BofA CEO Sees Few Cracks in U.S. Consumer Credit as Debt Climbs
BofA CEO Sees Few Cracks in U.S. Consumer Credit as Debt Climbs
(Bloomberg) -- Brian Moynihan isn’t among those concerned about the debt levels of Americans.
“I’m not really worried about credit on the consumer side, especially for us because we stay at the very high end -- but even if you look overall,” Bank of America Corp.’s chief executive officer said in a Bloomberg Television interview Wednesday.
Outstanding U.S. consumer credit continued its upward climb in October, reaching a record $3.8 trillion, according to data compiled by the Federal Reserve. That figure has investors worried, but bank executives have insisted that borrowers have kept up with payments amid an improving economy and record-low unemployment.
Still, Bank of America is expected to set aside more money to cover souring loans in the fourth quarter. Analysts in a Bloomberg survey estimate provisions for loan losses will climb 16 percent to $963 million in the period.
Moynihan, 58, said many lenders pulled back amid concerns about auto loans, while new worries have blossomed over unsecured and student loans, where his bank is less active.
--With assistance from David Westin
To contact the reporters on this story: Jenny Surane in New York at jsurane4@bloomberg.net, Laura J. Keller in New York at lkeller22@bloomberg.net.
To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, David Scheer
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