOU DO, YOU DO. NOW LET'S TALK ABOUT PRESENT DAY. WE'RE IN A REMARKABLE MOMENT. YOU HAVE THE BEST DATA. AND THE DATA SHOW THAT THINGS ARE PRETTY DARN GOOD IN THE COUNTRY. YEAH. >> SO THINK ABOUT WHAT WOULD BE THE INDICES. TAKE THE OPPOSITE. WHAT WOULD BE THE DISHES OF PROBLEMS CONSUMERS WOULDN'T BE SPENDING. CONSUMERS SPENT IN THE MONTH OF AUGUST ABOUT 4% MORE THAN THEY SPENT LAST AUGUST, WHICH IS A PRETTY GOOD MONTH BECAUSE THAT'S AFTER LIBERATION DAY AND THE RECOVERY LAST QUARTER, IT WAS 5%. SO IT'S TICKING ALONG. THAT'S CONSISTENT WITH A STRONG GROWING ECONOMY. THE SECOND DISH SHOULD BE CREDIT. OUR CREDIT STATISTICS ARE AS GOOD AS THEY'VE BEEN FOR YEARS. THE CHARGE OFFS AND CONSUMER DELINQUENCIES AND CREDIT CARDS. YOU HEAR ABOUT RECORD OUTSTANDING BALANCES OF CREDIT CARDS, BUT THE ECONOMY IS 40% BIGGER. WHATEVER IT IS, SINCE 19, EVERYBODY COMPARES IT. SO WHAT YOU'VE SEEN IS THE RECOVERY BACK TO TREND. AND THEN IF YOU LOOK AT BUSINESSES, BUSINESS CREDIT IS VERY STRONG. PEOPLE ARE USING THE LINES OF CREDIT INVESTING. THAT'S BEEN A LITTLE SLOWER TO COME BACK AFTER THE PANDEMIC BECAUSE JUST THE UNCERTAINTY OF TRADE TARIFFS, YOU PICK THE ISSUE OF THE MOMENT, BUT YOU KNOW, THEY'RE STRONG, THEY'RE CREDIT STRONG, THEY HAVE THE ABILITY. IT'S MORE COSTLY. AND THE PLACE THAT HIGHER RATES AFFECT IS SMALL OR MEDIUM SIZED BUSINESS. WHO BORROWS ON LINES OF CREDIT. THAT'S THE BIG PLACE. IT AFFECTS MORTGAGE RATES, BUT WHERE IT REALLY AFFECTS THE SHORT TERM RATE STRUCTURES THERE. SO THAT'S BUT THEY'RE BORROWING. THEY'RE USING THE LINES OF CREDIT QUALITY IS GOOD. THEY'RE THEY'VE FIGURED OUT IN A WORLD WHERE A LOT OF THINGS ARE CHANGING, THEY FIGURED OUT A PATH FORWARD. PRETTY MUCH. THEY STILL WORRY ABOUT GAS PRICES AND HOW IT AFFECTS PRODUCT PRICES, BUT EVERYTHING WE SEE IS FINE. THE CAPITAL MARKETS HAD A, YOU KNOW, GANGBUSTER SECOND. >> QUARTER FANTASTIC. >> BUT, YOU KNOW. >> IT'S EVERY YEAR NUMBERS ARE A GREAT GROWTH STOCK NUMBERS. >> YEAH THEY WOULD OUR EARNINGS WERE UP 30% AND THINGS LIKE THAT. YOU KNOW WE HAD A GREAT QUARTER. WHAT'S INTERESTING IS THAT LEVEL YOU KNOW WILL BE HARD TO SUSTAIN THE GROWTH RATE AT THAT LEVEL. BUT THE AGGREGATE LEVEL THE S&P AND STUFF HAS STAYED. AND THAT'S GOOD FOR THE WEALTH MANAGEMENT BUSINESS. INVESTMENT BANKING FEES ARE A LITTLE BIT YOU KNOW, SORT OF BOUNCED AROUND A LITTLE BIT. BUT YOU KNOW THERE'S JUST A LOT OF ACTIVITY LAST YEAR IN COMPARATIVE. IT WAS A GOOD QUARTER. BUT WE FEEL VERY GOOD ABOUT DEPOSIT GROWTH, LOAN GROWTH, THE STUFF THAT MAKES THE AMERICAN ECONOMY VISUALIZING. AND CONSUMERS ARE SPENDING AND CONSUMERS ARE EMPLOYED AND WAGE GROWTH. WE SEE WAGE GROWTH IN LOWER INCOME GROUP BECAUSE WE SEE THEIR PAYCHECKS COMING. >> THROUGH THE