Finance News

Financial institution of America declares new CFO, know-how and authorized administrators as a part of a significant administration overhaul

Brian Moynihan, CEO of Bank of America, announced the most comprehensive management overhaul of his 12-year tenure at the helm of the giant financial institution.

In a memo distributed to employees on Friday, Moynihan named a new chief financial officer, technology head, general counsel and chief administrative officer. The company's management team has added five new members, he said.

"These changes position the company with high-energy leaders committed to driving responsible growth in its second decade," Moynihan, 61, said in the memo. "As I told our board of directors, I will continue to be privileged to serve as their CEO."

The moves cement Moynihan's leadership position at Bank of America, the second largest US bank by assets. Moynihan took over in 2010 and initially stumbled on the daunting task of cleaning up the chaos his predecessor left in the depths of the financial crisis when his predecessor took over mortgage company Countrywide Financial. Since then, he has stabilized the ship, reduced costs and improved returns.

The revision comes weeks after the company announced the departure of Chief Operating Officer Tom Montag, who was widely viewed as the leading candidate to succeed Moynihan If necessary. There is no immediate need to appoint another COO, such a person with knowledge of the company.

Instead, several department heads who once reported on Monday are now reporting directly to Moynihan. These include Jim DeMare, who continues to serve as head of the company's global trading operations, and Matthew Koder, who continues to lead global corporate and investment banking.

Here are the biggest changes in Moynihan's 2,249-word memo:

Alastair Borthwick, a former Goldman Sachs executive who most recently headed global commercial banking, will succeed Paul Donofrio as CFO in the fourth quarter. Donofrio, who served as CFO for six years, becomes the bank's vice chairman and oversees sustainable finance efforts. Aditya Bhasin has been named chief technology and information officer and Tom Scrivener has been named chief operations executive; the two will succeed Cathy Bessant, who served as Chief Technology Officer for more than 12 years. Bessant will move to Paris to become vice chairman of the bank's global strategy. Lauren Mogensen has been promoted to Global General Counsel, succeeding David Leitch, who will retire next year. Mogensen was previously Head of Global Compliance and Operational Risk at Bank.D. Steve Boland has been named Chief Administrative Officer, succeeding Andrea Smith, who is retiring after 34 years with the bank.

The five new members of the management team are Bhasin, Scrivener, Mogensen and two executives who will report to Dean Athanasia, Head of Retail Banking. They are Holly O'Neill, newly appointed President, Retail Banking, and Wendy Stewart, Head of Global Commercial Banking.

Internally, Athanasia, Borthwick and Boland are considered contenders for the future CEO, according to the person with knowledge of the company who declined to be named on HR matters.

But Moynihan has publicly said he will serve as long as possible and admired Warren Buffett's long tenure at the helm of Berkshire Hathaway.

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