‘Project New BAC’ Reshuffles BoA from the Top Down

Bank of America’s (NYSE:BAC) Chief Executive Officer Brian Moynihan announced a revamp of the bank’s top-level reporting structure yesterday. ^[1] The most significant change of the reorganization which went into immediate effect was the elevation of David Darnell and Tom Montag to the newly-created positions of co-COOs. One surprise exit was Sallie Krawcheck who is one of the top women on Wall Street and a former Citigroup executive. She previously led the Global Wealth and Investment Management. Joe Price, president of Global Consumer and Small Business Banking, will also leave the company. The banking giant competes with other major banking groups including JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Deutsche Bank (NYSE:DB), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC).

The changes are a part of the ongoing large-scale reorganization, dubbed ‘Project New BAC’ aimed at turning around the bank’s ailing fortunes by realigning the business with the banks’ customer groups and simplifying the reporting structure.

The reorganization will be completed in 2 phases with the announced changes being a part of Phase I – scheduled to continue for a few more weeks.

Phase II is slated to begin next month and wrap-up by the end of March 2012. Phase II includes cutting costs by removing an entire layer of operations management, which will see the bank shedding thousands of lower-level jobs.

What do you think about the shake up? Let us know in the comment box below.

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1. Moynihan Streamlines Management and Operations, Bank of America Press Releases, Sep 6 2011 [↩]