Bank of America's CEO Hosts Shareholder Analyst Day (Transcript)

Seeking Alpha

Bank of America Corporation (BAC)

Analyst Day Call

May 8, 2013 10:00 AM ET

Executives

Chad Holliday – Non-Executive Chairman

Brian Moynihan – CEO

Lauren Mogensen – Corporate Secretary

Gary Lynch – General Counsel

Cathy Bessant – Global Technology and Operations Executive

Analysts

Scott Zdrazil

John Harrington

Sally Thomas

Josh Zinner

Ben Collins

Kevin Stein

Barbara Gottlieb

David Hodgkins

Alan Fisher

Justin Danhof

Amanda Starbuck

Ashish Fernandes

Jim Plunkett

Shola Olatoye

Leslie Anderson

Larry Shirley

Thomas Wilkin

Sara Winikie

Jonathan Ferris

Patricia Muller

Jim Knight

June Blotnick

Steven Norris

Vanessa Green

Robert Skaf

Camilla Wood

Presentation

Operator

Please begin to take your seats. Our meeting will start in five minutes. As a reminder, the use of electronic devices is prohibited during the meeting. More information is available in the packet you received. Room exits can be found at the back of the room and along the wall to your right. Thank you.

Chad Holliday

Good morning.

(Multiple Speakers)

Chad Holliday

I’m Chad Holliday and I serve as a Member of your Board of Directors and also currently serve as the Non-Executive Chairman of the Board. It’s my pleasure to welcome you to this year’s annual meeting. Brian Moynihan, our Chief Executive Officer will lead the meeting today is on my right and Lauren Mogensen, our Corporate Secretary staying there out-front and she’ll be working with us on tabulation in a few minutes. As you came in the room you, do you have a packet, and that packet are rules and engagement and those rules are effective right now. And so I’m pleased to declare this meeting of the stockholders of Bank of America open for business. There are 9 items that we’ll consider today for shareholder vote it will be chance to go through each one of those items and Brian will take us through that and you can comments about those items at that point in time. As a completion we will have a tabulation of vote and we will announce the Board at that point in time. Then after that there is a general question-and-answer period so if you have questions though any other subjects there will be ample of time to address that as you go through.

It’s my honor now first to introduce you to the Board of Directors that we’ll, you’ll the chance to vote on so if our whole Board can stand up and face our shareholders they can take a look at it. I won’t go through all their bios and their qualifications to serve what you have in those in the proxy two of Directors could not be here today Linda Hudson and Dave Yost for due to some prior commitments but they’re very much involved that we’re going forward with.

As I think about how to start this meeting today I went back to the spring of this year about the time of the final four college basketball tournament. When those things started I started hearing this catchy music around a commercial and they had this same thing with different topics they had this saying, they said, before this that was that in the four batmen was this and before that was something else. As anybody heard any of those commercial? If you haven’t we should have wasted a lot of money.

So if you allow me to build on that scenes, before Bank of America had a rock solid balance sheet, before those very difficult decision had to be made to divest non-core businesses to show up that balance sheet, before massive litigation was resolved to stretch back over decades, before 250,000 plus teammates changed not only what they did, but how they did it to make this bank more successful, our management team led by our Chief Executive Officer created a strategy 3.5 years ago to simplify this institution and focus on growing our business with existing customers. If the cost of that strategy has executed well it was the right strategy I could talk about all those things from takeoff on our own commercial.

If I had to describe where we are today, the best analogy I can use if you will allow me of the train. If I go back 3.5 years ago our train was off the tracks, while they were just off the tracks and upright or laying on a side is probably judgment call but it wasn’t good. What I can report to you today from your Board of Directors the train is on the tracks, all wheels are touching, we’re moving forward and we have learned from the past. We know risk management is critical, and what I hear more in the Board everyday and for management is we’re going to learn from the risk experience we have in our sales and other institutions and be sure we never forget that as we go forward.

So this train is starting to gain momentum, is starting to move not nearly as fast as it need to from point in time but what we can promise you we’re going to move a little faster today than we did yesterday and little faster than more than we did today and if we keep doing that at one step at a time we’re go have the great company you expected I’m glad to introduce the Chief Engineer of our train Brian to lead us in the meeting. Brian it’s all yours.

Brian Moynihan

Thanks. Thank you Chad. Thank you and I’m glad that you watched the commercials and got it all straight in terms of the pattern there but thank you for those comments. And I too thank everyone for joining us here today for our 2013 annual meeting of stockholders. I’ll remind you by hitting some of the basics. My remarks may include some forward-looking statements about our future financial performance. These forward-looking statements are subject to risks and uncertainties and if you look in our 10-K for 2012 it describes factors that may cause actual results to differ materially.

Before we move on to the official business of today’s meeting I’d like to share a few comments along the dimension that Chad talked about. As Chad talked about three years ago, we set on a course to create a stronger company. And we’ve done that. We’ve become more straightforward at the same time. And we made progress along several front biz to show that. First we strengthened our balance sheet to get at the platform for growth. We’ve doubled our capital, brought our liquidity up to almost three times and reduced our long-term debt by half. Recently the Federal Reserve’s 2013 Capital Analysis an examine around that confirmed the strength we have and now we – as we said we would do last year we’re beginning to return excess capital to you our shareholders in the form of share repurchases.

The second thing we done is streamline the company. We streamlined the company to focus on the businesses that matter to our customers and clients. We’ve divested more than 29 core operations. We’ve reduced cost and become more efficient – through the project we call New BAC. Third, we’ve begun to continue put behind us the legacy mortgage issues.

Now let’s start from the beginning for the last few years we’ve helped 1.8 million that’s 1.8 million customers and we have about 6 million mortgage customers avoid for closure. We’ve reduced the size of the delinquent mortgage portfolio by more than half from its peak and result a significant amount of litigation related to the mortgage business that we acquired a few years ago. The work is not done, there is more work to do and we continue to focus on our customers to new assistance with their mortgages and if anybody here today need assistance please tell us we’ll make sure that we take care of you.

As a result the progress we made in the mortgage area one of the things is the cost of that work has became a come down and we can shift those resources to help get to the next stage of the company which is the right growth for you the shareholders. As we put the foundation in place over the last few years we’re better positioned than ever to have the core businesses we have serving people, companies, institution and investors shine through. As Chad said our core strategy is the customer base that we have today to continue to deliver to them the products and service they’re second to none.

As I said to you three years ago we have three groups of customers people, companies and institutional investors, we focus on them, we focus on helping them live their financial life through a power connecting everything we can do in a company that’s our purpose, that’s why we’re here, that why 260,000 people come to work every day. So, how are we doing this? When we think about individual customers people like you and me will continue make products and services much more accessible. We’ve enhanced not only what we do in our branches or stores we call them but we also enhance what we do in our ATMs, we’ve enhanced what we do in our mobile banking platform it serves 12 million plus customers our online platform which serves 30 million customers and our (MailEdge) for investors serves many, many customers.

To help people who want to have a face to face interaction we’ve increased the numbers of the specialists we have across our franchise. Mortgage loan officers we nearly doubled, small business bankers three or four times increased over the last couple of years, financial solutions advisors people working with customer about their investment in our stores we’ve increased dramatically. So, as a result what you’re seeing is that work come through, growth in deposits, growth in credit card accounts originated a highest number of this quarter we’ve done in a long time and growth to record levels of assets under management and revenues from that.

For the last five quarters we provided over $100 billion in mortgage loans to our customers directly to our customers with one third of those being to low and moderate income customers. In addition our industry leading platforms of the Wealth Management Business, Merrill Lynch Wealth Management and U.S. Trust continue to make great strive in deliver on our market leading capabilities. So that’s our people, that’s our individual customer base.

Now we’re moving to our companies. We continue to do the same thing there connecting products and services that are second to none for those clients to help them grow within our country and around the world. Our work with the team is producing growth and commercial loans and now it’s good for our company in terms of shareholders but also in terms of the economy and helping America grow. Our Lend to Small Business first quarter this year to the first quarter last year the originations of small business loans is up 30%, small business is a core part of what we do and we continue to drive that every day.

If you move to our larger companies our capabilities in capital markets investment banking continue to be second in the world in terms of market share. Our bankers have helped our companies engage in some of the largest transactions you heard about this year. So we’ve done a lot for companies then we move to our third customer base investors, we serve investors to a capabilities of sales and trading in over 100 countries. We do that through a research we provide all of our 3,000 firms. We provide our investors with the capabilities to provide capital to our company. Our research team is one of the best in the world as recognized and all the rankings around the world and we have a sales trading team that’s continue to prove strong revenue performance, strong profit performance with very disciplined risk management.

That brings us to our communities. In addition to what do from those three groups of customers we do everything we can and the communities we didn’t work. We do this through our charitable works of philanthropy and we do this that are volunteering and you see above some of the things that we deal in this area. We do this by addressing the most critical needs affect us our clients and customers and all of you locally and globally, issues like hunger-relief, financial education recently announced our partnership with Khan Academy. The support we have for our military veterans especially those returning from days of war as they are now and for the environment.

As part of our environmental commitment last year right after we met with you we double down or more than double down increased our commitment from $20 billion to $70 billion around providing financing and capabilities for alternative energy projects and research.

So, we step back and I’d like to emphasize a few thoughts before we get into meeting. We at Bank of America are very optimistic about lies ahead for our company. We spent three years putting in place a solid foundation, made issues that have been waiting us down are now behind us, we have a clear strategy for growth and our results are beginning to reflect the strength, earnings position and capabilities of this company. So most of all what we’re proud of is the management team and our management team is very proud of it, as 260,000 people come to work every day to help with our purpose to help our customers and clients with their financial lives to the power of all connections that we could bring. We are all here to deliver for our shareholders and for that we can now move to the core meeting and take your questions.

So let’s talk about the core meeting. As Chad said you’ve received copies of our rules are going to mind you the field of basics. We’re going to have two question and answer sessions, question and answer session one will be around the proposal and the proxy statement for our proposal. The second question and answer session will follow the general meeting. If remarks concerned item is going to be voted on let us hear from you at the first Q&A session, if there are remarks about other questions or comments or other things hold them to the second Q&A session.

Stock holders presenting proposals that are properly submitted before the meeting will have up to four minutes to discuss our proposal, stock holders wishing to comment on those proposals will be limited to two minutes when your allocated time is up then the fairness to all their shareholders are going to your time that will be a signal that your time has expired, if I could ask you to please address your comments to me and then I’ll refer them to the management team or other that may have an answer if I can give you the answer. The other thing I’d ask you is personal financial matters discussed we have colleagues in the back that can take those offline as we say and make sure that we do a good job for you.

The use of electronic devices is not permitted, recording, pictures, video, blogging all the other types of things that go on in march the side of you are all prohibited. I guess I’d say it’s as to communications that’s it clearly the rest of the stuff you can do what you want. If you don’t follow the rules the conduct will be asked to leave the meeting in fairness to everybody else, Gary Lynch is our General Counsel is here. Gary and if there is any clarification you need he’ll be happy to answer your questions. All right, so let’s get to the official meeting, as to be fair to consider today’s proposals I would like to ask Lauren Mogensen, our Corporate Secretary to bring in the secretary’s report Lauren?

Lauren Mogensen

Good morning everybody and thank you Brian notice of state meeting and the related proxy statement for a notice of internet availability of these materials are mailed beginning March 28 th 2013 to all stock holders of record as of March 13th, 2013. Proof of the mailing will be filed with the records of this meeting, Rebeccas (Spencer) a Computershare Trust Company has been appointed Inspector of Elections and has signed the oath as required by law she has advised me that holders of shares representing at least 76% of the eligible votes are percent in person or represented by proxy which constitute the forms. In addition the inspector of election has a list of those stock holders who are entitled to vote at this meeting and that list is to be kept open during the meeting for inspection for any stock holder for any purpose to remain to the meeting. Thanks a lot.

