BofA survey: CFOs less optimistic about economy

Financial executives across the country remain worried about the economy, though many expect their companies to hire in 2012, according to a new report from Bank of America Corp.

The latest Bank of America Merrill Lynch CFO Outlook survey, released today, found just 38 percent of executives surveyed expect the U.S. economy to grow in 2012, down from 56 percent last year.

The 600 executives surveyed this fall, who represent a wide range of U.S. companies, rated the current economy a 44 out of 100. That's down from 47 last year and tied for the lowest score in the survey's 14-year history.

CFOs said they were strongly concerned about a number of factors, including the effectiveness of government leaders, the U.S. budget deficit, health care costs and unemployment, the survey found.

"The optimism took a little bit of a tumble since our last survey," Laura Whitley, head of Global Commercial Banking at Charlotte-based Bank of America, said in a conference call presentation this morning. "CFOs clearly remain concerned about the economy."

Yet just 7 percent of executives surveyed predict layoffs at their firms next year, while nearly half said they expected to hire new employees, the report found. More than half, 56 percent, expect their company's revenues to grow next year, too, though that's down from 64 percent last year.

"Despite the cautious economic outlook, CFOs are not hiding out in the bunkers," Whitley said. "Businesses are still moving forward, but at a reduced speed."

Morning roundup: U.S. bank credit growing

Here's a look at this morning's banking and finance news:

• U.S. bank credit is growing at the fastest pace in three years, a sign of economic improvement, Bloomberg reports.


• The Wall Street Journal examines the "extensive financial entanglements" among Europe's banks and governments.


• Many big bank customers who say they don't like big banks have no plans to switch to a smaller lender, the Boston Globe reports.


• Ex-FDIC Chairman Sheila Bair is a top candidate among state officials to make sure banks comply with any settlement of a nationwide foreclosure probe, Bloomberg writes.


• Technical problems at the New York Stock Exchange this morning are affecting Bank of America and other stocks, the Wall Street Journal's MarketBeat blog reports.

Wells Fargo is most valuable bank brand, consulting firm says

Wells Fargo is again the country's most valuable bank brand, according to an index compiled by the consulting firm Bancography.

Fifth Third Bank, at No. 4, cracked the top five for the first time. BB&T is at No. 7 and Charlotte-based Bank of America at No. 8.

The annual index, released this week, attempts to quantify what part of its long-term value is attributable to intangible factors, including reputation, image and customer service.

"The top performing institutions share consistent earnings and the low cost of funds that is inherent in strong financial brands," the firm said.

San Francisco-based Wells Fargo also took the top spot in 2008.

Electronic Payments Coalition launches campaign criticizing swipe fee cap

The Electronic Payments Coalition, an industry group that represents banks and card networks, has launched a campaign that criticizes the recently implemented swipe fee caps by questioning where the consumer savings are.

A provision in the Dodd-Frank financial reform law passed last summer limited the amount banks can charge merchants for each debit card transaction. The provision was backed by retailers and widely decried by banks.

The coalition's new website -- called WheresMyDebitDiscount.com -- includes the results of its own survey that it says shows that merchants have largely kept prices the same or increased them despite saving money. It says retailers have "broken promises."

Bank of America, Wells Fargo, BB&T, and the North Carolina Bankers Association are members of the Electronic Payments Coalition, among many others.

Morning roundup: European banks need more capital

Here's a look at what's news in banking and finance this morning:

• The New York Times points out an interesting discrepancy in the settlement Wells Fargo made with regulators over bid-rigging in the Wachovia days: The Department of Justice made the bank admit to illegal activity, and the SEC did not. It highlights a difference in how the two agencies deal with lawbreaking on Wall Street, the Times says.


• A Bank of America lending executive says the revamp of a federal refinancing program threw some "curveballs" at the bank, Bloomberg reports.


• European banks need more capital, recent stress tests show -- a sign that the debt crisis could worsen, The New York Times reports.


• Large U.S. money market funds are taking money out of French banks, several of which had their ratings cut by Moody's this week, Bloomberg says.

BB&T becomes official bank of the Big South

Winston-Salem's BB&T announced Thursday that it has become the "official financial institution partner" of the Big South Conference.

The athletic association includes a number of North Carolina colleges and universities, including UNC Asheville, Gardner-Webb University and High Point University.

The sponsorship gives the bank recognition on television, radio, in print, online and in the stadiums and arenas during conference games and events.

BB&T is already the official bank of the Atlantic Coast Conference.

BofA, Wells get top marks in LGBT equality measure

Both Bank of America and Wells Fargo earned top marks in a measure of workplace equality for lesbian, gay, bisexual and transgender employees, the Human Rights Campaign said Thursday.

The gay rights advocacy group puts together an annual "Corporate Equality Index" based on 40 policies or practices, including same-sex domestic partner benefits, gender-identity non-discrimination policies and transgender-inclusive health care coverage. The standards grow stricter every year, the HRC said.

This year's study rated 850 companies, including the entire Fortune 500. Bank of America and Wells Fargo received 100 percent scores, part of a total of 190 companies receiving the highest score. The banking and finance industry in general had high marks.

"Corporate America is leading the charge for equality in the workplace," HRC President Joe Solmonese said in a news release. "They understand that LGBT-inclusive workplace policies are the right thing to do and good business practices."