Brian Moynihan ushered in a "new era" for Bank of America Corp. Tuesday, asserting that the nation's largest bank by assets would move away from a culture of growth by acquisition to one focused on organic growth.
The Charlotte, N.C., banking company's chief executive acknowledged that this was a promise his predecessor Ken Lewis made the last time B of A held an investor conference four years ago, but failed to keep.
"Four years ago we had a lot of you in Florida and we talked about organic growth … and then we went out and did acquisitions," he said Tuesday morning at the bank's first investor conference since 2007. "I can guarantee you that is not going to happen."
Speaking before about 300 investors and analysts at the opulent Plaza Hotel in Manhattan, Moynihan laid out his priorities for the bank going forward, which include finishing the clean up of legacy assets and expanding the business globally.
Bank of America is still very much a company mired in legacy issues, namely the mortgage problems it inherited from Countrywide Financial Corp. through its purchase of that subprime lender in 2008. It is also working to integrate Merrill Lynch & Co., another acquisition it made that same year.
Moynihan told the crowd that after a period of unprecedented growth, the bank must now manage that growth and realign itself with customers.
"We can be both big and good," he said.
