Brian Moynihan Sends Pep-Talk Letter To Employees, Yet Another Morale Crunch Ensues

Tyler Durden's picture

The last time we saw letters of this nature, John Thain and Dick Fuld were assuring their employees all shall be well. It is about that time again. The CEO of the soon to be bailed out company has just distributed a memo to his "teammates" doing his best to rebuild rock bottom morale, and failing: "Because we serve one in two households in the U.S. and have leading positions with the global Fortune 500 companies here and around the world – a market advantage in most respects – turbulence in the global economy will affect us as well. But we have weathered challenging times before and we will now." Correct: you did so courtesy of $15 billion in TARP funding from the Fed. And we are certain that you will do the same all over again, so you, or actually your imminent replacement can write sentimental drivel such as this all over again. That said, we find it truly shocking that there is no mention of the fact that Bank of America is about $20-50 billion underprovisioned for the perfect litigation storm that is coming courtesy of the worst transaction in M&A history: BAC's purchase of CFC.

From Brian Moynihan to Bank of America

To my teammates,

Financial markets around the world are going through a period of great uncertainty. We are seeing volatility in the equity markets, including our own stock price. The management team and I understand that this is an unsettling time not just for our shareholders, but also for all of our teammates across our company who are working hard every day to deliver for our customers and clients.

The most important point to keep in mind is that our company remains financially strong – in particular, much stronger than we were either during or coming out of the economic downturn of 2008-9. A few facts:

* We continue to build our fortress balance sheet. Our Tier I Common capital ratio (8.23 percent) and excess liquidity ($402 billion) are much higher than they were a year ago, and all our capital ratios are well in excess of regulatory requirements.

* We have resolved a large portion of our legacy mortgage issues, and have more than quadrupled reserves for mortgage-related issues remaining to be settled to $18 billion over the past year.

* Our customer-focused strategy is working, and five of our six major businesses are strong and profitable.

Many economic issues are contributing to uncertainty in the markets, but one important factor is the effort of policy leaders around the world, and especially here in the U.S., to reduce sovereign budget deficits and overall debt. I hope you’ll read the other articles on Flagscape today on this and related topics.

Most of the factors driving market volatility are beyond our control. But for matters within our control, we are taking action. Most important is that we continue to execute our customer-focused strategy. This is our core responsibility – by serving customers and clients, we are growing relationships and earning healthy profits outside of the mortgage business.

As we continue to focus on serving customers and clients, it is vitally important that we adhere to all our Operating Principles, another of which is to resolve legacy issues stemming from the economic downturn. That’s why we are aggressively taking action to put the legacy mortgage issues behind the company – even at great short-term cost – and to help get the U.S. housing market going again. This will help put the U.S. economy on a stronger footing.

Be certain of this above all else: Our customer-focused strategy is working. Customers and clients are doing more business with us across the franchise and we are deepening and strengthening their relationships with us. Deposit levels and new account openings are increasing. Loan growth outside the U.S. shows that we are effectively serving our clients’ global needs. Customer satisfaction is improving. And referrals across lines of business are increasing as we build broader relationships with customers and clients. The trends we have seen for the first two quarters this year have continued in July.

We do not know how long this period of uncertainty will continue. Because we serve one in two households in the U.S. and have leading positions with the global Fortune 500 companies here and around the world – a market advantage in most respects – turbulence in the global economy will affect us as well. But we have weathered challenging times before and we will now.

We are doing everything we must do to move forward. We are strengthening our balance sheet, addressing our mortgage issues and reducing the risks in that portfolio. We are executing for our customers, especially by working with teammates to provide integrated financial solutions. We are tightening expense management, and delivering against our growth opportunities.

Our course is set, and we know our destination. We cannot control the seas around us, but with the best franchise in the industry, and the best team in place to deliver its benefits to our customers, I am confident we will achieve our goals working together.


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glenlloyd's picture

Morale Crunch - a new cereal product, no nutritional value at all.

