Wednesday's Headlines: Bank of America reshuffles top management
Bank of America has reshuffled its top management as it struggles to deal with falling shares and growing legal troubles, DealBook and other media are reporting.
David Darnell and Tom Montag were appointed as co-chief operating officers and will report to Bank of America CEO Brian Moynihan. Sallie Krawcheck, head of global wealth and investment management, and Joe Price, head of consumer and small business banking are leaving.
Darnell, who now runs global commercial banking, will manage all consumer units including wealth management and mortgages. Montag will head banking and markets, including Merrill Lynch.
"The reorganization - which essentially splits the sprawling empire into two main units, one focused on consumers, the other on businesses and institutions - comes as Bank of America faces an erosion of investor confidence," DealBook writes. "Amid growing losses linked to the mortgage crisis and fears that its capital cushion was insufficient, the financial firm has been pummeled, the laggard stock in an already troubled industry."
Krawcheck's department further thins the ranks of top female executives on Wall Street.
Meanwhile, Bloomberg reports the reorganization may put Montag in line for the CEO job if Moynihan is forced to leave.
Citigroup's global growth strategy jeopardized amid worldwide economic dip. [BusinessWeek]
Citigroup's Parsons tells CNBC the firm is doing "reasonably well" despite global problems. [Dow Jones News Wires]
US banks took $6 billion in kickbacks from mortgage insurers, US regulator says. [On Wall Street]
Euro zone crisis raises fears that Europe may see bank failure similar to Lehman's. [New York Times]
Banking industry says growing regulations may cost up to $1.7 trillion by 2015. [Wall Street Journal]
HSBC to cut 3,000 positions in Hong Kong amid global spending reductions. [Reuters]
Shadows still hang over Keefe Bruyette Woods, 10 years after losing many employees in 9/11 attacks. [Wall Street Journal]
German banks may face tougher property competition from insurance firms due to new laws. [Financial Times]
BNP Paribas tells nervous investors it has enough short-term funding. [Reuters]