Wednesday, September 7, 2011

BofA consumer bank, brokerage chiefs to step down

CHARLOTTE, North Carolina: Bank of America Corp, which has lost almost half of its market value this year, announced a broad reorganization on Tuesday, Sept 6 that includes the departure two senior executives.

The biggest U.S. bank said Joe Price, head of consumer banking, and Sallie Krawcheck, head of global wealth and investment management, are leaving. Price was a former chief financial officer of the company, and Krawcheck was a former CFO of Citigroup and leader of its Smith Barney brokerage unit.

Chief Executive Brian Moynihan named commercial banking head David Darnell and investment banking head Tom Montag, a former Goldman Sachs executive, to new positions as co-chief operating officers.

The changes are effective immediately, the company said.

"It seems apparent Moynihan is under pressure to make some bold moves," said David Dietze, chief investment strategist at Services in Summit, New Jersey. "Obviously there is disagreement among people at the top who have lots of options and lots of experience." Point View Financial owns BofA shares.

In their new roles, Darnell will oversee consumer bank operations, while Montag will run divisions that work with corporate and institutional customers.

Krawcheck was in charge of the sprawling Merrill Lynch brokerage operation as well as of the bank's private banking units.

BofA stock rose slightly to $7.01 in after-hours trading after closing at $6.99 on the New York Stock Exchange on Tuesday.

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