Bank of America CEO flags effects of higher capital requirements (updated)

PacWest Bancorp

27/07/2023 14:03

(Adds Moynihan quotes)
    By Jonathan Stempel and Tatiana Bautzer
       NEW YORK, July 27 (Reuters) - Bank of America CEO Brian
Moynihan said U.S. authorities need to be careful when
implementing new capital requirements of the Basel III accord to
avoid reducing the ability of U.S. banks to compete globally.
    In an interview with Fox News, Moynihan said the process
needs to assure "the playing field is level", saying the rules
should be implemented carefully "so to not make the US less
competitive". 
        "We're not talking about the big eight banks.... We're
talking about a $30 or $40 billion bank, or a $100 billion bank,
not being able to compete for a middle market loan because a
bank or a supplier in Europe ... is getting a lower cost of
capital", Moynihan added.
  
        Asked about the deal between Pacwest Bancorp  PACW.O 
and Banc of California  BANC.N  and the sale of a $2 billion
mortgage portfolio to JPMorgan Chase  JPM.N , Moynihan said
JPMorgan helped the deal to come through, which is 'terrific'. 

 (Reporting by Jonathan Stempel and Tatiana Bautzer
Editing by David Goodman and Chizu Nomiyama)
 ((tatiana.bautzer@tr.com; Mob: +1-646-2397968; Reuters
Messaging: tatiana.bautzer.thomsonreuters.com@reuters.net))