LOWER INCOME. WE HAD THAT K STRUCTURE. WE CONVERGE A LITTLE. THE MOST RECENT NUMBERS YOU HAVE ARE VERY ENCOURAGING FOR THE PEOPLE WHO ARE LESS WELL OFF IN THE COUNTRY. >> YEAH. SO THERE'S AN AFFORDABILITY ISSUE OUT THERE IN PEOPLE BECAUSE IT'S REAL GAS PRICES ARE UP A DOLLAR A GALLON OR WHATEVER THE LABOR DAY, LABOR DAY, THAT'S REAL IN PEOPLE'S MIND, RENTS AND THINGS LIKE THAT. WHAT YOU SAW IS SOME OF THOSE THINGS MITIGATED WERE MITIGATING ACROSS TIME. AND WHAT YOU'RE SEEING IS WAGE GROWTH CATCHING BACK UP. SO YOU HAD A PERIOD AFTER COVID WHERE WAGE GROWTH AND THE GREAT RESIGNATION, REMEMBER, WE ALL TALKED ABOUT THAT WAGE GROWTH WAS VERY FAST AND WAGE GROWTH SLOWED DOWN. AND NOW WAGE GROWTH IS BACK ON. THE ENCOURAGING THING WE'RE SEEING IS TWO THINGS ABOUT WE SPLIT OUR DATA INTO LOWER MIDDLE AND UPPER INCOME JUST BY A THIRD. IN THE LOWER INCOME STRATA. YOU'RE SEEING WAGE GROWTH OF ABOUT THREE AND A HALF TO 4%, AND YOU'RE SEEING SPENDING GROWTH COME UP WITH THAT. THAT'S VERY GOOD BECAUSE THAT'S A LOT OF PEOPLE. AND THAT MEANS THAT THEY'RE FEELING PRETTY GOOD ABOUT THEIR POSITIONS. UNEMPLOYMENT IS VERY LOW. NEW CLAIMS FOR UNEMPLOYMENT. >> THESE ARE I MEAN, I KNOW THAT I'M VERY CONCERNED ABOUT GASOLINE, BUT JOB GETTING A JOB, NOT SO HARD, IS IT, AS IT'S BEEN IN THE COUNTRY. THE FACT IS, IS THAT THE CREDIT SITUATION HAS BEEN MADE TO SOUND LIKE WE SHOULD BE WORRIED. BUT IT IS A BIGGER PIE. >> WELL, THE STATISTICS THAT DRIVES ME CRAZY IS THE FED REPORTS THESE DELINQUENCIES. BUT IF YOU WERE CHARGED OFF TWO YEARS AGO, YOU'RE STILL IN THE FED'S DATA. IF YOU REPORTED THE BUREAU AS HAVING CHARGED, THE REALITY IS, IS THE CHARGE OFF RATES THAT ARE GOING THROUGH BANK PANELS AND THE PEOPLE WHO GRANT CREDIT, WHICH WOULD CAUSE THEM NOT, ARE AS LOW AS THEY'VE BEEN IN MANY YEARS. AND SO THAT'S, THAT'S GREAT BECAUSE WE'RE GOING TO, YOU KNOW, WE'RE AS AGGRESSIVE WITH CREDIT RATING AS WE CAN POSSIBLY BE BEING JUDICIOUS AND RESPONSIBLE. NOW, WHAT COULD GO WRONG? THERE'S A PARADE OF HORRIBLES OUT THERE. THE IRAN WAR DOESN'T SOLVE FAST. THE UKRAINE RUSSIA WAR DOESN'T SOLVE FAST. THERE'S ESCALATION OF SOUTHEAST ASIAN ISSUES OR SOMETHING. THERE'S A LOT OF THINGS THAT PEOPLE CAN SAY. BUT MEANWHILE, HERE GOES. THE U.S. ECONOMY PREDICTED GROWTH IN THE MID TWOS THIS YEAR, AND WE DON'T SEE ANYTHING IN ITS WAY. EVEN WITH FED HIKING RATES, WE STILL SEE THE ECONOMY GROWING THROUGH THAT. >> OKAY. NOW YOU HAVE ALWAYS HIRED A HUGE NUMBER OF PEOPLE IN THE SUMMER. IT'S BEEN A GREAT TIME. EVERYONE KNOWS THAT. YOU'VE GOT A GREAT PROGRAM. HAVE YOU CUT BACK THE NUMBER OF PEOPLE YOU'RE MAKING OFFERS TO BECAUSE OF AI, OR HAS AI MADE IT SO EACH PERSON IS SO PRODUCTIVE THAT YOU JUST WANT TO CONTINUE TO HIRE. >> WE