Pladizow's picture

AKA - Please don't sell anymore, at least until I'm out!

forexskin's picture


"I've got vaseline and I'm willing to share"

caerus's picture

p.s. update your resumes...just sayin...

jus_lite_reading's picture


Now this strong company will cut 15% of the work force...

Debtless's picture

BACs going out in a body bag, do da, do da.

Seasmoke's picture

Great job everyone , now lets go foreclose on as many homes as we can today, even though we do not have standing or own a single one of the notes

baby_BLYTHE's picture

"We're insolvent, time to feast on more middle-class flesh"

glenlloyd's picture

so you're saying it's time to release the BAC zombies?

baby_BLYTHE's picture

Yep, time to bring out the dead and remove their heads

Temporalist's picture

This was a great piece on The Daily Show about how BAC tried to foreclose on a couple that purchased their home with cash and didn't even have a mortgage with the couple foreclosed on one of their branches.  No shitting!


The Forecloser

chunga's picture

Another of BAC Foreclosure Mills about to bite the dust? From Sunday's Boston Globe:

Building an empire, one home at a time

Referenced in the front page article are signatures by one of the attorneys at the mill (Harmon Law). The link below is a collection of his signatures and the analysis by a "Court Qualified Document and Handwriting Examiner". After he wrote the analysis, for some odd reason, he saw the light, and ammended his "analysis". Turns out this attorney is a rare individual who signs his name differently quite a bit. Especially on legal documents.

Wonder what

Andrew Harmon Signatures Examined by Handwriting Expert

Here are a few snips from the Globe article:

"John L. O’ Brien, head of the Southern Essex District Registry of Deeds in Salem, said he found five different versions of Andrew Harmon’s signature on foreclosure-related legal documents as part of an investigation into alleged robosigners - information he submitted to Coakley’s office."

"Indeed, the firm’s determination to get the job done can cause emotions to erupt, especially those of desperate homeowners. (It is why Harmon Law’s Newton offices are fortified with security glass.) Because when you peel away the layers of foreclosure paperwork and legalese, Harmon’s business comes down to getting people like Mack out of their homes and doing it as quickly as possible."

Fortified with security glass?!?

Jean's picture

Letters like that should be tanamount to stock tampering, is he holding a short position?

Ancona's picture

BRIAN - BRIAN he's our man, if he can't do it NO ONE can!!

What a crock.

Doom on, <sarc> off

Seasmoke's picture

this letter should be read to every witness.................right before they execute him

slaughterer's picture

Letters like that make me go hmmm....

Crack-up Boom's picture

I spoke to a local BofA branch management-type yesterday afternoon who had no idea that there were any problems with BofA.  When I relayed the news of the past week, this person was truly surprised (and I don't think believed me).  Talk about sheeple!  This memo will probably jar some employees out of their stupor. 

Greater Fool's picture

Well, that was inspiring. It inspires me to want to short BAC.

j0nx's picture

Hope they go because my one credit card is with them and I have used the living shit out of it the past few months to buy staples, guns and ammo. If they fold then no fucking way I am paying it off. They fold and my debt goes up in smoke with them as far as I am concerned. Same for my underwater mortgage if WF goes poof.

snowball777's picture

ENABLER  noun:

one that enables another to achieve an end; especially : one who enables another to persist in self-destructive behavior by making it possible to avoid the consequences of such behavior

snowball777's picture

Hey Moynihan, save one of those bulldozers for your pad, motherfucker!

"We continue to build our fortress balance sheet...."

...out of water and sand.

"Our Tier I Common capital ratio..."

...won't even cover our discovery fees by the time all is said and done.

"We have resolved a large portion of our legacy mortgage issues..."

...and sincerely hope no one looks our "Fuck You Mort Adjustment" plan in the mouth.

"Our customer-focused strategy is working..." can see them right here, in the crosshairs.

Bank of Lynching America Countrywide: too butt-ugly to fuck.


bharat's picture

Lots of layoffs happening at BAC, quietly & unnannounced.  10% or more to be chopped.

monopoly's picture

Layoffs, yes, and how he lies to his people. BAC is a walking zombie.

slaughterer's picture

Layoffs and branch offices closing.  Just hope my safe deposit box is still ok.  It is stuffed with physical gold and Treasuries.  

