In a surprise move, Bank of America announced that wealth management head Sallie Krawcheck has been ousted and replaced by David Darnell.
Bank of America Corp. (BAC) promoted Tom Montag and David Darnell to co-chief operating officers and announced the departures of wealth management division head Sallie Krawcheck and consumer banking leader Joseph Price.
The shakeup by Chief Executive Officer Brian T. Moynihan, 51, leaves Montag running investment banking and operations that serve companies and institutional investors, the Charlotte, North Carolina-based company said in a statement today. Darnell will run units serving individual customers, including deposits, mortgages, wealth management, credit cards and small businesses.
Moynihan is cutting layers of management at the largest U.S. bank by assets as he grapples with increasing costs from the 2008 acquisition of subprime lender Countrywide Financial Corp. and a stock plunge of almost 50 percent this year. The firm is in the midst of an expense-reduction initiative called Project New BAC that may slash tens of thousands of jobs.
“Simplifying at the scale in which we operate requires difficult decisions,” Moynihan said of Krawcheck's and Price's departures. “We wish them well and look forward to their continued leadership and business successes in the future.”
--Bloomberg News--