WE HIRE ABOUT, CALL IT 2000 SUMMER INTERNS A YEAR IN 2000 KIDS FROM SCHOOLS AND DEFINED RECRUITING PROGRAM. SO 400 SCHOOLS FOR 2000 KIDS, 2000 A SUMMER. WE HAVEN'T CHANGED IT. AND WE HAVE WE ARE NOW BEING CAREFUL AS WE THINK ABOUT THOSE KIDS CAREER PATH, GET THEM TO PLACES WHERE THERE'S, YOU KNOW, AND MOVE THEM AROUND A LITTLE BIT MORE REDEPLOYMENT, AS WE CALL IT. THAT'S THE RESPONSIBILITY OF MANAGEMENT TO SHOW THEM PLACES THEY CAN GO. BECAUSE, YES, THE AI TECHNIQUES BEING USED IN INVESTMENT BANKING TODAY MAKE THAT ANALYSTS MORE EFFECTIVE. BUT THERE'S, YOU KNOW, THOUSANDS AND THOUSANDS OF OTHER JOBS AS TALENTED TEAMMATES CAN DO. PLUS, WE CAN JUST DO MORE PRODUCTIVITY AND MORE BUSINESS. SO WHAT'S INTERESTING, I THINK MANAGERS THAT I TALKED TO, I MEAN, CEOS AND OTHERS AND MY TEAM, WE'RE ALL TRYING TO MANAGE THE IMPACT ON THE HUMAN SIDE OF THIS BECAUSE AT THE END DAY, WE NEED TALENT. WE NEED LOTS OF TALENT. AND I THOUGHT DARA FROM UBER SAID IT WELL TWO YEARS AGO WHEN HE SAID, YOU'RE NOT GOING TO LOSE YOUR JOB TODAY, YOU'RE GOING TO LOSE YOUR JOB. YOU MAY LOSE YOUR JOB TO SOMEBODY WHO KNOWS HOW TO USE IT. THAT'S WHAT WE TALK TO HIM, LEARN IT, MAKE IT YOUR OYSTER. THE WORLD'S AHEAD OF YOU. GO DRIVE IT. AND THEY ARE ENTHUSIASTIC. AND AS WE GET TO THE NEXT RECRUITING CLASS, THERE ARE PEOPLE WHO HAVE HAD AI THEIR ENTIRE COLLEGE CAREER. YOU'VE NOW MADE A JUMP, SO THEY DON'T KNOW WHAT WE'RE TALKING ABOUT. WHEN WE TALK ABOUT AI AS A CHANGE FOR THEM, THEY'RE SAYING, I'VE BEEN USING IT. AND SO IT HAS ALL ITS PLUSES AND MINUSES, ALL THE DEBATES IN THE EDUCATIONAL PROCESS AND HOW KIDS USE IT AND ALL THAT STUFF UNIVERSITIES AND HIGH SCHOOLS ARE FIGURING OUT. AT THE END OF THE DAY, THESE KIDS KNOW HOW TO USE IT, AND THAT'S TERRIFIC BECAUSE THEY'RE GOING TO MAKE US. >> BETTER RIGHT NOW. ARE YOU EVER CONCERNED ABOUT GETTING MORE YOUNG PEOPLE IN AS SAVERS? FOR INSTANCE, WE READ ABOUT ROBINHOOD WITH 28 MILLION ACCOUNTS. IS THAT A THREAT TO BANK OF AMERICA? SOME OF THESE COMPANIES WHERE THEY START, THEY GET PEOPLE IN THROUGH MAYBE CRYPTO, MAYBE THROUGH GAMBLING, BUT THEN THEY END UP IRA. AND NEXT THING YOU KNOW, THE 401 K. I MEAN, IS IT SOMETHING BANK OF AMERICA HAS TO WORRY ABOUT? >> WELL, WE HAVE MERRILL EDGE, WHICH IS A GREAT PRODUCT. MERRILL EDGE IS DEVELOPS ABOUT 10% MORE CUSTOMERS EVERY YEAR. AVERAGE STARTING BALANCE IS 100,000 PLUS DOLLARS. SO IT'S A IT'S A MORE, YOU KNOW, SUBSTANTIAL INVESTOR. AND WE DRIVE THAT. AND THAT'S OUR VIEWPOINT. I WAS TALKING TO YOUR COLLEAGUE ABOUT WHEN WAS THE LAST TIME I RANG THE BELL? AND I THINK IT WAS 2006 WHERE WE ANNOUNCED $0 TRADES ON EQUITIES IN BANK OF AMERICA SECURITIES. EVERYTHING'S A NEW CONCEPT. WE WE DID IT BACK THEN BECAUSE WE HAD AN