Brian Moynihan

Thank you Lauren. I cordially declare the decorum is present and that this meeting is duly convened the purposes of the nine items of the business or property before the meeting. So now already consider the eight items up for stock holder vote proposal within the proxy most of you’ve already submitted the proxy to vote and you do not need to do it again of course the much you want to change your vote. If you want to change your vote please indicate on the ballet that you’re evoking your proxy you can go that for us. If you want to ballet for the proposal that listed in the proxy statement those A proposals please raise your hand now. It’s one here and your ballet there is couple right in the middle here. One on the left and your ballet. Okay. There is one in the back there.

Unidentified Analyst

(inaudible)

Brian Moynihan

Yeah you can make comments on anything it’s on the ballet yeah. If you like to make a vote yes you can.

Unidentified Analyst

(inaudible)

Brian Moynihan

Okay. If you like to vote on the one for proposal it was not in the proxy statement. This could be different a ballet is included in your mission package. So you should have that in the package you came in with. We’ll collect the ballets before the poll is closed. I would like to recognize the Bank of America teammates are serving that proxies have been stand for you they are Mick Ankrom, Mike runs our Corporate Operational Risk Management team and Candace Browning she Heads the Research team I talked about earlier that’s one of the best in the world for our Bank of America Merrill Lynch. Thank you Mike and Candace for being in the service proxies.

With that I’ll now present the items for stockholder consideration. First let’s work on the management proposals. As stated in the proxy statement the Board of Directors recommends about four each of the management proposals. First proxy item one to elect our Director nominees. Second proxy item two conduct an advisory vote to approve the executive compensation and third proxy item three to ratify selection of Price Waterhouse Coopers as the company’s independent registered public accounting firm for 2013.

The price stockholder proposal included in our proxy statement in a forward proposal when albeit be presented too. As I stated earlier each represent will have four minutes to represent their statements and support of their proposal. A time will found when your time is concluded if a representative fails to come forward introduce a proposal the proposal will not be eligible for consideration or will not included in the tabulations. As stated in the proxy statements the Board of Directors recommends a vote against each of these stockholder proposals.

The first stock of our proposal was submitted by Amalgamated Banks long view, large cap 500 index funds and relates to a quote on political contributions. Scott Zdrazil if you are on behalf of the proponent to present the proposal Mr. Zdrazil. Pardon. Okay. After the proposal we’ll have let’s get the proposals out now you can talk about anything you like. Yes sir, Scott.

Scott Zdrazil

Great. Thank you, Mr. Moynihan.

Brian Moynihan

Thank you, Scott.

Scott Zdrazil

Good morning everybody. I’m Scott Zdrazil with Amalgamated Banks long view funds. We are a manger of about $12 billion in assets for various employee benefit funds all improvement have a long-term view on shareholder value and our long-term investors in Bank of America. As part of that long-term view we actively engaged companies in our portfolio to encourage good governance practices that we believe we’ll promote sustainable growth over the long time or and as a long-term.

For us key aspect of the good governance is sir noted at the opening is good risk oversight and we believe our resolutions speaks to one of those core matters. We are asking the board to adopt very clear policy that the board will review all corporate assets funds in the political arena and fully disclosed those assets to at those as investors. We support participation in the political arena. We believe there can be benefits to the extent that political spending is aligned with the long-term strategy for shareholder value growth but it has been outlined throughout those investors but we also recognize the diversified investors that there are also risks in political participation legal, reputational, regulatory and so forth. And so we rely on our board to monitor those risks and we believe it’s an important check that that’s funding be fully disclosed to investors especially since the spending is coming from the corporate treasury.

So I would note very quickly that we saw in the opposition statement that the company does have some type of a policy for board review. We don’t see that includes spending on 501(c)(4) or Super Pacs for example. Does the board receive that information can that policy be disclosed toward investors and why not disclose to us as well. I would like to conclude by with few quick notes. One we’ve worked with the wide number of companies on this issue and we note that Bank of America is a laagered in this industry on this issue. Peers such as JPMogran Case, Goldman Sachs, Wells Fargo all disclosed significantly more than Bank of America disclosing and we encourage the board to proactively ketch up if I can say.

The second point is that we do actively engage companies in our portfolio. We think it’s our responsibility as investors. We have been told $30 million worth of investments. In Bank of America and Bank of America this year happens to be the only company that did not respond to any request for discussion on this issue which is a great disappointment to us. Small cap companies with much more slim and communication strategies were much more active and Bank of America is very alone and not responding to any request.

So we encourage the board as well to adopt more constructive approaches to shareholder communication. We think it could benefit the board and benefit our company going forward as well. Thank you very much for the support and we encourage both. Yeah.

Brian Moynihan

Thank you, Mr. Zdrazil. The next proposal relates to proxy access and it was submitted by Mr. John Harrington. Mr. Harrington is here to present his proposal. Mr. Harrington.

John Harrington

Thank you Mr. Chairman. Hello share owners. My first Bank of America meeting was about 40 years ago in San Francisco in Masonic Auditorium. My question to President (Carlston) is to why Bank of America was loaning money to the white minority government of South Africa and asked him but we didn’t believe that it was a more with supported parties. He said that the bank policy was to lend money to any credit worthy customer government or otherwise since that time unfortunately the bank has made a little headway and becoming a more ethical or more financial institution.

In 2008 our bank along with other U.S financial institutions were responsible for almost bringing down the entire global and U.S economy based upon excessive materialistic self interest. Our government responded by bailing out the banks then adopting the Dodd-Frank Act which passed the ball to weak need regulators to carry the heavy load because regulators in corporate lobbyist are pretty much the same people within the beltway banks with the revolving door between regulators and the regulated.

The SEC purposely wrote a bad proxy access rule that was over termed by the core thanks for the Chamber of Commerce shareholders as owners or principles if this banks still have no ability to nominate our agents not only the U.S Board Members and Fiduciaries fail represents the diversity of our (audio gap) knowing that this corporate nomination process is a rig system than a same representing a same kind of electoral system is the old Soviet Union in present day Chinese Communist one-party state where you nominate ourselves and set your own pay I thought I would write you in a appropriate poem for this .occasion. The name of the poem is Bank of America too big to fail, too small to stand but just write the crawl. In 2008 Secretary Paulson and the Treasury gave us a gift and for this there was no lead to follow through.

The government eventually gave us the 125 billion saying that this would make us look like a million. For our management team bought us country wide but nothing could turn the type. We kept buying however this time Lynch were about 40 billion saying success was essential. You neglected to inform investors to pay as our pal willing Gary Lynch executives millions way.

Even Jed Rakoff was alarmed that our bank to get off so unharmed (audio gap) elementary notion of justice in mortality but certainly our bank wasn’t hindered by such formality. I shouldn’t forget to say that we also gave a 11.9 billion pay for so called foot backs to Fannie Mae not to mention prior settlement claims our bank did get a 3.5 billion more to Fannie Mae. So those proves since we bought the country wide move our 4100 billion loss of value in stocker’s stray plus another $40 billion in legal settlements to pay.

Our last previous board has diluted our stock that we may total in shock as our stock has fall on 70% to many of us most rent perhaps this time to consider board representation and with the Director’s presentation. They all appear to meet a represent the 1% of which most Americans clearly resent but further who admitted to the commission that (audio gap) but neglected to admit a necessary mission.

With the other culture of duty, obligation and morality how can a bank represents our citizens morality more important however is the shareholders have to say a better board nomination and pay. I think it’s about time that our Directors get in line for as owners we can only advice and I think it would be wise we at least use a prefatory vote an advisory vote and at this time I think we.

Relates the service on multiple Boards of Directors and was submitted by Kenneth Steiner, John Harrington is here to present a proposal Mr. Harrington.

John Harrington

We are so lucky this morning to have met twice up I mean, I can’t believe that is such an honor for me. The proponent Ken Steiner (inaudible) you see the result section in your proxy material so I will not repeat that however I have a short statement adoption of this proposal would ensure our Directors hopefully from accepting further Director Assignment that would rob them up adequate time to deal with a complex and dribbling problems of our company. Adoption would also deter our Nomination Committee from seeking new Directors who would not have adequate time for effective oversight, you see many Directors serve on many Boards and they really don’t have time to put up with a lot of the issues that they seem to have a problem with.

This proposal would also be evaluated in the context of our company’s overall Corporate Governance as reported in 2012, GMI ratings to corporate library and independent investment research firms that our company has struggled oh yeah it’s surprising for a long list of ongoing legal problems in recent years our company completed a number of controversial acquisitions paid out billions in executive bonuses except a $35 billion in emergency funding from the U.S. Government think it’s a little well on that one. And allowed our former CEO to walk away with $83 million since severance pay come on you guys, I mean $83 million geez, based on these examples of our company’s need to improve in Corporate Governance please vote for that shareholder value, thank you Mr. Chairman and Member of the Board.

Unidentified Company Representative

Thank you Mr. Harrington. The next proposal was submitted by Stephen Johnson and Mrs. Martha Thompson likes to put up the contributions. Sally Thomas is here on behalf of proponent to present a proposal to Mr. Thomas.

Sally Thomas

Good morning. I’m representing shareholders Marty Thompson and Stephen Johnson agreeing for who are other members of responsible will. We are off on submitting proposals that are similar to this to various groups are being presented to various groups as in other this year at Target, Chevron, 3M, AT&T and Exxon. As of 2012, a growing number of 64 companies had sometimes of explicit prohibition in place regarding political spending. We believe Bank of America wishes and it tends to be a good corporate citizen and we believe the bank because of its strong industry leadership has a real opportunity to be a leader in the area of good governance and specifically in the area of political giving. Today however, Bank of America is lagging considerably in this regard. In the annual CPA-Zicklin Index which ranks company’s within the S&P 100 on 25 indicators related to political spending disclosure, policies, compliance and oversight. Bank of America received only 15 points out of a possible 100 points.

The company’s lack of accountability and transparency is particularly concerning in light of its high-end growing level of involvement in politics. Since 2002 Bank of America’s Political Action Committee and employees have given $16.84 million to federal candidates for public office and there is additional information in the proxy. This inflects the corporate cash into elections. Then the citizen’s united decision is deeply unpopular among the U.S. public. In February of 2010 an ABC municipal payment 80% oppose citizens united note in quote.

The back part is a nature we view this striking in these largely part sometimes in quote. And in 2012 the New York Times called Bank of America one of the most demoniac corporations in Americas. We believe that our proposal help protect the company against the possible damage to its reputation and to further negative publicity that could come from any corporate fund to influence select or a politics. The bank’s good name is most important asset. As shareholders we recognized that their instances from the company does need to engage in public policy process. Our proposal does not seek to constrain the company’s ability to lobby elected official once they’re elected on specific issues relevant to the company rather this proposal seeks to address the use of company fund to influence that outcomes of elections including referenda. We believe Bank of America owes it to the shareholders into the general public to undertake the study and to strongly consider refraining from any political giving. We urge you to vote Yes on proposal number 7. Thank you.

Unidentified Company Representative

Thank you Ms. Thomas. The next proposal relates to mortgage servicing was submitted by the Neighborhood Economic Development Advocacy Project. Josh Zinner is on behalf of the proponent to present the proposal. Mr. Zinner.

