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Two Years After Hiring Her, Bank Of America Sacks Sallie Krawcheck, Announces Other "Delayerings"
Oddly enough, just two years after hiring Sallie Krawcheck from Citi, BofA has just made her into the first sacrificial scapegoat. Odder still, is that Lehman also fired a women scapegoat a few weeks before it filed for bankruptcy. Coincidence? Find out when Brian Moynihan is fired in a few short weeks.
Full release:
Bank of America Chief Executive Officer Brian Moynihan today announced a reorganization of the company's management that aligns the company's operating units with its three core customer groups: individuals, companies, and institutional investors. Moynihan appointed David Darnell and Tom Montag to the newly-created positions of co-chief operating officers, accountable for all of the company's operating units. This reorganization is effective immediately.
Darnell is responsible for those businesses serving individual customers and clients including deposit, card, home mortgage, wealth management, small business, and related products and services.
Reporting to Montag are businesses that serve companies and institutional investors, including middle market commercial and large corporate banking, 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. "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."
In addition to Darnell and Montag, continuing to report to Moynihan are:
-- Cathy Bessant, Global Technology and Operations Executive.
-- Anne Finucane, Global Strategy and Marketing Officer.
-- Christine Katziff, Corporate General Auditor.
-- Terry Laughlin, Chief Risk Officer.
-- Gary Lynch, Global Chief of Legal, Compliance, and Regulatory Relations.
-- Charles Noski, Vice Chairman.
-- Andrea Smith, Global Head of Human Resources.
-- Ron Sturzenegger, Legacy Assets Servicing Executive.
-- Bruce Thompson, Chief Financial Officer.
Barbara Desoer continues as president of Bank of America Home Loans, reporting to Darnell. Joe Price, president of Global Consumer and Small Business Banking, and Sallie Krawcheck, president of Global Wealth and Investment Management, will leave the company.
"I am proud of my accomplishments while in various positions at Bank of America, especially the turnaround we are engineering in Consumer and Small Business Banking," Price said. "In serving on the team developing the game plan for New BAC, it became evident that streamlining could be done at the top as well as throughout the organization. Brian made some hard decisions, and it is a good time to step aside and look for other opportunities that take advantage of my broad experience."
"I am pleased with the work the team has done, in particular the strong performance of the business," said Krawcheck. "It has been an honor to lead Bank of America Global Wealth and Investment Management during a challenging time."
"Joe is a veteran of Bank of America who has contributed in many roles to building the company into what it is today. Most recently, Joe has been leading through fundamental change in Consumer and Small Business Banking, which is profitable and poised for growth," said Moynihan. "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. We wish them well and look forward to their continued leadership and business successes in the future."
Removing a layer of operations management, aligning leaders with our customer groups, and simplifying the organization reflect the primary objectives of the Project New BAC, begun in April 2011. These and other organizational improvements will eventually take effect across the consumer, home loans and support areas covered by phase I of New BAC, and are expected to result in significant expense reductions as the first phase concludes in coming weeks. Phase II of New BAC will begin in October and conclude in March 2012.
"There is hard work ahead to finalize and implement our New BAC decisions from among the hundreds of thousands of ideas employees have submitted," said Moynihan. "Only by streamlining and focusing our resources behind our customers will we truly deliver on the promise of what we have built."
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Top layer about to be gone...
They are simply rearranging deck chairs as the Titanic sinks!
Ladies and children first.
I'm just curious who is in charge of the shredders? Isn't it funny to see Smurfit's stock tank in such a scrap paper boom...
So what happened, did Sallie miss the vital meeting on how to smoke the CEO sausage, or the memo on pressing lips gently to posteriors of top level execs?
they dumped Sallie Bouncedcheck? wonder why...maybe she refused to join the scientologists.
In charge of the shredders? The SEC.
She's in banking. She's no lady.
There's been a good deal of successful "De-layering" of the stock price as well.
Not mentioned, oddly.
de-layering funny as fuck
no shit...wtf is de-layering? grab yo last paycheck krawcheck!
...yeah, de-layering must mean she wasn't puttin out or talks too much. Both are grounds for getting de-layered.
Maybe. More likely was she didn't have any incriminating pics............
I'd like to know what it's costing BofA to "let her go".