ONLINE BROKERAGE SO CALLED. AND SO WE FEEL VERY GOOD ABOUT THAT BUSINESS. I THINK THE KEY IS TO GET PEOPLE TO BUDGET, SAVE AND THEN SAVE FOR RETIREMENT. AND I WAS TALKING TO A YOUNG FELLOW THE OTHER DAY AND HE SAID, SOMEBODY SAID, MAXIMIZE MY 400 K. AND I SAID, THAT'S THE ANSWER. MAXIMIZE YOUR FOUR ONE K. IT'S IMPORTANT. >> NOW, I, I KNOW THAT YOU HAVE MORE EMPHASIS ON CYBER SECURITY AND PRETTY MUCH ANY OTHER COMPANY IN THE WORLD. HOW ARE YOU FEELING? I MEAN, HOW ARE YOU FEELING ABOUT, ABOUT WHAT THE MACHINES CAN DO TO US, ABOUT THE MACHINES BREAKING IN? IT SEEMS LIKE IT'S MORE POWERLESS THAN MAYBE IT IS. YOU CAN TELL ME THIS BECAUSE YOU'RE THE GUY WHO'S SEEN IT ALL. >> WELL, WE'RE LUCKY THAT WE HAVE A VERY TALENTED GROUP OF 3000 PLUS PEOPLE WORKING ON THIS FULL TIME. WE HAVE A TEMPERAMENT AMONG THE WHOLE COMPANY THAT THIS IS JOB ONE MOST IMPORTANT JOB. DON'T DEBATE THE COSTS THAT COME ALLOCATED TO, YOU KNOW, BUSINESS LINE LEADERS GETTING ALLOCATED. DON'T DEBATE THAT. JUST LET IT GO. THEY WORK CLOSELY WITH THE INDUSTRY, OUR INDUSTRY, ACTUALLY THE BANKING INDUSTRY, THE FINANCE HAS BEEN VERY GOOD AT THIS AND WORKED HARD. THESE NEW TOOLS PRESENT INTERESTING QUESTIONS, THE WAY THAT THEY CAN FIND VULNERABILITIES FAST IS UNBELIEVABLE AND THEY'RE GOOD AT IT. AND SO WHAT WE'VE BEEN DOING IS USING THEM IN COOPERATION WITH THE FRONTIER MODEL PROVIDERS AND OTHERS TO FIGURE OUT HOW TO RUN THEM AGAINST THAT, WHETHER IT'S OPEN SOURCE, CLOSED SOURCE, PROPRIETARY SOFTWARE, RUN IT AND FIGURE THEM OUT. WHAT I WAS TALKING TO AN EXPERT IN THIS FIELD THE OTHER DAY, HE SAID, YOU HAVE TO REMEMBER, BRIAN. ON THE OTHER SIDE OF THIS IS THIS WILL ALSO HELP YOU HARDEN YOUR SYSTEMS FASTER. SO WHAT YOU'RE RIGHT NOW, YOU FEEL LIKE, OH MY GOD, VULNERABILITIES AND PATCHING AND GO, GO, GO, GO, GO. THERE'LL BE A TIME WHEN YOU TIP OVER THAT. THEY CAN HELP YOU FIND IT. ARE THERE SOME INTERESTINGLY FASCINATING STORIES GOING ON RIGHT NOW? THERE A LITTLE BIT SCIENCE FICTION ORIENTED WHERE YOU TAKE OVER THE STUFF THAT THAT WE HAVE TO DO. AND I THINK I THINK THE COMPANIES THAT MAKE THESE MODELS ARE STARTING TO REALIZE THEY'VE GOT TO BE MUCH MORE CAREFUL ABOUT THE GUARDRAILS AND THINGS, AND THEY'RE TRYING TO FIGURE OUT HOW TO SLOW THAT DOWN. AND THAT'S NOT SLOW DOWN THE INGENUITY, SLOW DOWN THE NEGATIVE SIDE OF THE WE HAVE TO DO THAT, DON'T WE? >> I MEAN, YOU CAN BE A LEADER IN THAT BECAUSE YOU ARE A LEADER IN CYBERSECURITY, AMONG MANY OTHER THINGS, INCLUDING A LEADER IN BANKING. I WANT TO THANK BRIAN MOYNIHAN, THE CHAIR AND CEO OF BANK OF AMERICA. BAC. GREAT STOCK. TERRIFIC JOB. THANK YOU, THANK YOU. >> THANKS. >> COMING UP, DID JERSEY MIKE'S DELIVER IN ITS FIRST PUBLIC EARNINGS REPORT? CRAMER IS CHECKING