Bank Of America Appoints Brian Moynihan As New CEODecember 17th, 2009 - 7:14 pm ICT by GD
By Ranjan Bhaduri
Dec.17, (THAINDIAN NEWS) In a recent development Bank Of America has appointed Brian Moynihan as its new CEO. He is slated to replace existing CEO Ken Lewis and join the post from January 1, 2010. However, he will have an uphill task ahead to thwart the problem of loan related losses. Back of America went through one of its worst phases last year when the US financial meltdown started. It was rescued by a federal loan worth $45 billion that prevented its failure and bankruptcy. Brian Moynihan was the bank’s banking chief for small businesses and consumer section.
The management of Bank Of America feels that it is better and more practical to promote an insider to the post of CEO than bringing in an outsider who can take more time to understand the situation the entity is going through. Besides, recruiting an external candidate could have resulted in restructuring, which the bank can do without. Walter E. Massey, who is the chairman of the bank was involved with the search for the new CEO. He feels that Brian Moynihan fits the bill as his experience, intra company relations and understanding of business dynamics is unparalleled.
Brian Moynihan has said that he is not considering implementing any new strategy after joining the new post. He also said that the existing business model is robust and prompt execution is the need of the hour. With this promotion, Brian Moynihan will also become a part of the bank’s board of directors. After taking over his new responsibility he will have to sort out legal issues and complete the formalities related to BoA’s takeover of Merrill Lynch.
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Tags: bank of america, brian moynihan, business dynamics, business model, external candidate, federal loan, financial meltdown, formalities, intra company, january 1, ken lewis, massey, merrill lynch, new strategy, outsider, ranjan, s board, small businesses, takeover, uphill task