Krawcheck Forced Out in BofA Restructuring

“Sallie has led the wealth management businesses through an important integration with the broader franchise,” Moynihan continued. “De-layering and simplifying at the scale in which we operate requires difficult decisions.”

Montag will be focused on the units that serve companies and institutional investors, including institutional investor services, such as Bank of America Merrill Lynch Global Research, and the global markets sales and trading businesses.

“Today is a significant step in the continued transformation of our company,” said Moynihan in a press release. “David and Tom are leaders skilled at driving profitability and growth by focusing their businesses on all we can do for customers. They are accountable now for delivering our entire franchise to all our customers and clients.”

Given the need for further streamlining of staff and management at BofA, “Moynihan is doing the right thing,” said Chip Roame (left), head of the consultancy Tiburon Strategic Advisors in a phone interview with AdvisorOne. “The super focus on clients and the other associated changes are all good things.”

BofA had to do more delayering in order to boost profits, Roame says. “This means making it smaller throughout the organization—not just at the lower levels but at higher levels, where it’s top heavy, too,” he explained. “And Moynihan really made this organization have some clean lines.”

Prior to her work for Citi, Krawcheck was chairman and chief executive officer of Sanford C. Bernstein & Co., Inc., and an executive vice president of Bernstein’s parent company, Alliance Capital Management.

Darnell joined BofA as a credit analyst in 1979 and most recently has served as head of Global Commercial Banking. He also led the Middle Market Banking Group and the bank’s consumer and commercial banking operations in the central region of the U.S., based in St. Louis.