Bank of America Corp Chief Executive Officer Brian Moynihan predicted another round of consolidation in the US that could lead to the emergence of a new competitor.
The Charlotte, North Carolina-based lender, which controls about 13 per cent of the US retail banking market, came together through the merger and acquisition of hundreds of companies, Moynihan said on a panel at the World Economic Forum in Davos, Switzerland. This sort of thing could happen again, as there are still thousands of banks operating across the US, he said.
“How does somebody emerge? The same way we emerged,” Moynihan said. “The emergence will come out of the consolidation of another round of people which still has to happen in the United States. There are now 6,000 odd banks, and you’ll find them continuing to consolidate.”
The rules that govern banking shouldn’t be rolled back in order to increase competition, said Moynihan, whose lender needed a $45 billion bailout during the 2008 financial crisis.
“We know what it will lead to — increased losses of peoples’ money,” he said. “It doesn’t benefit us. It’s the same the reason you have a speed limit on a highway. It’s the rules of operation.”