Josh Zinner

Thank you. I’m Josh Zinner of the NEDAP. We’re, we have a proposal that we’re introducing that ask the company to the Board to do an independent audit to determine whether the company is violating fair housing and fair lending loss in the way that that’s doing mortgage servicing. NEDAP is Bank of America’s shareholder and we work with community groups in New York City on financial justice issues. We run a statewide coalition of 160 non-profit groups called New Yorkers for Responsible Lending many of the groups work directly with homeowners all over the state. As a shareholder we are deeply concerned with the persistent and fundamental problems with Bank of America’s servicing practices. This especially problematic because Bank of America is the nation’s second largest mortgage service servicing $1.21 trillion in home loans. With all due respect Mr. Moynihan, we’re here to tell you that the situation on the ground in communities with Bank of America’s mortgage servicing is very, very different than how you’re portraying it here to shareholders. Advocates in homeowners all over the cities, states and countries are experiencing systematic problems with Bank of America’s servicing is causing serious harm for families and communities this is especially given the size of Bank of America’s servicing portfolio this is having a huge impact on communities. The problems include interminable delayed in processing loan modification applications and giving answers repeatedly losing documents, wrong for denials of loan modifications, dual tracking and generally giving borrowers the run around leaving many to lose their homes. We experience that many homeowners is a top executive experience in dealing with Bank of America’s servicing which often ends badly. And again this, these reports are not just in New York but nationally and this is dramatic because where homeowners on the ground who don’t have a voice and the situation is far worse. Unfortunately many of these abuses seem to be concentrated in community’s color which write this great concern is about the impact of Bank of America’s practices on these communities. This is particularly so due to that servicing portfolio of the countrywide loans many of which were problematic loans are in communities of color.

On Monday, the New York Attorney General announced that it was bringing an action against Bank of America for widespread violations of the National Mortgage Settlement announced last year. We have had reports from all over the country of wide violations of the settlement the actions that the New York Attorney General is bringing is based on 100s of complaints that were filed from all over New York state about long delays in the process. And this is just one example of the legal exposure of the company due to its continuing failures in mortgage servicing.

Under the settlements with state and federal regulators in 2012 and 2013, related to abuses by Bank of America and other banks in their mortgage servicing in foreclosure practices Bank of America supposed to provide principle reduction release in a non-discriminatory manner, despite the councilors and advocates working on the ground in communities of color in New York and around the country reporting very few of any principle reduction modifications by Bank of America in these community.

The National Fair Housing Alliance filed a case last year against Bank of America after an undercover investigation alleging a violation of fair housing laws and mishandling of foreclosed properties. Which brings me to the resolution at hand it’s critical that the Board getting independent review to ensure the Bank of America’s complying with fair lending laws in a way that it does mortgage servicing. This is particularly so given the widespread evidence that Bank of America’s servicing and foreclosure practices continued to expose it to extraordinary risk. This includes legal risk, a potential losses from claims the Bank of America’s practices continue to harm black and latino community disproportionately. And the reputational risk that Bank of America faces as a result o these potentially discriminatory practices. This independent, I just need a minute to finish.

Unidentified Company Representative

(inaudible).

Josh Zinner

It’s critical that (inaudible).

Unidentified Company Representative

Thank you.

Josh Zinner

(inaudible).

Unidentified Company Representative

Okay sir, we gave you. Okay.

Josh Zinner

(inaudible).

Unidentified Company Representative

Sir that…

Josh Zinner

(inaudible).

Unidentified Company Representative

Thank you, thank you, sure we’ll take that we’ll help by any individual, thank you. I remind people stick to the timeframe because we’ve got a lot of people who want to speak today and it’s only fair to your colleagues to do that.

Mr. William Barclays submitted a qualifying core proposal on climate change risk mitigation, Mr. Ben Collins is here on behalf of the proponent to present the proposal Mr. Collins.

Ben Collins

Thank you and good morning. My name is Ben Collins I am campaigner with the Rainforest Action Network. I represent William Barclay a share owner in Bank of America and move the floor proposal on climate change on his behalf. Our resolution requests that the Board of Directors report to shareholders on the greenhouse gas emission associated with Bank of America’s lending, investing and financing activities also known as it’s finance emission. The resolution also asks the Board to disclose the bank’s plans to reduce these emissions and its associated exposure to climate change risk.

We are concerned that a lack of a strategic response to climate change is undermining the bank’s reputation exposing share owners to unnecessary risk and harming both the climate and human health. From a risk perspective climate changes brings looming regulatory and legislative uncertainty, climate disruption meanwhile puts any property or industry with weather dependency of risk including agriculture, forestry or any business in a flood zone or water scares region. It will be critical for Bank of America to consider these new public policy uncertainties and extreme weather trends when evaluating risks. As super storm Sandy and the flooding happening right now Western North Carolina illustrates climate disruption has put an end to whether it’s usual the bank therefore cannot afford to continue with business as usual.

In addition the rationale for lending to carbon intensive clients such as companies in the coal industry depends upon the assumption that companies will continue to be able to emit greenhouse gas solution for free, but according to a recent report by HSBC Bank carbon constraint posts 20:20 could reduce evaluations of coal assets by as much as 44%. If this analysis is correct coal dependant companies will soon be unable to generate the revenues necessary to service their debt obligations to Bank of America and other creditors putting share owners at risk.

It is time for the bank to address it’s climate risks on a comprehensive rather than sector by sector basis. Therefore we ask the company to make a strategic review of climate change risk and the impact it will have on the bank’s financing portfolio. We also request that the bank integrate these assessed risks into its business practices by committing to disclose and reduce its finance emission. In short we ask for evidence that the Board is addressing the eminent financial and environmental risks through the bank from climate change and taking action to mitigate them now before it is too late for share owners the climate and our community.

I’ve introduced this resolution using a language of risk and by speaking primarily to the concerns of the bank and its shareholders. However the bank faces not just a financial imperative to address climate change but a moral imperative to do so. The environmental and public health cost of business as usual for the banks on climate are immense and Barber Gadley and Revenant Nancy Ellison will speak to these concerns in their remarks.

Thank you Mr. Chairman and I urge shareholders to vote yes on the for proposal using yellow ballet provided in your folders.

Unidentified Company Representative

Thank you Mr. Collins. We’re now going to accept questions or comments on these non-proposals only and then we’ll get to the general Q&A session. Right now, right now okay. You don’t need a form a line to ask questions raise your number card and we’ll recognize the number move to the end of your isle one of our team mates will hold a microphone state your name the proposal which you’re going to speak about and as I noted earlier please limit your comments to two minutes. Again a sound is going to remind you that your time is up at the conclusion of this question and answer session we will announce preliminary voting results include the formal business in about half hour.

Then going to open after that to general Q&A for the whole investors session. With that let’s start with questions I can see hands up now and I know you have to leave at 11 O’Clock so number 59 we’ll start with you.

Question-and-Answer Session

Unidentified Analyst

(inaudible) more important in this meeting. Am I allowed to hold that?

Unidentified Company Representative

He’ll hold it for you just go ahead and speak we can hear you.

Unidentified Analyst

My name is Judi (inaudible) I am shareholder in Bank of America it started out at suburban banking trust back in the 40s. I am urging people to vote against any member of this Board of Directors including the Chairmen. I have worked hard for many years saving and investing to be able to follow a tradition established by my parents to help family members when needed. Your dishonored to misguide policies around Merrill Lynch has made that no longer possible.

You cost me close to $60,000 and loss dividend, you have caused me to liquidate major assets that whether gone to my family to help them when needed and caused me over $1.5 million. I can no longer make contribution to file 29 accounts for my great nieces and nephews nor help their school expenses, tuition, medical expenses, camps, rents etcetera. When one of my nephews bought a house a number of years ago I was able to give them the money towards the down payment. How do you justify accepting any money and a bonus yet paid millions and settled misguided policies about Merrill Lynch. If you remember last year I made comments about the warlords of Washington who came in a crisis and worked for $1 a year that include Mr. Chrysler who made most of the things for World War II. I ask you to do that instead you had your hands in our pockets and taking more money out of it.

How much for the ML settlement will a shareholder receive? What I am trying to find out is, will I receive a penny a share or less or even that much from you, what are you prepared to do, I don’t understand why you can accept a bonus and still keep putting your hands in our pockets and taking money out of our pocket why haven’t you raised the dividend instead of, so I would, my question again is how much per share will a shareholder receive if anything when will that happen?

Unidentified Company Representative

Let me get the question, Gary do you want to try to answer question on this Merrill securities litigation settlement terms of what the payment is?

Gary Lynch

I don’t know the exact payment will be made but the plan of distribution will be devised and approved by the court and you will receive communication on that relative in your future. I don’t want to put a number, I don’t want to put a number on it when I don’t know the number.

Unidentified Company Representative

We will, we can, it’s going to be dealt with in terms of the amount of money in the distribution which will get a plan will tell you exactly what you get per share in the mail as they finally settle. Number 94 please. I think we can get what I was saying is Gary will follow-up and get you…

Unidentified Analyst

(inaudible)

Unidentified Company Representative

That’s ma’am let’s go to you had your two minutes we can come back to you. Number 94.

Unidentified Analyst

Mr. Chairman my name is Jill Baker I am from Southaven Mississippi. My family and I hold about 14,000 shares of common and preferred stock. My wife and I just returned from Arkansas last week and by the way the global warming resulted in record late snow fall in Arkansas and a number of other states, which I think points out that the global warming agenda has been greatly over stated in terms of political statements passing for scientific governance. We’re invested in Bank of America because we need the dividend income for our retirement and I have confidence in Bank of America leadership and where you and Ken Luis have taken this. I would suggest strongly that we back away from financial commitments to poorly documented political colors like climate change. Thank you, sir.

Unidentified Company Representative

Okay other comments. Let’s go to number 32 here, keep going.

Unidentified Analyst

Nancy

Unidentified Company Representative

On Green House Gas submission. I’m grateful for the ways in which Bank of America has been a good corporate citizen to the city of Charlotte making meaningful investments across social issues and throughout the community. You’re steward in your role here well. I join with many others so now I invite you to be a good steward of all God’s creations.

It is time to further your strategic responses to our life killing climate change and to set aggressive new emission reduction goals beyond your current 2015 goals. Five years ago BofA leadership created a policy statement of concern about mountaintop removal saying we will face our financing of companies whose predominant methods of extracting coal is been mountaintop removal.

Yet in 2012 with over $3 billion of coal investment BofA is still the number one financer for companies who engage in the destruction of creation through mountaintop removal and the pollution of the earth through burning dirty coal. It is morally wrong to rex a climate and morally wrong to profit from that wreckage. This resolution invite you to respond to this issue with the same urgency that you have used to fight your way out of the economic crisis.

The climate changes we are already experiencing snows in Arkansas in the wind and spring severe drought across America flooding across the Catawba and catastrophic wreckage of our coast cost us money as well as light home and host. This is an economic issue with moral implications for the leaders of Bank of America.

Your slogan likely as better when we are connected life is this when our connections are just sustainable and nourishing.

Brian Moynihan

Thank you. Other comments on the proposals remember that we’ll have a general Q&A. Number 79 back in the left hand corner please.

Kevin Stein

Thank you, Mr. Moynihan. My name is Kevin Stein and I’m with the California Reinvestment Coalition. I stand in support of the NEDAP resolution coin for a fair lending audit. We do want to thank you sincerely for our ongoing dialogue on these issues and for the large investments the bank has made to try and fix foreclosure problems. At the same time we remain concerned that servicing is not what it should be I think more work to be done is how you put it in your introductory remarks.

