Bank of America’s new CEO says he doesn’t expect to lead a major shift in strategy at the nation’s largest bank when he takes over from Ken Lewis on Jan. 1.
But with loan losses continuing to mount amid double-digit unemployment rates, it remains to be seen whether investors will embrace staying the course.
Bank of America’s board late Wednesday named its 50-year-old consumer and small business banking chief, Brian Moynihan, as president and CEO. The promotion ended a months-long search complicated by pay restrictions imposed by government pay czar Kenneth Feinberg before the bank repaid $45 billion of federal bailout loans needed to prevent its failure over the past year.
“I am pleased that it’s finally over,” said Nancy Bush, managing member of NAB Research LLC in Annandale, N.J. Bush said there will be divergent opinions both on Wall Street and within the bank about Moynihan, but overall, she feels it was the smart move.
“My concern about bringing in an external candidate was that somebody would come in and feel the need to put their stamp on the company through a restructuring or through a period of turbulence,” she said. “The bank just doesn’t need that right now. An internal candidate who knows the players and who knows what needs to be done … is probably a wiser choice at this point.”
Analysts have said outside candidates likely would have wanted to break up the company, something Bank of America’s board reportedly is reluctant to do. (AP)
