10:27 AM EDT, 03/19/2024 (MT Newswires) -- Bank of America (BAC) Chief Executive Brian Moynihan said in an interview with Bloomberg Television Tuesday that it will likely take some time for banks to deal with issues related to the commercial real estate loan sector.

"Commercial real estate is a slow burn -- it's a classic burn," Moynihan told Bloomberg Television. "The trading attitude, which is these assets have to move at a price tomorrow morning, isn't the way the banking system works."

"We work with clients -- you take a building and figure out what the ultimate end state rental rolls will provide, you refinance it, sometimes that wipes out the equity, sometimes it doesn't," Moynihan told Bloomberg TV. "We're careful in how we underwrite as an industry."

Bloomberg also quoted Moynihan as saying that the quarter has been solid for the bank's trading business.

Bank of America ( BAC ) shares were rising 0.3% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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