In our latest survey of housing outsource in California we find apparent violations of the national mortgage settlement by Bank of America and other banks we’re disappointed to see that you’ll track continues to be a problem with Bank of America and that in the first federal case which we are aware looking at our brand new home owner bill of rights Bank of America appear to be not in compliance with our state law on dual tracks.

In our survey we also know for counselors and legal service lawyers. Concerns with fair lending and an in equal access to release by Bank of America and other banks.

In particular disable borrowers report difficulty in getting accommodations and navigate the complex process with those who are not listed on the underlying loan have difficulty communicating with the bank trying to keep their home and limited English profession borrowers have no idea about communication they are receiving and difficulty in communicating with the bank they are trying to safe their houses as well

We heard a while back of counselors reporting, consumer type Bank of America letters and you are entitled to relieve but they couldn’t understand the letters because they are English.

Bank of America agreed and we command you for translating certain documents but we think more needs to be done in California we have $ 7illion limited English proficient borrowers. $2 million of whom don’t speak English or Spanish. So we are concerned that there is not equal access to relief we urge you to support this important fair lending audits we urge you to translate documents and provide language capacity in the five biggest languages spoken in California.

I would like to leave you a copy of our latest survey and I would like to invite you to come out this town (audio gap).

Brian Moynihan

Sure you can give the survey to and I’ll bring up to thank you. Next 266.

Barbara Gottlieb

Hi. Good morning, Mr. Moynihan.

Brian Moynihan

Hi

Barbara Gottlieb

My name is Barbara Gottlieb. I wanted to speak in support of the climate, the poor resolution on the climate change. I want to thank you all for this resolutions. It’s really urgent that Bank of America reduced the carbon footprint of the loans it makes specifically as loans to the coal industry and coal fired utilities because the coal combustion is the largest single contributor to climate change.

I’m the Director of Environmental Health for an organization called Physicians for Social Responsibility an national organization for physicians, nurses other health providers and public health professionals. Looking to address the greatest threats to human life and survival. Climate change is one of those threats. I have with me a letter found by 2, 817 PFR members from across the country including 58 from North Carolina calling on the bank to take responsibility for close loans and to face them out.

So as long as threatens human health and ultimately survival. I would like to mention briefly just two of the many, many health consequences that come from climate change. The first is heat waves, heat is actually the biggest killer among all the forms of extreme weather caused by climate change. Heat waves can cause heat strokes which causes symptoms of convulsion, coma and can lead to death. In Chicago heat wave in 1999, 750 people died just in the city of Chicago. Well likely more of these killer heat waves as climate change intensifies. Raising temperatures from climate change also increased ozone the most wide spread air pollutant to the United States it provokes as much acts and we’re in the midst of an academic in this country rather has lung diseases, scares lung tissue that can even affect unborn so in the development of the serious in the womb and increasing rate of low birth rate babies. These are serious issues for Charlotte with your bad air quality and are worsened by burn and cold. We encourage you to and we view your loans on cold increase your portfolio of loans at least have renewable energy. It’s the only way we can live literally.

Brian Moynihan

Thank you. 375 right behind you.

David Hodgkins

My name is David Hodgkins. I’m owned 2500 shares of Bank of Americas and I made the money by being patience in Iraq and that’s why and that’s my money. The women on the climate change she is definitely wrong. More people died here on cold based on heat. 50,000 in Europe last year. So I say Bank of America you are better off keep in the loans going keep in the economy going and that’s what we’ll keep the 99% better.

Brian Moynihan

Thank you. Next question. Next 85 over here in the left.

Unidentified Analyst

Hello, good morning. My name is Lexis I have an issue. I’m here from Medak an economic justice research and advocacy center in New York City where shareholders and I’m also representing family shares in Bank of America. And I would like to speak in support of resolutions for and seven the lobbying disclosure of resolutions. And I think everyone is in this room knows the risky derivatives contracts engaged in by Bank of America and the other big banks were a huge contributor to the financial crisis. Those let to new laws and new regulations that are intended to start another crisis like that from occurring. Now recently Bank of America has been in the news from lobbing at the house agricultural committee around derivatives and for other lobbing around financial reform to weaken the derivative rules and this strategy really could have serious reputational risks for the bank. Seeking to undermine rules that were put in place in response to the Bank’s irresponsible and risky behavior undermine public trust in the bank and also goes against our wishes and shareholders for the bank to engage and responsible behavior. Thank you.

Brian Moynihan

Thanks. Other questions and comments. 138 back in the side.

Alan Fisher

Thank you. I have to apologize in the beginning this is not in worst. I thought that was a lovely presentations. I’m speaking in support of resolution A. I’m Alan Fisher, Executive Director of the California Reinvestment Coalition of more than 300 non-profit groups at California working around financial issues and I just wanted to follow my colleague Kevin with a couple other quick points about their survey which was with 84 counselors and legal services group.

The good news is BofA is not the worst last year that’s what the counselor said so we are pleased with this progress. However, sort of left handed that might be. Just two quick things I think one is on time lines as Attorney General Schneiderman has said he is concerned about more than half of the counselors say that BofA is not meeting the deadlines. Secondly in terms of single point of contact almost half say that the person they talk with is not knowledgeable or assessable and the other point that might be useful to you is that they also say that having just one person sometimes is problematic A they can reach them and it’s the person decided they are not interested in the situations in there. They are up a creek without a panel. I think this independent review is really needed I see that consumer real estate law is dropped by 13 billion last year. I think that that’s really positive as a shareholder I continue to be concerned about the level of staffing and organization in terms of responding to these issues which have great reputational risk and legal costs. And I’d also wanted to speak in favor of propositions for in terms of our experiences in Sacramento or with the Bank of America lobby is really over the top in opposing anything that to the benefit of neighborhood including homeowner bill of rights question so thank you for listening.

Unidentified Company Representative

Other questions or comments on the proposals. I don’t see any more. So I think now it’s time to conclude the Q&A period for audience and business representative for the meeting. I’d now declare the poll is open free to 9 items of the business for consideration in today’s meetings. We’re going to proceed to collect your ballet so the polls are about to close and we have a ballet please raise them up and we’ll collect them from you.

The, there is two more over here. Any more ballets? There is a couple of way in the back. Any more ballets? The polls are now closed and this concludes the official business of today’s meeting. The preliminary results of voting are now available Lauren, would you please report the preliminary results of the vote.

Lauren Mogensen

On special elections reports the following preliminary results. All the management proposals received majority support and have been approved. With these proposals of 13 Director nominees have been elected to the Board of Directors by a majority of the vote’s CAF. The advisory vote on executive compensation has been approved with approximately 93% of the vote’s CAF in favor and the appointment at PricewaterhouseCoopers has been ratified. None of the stockholder proposals received the required majority support. Final results will be reported in an 8-K filing with Securities Exchange Commission within 4 days of states meeting. Thank you.

Unidentified Company Representative

Thank you Lauren. And thank you everyone for participating. With the announcement of these preliminary votes there is no other business come before this meeting. So I’m going to entertain motion to adjourn the meeting all in favor of during the official meeting (inaudible). Thank you for being here and thank you for your support. We now adjourned official meeting and now we’ll move to the general question-and-answer session. Now that we completed the business we’re going to move this session but please remember the guideline still apply and at the rules of conduct that are that you’ve been given in your materials are still apply today. If you have personal financial matters about your personal accounts or someone else’s personal account to representing I would ask you that you raise your hand and make sure, and we’ll get you to the customer service representatives right away to take care of that. You’re going to have two mistunes remember two minutes it will show you on the screen, the time will come on and mic will cut off. You don’t need to form a line, raise your cards we’ll call on and you go out to the center of aisle and when I call your number and our team will over the microphone and we’ll go through the questions. So let’s start over here number 55.

Justin Danhof

Good morning. My name is Justin Danhof, I’m representing the National Center for Public Policy Research were a free marketing tag and a company shareholder. Mr. Moynihan, it’s been reported the Bank of America decided not to renew its membership in the American Legislative Exchange Council that’s known as ALEC in 2013 due to quote budget constraints. This decision was made after a consorted effort by radical organization such as Color of Change, the Occupied Wall Street movement and Greenpeace decided to fund ALEC by intimidating its corporate members spreading propaganda and lives about ALEC’s work these organization claims that ALEC’s were to promote state level about our ID loss was somehow our racist attempt to suppress voters. Then they (inaudible) to make continued corporate membership in ALEC uncomfortable.

ALEC started working on voter ID months before you dropped your membership, but my organization has picked up a slack and we’re not going to be silent. By the way voter ID loss enjoy wide public support, pulling consistently about 70% approval and approval for these laws is nearly universal as a majority of republican’s democrat independence African-American Hispanics, young, old, men and women all support voter ID loss.

When Bank of America work with ALEC as a member of its commerce and strengthen economic development taskforce it helped to advance freedom and prosperity for all American. By starting with the radical’s the Color of Change and Occupied you had given our company’s corporate cloud to extremist (inaudible) conservative and free market causes. First can you explain how efforts to advance free market capitalism an economic system that has lifted more people out of poverty than any in the world history was somehow shocked you to budget constraints yet the company is committed to now $70 billion to provide financing for environmentally-friendly projects and would you give your rational for deciding to award $100 million in grants i.e., free shareholder to group that promote avoiding (inaudible) fields in the name of fighting global warming even though the global warming theory scientist admit that no temperature increase has happened in the past 17 years and can you provide a list of organizations to get that money? Thank you

Brian Moynihan

I think in terms of the decision we make, we make an investment to of all the communities we serve, the customers and clients what they needed to do that we make to work the shareholders and the community reserves. So we bounce all that in everything we do and you’ll find that we’re member of organizations and not members of other organizations based on that so sir each one of those specific things that we can follow up with some specifics that we’re as a team wants to do that, but from a general standpoint we make decision based on our criteria we should. 44.

Amanda Starbuck

Good morning. My name is Amanda Starbuck and I’m with Rainforest Action Network and a shareholder of Bank of America. I’m here today and unlike other than this room because climate change is a single biggest environmental threat safety in our planet. We’ve already had this morning about some of the headlines extreme weather last year it’s on Sunday and what the world face in the Rocky Mountains the droughts in the Midwest, but let’s also remember the impacts were felt everywhere last year more than 69,000 local hit records with that. I heard your comments at the beginning about how proud you are of your $90 billion commitment to the environment and I agree this is the priority you have good people on your team who are working on these initiatives but here is the problem, the scale of the climate challenge that we face it means we need a fast transition from (inaudible) energy generation and Bank of America is the leading underwrites the U.S. coal industry which is the single largest source of U.S. climate commission and that means that the Bank is actually underwriting the climate change that you are also trying to tackle. The bank must look at energy electrically how we generate power and where our energy sources come from one might say it’s not the place for the bank to take a moral judgment on here we debating this place, but when you already have an environmental commitment that is a fourth question, so that saturate if it is not possible for a bank to be both number one in addressing climate change and number one in financing the software field sector, these two goals I think impossible so my question to you Brian Moynihan and the Bank of America Board of Directors is which will you choose? Will you prioritize addressing climate change and a safe wealth of future generation or will you choose to prioritize funding the coal industry and climate chaos?

Brian Moynihan

So I think Amanda that you’ve heard the comments of the person just spoke before you there is obviously a lot of public debate, public policy about this all I can tell you is what we do and we make those decisions based on the rational view of what our customers and clients are doing in the various constituency. To help you that everyone understand what we do, I’d ask I’m going to Cathy Bessant, who is the Head of our Environmental effort in the company talk about what we do inside our company and what we do externally to help in our minds to do the things we think we should do and so Cathy wants you explain what we do with the $70 billion initiative.

