NEW YORK (Reuters) - Bank of America Corp (BAC.N) said its consumer banking chief, Joe Price, and wealth management head, Sallie Krawcheck, will leave the company as part of a broad management reorganization.
The news was announced by BofA Chief Executive Brian Moynihan, who appointed David Darnell and Tom Montag to the newly created positions of co-chief operating officers, with immediate effect.
JONATHAN FINGER, PRINCIPAL AT FINGER INTERESTS NUMBER ONE LTD IN HOUSTON; FIRM OWNS BANK OF AMERICA SHARES
“Brian Moynihan is trying to get the right people in the right places. Tom Montag has been deeply involved in resolving the mortgage and other liability issues that the bank faces, and this change reflects that fact. The elevation of Tom Montag is a logical step in realigning management responsibilities.”
“It was never clear that Sallie Krawcheck gained traction with the retail salesforce. I’m not sure she ever had the respect of the bank’s retail brokers.”
“The departure of Joe Price was long overdue. I never understood why he was given a high position given his lack of frontline experience. I also think he was culpable with respect to the bank’s failure to disclose material information to shareholders about the Merrill Lynch takeover.
“Bank of America has taken a lot of steps to strengthen the balance sheet. It still has to show it can build and grow the business, and it has to be careful it cuts only fat and not muscle.”
DAVID DIETZE, CHIEF INVESTMENT STRATEGIST AT POINT VIEW FINANCIAL SERVICES IN SUMMIT, NEW JERSEY
“There are some real fundamental questions as to the direction of the company.”
“It seems apparent Moynihan is under pressure to make some bold moves...obviously there is disagreement among people at the top who have lots of options and lots of experience.”
NANCY BUSH, BANK ANALYST AND CONTRIBUTING EDITOR AT SNL FINANCIAL, OWNS BANK OF AMERICA SHARES
“I think that it was difficult to get the program transmitted through so many people and probably the results that have come out so far — particularly from the retail redesign — have been mixed.”
“I think it’s an issue of results. They need better results than they’ve been getting.”
Reporting by Clare Baldwin and Jonathan Stempel; Compiled by Tiffany Wu