Wednesday, November 14, 2012

Cliff

Even though the negative effects are already being felt, Bank of America CEO Brian Moynihan has a good feeling about Washington's ability to solve the looming fiscal cliff.

Moynihan made his remarks Tuesday when he kicked off BofA's 20th annual Bank of America Merrill Lynch Financial Services Conference at the Plaza Hotel in New York. He spoke for about 30 minutes, providing an overview of his well-documented efforts to raise capital, cut expenses and streamline the company.

He said the economy is a tale of two stories — the economic fundamentals, and the short-term risk associated with federal budget cuts and tax increases set to begin Jan. 1, known as the fiscal cliff. It's expected to sap as much as 4% growth out of the economy.

"We continue to see in all of data we have and what our experts continue to tell us is we see a continued slow steady recovery. Our economists are only forecasting about 1% annualized growth through this quarter but the fundamentals underneath they continue to strengthen," Moynihan said.

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