Cathy Bessant

If they can’t hold it, I won’t hold it. Thanks Brain. Couple of things, first of all we couldn’t take more seriously our understanding of the importance of environmental sustainability and our commitment to supporting and moving new energy forward. We’d have a great record of doing that in as part of the completion of our $20 billion commitments which by the way we completed four years ahead of schedule in 2012. as part of that we financed over $9.5 billion in energy efficiency projects and $6.8 billion in new energy solar, wind, geo, thermal, really sustainable forms of energy. So in terms of our role as a financier and advancing the capital markets to support new energy our leadership I think has been quite clear. The important parts of our new $50 billion commitment continue in that tradition they focus on of course energy efficiency and new energy creation but also on transportation and the role that it plays as well as on wind and as well on water and waste, two new additional components of our focus.

We’ve supported that financing commitment also with a new huge set of operational goal we were the first bank to come out with a very aggressive goal in the reduction of our own greenhouse gas emission just as one example. We’ve already reduced greenhouse gas emissions by 18% doubling our original goal of 9% added another 15% to that goal so by the time we get to 2015 or hopefully sooner we will help reduce our own greenhouse gas emission by well over 30% from our base. So whether it’s our own operational activities or commitment to finance the sector or I believe that energy sustainability is a huge impressing issue you won’t find a more seriously minded set of people management team and Board dedicated to doing that?

Unidentified Company Representative

Thank you next question. 373.

Unidentified Analyst

My name is David Hayes and I studied in the University of Tennessee and as a few of you may know Mr. Chad Holliday also graduated from the same school for his undergrad degree. So Mr. Holliday just I am going to direct this toward you last December you returned back to campus to receive an honorary degree from UT. I am sure once you stepped on the campus you started reminiscing all the good times you had and all the good people you met from across Tennessee and across Appalachia and across the U.S. And I do accept your award, an award from the (inaudible) you must have been cognizant of the process happening right outside of the walls, you must, excuse me the closest happening right outside of the wall and you must have remembered me a student who approached you the minute when you step on the stage asking you to leave Bank of America just stop funding the coal industry and more important stop funding mountaintop removal.

Now Mr. Holliday I almost thought you could be either one or two things you’d be part of the problem or part of the solution to meet to myself 106 students in over, in over 70 colleges across the nation we excuse me, we believe that you’re part of the problem right now, why because we are aware of the things the coal industry and mountaintop removal persist and we are, excuse me, and we are aware of – and all the harm impact to the coal industry and to your old classmates, your classmates who, you might have had classmates with you living in it on to live across Appalachia and across the U.S. and they’re aware of the negative impacts they believe you, yourself are part of the problem and also Bank of America is the part of the problem.

So no matter how many given responsible companies you’ve financed you will never make it right with the destruction to the mountain and people’s lives with the new environment so my question is to Mr. Holliday Bank of America, how do you plan becoming a part of the solution I mean you are the part of the problem for million lives in Appalachia.

Chad Holliday

Right I think sir, it is Mark right, dated sorry, the dated I think the complexity of the issue and how do you manage it when you’re not directly involved in a process or commitment setting speak for themselves and Chad and all the Board of Directors our governance committee hear how we work on these issues how we balance the fact we have clients and customers have factored a difference of opinions in different policies and will have to repeat it but we just went through what our responses, what we do internally, what we do financing the change is that have to go on the innovation of that as they speaks for themselves and Chad is a leader in this filed and I think he help to lead us anybody else. Number 156 straight back.

Unidentified Analyst

Phil Bell from Charlotte North Carolina. I would like to thank the management and the Board of Directors the job that you all are doing. This last year we had an increase in the tax rate on dividend they went up a third from 15% to 20% and a lot of companies are just increasing their dividends to kind of cover that increase that you have in the pace to the government. And I think that you all done such a great job and I think that you are limiting retirees and people that like to have dividend stocks, Wall Street today talks about the latest trial was because the dividends high paying dividend stocks and maybe I am still remembering those days when you have 5% which was those were pretty nice days but I just think that when you’re buying back your stocks which all done and everyone approves that if you would balance buying the stock with increasing the dividend a slight that each time that you can. I think that it will increase the price of the stock and congratulations for the appreciation last year and I’d like to see it happen again this year. Thank you.

Unidentified Company Representative

That makes tow of us sir. We just start to clear on dividends we take that in account and as we go through the so called CCRAP process for the next year will have to take that in account and we will take that in accounts are good, we understand the issue is not likeminded people including all are directors and others they own stock have a view that they’d like to have both but right now the best course of action for our company was to buy the stock back at the price we’re at and that’s why you’re seeing some response. Number 56.

Unidentified Analyst

Hi thank you for having me. My name is (inaudible) and I am a Rabbi in the Boston area. I am here to talk about Bank of America’s environmental responsibility. Last Friday I preached at my synagogue the spiritual reading at the end of (inaudible) in which Scott says the earth is mine and you are only temporary residence with me. One child asked if we are just borrowing the earth why do grow not keep thinking that it’s there right to destroy it so that there will be nothing good left for us when it’s our turn to take care of it. And that must have been a heart breaking question.

Looking out at this room I am sure all of us care about our children and I am sure that we all want to leave them a legacy of clean air and clear water and a stable climate. And yet I am also sure that I can see you all very far away from here I am sorry that all that can feel very far away from your choices today. Shouldn’t these problems be solved by someone else? Well I think the answer is now, as Rabbi Abraham Joshua Heschel said in a free society some are guilty but all are responsible, if we have the power to prevent harm and we are responsible to do so. You as the shareholder of Bank of America have the opportunity and thus the responsibility to use your power to help create a sustainable future. I conclude with a spiritual song in Appalachia, let the life I lead speak for me, let the life I lead speak for me and when I come to the end of this world and I laid out my heavy load, let the life I lead speak for me.

Unidentified Company Representative

Thank you thereby. Number 380 let’s just go.

Unidentified Analyst

Hi my name is (inaudible) and I live in Southern West Virginia in a very heavy coal producing county. In 2009 bank executive from Bank of America visited Southern West Virginia and an active mountaintop removal site and they also did a flyover they met with some local residence and listen to our stories myself included. A month later Bank of America released a policy on active mountaintop removal which the Bank of America is particularly concerned about surface mining through mountaintop removal in Central Appalachia. We therefore will face out financing of companies who’s predominant method of extraction is mountaintop removal.

My question is what companies have you or are you in the process of saving out who’s predominant method of extracting coal is for mountaintop removal, for those of that all this statement may sound great to people who don’t live in a heavy coal producing area for those of us who live at ground zero for mountaintop removal we knew when it was said that it wasn’t worth a paper it was written on it was worthless.

And so today mountaintop removal is still going on above my home the home where I raise my children and it has not stopped and I am asking Bank of America what have you done what do you plan to do in order to stop the destruction in the community. There are 21 pure reviewed health studies that prove that living in the shadow of a mountaintop removal site is very detrimental to our health.

I want everyone in this room all this shareholders and the executives to understand we don’t live where they mine coals, they mine coals where we live and the destruction of our communities our air and our water need to stop Bank of America is culpable in the destruction of the second most (inaudible) rainforest on the face of the planet. We need it to stop.

Unidentified Company Representative

Thank you for your comments. Next 374 way in the back.

Unidentified Analyst

I had a question, I had question.

Unidentified Company Representative

The answer is we have the policies that are available on our websites and stuff that we hear to. 374 ma’am the client relationships we wouldn’t disclosures so we’re not going to disclose others. Number 374.

Unidentified Analyst

David (Hochkins) again yes and like I said before the best way for Bank of America go forward is keep making loans get the 99% of working or we have 10% real unemployment keep this working and I would say give us a dividend and if all these people want social causes the best most effective way Jim Craimer said with the tobacco companies this investment company take the dividend and stick those into your social causes thank you.

Unidentified Company Representative

Let’s go back to the back number 379.

Ashish Fernandes

Good morning Mr. Moynihan and shareholders. My name is Ashish Fernandes from Greenpeas I come from India a country where coal is suppose to rescue millions from grinding quality, what decades of coal exploitation has done nothing to elevate poverty in India or deliver cheap electricity to millions who still live in darkness. What coal has done however is ruin the health of millions, destroyed forest displaced 100s and 1000s on their lands. BofA has invested in Coal India Limited the world largest coal miner responsible for egregious environmental and human rights abuses. The moral and ethical arguments against coal are many and contestable and you’ve heard them here. But for those who are not moved my moral and ethic there are also very old financial risks that you should consider.

Despite the height very significant doubt that India’s extractable coal reserves will last more than 20 years more. Even as what coal remains it gets more expenses. In contrast the renewable sector is growing fast in India wind power is now cheaper than new coal and within five years solar (inaudible) world date will be as well. And with some analysts like KPMG and PWC not from Greenpeace. There is also going opposition to new coal projects that’s from Greenpeace. These two factors was a very real financial risk to the coal sector and all those who invested in this.

The government is now planning to divest another 10% of its stake in Coal India and BofA is rumored to be one of the potential underwriters just like year 2010. My question to you Mr. Moynihan is will Bank of America bid to be a underwriter in the upcoming Coal India share field and if so how do you justify your continued involvement in accompanying with the recorded environmental human rights valuations especially given the real financial risk in the Indian coal sector?

Brian Moynihan

Thank you for your comment. Our team will take a look at that when they if they had a chance to ask to look at it as part of our business. Number 41.

Jim Plunkett

Chairman I’m Jim Plunkett from Portland, Oregon specific North West. We faced five proposed new coal export terminals. These terminals would increase global coal exports by 150 million tons a year. The financing of these terminals is all directly related to the Bank of America. If these build we’re locking ourselves in to extreme climate change. I’m a climate activist when I visited my lectured representatives they tell me they are surprised how many comments they get on climate and how often it’s mentioned in their town halls and I worry that our government isn’t going to act soon enough to keep this for passing the tipping point for carbon in the atmosphere. I expect the bank’s management have some sympathy with my view last week spokesperson Brittany Sheehan said that the Bank filed the famous all the above energy policy and then asked the society really one financial institution society and what fuels we are used. We need the Bank of America to help us get this country our fossil fuels keep the coal in the ground. I’m lucky to have this opportunity to express myself here in this format in Charlotte on behalf of the specific North West and the bank is lucky to be in a position to power and control. We like the bank to show you understand the urgency of our situation by not financing coal.

Brian Moynihan

Thank you for your comments. Let’s go over here. 64.

Shola Olatoye

Good morning. My name is Shola Olatoye. And I’m actually not here to speak about climate change. I worked for an organization called Enterprise Community Partners and we are a 31 year old affordable housing organization more than two-thirds of this country focus to our low modern income our housing insecure and Jim Rouse founded us 30 years ago to help insure that everyone received a safe set and affordable home. And Bank of America has been a critical partner in that work and we have created over 300,000 units of housing across this country and you bid and then Bank of America has been a critical investor philanthropic supporter and soft partner in that work.

I have the pleasure of running our New York office our largest office where we build in and preserve over 35,000 units of housing and manage about 20,000 units of those of that housing and well the challenges of community development and housing have changed from the urban disinvestment of the 70s and 80s to now serving the very low income people and particularly in our region we are building after Hurricane Sandy. Bank of America has been a continued partners with that right after the storm our local Bank of America partners called us and asked what they could do and I think that’s an example of the kind of partnership that we’ve been had the pleasure to have over our relationship together. Your resources had helped us we have 70 unit building in Coney Island that was greatly affected by the storm.

