Bank of America Corp. Chief Executive Officer Brian Moynihan said in an interview on CNBC that the company would consider an acquisition of another lender through a deal brokered by the Federal Deposit Insurance Corp.
(Bloomberg) — Bank of America Corp. Chief Executive Officer Brian Moynihan said in an interview on CNBC that the company would consider an acquisition of another lender through a deal brokered by the Federal Deposit Insurance Corp.
“We’ll take a look at it but that’s going to come down to circumstances,” Moynihan said Monday from the World Medical Innovation Forum in Boston. “The good news is, the industry’s strong, in great shape, and I think a lot of the worries are probably overstated.”
Moynihan’s comments follow rival JPMorgan Chase & Co.’s deal to buy First Republic Bank amid a two-month saga that engulfed several regional lenders. Bank of America was considering its own bid but ultimately dropped out of the process. First Republic was seized by regulators in what was the second-largest bank failure in US history.
Read more: JPMorgan Grows Even Bigger as US Bank Giants Soak Up Assets
There are signs of the US economy slowing down overall as the Federal Reserve raises interest rates to clamp down in inflation. Lending has tightened and loan demand is weaker across the industry, Moynihan said.
Bank of America faces potentially higher capital requirements after bank failures increased the cost to the insurance pool. Last week, Moynihan said that could affect lending, following reports that large US banks may have to boost their capital by an average of 20%.
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