Industry heavyweight Sallie Krawcheck is
leaving US banking giant Bank of America Merrill Lynch (BofA) after
a sweeping management restructure saw her position subsumed.
The restructure will see David Darnell take
over managing the global wealth and investment management (GWIM)
business among others.
Go deeper with GlobalData
Darnell and Tom Montag were appointed to
newly-created positions of co-chief operating officers, accountable
for all of the company’s operating units, in the restructure.
At this stage, it remains unclear whether the
role of the wealth unit head has been dissolved or the bank will be
on a look out for Krawcheck’s successor.
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By GlobalDataKrawcheck, seen as one of the most influential
women on Wall Street, took over at BofA GWIM in 2009 and
acknowledged at the time that the role was possibly the biggest
challenge of her career.
Krawcheck, who described the combined Bank of
America, US Trust and Merrill business as a “powerhouse”, had a
strong reputation among wealthy clients.
In her former position as the former CFO and
head of Citigroup’s global wealth management business, she argued
with Citigroup CEO Vikram Pandit that the bank should repay clients
for losses they incurred on soured investments distributed by her
brokers and bankers.
The bank eventually returned $7.5 billion to
clients that invested in auction rate securities after the market
dried up.
Krawcheck said that it had been was an honour
to lead BofA GWIM, which managed $660.9bn in assets under
management as at 30 June 2011, during a challenging time.
Project BAC: more cuts to
come
BofA management restructure comes as part of
Phase I of the Project New BAC, BofA’s new strategy initiative to
cut costs, which was launched in April 2011.
The bank has already announced 3,500 job cuts
and estimates put total losses as high as 10,000.
Phase II of New BAC will begin in October and
conclude in March 2012.