You’ve helped us build 75 unit building in Brooklyn for probably homeless family and so that sort of commitment to the critical needs of our community and those ever changing needs is something that we value and continue and look forward to the continued partnership together. So thank you for the opportunity. Thank you.

Brian Moynihan

Thank you and the next team is continued in the board committed to continue those efforts and I thank you for recognizing. Let’s go to 100. You got a nice voice but still away from microphone.

Leslie Anderson

All right.

Brian Moynihan

There is people out there in the web that are listen to you too.

Leslie Anderson

Good morning. My name is Leslie Anderson and I’m from Longview, Washington the side of a proposed mega coal terminal. Firstly let me say that BofA services all might commercial accounts and it has for many years. My concerns is a business management and industrial for over 40 years plus some disserving projects BofA has as of this but it’s investment need to be done with care.

One another risk factors is whether histories of the parties involved but we need to prove that we’re been us in order to have our money’s to investment of entry. And we Ember Energy in association with large coal Peabody and Kinder Morgan desired minor transport billions of U.S coal to Asia some of these entities have a record of failure and loss which has and little no experience in the risky doing past business for coal exports to Asia.

In addition in our human totals to all of us pulmonary disease genetic mutations in children will keep that. These happened now coal power plants and not the least 1.6 tons of climate changing gas per ton of coal burn leading warming global warming contributor harming our atmosphere placing our oceans, rivers with mercury, lead and other heavy metals. These projects will slow down the recovery economies of the areas where export terminals are projected blocking our commercial traffic, emergency services all destroying North West first it’s increasing our healthcare cost higher taxes for railroads and bridge improvements. This serving our community a continuation of this counterproductive financial would demonstrate a little bit of difference to shareholders values. Coal is not new energy forward. My question is will you comment to the environment include your commitment to environment include the withdrawal of your investments in these coal to Asia project even this is there with because it’s been customers and this is in my hand. I have a couple of documents I would like to move to the floor if that would be okay.

Brian Moynihan

Give it to our teammate there and hope bring him up.

Leslie Anderson

Thank you so much.

Brian Moynihan

And we consider all transactional work which is lending not I mean there you keep these we’re investing we don’t have that equity investment anyway that’s part of clean up the balance sheet. We all run through the same policies. So that like I show you that everything goes for the same view point who we do business with and why. Let’s go to 65 over here.

Unidentified Company Representative

(inaudible). On behalf of The Urban League of Central Carolinas and representing the national league with President (Marvel) sir I want to first Bank of America for your partnership with us especially to a lot of country. Over 2.5 million are served directly to partnerships with organizations such as yours to provide individuals with education, workforce and entrepreneurship (audio gap) Charlotte the disparity that we see are still with us. There is well gaps we obviously see that our issues and education housing and as I learn more and more today climate change but what I do see is a great opportunity for Bank of America and that is to really highlight more often your philanthropic work.

To use a local example Charles Bowman and his Bank of America team have invested in The Urban League of Central Carolinas right here in Charlotte. And they were part of a group that invested closed to $650,000 into a work force programs and when they made that investment we were able to train over 300 individuals who this past year earned $7.49 million in salaries that made that if every dollar you invested a $11.50 went right back out into the community and that is an investment to be proud of especially since so many of these individuals were veterans displace workers, single parents and so forth. I think that these are the types of story that need to be embedded more in your daily message and they should actually encourage others to give more and I really do believe that our philanthropic model.

Brian Moynihan

Thank you. One of the things that that I’ve been going to appreciate in ways that like we proud in everyone in the country we have a hundred Charles Bowman’s across the country and markets doing this work everywhere in Portland we have 260,000 teammates to do a million plus million and a half volunteer two hours a year we should be getting 2 million this year and all the communities including here in Charlotte and around the country is very important that we do the things we do. I’m proud of the team for doing it and I’m proud of the major team for allowing people to take the time and do the right thing.

265.

Larry Shirley

Thank you Mr. Chairman, my name is Larry Shirley I’m with the Nicholas Institute for Environmental Policy Solutions at Duke University. On behalf of Duke University, I want to thank you for supporting research for the identification of solutions to serious environmental problems in particular, climate change. At Duke University we partnered with the bank for the last four years looking for options that could be deployed to help tackle and reduce emissions in coal plant. These technologies and policies to reduce CO2 in this plant are particularly critical if we want to get a real foothold in addressing climate change. I want to comment the bank for its commitment to tackle pressing environmental challenges through such things as their environmental business initiative. The provision of financing for companies like one example is the company that is putting solar energy systems in a 120,000 homes occupied primarily by military families just as one example providing financing for energy efficiency in portable housing. These kind of initiatives we capital and go forward and the bank’s funding us $70 billion in this area is critical in that regard. Finally in a long career in energy one of the things I’ve always found is if you want to look and see whether an organization is truly committed to reducing climate change and effecting energy efficiency you look to what they’re doing in their own house and the bank’s commitment to 30% reduction in its own carbon footprint. And its progress to-date in meeting that is exemplary and I applaud the bank for those efforts. Thank you.

Unidentified Company Representative

Thank you. Alright let’s go way back and back 46 way back in the corner.

Thomas Wilkin

Thank you Mr. President. My name is Thomas Wilkin, first congratulations on your 11.06% Tier 1 capital ratio, second highest among your peers.

Unidentified Company Representative

Thank you.

Thomas Wilkin

I have a short question.

Unidentified Company Representative

Sure.

Thomas Wilkin

Do I understand correctly that the 2013 capital analysis by the Federal Reserve Board restricts dividends for you put from this stock buybacks and if this understanding is correct, what does Bank of America have to do to get Federal Reserve approval? Thank you

Unidentified Company Representative

I think the Federal Reserve restricts probably hasn’t little bit tax opposed. We go in and ask the as part of the capital submission which is a submission it says, soon you had a stressed situation worst that 2008 effectively nearly the great depression. Without any warning can you return the capital as if went through that scenario. So you take the stress test to reduce your capital by the stress test if you look at the for the couple years of earnings and you make the calculation whether you can return capital. This year we’re able to return capital. When you ask, when you make the calculation and ask for the capital you have to say what you’re going to do with the capital and we ask for share buybacks because we thought that was the best way to drive shareholder value.

When we get to next year we’ll again have the choice of what we ask for and then we have to get it approved. And so the share that grew $5 billion as common equity buybacks in the Fed Reserve in the OCC and the other segment is approved $5.5 billion of preferred redemptions and both of which we plan to do this year, nest year we’ll ask again. So it’s not a restriction as sort of what we ask for. We’re trying to balance our shares try to discount what we think the appropriate value is the fact that as one of your colleague said earlier we issued a lot more shares in the CRY system we are planning to have about sending this time and getting those shares back is important to help improve the returns for here with shareholders. With the dividend question and we’ll bounce out again next year. The number one issue for us is to continue to get the recurring earnings stream back to the normal level that should be as we do that and I think we can look for a different balance in future. Thank you.

118.

Sara Winikie

Hi and thank you. My name is Sara Winikie and I live here in Charlotte on or in the Mountain Island Lake Community, I’m a mom and a cancer survivor. I can see the Riverbank coal-fired power plant from my house thankfully Riverbank has just closed ending 84 years of toxic air pollution, but the water pollution continue. 3.2 million cubic yards of coal ash sit on the shores of Mountain Island Lake, the drinking water for 860,000 people and probably the drinking water being consumed here today. This coal waste is contained in two (inaudible) having 71 acres held back by 80 foot high earthen dam, the same kind of dams failed in Kingston Tennessee and white homes off their foundation and then so much coal ash into the clinch and emory rivers that four years and a $1 billion was laid and they still can’t get it all cleaned up. Arsenic laid in water was directly from these ponds into Mountain Island Lake. Multiple studies from the Catawba Riverkeeper and Duke University show high level of arsenic throughout the lake. Arsenic is known as carcinogen. Recently leaks were discovered in the basis of the dam. These lakes are unpermitted, illegal and hazardous to our health. This is the legacy coal is leaving behind in our community right here in Charlotte. It’s bank of America’s legacy too. You were able to process from financing dirty energy while people like me are left to bear the risk of living their millions of times of toxic coal ash. Bank of America has a policy to consider the human rights and environmental impacts of ruins on local communities and developing countries. When will you extend this policy to address the impact of your loans on people like me here in Charlotte?

Unidentified Company Representative

Alright, thank you for your comments and we’ll take that into account. 173 in the back in the center.

Jonathan Ferris

Thank you I’m (inaudible) Jonathan Ferris from Temple Beth El here in Charlotte. A story for a change from the (inaudible). An old men continues to plant a carrot tree as crowds of people ways to welcome (inaudible) noticed the elder’s effort and stop finance him good work, carrot tree takes 70 years to bear edible fruit you’ll never benefit from your work today and the science here leave your fruitless task quite early and come with us to celebrate the new world. The gentlemen sat down to shovel and answered the young scholar may be the maximum size here, may be not, I came into this world there were carrots to eat with or without messiahs my great grandchildren should have carrots too. The scholar bowed his head and moustache not that its plants with them and one to on his leg. In a world we’re considering what happens months or years in the future it’s not a cultural because it go test too many quarterly reports I want a bank that looks to build a world that all of us can live in clients, investors, customers we need writable communities without poisoned water and air, and to be a very customer and investor I want our bank to be known as a visionary leader towards the world where that we can all share. We don’t have to work seven decades into the future to see the negative impacts of coal extraction and usage. It’s not a complicated question. Can any of us argue in good it is good financial or environmental thinking that investment in coal constitute a good to future plans should be of a not declare itself a leader and grab hold of a shareholder, customer and client base that helps and plan to live on this planet hopefully in 70 years?

Unidentified Company Representative

Thank you. Let’s go over that’s a 382 right just carry on.

Patricia Muller

I’m Patricia Muller, this is my first time to speak at Bank of America meeting. Thank you for your time. I’ve lived in Charlotte all my life counting my grandchildren, my family has been for five generation we’re mostly hardworking, (inaudible) folks. I enjoy gardening, reading, time with family I really don’t want to be here today. But Bank of America is the number one founder of coal, and you know the impact of coal we’re suffering the worst air quality in the nation areas of our mountain looks like the moon, nothing grows, water is undrinkable, people suffered dire health effect, the Bank of America is the number one founder of coal, the size of these loans is small compared to the size of the bank. Bank of America can decide to stop funding coal tomorrow. And my question is, why the community leaders at the banks that is yourself decide to fund coal which brings illness and sometimes even death to our communities and those to peacefully protest Bank of Americas’ funding of coal are arrested?

Unidentified Company Representative

Ma’am thank you for your comments. Next?

Patricia Muller

(inaudible).

Unidentified Company Representative

Ma’am thank you for your comments, next over here at 240.

Jim Knight

Thank you Brian. My name is Jim Knight I’m a combat veteran and I also have the privilege of leading in an organization called Operation Homefront. We are a non-profit partner of the bank and we provide emergency financial assistance to our services members and their family and also to our returning wounded heroes. I’ve had the privilege of learning about the bank and learning about the bank through how it does its business but I also learned just as much about the organization by how it gives back and Bank of America has been a partner with us for more than seven years helping us to provide emergency assistance with the most basic of needs rent, utilities and food for our military families. Bank of America has helped us provide transitional housing for our wounded heroes so their families can be together during the recovery and as they make the transition out of the military. The bank has helped us provide permanent housing through the home donation. The bank is committed to hiring veteran and their spouses and the bank has even partnered with some companies that are installing solar power on military housing and locations around the world to help protect our environment.

