Deals & People September 6, 2011

BofA Advisers Get New Boss in Management Shakeup

A reorganization of Bank of America’s management team by Chief Executive Officer Brian Moynihan has meant the end of Sallie Krawcheck’s tenure at the firm.

Reported by

Alison Cooke Mintzer

The company’s management has been changed “to align the company’s operating units with its three core customer groups: individuals, companies, and institutional investors,” according to a statement from the bank.

Effective immediately, David Darnell and Tom Montag have been appointed to the newly-created positions of co-Chief Operating Officers, accountable for all of the company’s operating units and Joe Price, president of Global Consumer and Small Business Banking, and Krawcheck, president of Global Wealth and Investment Management, will leave the company. Krawcheck replaced now-CEO Moynihan at the helm of the Global Wealth and Investment Management in 2009 (see “Krawcheck Replaces Moynihan to Head Wealth Management at BofA” and “BofA Appoints Moynihan as CEO”)

Montag oversees businesses that serve companies and institutional investors, including middle market commercial and large corporate banking and the global markets sales and trading businesses and Darnell is responsible for the businesses serving individual customers and clients: deposit, card, home mortgage, wealth management, small business, and related products and services.

“I am pleased with the work the team has done, in particular the strong performance of the business,” said Krawcheck. “It has been an honor to lead Bank of America Global Wealth and Investment Management during a challenging time.”

This management shakeup is part of what the company calls Project New BAC, which is “expected to result in significant expense reductions,” the statement said.

"There is hard work ahead to finalize and implement our New BAC decisions from among the hundreds of thousands of ideas employees have submitted," said Moynihan. "Only by streamlining and focusing our resources behind our customers will we truly deliver on the promise of what we have built."

In addition to Darnell and Montag, continuing to report to Moynihan are: