Page 200 - Bank Case Studies

we'll start to materialize more and more earnings,

and that's what we need to do."(24)

For Moynihan, in the 2017 shareholder letter, there were

four lessons learned from the 2008 crisis impacting his

commitment to eschew acquisitions in favour of organic

growth:

“First, we must grow organically. Acquisitions are

not part of our strategy so we don't have to issue
shares.

Second, our businesses generate more than

sufficient capital to fund their growth. We have

shed non-core businesses and we have everything

we need to serve our clients, so we can focus on

building stronger relationships with them and

optimizing returns.

Third, we need to continue to reduce the number

of shares outstanding. This is essential if we want

our stock price to exceed the record highs we have

achieved in our market capitalization and in our

tangible book value per share. And, because our

stock is trading at a price that is close to our book

value, repurchasing shares now creates long-term

value for remaining shareholders when we buy

from the selling shareholders at this level.

Finally, by staying focused on these things, and

executing our strategy of responsible growth, we
can deliver the returns that you expect from us

and continue to return excess capital to you