Sudden Debt's picture

We are living in a trillion world. Billion was the past decade...


Doyle Hargraves's picture

HAHAHAHA..."Because we serve one in two households in the U.S."-Translation: We are exposed to a lot of shit!

"...and five of our six major businesses are strong and profitable"-Translation: It takes all we have from the other 5 just to barely be able to tread water from that shit sandwich, cunt tree wide, we might have been ok covering our own incompetence in underwriting mortgages but the addition of those assholes has really fucked us!

They die before the end of the month at most! Good fucking riddance!

Sudden Debt's picture

40 cents was my target for BAC and I'll stick to it. It would justify the dividend they give of 4 cents a year....


wombats's picture

Sounds like JPMorgan is about to get bigger...and what about the Rothschilds?  Do they have a stake in this outcome?

snowball777's picture

The enemy of my just another triangulating asshole.

Long-John-Silver's picture

The enemy of my enemy will stab you in the back the first time you get ahead.

Doyle Hargraves's picture

The morgue will get the deposits and gs will get merrill lynch, and we will be stuck with the remains (cunt tree wide). I think that is how it will go down.

WellingtonDowd's picture

unfortunately I think you're correct in this statement.  Nobody wants the shit sandwich that is Countrywide...altho it would be rather fitting to force it onto GS.

slaughterer's picture

My prediction is Goldman gets BAC.  They need the retail outlets to attract some customers.  

max2205's picture

Who will get to buy BAC at $1.50 per share...then revise it up to $3.50 at the last minute.... aka Bear Stearns

Iriestx's picture

Walking people out of BAC left and right today.  Not sure why all the layoffs aren't getting covered, but we're talking thousands of people.

Greater Fool's picture

You mean over by Bryant Park?

Dr. Engali's picture

I heard this exact same speech when  worked at Wachovia. I actually worked for AG Edwards and we were bought out. I heard this speech from the CEO on Friday. Our stock price was $8.00 a share. We came in on Monday to find out that Citi had purchased the brokerage arm for $1.00 a share. We actually found out from CNBC before we heard it from the CEO. So I give BAC 1 week and they are toast.

slaughterer's picture

You worked for AG Edwards, then you worked for Wachovia after AG Edwards was taken over, so you must now work for Wells Fargo, after briefly working for Citi for a week.  

Who would want the brokerage arm of BAC, i.e. ML?  Let's think together. 

Dr. Engali's picture

Well after Wachovia bought AG Edwards my partners and I started taliking about going independent. We didn't care for Wachovia and their business practices. So after Wells bought Wachovia we left 3 months later. If I were to make a guess about who would get the brokerage arm now I think it would be JP Morgan. I think they are probably in the best position to take it over. If you remember Merrill had a pretty crappy balance sheet. They wil probably unload a lot of that crap onto Countrywide.

Johnny Lawrence's picture

I heard this same exact speech too, only from Merrill.  Friday everything was great.  On Sunday, I saw on the news that we were bought by BofA.

gwar5's picture

It's almost 510 years to the day Shakespeare's Henry V was published (Aug 14), so it's appropriate for Brian might try to rally the troops with a stirring memo, and re-write from the Bard....

(House lights dim, spotlight on Moynihan)

"We few, we happy few, we band of bankers. For he today that sheds his job with me shall be my accomplice; be never so vile. This day shall gentle a bank run. And gentlemen in BAC now abed, shall think themselves accursed they were not here, and hold their wallets cheap, whiles any speaks that fought with us upon Saint Credit Crunch day."

(Tears and applause, fade out)

--Brian Moynihan, with help from the Bard.

hedgeless_horseman's picture

Once more unto the $20-50 billion breach, dear teammates, once more;
Or close the vault up with our robo-signed deeds.

StychoKiller's picture

"I laughed, I cried!  It's the ultimate feel-good moment of the 21st Century!  Two thumbs up!"  (yuck!) :>(