I am remembering the event where we opened a transitional housing operation in California and I was surrounded by a sea of red t-shirts and those are the Bank of America employees many of them veterans themselves who came out to help welcome home these wounded heroes. And I would just like to say thank you for the bank and its commitment it’s partnership in helping our military service members and their families.

Unidentified Company Representative

Thank you. As many of you know we’ve got work to do with the change in the strength of the military in terms of numbers of people and proud of what the team has done Andrew Smith was recognized on behalf of our company at the White House the other day in terms of all the work we’ve done along the line just said them will continue to do, it’s very important and I urge everyone to get involved and help. Let’s go to 45.

Unidentified Analyst

Hi, Brian I am Bruce Mark CEO of NACA, NACA is the largest housing counseling organization in the country, let’s talk about the purchase program and lending going forward. So, one thing I want to start out with, we have $10 billion commitment from Bank of America $10 billion on one mortgage product, no down payment, no closing cost, no fees when I look at credit score and we make housing as a right. So everybody who goes to that program because you don’t consider the credit score in the interest rate today is 30 year fixed 3.25% the best mortgage in America and it’s stabilizing neighborhoods throughout the country.

So, I want to say thank you to Bank of America for the $10 billion commitment on the best mortgage in America and also but the question is Brian what are your plans for lending to low and moderate income people going forward as the crises reduces and people are looking to buy properties again and we are concerned about the new regulations that are going to make lending to low and moderate income people more difficult and what is your opinion on that? And thank you for your commitment.

Unidentified Company Representative

Thank you Bruce, Bruce as you know six weeks ago as with you and a bunch of colleagues where I got the whole class of the Harvard and got to tell you things are now which is particularly after 25 years Brooklyn Bruce is the first time I got to speak for half hour, 45 minutes without being interrupted but that’s 100,000 mortgages units numbers of people getting mortgages in the first quarter 30% still goes low to moderate income. Our commitment to that product set that segment is there.

We do have to as I said that day and I’ll say today and by the way everybody is aware of this we do have to be careful that in the new regulations that we keep a balance for the first home buyers and other people and as I said before we just to keep that in balance and I think you’ll agree with that I think other people – people have different views of what balance means and we might have something different for you but it think it’s important that as people recover that we are able to actually get home ownership in a balance way in a sustainable way and that’s like the David (inaudible) made a few weeks ago another one is housing we’re sponsoring trying to get the bay feeling because the issue we’re seeing despite everything that we know is that we got to make sure people can really stand and may keep the payments and that’s we’re going to keep it. Let’s go back to 42 way in the back.

Unidentified Analyst

My name is (inaudible) McKinley I have invested much in this question. Complete end tracks there three and a half case on void upright position code fitting all stand to ask you is the following question. I come from Oregon where we are placed in the middle of five coal terminal proposals two are east the Power River basin the origin of the strip mine coal. If the plants of Arch and PEabody are realized mega tons of coal will roll through the open and forested lands of Montana, Idaho and Washington. Mile and a half long trade of uncovered coal will emerge to parallel the Columbia River on road to propose terminals in Oregon and Washington, monstrous ocean going ships will take that Powered River fuel to the coal fire plants at Asia there we will supply energy hungry nations with all the pollution and carbonated to further imperil our special planet.

I bring you my question with the expectation that you honor it with deep attention and honesty. My question how will you courageously personally use your skills and unique position in the world to end Bank of America’s financial involvement with Arch and PEabody Coal Company. Life is better when we are connected is your slogan life is really better when we realize we’re connected to our fellow species our atmosphere and our ocean.

Unidentified Company Representative

Thank you for investing your time and energy – I’ve got your question I’ve got your point and we’ll take that into consideration. Thank you. Number 61.

Unidentified Analyst

Good morning my name is Edward (Yuri) and my question pertains the Bank of America’s funding of PEabody Energy. PEabody has partnered with SSA Marine to crane infrastructure for coal export in the Pacific North West. They’ve proposed to build gateway Pacific to be the largest coal shipping terminal in North America right next to my town Bellingham, Washington. They plan to ship a billion tons of coal from the Powder River basin to China at a rate of 48 million tons per year through Gateway Pacific alone which would require an average of nine trains per day to meet this out but that’s 18 crossing each way.

I’d like to draw the attention of the shareholders the fact that BofA has underwritten hundreds of millions of dollars in loans for PEabody in the last few years sent the proposal of this project. This demonstrates the mere lack of foresight and irresponsible lending practices and I’ll tell you why. This project is enormously unpopular and there is massive organized resistance to it a 124,000 comments were submitted by the public requesting over 100 unique impact to be assessed during the environmental impact scoping process.

The likely impact of the project are devastating on every conceivable level to local economies, regional ecology, agriculture, human health and safety as well as the aquatic ecosystem of heated sound which our fishing industry depends on. It appears highly possible that permission to build the terminal will be denied. But if the project goes through we can anticipate backlash from the millions of people in business situated along the rail road will be aggravated everyday by mile long trains be sure they’ll be sticking away to vent their frustration and they will know that Bank of America was complicit in this. And by the way China has announced plans to tap their coal use by 2015 which mean that the demand PEabody expects could seize to exist.

Do you consider these factors to be risks or liabilities and what will you do if the building permit for Gateway Pacific is denied, and would this outcome influence your future lending decisions?

Unidentified Company Representative

We’ll take all that in consideration – there is another comments on a different topic that we want to make sure we get to, we’ve been, we’re now moving at two hours if there is anyone have a comment on other than climate change and other than we’ll get them off I am not saying that but if you have other comments that verify a little bit and come back, 376.

Unidentified Analyst

Hi Mr. Moynihan thank you for taking my question my name is Brent Edward and I am just selfishly representing myself. First a comment and then a question, my comment I sympathize with those people depends on dividend or their retirement and but I do applaud the forward decision for 2013 to buy back deferred stock which should add things like may be about a penny assured in that income per quarter and as well buy back stocks since it’s under the right now it’s under your net book value so I call that decision at least 2013 I think that adds shareholder value for all of us.

My question is and I am going to have to paraphrase because I don’t remember exactly that it goes back couple of years ago you didn’t interview with magazine Financial Times on somebody and you hadn’t mentioned that you felt that during more normal economic times I believe is the phrase you use. Bank of America you thought could in the future earn approximately 35 billion a year. My question is do you still feel that way and secondly the normal economic times means legacy uses behind as well as a normal interest rate environment? Thank you.

Brian Moynihan

Sir there is a couple of things. One is you got a pre-tax, post-tax just to make sure so the 35 billion with the pre-tax number but yes if you look at our straight estimates and look at them going out as we normalize we will earn closer to what we should earn and if you just look at the line of business we’ve reported in the first quarter results showed that we earned $1.03 billion or $1.04 and $1.03 of the businesses we are in 700 million of fourth business. And there are two units that lost $1.03 billion and about 700 million both of those units are in a process of being completely rewind and all had to do with the legacy mortgage issues. This is called crest which is our home loans business which are dominated by how I guess which is our legacy mortgage issues and are other which litigation cost in the first quarter. So as you think about that you can see beyond the extreme and the business that are ongoing businesses and our job is to bring that 1.3 billion loss and crest is zero and then positive the first thing is what gets to zero and that’s we’re busy working on it. Alright. Any other questions other than climate change we’ll get him off I’m not I just want to make sure that we okay 383.

June Blotnick

Good morning. I’m June Blotnick Director of Clean Air Carolina, a Charlotte based mountaintop that working to reduce sources of pollution that impact air quality and demand human health. I’m here today to deliver a letter from medical advocates for healthier air state wide organization which calls on Bank of America to face how it’s lending to the co-industry and take the lead and financing the transition to a low carbon economy well we applaud the positive benefits of your environmental initiative our loans to coal companies offset this benefits exponentially. This letter is signed by pediatrician, pulmonologist, family practiced doctors, emergency physician, school nurses and other to provide healthcare to children and adults in our state impacted by coal generation. The side effects of your coal lending include an estimated 13,000 children born ATR North Carolina alone with neurological deficits caused by their mothers eating mercury contaminated fish during pregnancy. The main source of mercury pollution is coal fired power plants. In 2010 North Carolinas Electric sector ranked 8 th in the country for industrial toxic care pollution and maybe more than 14.6 million pounds of harmful chemicals. Other side effects of your continued coal lending includes damages to the respiratory and cardiovascular systems of those to air pollutions and an increase in premature deaths.

North Carolinas home to a 195,000 children who struggle with asthma. As medical and health professional we urge you to consider the impact of your lending on public health and demonstrate your leadership by adopting a meaningful policy that tilts your energy financing the clean renewable power generation it’s times to listen to your doctors and I have a cop of the letter.

Brian Moynihan

Okay. Give it to us – we will have it. Thank you. Other questions it’s 3:09

Unidentified Analyst

Good morning. My name is (inaudible) and I’ll be living at Davidson College in the fall. As a first generation Charlotten and American I think first I have a terrible re-precaution of your investments in the coal industry have played low income community at Colorado the hardest suffering the plate of respiratory disease uninsured and economically disadvantage. These citizens they are better according to 2012 report published by the national association for the advancement of colored people the six million people living within three miles of 378 plants across United States have an average per capita income of $18,400 per year and 39% of them are people of color. Even in nearby West Virginia people had been silent and marginalized for years for the sake of profit by a way of mountaintop removal sites.

And your campaign you claimed to donate generously as a leading corporate (inaudible) to NGOs giving back to communities but what good are these contributions if you fail to address your key role as historic for so many of these communities problems including increased foreclosures bankruptcy and this is as bank that price itself on convenience for its customers. Please explain to me the convenience of cancer, asthma and other sickness of the working poor. Life is better when we are connected who is we that you are marketing to who exactly does we include. Mr. Moynihan you own it to your customer shareholders and those are affected by your Hanes investments and business practices divest in the core industry? Thank you.

Brian Moynihan

Next question. 138.

Alan Fisher

Alan Fisher, California Reinvestment Coalition shareholder thank you for allowing my question. My question comes from a concern about maybe lending. In California more than a million people are caught in this dead traps from the store front let alone Wells Fargo and U.S Bank. I think this is I know that you stopped financing one pretty lender but this is really about the others. I think this is an industry that’s in trouble and it’s likely to go under the control of the currencies guidelines for lightly they lending, the consumer financial protection bureaus report that very clearly says how damaging payday is. I think there is a financial risk to Bank of America to continues to finance these. So my question to you is do you plan to stop financing commitments.

Brian Moynihan

I think you are speaking to the wrong people, we don’t do it. Next question. 302.

Steven Norris

Excuse me. Thank you, Mr. Moynihan. My name is Professor Steven Norris I teach at Warren Wilson College in Asheville. I teach environmental justice civil rights and non-violence. I’m I have been looking around this room all morning seeing this slogan that says life is better when we are connected. Let’s named the testimony and questions various people in the audience I feel an incredible sense of disconnection here between various people and with the bank. My friend passed more a little while ago mentioned how she attempts to get connections in which I have done too by allowing ourselves to be arrested confronting this bank. I have done it three times but just to make sure that you think I don’t till I favor it I’ve also been arrested a TV bank which is the largest financer of the Keystone XL pipeline. My question to you is how do we get the connections which you are advertising says you are trying to create if the only way I can feel connected and feel like maybe I’ll be listen to maybe rainforest action network will be listen too maybe Green Peace will be listen through maybe some of the other environmental organizations that are present here and out in the country general may get listen to is by being the arrested it’s a dramatic step to take. I have student who get arrested I had one student we spend a month sitting in a tree a couple of summers ago on a mountaintop removal site to prevent that site from the grown up that’s the extreme to which people are having to go these days in order to get the connection which you advertise is one of your primary values. Thank you.

