10AM Hour: Bank of America CEO, Fed Chairman Warsh Testifies 7/14/26

**Sara Eisen** (0:00)
The board recommends approving...

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**SPEAKER_3** (0:02)
To boost quarterly earnings...

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**Sara Eisen** (1:07)
Good Tuesday morning, welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live at Post 9 of the New York Stock Exchange. This hour, Fed Chairman Kevin Warsh testifies before the House Financial Services Committee. His first semiannual monetary policy report will take you to Washington for it, live in just a moment.
But first, Bank of America turning higher this morning after reporting a top and bottom line beat with soaring equities trading revenue. Let's talk about it right now. Joining us in a CNBC exclusive interview is Bank of America CEO Brian Moynihan. Brian, good morning and welcome back.

**Brian Moynihan** (1:38)
It's great to be here, Sara. Good to see you again.

**Sara Eisen** (1:41)
Good to see you as well. I mean, talk a little bit about these results, double-digit gains across the business, including in trading and investment banking, numbers that we haven't really seen before from you. What kind of environment are you in?

**Brian Moynihan** (1:56)
Well, number one, all the businesses perform well. They all had operating leverage, they all had efficiency growth, they all had strong revenue growth, they all formed net new households, so all the businesses perform well, led by the markets-related business just because the activity is very high. So whether it's the investment banking revenue, which is up significantly year over year, the trading revenue, which is up significantly, and importantly, the wealth management revenue is up significantly, so we feel very good. The team did a great job this quarter, 34% EPS growth, really, really strong, 17% return on tangible common equity. Things we thought we told people we'd get to over the next 12 to 18 months, we got already.
They did a great job, and they controlled expenses better. The great operating leverage is 660 basis points, which is the key to let that NI growth at our company fall to the bottom line, and they're doing that.

**Sara Eisen** (2:43)
Yeah, investment banking up 50%, sales and trading up 30%, equities up 70%.
You know Wall Street, Brian. The question from here is, is this as good as it gets?

**Brian Moynihan** (2:53)
Well, we still have very strong pipelines in investment banking, you know, the IPOs and et cetera. Deals are still getting done, and very strong interest in doing transactions. The AI build out still has a lot of debt funding and other funding required. So it's a pretty, it's a very good environment. Investors are invested. And so whether it grows dramatically from here, it continues this level. Both will bode well for our company. But if you look at the end of quarter activity pipelines, it got stronger during the quarter, and that's good. And underneath that, though, you have to step back and say, what drives that? The real economy is growing in the 2% level. We haven't predicted to continue that for the rest of the year. Consumers are spending higher in the month of June than they did last June by about 6% in July so far, the same. That activity is very strong and provides a great backdrop for the economy in the US to grow. And around the world, you know, there are things, issues going on in wars and things that we're all dealing with. But the reality is, is our international business had a great quarter fueled by a lot of the activity in Asia.

**Sara Eisen** (3:54)
Yeah, I was going to ask about the consumer because there was some worry that higher gas prices would weigh on consumer spending, that low income consumers were feeling it the most. And overall, what are you seeing right now from the consumer?