CEO Brian Moynihan announced some big changes in Bank of America's management yesterday evening. Joe Price, formerly president of global consumer and small business banking, and Sallie Krawcheck, formerly president of global wealth and investment management, have left the Charlotte, N.C.-based bank. David Darnell, formerly the head of commercial banking, and Tom Montag, formerly the investment banking head, have been promoted to the newly created positions of co-chief operating officers. The changes went into effect at the time of the announcement.
The purpose of the reorganization, according to the bank, was to streamline operations in the banks's three core customer groups: individuals, companies and institutional investors. Darnell and Montag will be accountable for each of these operating units and will report to Moynihan.
These newest changes are part of Project New BAC, a cost-cutting initiative that Moynihan announced in April 2011 to deal with the losses the company has experienced since its 2008 acquisition of subprime lender Countrywide Financial. More executive shifts and cuts are likely to come as Bank of America approaches Phase II of the initiative, which will run October 2011 through March 2012.
"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 in a news release. "Only by streamlining and focusing our resources behind our customers will we truly deliver on the promise of what we have built."