Director shake-up at Bank of America

TWO Bank of America executives are leaving the firm after a boardroom shake-up.

Joe Price, president of global consumer and small business banking, and Sallie Krawcheck, president of global wealth and investment management, depart as chief executive Brian Moynihan seeks to capitalise on the upbeat mood created by Warren Buffett’s $5bn (£3bn) investment in the bank last month.

Moynihan has appointed David Darnell and Tom Montag to the new positions of co-chief operating officers.

Darnell is now in charge of individual client arms while Montag will be responsible for the arms that serve companies and institutional investors.

“It seems apparent Moynihan is under pressure to make some bold moves,” said David Dietze, chief investment strategist at Point View Financial Services, which owns BofA shares.

“Obviously there is disagreement among people at the top who have lots of options and lots of experience.”

Buffett’s investment last month provided a boost to the beleaguered BofA as it struggled to convince the market of its financial health.

Even though the bank has said it did not need to raise capital, investors widely believed it needed to show it could raise funds easily.

Moynihan said yesterday’s management reshuffle will help BofA‚Äącontinue its transformation. “David and Tom are leaders skilled at driving profitability and growth by focusing their businesses on all we can do for customers.”