September 6, 2011 / 10:14 PM / 7 years ago

BofA consumer bank, brokerage chiefs to step down

CHARLOTTE, North Carolina (Reuters) - Bank of America Corp (BAC.N), which has lost almost half of its market value this year, announced a broad reorganization on Tuesday that includes the departure of two senior executives.

A security guard patrols outside a Bank of America office in Burbank, California August 19, 2011. REUTERS/Fred Prouser

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 Point View Financial Services in Summit, New Jersey, which owns BofA shares. “Obviously there is disagreement among people at the top who have lots of options and lots of experience.”

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

Krawcheck was in charge of the Merrill Lynch unit as well as of U.S. Trust and other private banking units.

The reorganization comes as Bank of America hustles to shed assets to bolster its capital base and continues battling lawsuits related to its 2008 purchase of Countrywide Financial Corp, once the nation’s largest home lender.

The Charlotte, North Carolina-based bank paid $2.5 billion to buy Countrywide, but writedowns and legal costs have pushed the estimated cost of that purchase to more than $30 billion.

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

Reporting by Joe Rauch and Clare Baldwin; editing by Carol Bishopric

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