Bank of America announces new CFO, technology and legal heads in sweeping management overhaul

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Brian Moynihan, chairman and chief executive officer of Bank of America Corp, speaks in New York City, September 25, 2019.
Shannon Stapleton | Reuters

Bank of America CEO Brian Moynihan announced the most sweeping management overhaul of his 12-year tenure atop the giant financial institution.

In a memo distributed to employees on Friday, Moynihan named a new chief financial officer, technology head, general counsel and chief administrative officer. The firm’s management team added five new members, he said.

“These changes position the company with highly energized leaders who are committed to driving responsible growth through its second decade – delivering for our clients, communities and shareholders, and addressing major societal issues,” Moynihan said in the memo. “As I shared with our board of directors, it will continue to be my privilege to serve with them as CEO as we drive responsible growth through its second decade.”

The moves solidify Moynihan’s position leading Bank of America, the second biggest U.S. bank by assets. Moynihan took over in 2010, stumbling at first with the gargantuan task of cleaning up the mess left by his predecessor’s acquisition of mortgage lender Countrywide Financial in the depths of the financial crisis. He has since steadied the ship, cutting costs and improving returns.

The overhaul comes weeks after the firm announced the departure of Chief Operating Officer Tom Montag, who was widely considered the leading candidate to replace Moynihan if needed. There is no imminent need to appoint another COO, according to a person with knowledge of the company.

Instead, several division heads who once reported to Montag will now report directly to Moynihan. That includes Jim DeMare, who continues in his role as head of the firm’s global trading business, and Matthew Koder, who remains head of the global corporate and investment banking division.

These are the biggest changes in Moynihan’s 2,249-word memo:

* Alastair Borthwick, a former Goldman Sachs executive who most recently ran global commercial banking, will replace Paul Donofrio as CFO in the fourth quarter. Donofrio, who served six years as CFO, will become the bank’s vice chair and oversee the bank’s sustainable finance efforts.

* Aditya Bhasin has been named chief technology and information officer and Tom Scrivener has been named chief operations executive; the two men will replace Cathy Bessant, who served as chief technology officer for more than 12 years.  Bessant will relocate to Paris to become the bank’s vice chair of global strategy.

* Lauren Mogensen was promoted to global general counsel, succeeding David Leitch, who is retiring next year. Mogensen had previously been the bank’s head of global compliance and operational risk.

* D. Steve Boland has been named chief administrative officer, replacing Andrea Smith, who is retiring after 34 years at the bank.

This story is developing. Please check back for updates.

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