Brian Moynihan

Just to clear I know what rainforest representatives in California and Kathy was there in her office at last week. 57.

Vanessa Green

Good morning. My name is Vanessa Green and I’m from Boston a home turf free unit to Moynihan and of course for your Bank. And year-to-date the prompt America’s Boston based leadership team to think critically about the current climate emergency and your reasonability as active influential members of Boston social economic and political communities to propel and accelerate Americas energy transition away from coal fired power and toward a low carbon renewable energy economy. Ultimately your responsibility to stop and prevent the worst of the worst community quality of life impacts. Also the process of city home for one of the most powerful banks in America. The city have incredible laws and privilege of innovation and problem solving academic, medical, legal, financing and face based proactive.

I personally felt privileged on March 20 2013 to be part of a delegation that delivery to you with one hand requesting their leadership on our climate and energy survival signed up 58 Boston top mine concerned about and responding to our coal; dependence. I want to enter emphasize their enthusiasm of these four thinking. So around the intended of the letter and how very real expanding and response able the wealth of support and the knowledge is in avail is in Boston available to your leadership team as you conduct financing mission assessment and ramp up implantation of your sustainability initiative.

I urge you to recognize that exactly because you are in position of unique comp ability and to influence if you have a special responsibility to continuously strategize and problem solve around your core energy financing and destructive impact. I remind you that our capital emerging fees does currently demand your response in a way similar to how you would response to a growing whole interest that your end a directed fees. You will drown unless you get creative and we’re all in that raft with you counting on your as the clock ticks. So my question for you is the unfunding ad campaigns academic incorporate talks in our cultural project how is Bank of America thoughts in leadership team recognizing and strategically leveraging the wealth of the knowledge available to them and how can you upgrade your demonstration of ingenuity and innovation as your problem solved your financial relationship with companies and states and coal extraction transport and burning?

Unidentified Company Representative

I think Cathy spoke to the $70 billion I think that the fair sizable commitment and she’ll be happy to talk to you afterwards and figure out how we can engage the teams. 26 and excuse me they’ve all gone. You gone once anybody not spoken here (inaudible). 375.

Unidentified Analyst

You will hold it, okay. Good morning, my name is Stephanie (inaudible) I have some prepared remarks but I’m just going to throw my side of list of what I had in those. Already been said by a lot of people first I’d like to thank you as an oddest for the bank’s investment and support of so many wonderful programs. I guess my question is at this point aren’t you all tired of hearing about us ask you over and over and over and over again to please stop investing in coal. I absolutely love and respect and thank you as a Kentuckian as a seventh generation Appalachian as a granddaughter of coalminer as a cousin of miner who is working right now for investing in removals for doubling then on that for new opportunities for a brighter future for us to continue to be the leader in generating electricity in our country, but we are desperate for something new, we see the writing on the wall coal is going to be gone and in this life is better when we are connected unfortunately our connection right now is killing us. It is killing us, there are children dying every day living in proximity cities now we top or live in mine. That’s my piece, mountaintop-removal please, please, please I beg of you will you really truly stop investing and supporting companies that practice this form of extractions for the sake of life and health this blood is on your hand really transactions please will you please, please will you stop supporting companies that practice mountaintop-removal coal mining? Thank you

Unidentified Company Representative

Anybody else not spoken if. 234.

Unidentified Analyst

Good morning. This is not bloo ha-ha, it is serious it’s not enough to support business with so consideration of the detrimental effect that that business have on the environment and the communities we call home. Your reputation and character has become tainted by your choice to enable and facilitate destructions of a national treasure, the Appalachian Mountains and its people. Let’s face it. that includes the backyard of one of your former employee literally I’m happy for a region I began my banking career as Rice County National Bank located in Far Southwest Virginia that your predecessors acquired remained resolving nation. and you continue to occupy the same faith in Northern Virginia located in a county where the 35% of the entire landmass had been destroyed. All I know that corporations are not seeing.

The corporate decisions are made by people there is shares of purchase then held by people and I believe that even in the harder to life hologram can be found your stockholders finally willing to accept a little less profit and take the rest and the pride derived from the investment in the construction of an Appalachian community not in its destruction which we are going to ask them and reveal the result to the nation at large and lastly, I want to say that I invite everyone in this room to go to Google or to take a virtual tour over why it’s happening my home and ask yourself this question how would you like it that happened to be your home and then decide what is your views to do about it? Thank you

Unidentified Company Representative

Thank you. 360.

Robert Skaf

I’m Robert Skaf and I’m private individual and shareholder of Bank of America. And I’d like to ask you to address more along the lines of what plans the bank has for its future business growth sometime ago it seems these all the bank decided that is wanted to separate itself from say investment banking and commercial banking because of the potential conflicts but the bank still owns what a major brokerage company, and two days ago there was a settlement made which was very much in the bank’s favor with MBIC now they’re an insurance company part of this settlement gave the Bank of America the right to acquire I think around 4.5% to 5% of the company. So could you please just bring us back to the bank and its future and the views of the bank Management and Board have as to which way it intends to go? Thank you

Unidentified Company Representative

Sure. Let me hit the technical question about the MBI that was a complete financial matter that was part of the negotiations of process you should think that that’s a strategic holding in our company. That is all the equity holdings that we’ve been going from $60 billion of years ago and liquidity over time as part of where we generated our capital. Now let’s talk about growth. Where does growth come from in the context of United States were 80% of our businesses in the context outside United States, inside Untied States our best opportunities would go our supply four or five key products to people. The quarter grew banking accounts, debit cards, credit cards, home finance and car loans and our job is just to do that and do that and do that and you can see the growth coming so you can see our residential mortgage production grew by 57% first quarter ‘12 to first quarter ‘13 you can see our loans of small businesses which we had on our segment grew dramatically. When you go to companies it’s the same thing it’s their, how they blend to support that hire people, employ people and everything else to tally will become cash management which just move the accounts payable and receivable around form and ultimate the capital markets M&A advice and things like that. So it’s an integrated business for each of ours segments, our core goal strategy is to drive penetration products we’ve only brought in the fold across that platform and just keep doing it and doing it and doing it and the same not happen across the product line.

That provides peer returns because it’s better economics for here the shareholders and then we’ll build capital and get it back to in terms of dividends and stock buybacks over time it’s really straightforward. 269.

Camilla Wood

Hello my name is Camilla Wood and I’m an undergraduate of Brown University. I’m here representing the brand that’s coal campaign which is calling on the university today best investment for the 50 largest mining and burning coal companies in the United States. We believe that our endowment should reflect our commitment to sustainability and social justice. And we should not be invested in the industry as hazardous and destructive as coal. The campaign which you will hear about in the May Corporation Meeting, I’ve collected over 32 physicians, some students, professors along staff members we count this Board of Senator Sheldon Whitehouse and how we see media coverage from MTR, BuzzFeed Sports Magazine, The Guardian and The Boston Globe. We’re part of the national movement over 300 college campuses they’re understanding and climate change and want to read this is the climate footprint of our investment. The students and personally as an environmental science students we know the connection between carbon dioxide emissions and global climate change is undeniable. Public health impacts are displacement, displacement of climate refugees reiterating healable and in simplification of extreme weather events.

Obviously towards an issue of this urgency if irresponsible and highly moral. So today Mr. Moynihan I want to ask you but only as Bank of America CEO but all those gone along. Given that our generation, my generation is increasingly conscious about climate change and the urgency to judge this issue how do you expect the bank to recruit talented graduates who are interested to work in a bank who’s project are more consistence are just more consistence ethically and less involved in financing coal?

Brian Moynihan

(inaudible) well there your efforts in present backs and sent out to notice the world global but I understand we can reach out at the May Board Meeting. So I’m not exactly familiar with you’re going to grade school to take advantage of it and you are. And so I’ll take a look at that when we see it but I think we’ve recruited around we’ve done a great recruiting this year and have a number of students coming to work for us and we’ll continue doing that. 33.

Unidentified Analyst

My name is Ali Willton and I am second year student at Harvard I am 20 years old…

Unidentified Company Representative

That’s not as good a school around here.

Unidentified Analyst

Expected that.

Unidentified Company Representative

We got two to one here so.

Unidentified Analyst

Okay I am 20 years old and my future like every other young person will likely be defined by global warming and I don’t inherit a stable planet like that what your parents left to you or am I going to inherit an economy crippled by climate disaster and then agricultural system collapsing from drought and weather destruction?

Our society has to make that decision through our actions over the next decade but I am too young to ever get the chance to be the decision maker. That responsibility belongs to your generation, that responsibility belongs to you and your bank. Right now I fear that your company is making the wrong choices in the energy market. Well I appreciate the new intention directly towards renewals, Bank of America is providing exceptional funding more than any other American bank to the coal industry.

By sustaining mountaintop removal coal mining and extending the life times of existing coal fired power plant Bank of America is facilitating the extraction and conduction of coal, the signs clearly indicates must be kept in the ground. I am here to tell you that Harvard students are tremendously concerned about climate change and the coal industries abusive human rights and we do not want to work for companies like Bank of America that are funding our destruction. We and students at 80 other universities have pledged to destruct your recruitment session on our campuses until you stop financing the coal industry. So what can you, how can you guarantee to young people like me that working for Bank of America will no longer worsen the climate?

Unidentified Company Representative

Thank you for comments again we continue to recruit at your university and we welcome the comments as I said the team will consider them in terms of what we do going forward. It is a great school just all kidding too but, that looks like we got one more may be two more 342.

Unidentified Analyst

Hello my name is Karly (Dethered) and I am a resident of Bellingham, Washington. I’ve lived in the Pacific Northwest all of my life and proudly call it home key design particularly both spectacular view created by mountain ranges on both the east and the west for over 100 miles. Additionally the sound is cool of economically valuable and sensitive resources such as salmon North America’s largest coal export terminal Gateway Pacific is proposed to be built at Cherry Point a few miles north of my home in Bellingham, not only with the terminal completely carnage repeated sound but it will also negatively impact the world’s climate. The coal to be exported from Cherry Point will be extracted and transported via open mail cars from the Powder River basin in Wyoming and Montana.

PEabody Energy is financed by Bank of America is the company behind the coal operation the total coal reserves and the Powder River basin is burned will contribute to 1% of the world’s carbon budget. Now 1% may seem like nothing but this one project will single handedly increase the intensity of climate change.

Mr. Moynihan how do you rationalize financing companies like PEabody Energy when only one of their activity contributes to 1% of the carbon budget, do not believe in the carbon budget’s rule in climate change or are you ignoring the entire problem for short term gain. Thank you very much.

Unidentified Company Representative

Thank you. I think we got one last question, one last comment 240, 249.

Unidentified Analyst

I have a couple of questions my name is Brenda (inaudible) Wilson and on the coal thing – I was listening to everybody talk and I was thinking that now that they found a cure for AIDS maybe the money that has been going to that go to clean coal research and make a difference. My second question is can I talk to someone about my financing, which one would be?

Unidentified Company Representative

Sure, I think we’re done and so we will make sure that one of our team mates back there the customer service representatives are in back and they’ll take care of you right away, okay.

Unidentified Analyst

Thank you.

Unidentified Company Representative

All right. Thank you everyone for your time and attention. I now on behalf of Chad Holliday, our Chairman of the Board the rest of our Board of Directors thank you for your time and attention and thank you for attending the meeting. We look forward to seeing you next year.



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