UPDATE 1-BofA CEO says supports new Basel capital rules

* Moynihan says he is in favor of Basel rules

* Cautions rules must balance security with “prosperity”

* Moynihan also says U.S. borrowers remain hesitant

CHARLOTTE, N.C., Sept 13 (BestGrowthStock) – Bank of America Corp
(BAC.N: ) Chief Executive Brian Moynihan said on Monday he
supports new global capital requirements for banks released
over the weekend by the Basel Committee on Bank Supervision.

The head of the largest U.S. consumer bank, speaking at a
Bank of America Merrill Lynch investor conference in San
Francisco, said he is a “strong supporter” of requiring banks
hold a higher quantity and higher quality of capital after the
2008 financial crisis. For more on Basel, see: [ID:nLDE68C0D3]

However, he cautioned that new rules must still encourage
economic growth.

“There is a need to strike a balance of protecting against
losses while not harming future prosperity,” Moynihan said.

Moynihan has been a key industry proponent of the
industry’s regulatory overhaul, including throwing his support
behind much of the financial reform bill passed by the U.S.
Congress in July.

Separately, Moynihan said the U.S. economic recovery
remains sluggish, with credit-worthy businesses and consumers
hesitant to borrow.

He said the U.S. economy was now in the process of trying
to “thread the needle” between a sustained and healthy recovery
or a more halting, uneven one.
(Reporting by Joe Rauch. Editing by Robert MacMillan)

UPDATE 1-BofA CEO says supports new Basel capital rules