Bank Chiefs at Davos Cautiously Upbeat About Growth

“Optimism, but with a sober tone,” was how Bank of America Chief Executive Officer Brian Moynihan characterized the mood pervading the World Economic Forum’s annual meeting. As investors were lifting the Standard & Poor’s 500-stock index above 1,500 for the first time since 2007, executives from Deutsche Bank and Goldman Sachs were quick to couple upbeat assessments with warnings that economies remain fragile. Some bankers fretted that credit bubbles may be forming as central banks pump out cash.

“The crisis gave them a bit of an inoculation psychologically because they can see what can go wrong,” said Harvard University economics professor Kenneth Rogoff. “They’re not as euphoric as they’d usually be when the stock market went up as much as it has.”