The peace dividend, as he explained it to CNBC's Maria Bartiromo, appears to refer to the fact that, because Bank of America has grown largely through acquisitions and will no longer be doing them for the forseeable future, the bank will now have the ability to devote resources to "organic growth."
Acquisitions such as that of Countrywide Financial, MBNA and the biggest of all, Merrill Lynch, have "caused us a lot of work," Moynihan said. But now the work is "behind us," he said, adding that Merrill Lynch is has been "completely integrated" for several months.
Investment in technology, Moynihan told Bartiromo, is "part of the peace dividend," as is "build[ing] expertise and energy," and having "time to do what we can for our customers."While Bank of America is reaping the benefits of -- doing whatever one does with a peace dividend -- shareholders can expect fairly little in the way of a real dividend. While Moynihan indicated he aims to increase it in the second half of this year, he stressed that the increase will be relatively small for the time being. Shareholders were apparently satisfied. They drove up Bank of America's shares 4.70% on Tuesday, well above the day's gains for Citigroup (C), Wells Fargo (WFC)and JPMorgan Chase (JPM). -- Written by Dan Freed in New York.
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