CEOs of most major banks, like Jamie Dimon and David Solomon, have been adapting since Donald Trump took office. He places emphasis on economic policy, clarifies issues such as tariffs, and publicly acknowledges Trump's enthusiasm for working with the business community. They seem to understand that olive branches are a way to maintain their relevance.
And then there's Brian Moynihan from the Bank of America. I have been told that long-stirred relationships with the president seem to be suppressing the bank's ability to evolve.
According to one source, unlike Solomon and Dimon, Moynihan mostly said, “In the shadows… he is not a leader.”
“He's anti-Jamy Dimon,” the source explained. “He's holding the bank down.”
Other banks were able to move on from the awakening policies that once were Deligua, and reinvent themselves in a way that would sit at a Trump table.
But insiders say Moynihan's resistance will be deeper than merely playing politics.
“He's not doing one M&A transaction. He's not doing anything to help the bank grow. High-level executives are thinking of leaving,” said one source who worked with the bank.
One analyst who spoke on condition of anonymity said that a more cautious approach “is a flip side… If it turns out there are many bubbles in the market, then aversion to risk could be rewarded.”
Despite being joking, the past few months have not been exactly Joyley for Moynihan, despite being “still enjoying it” 15 years after his tenure.
Sources close to BOA point out that it is still one of the world's top investment banks.
This week, it was reported that BoA had significantly cut jobs for 200 investment banks with 150 fallen tails in the market and banking sector last month.
“Some of the business is being beaten… But he's not just growing, everyone is shattering it,” adds a source with knowledge of the bank's business.
“He's just firing people to improve the margins,” said one employee, not looking to focus on acquisitions or seek more deals.
In January, the CEO was faced with a public assault over allegations of novelty from Trump in Davos.
“A lot of conservatives complain that banks don't allow banks to do business within the bank, so you want conservatives to open your bank… What you're doing is wrong,” Trump said with a virtual appearance as Moynihan sat on stage.
Sources believe Trump's victory is essentially a double wamy for CEOs. Not only does it put the bank in the crosshairs, it also stops his own political aspirations.
Moynihan was considering ways to create an elegant exit, they said, and wanted an advanced level post if Kamala Harris would win. While he was focusing on the Treasury Secretary (basically all the executives of Wall Street fantasies) in the Democratic administration, he would have probably settled down because of few.
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