Brian Moynihan, the new Bank of America CEO, recently gave a speech at the Eighth Annual Economic Forecast Forum in Raleigh, N.C. During his remarks several admissions of culpability for the recent and ongoing financial crisis in the U.S. were made.
As CEO, Moynihan's statements and the bank's role in the country's economic turmoil should have started a feeding frenzy amongst corporate news reporters. Alas, none was forthcoming!
Most notable in his comments include, "We as an industry cannot avoid the simple fact that we caused a lot of damage, and we have to help make sure it doesn't happen again."
Also noting Bank of America's lending practices were less than stellar, Moynihan continues, "During the last few years, many consumers borrowed more than they should have, and we helped them do it."
Moynihan seemed to advocate for greater financial oversight and regulation saying, "The vehicles and practices that got us here, and have cost our industry billions of dollars in capital through losses, have to be reformed."
Could it be that the major news agencies have missed the implications of Moynihan's statements? I doubt it. Let's hope that those in positions of authority, that advocate for the reform of financial institutions, have not missed them either.
Photo: People's World