Bank of America CEO Brian Moynihan is looking forward to December.
He’s not necessarily expecting an extravagant gift. But, if Federal Reserve Board of Governors Chairwoman Janet Yellen is making a list, what he wants is a rate hike.
In an interview with Bloomberg Television’s David Westin on Tuesday November 10, Moynihan was asked what a rate hike would do for his business.
“Well we disclosed, and we just – 10-Q within there that basically it’s $4.5 billion round numbers [in revenue] for every 100 basis points increase in rates, parallel rate rise.”
“[W]hen you have half a trillion dollars in zero interest deposits that are always zero interest and have hit a floor, and when you have loans repriced or rates going up, it’s a good thing for a bank. And this has been a very tough environment.”