2007 Most Powerful Women rank: 12
2006 Total compensation: $10.6 million
http://money.cnn.com/galleries/2007/fortune/0709/gallery.women_highest_pay.fortune/12.html
That must be a college pic.....here ya go.
http://www.forbes.com/lists/2006/11/06women_Sallie-Krawcheck_DFBE.html
According to Wiki...while at Citi she was called 'The Last Honest Analyst' by Fortune. This caused her to get run by Pandit. Honesty could be a liability in an organization like BofA.
http://en.wikipedia.org/wiki/Sallie_Krawcheck
be-moan
Women and children first!
BAC's problems in California is giant branches inherited from Security Pacific. These places are huge, with vacant office space and unused lobby space all over the place. Bulletproof glass on a teller line that has 16 stations and only 4 tellers. They need to close all these huge branches built in the 1960's and 1970's and layoff all those employees that work in these giant compounds.
But, on the other hand, JPM is building brand new, state of the art branches all over L.A. but they are modern, much smaller, and apparently they make $1 million/yr. on each new location here within 12 months.
How is that possible?
Because they also warehousing gold and silver at those state of the art locations....duh.
Probably selling crack and pimpin' out whores in the back.
Pure Evil has the correct answer.
More likely they're out back SMOKIN' the crack...They don't have the sense left to stay out of the stash.
No safety deposit boxes in the new branches...not cost effective.
The new Chase banks probably have less of a startup cost than a Taco Bell, they are about the same size. But instead of serving you taco meat that looks like it came from a babies diaper, they hammer their customers a myriad of fees, fees, and more fees.
That's how those little roachy places clear 1 mil a year.
Pretty simple to make money like that:
Create money out of thin air and lend it at interest.
pods
Yeah and when did they do that deal; like 1989 or early 1990s and those branches are BAC's problem in California? BAC's main problem is that they have ugly tellers. Seriously though, those branches generally came with some dirt, but the 12,000 SF SPNB branches with 50% improved mezzanine are not functional, they should have been sold during the boom. Chase is definitely in expansion mode, but its odd its new construction as there are bound to be a bunch of branches coming available.
IF you want a lesson in biz culture - look at the USB branches and offices and then look at the SDNB branches they got from the FDIC... Some of those SDNB branches are beautiful.... wonder why they went poof! USB runs a tight ship.
Local BoA branch here just added bullet proof encasement of all the teller areas. Getting ready for the run? WaMu was rather peaceful, but maybe the sheeple are a little more savvy these days.
She's that bad? Shouldn't it be 'de-laying'?
How do you do that, anyway? Have a few I'd like to de-lay!
You are confused with Re-lay!
I think he's right.
You can't un-fuck someone.
lays..like frito and Kenneth's?
Delayering? More like scraping off the jellied scum on a canned ham. Hopefully, there's some real pork down under.
Soon Sallie will be darn happy to be out the door when BAC goes down!
Sallie is always darn happy to go down
Eric Clapton- Lay Down Sally
http://www.youtube.com/watch?v=EivR78mrRFE
Well, she can spend more time with her family now. If I were a taxpayer teet sucking bankster with such sudden free time, I'd be looking for land in a non-extradition country.
n
Bravo. Get the pussy-cat out the door before the SHTF. She's somebody's favorite go-to gal.
everyone's favorite pussy or the back door. and somebody's favorite go-go gal
Delayering is Mayerling with a Krawcheck who draws her check and leaves the BofA datcha like a jaded MarY Vetsera. Goodbye and good luck. At least she leaves before the Mayerling suicide...not like the real role model...
Could it be that people are finding out fast who and what the game is all about?
http://zioncrimefactoryresearch.blogspot.com/p/israel-did-911-all-proof....
Been a while since I have looked into the whole 911 thing. The suitcase Rosetta Stone is the most absurd.
Just goes to show that if you repeat the lie enough people will believe it.
pods
"Merrills sold lock stock barrell, for 40 cts on the dollar cheap.
cheep cheep cheep.....
Y'all had best un short yourselves because when Europe switches over to 'Mark To Fantasy Land' , the world is going to R A L L Y, and gold is, of course, going to reverse.
You forgot to finish with "Sarc Off".
Is she hot? Anywho anyone who's anyone could have seen this coming: Donald Trump announced that he was buyin BofA to follow on with the Buffay. Word is they had The Donald actually do it because, well...who better actually. Nobody can say "your fired" better than him.
Hot or not, any chick can make 50k per year plus, if she is PROPERLY MOTIVATED.......it's only a question of inhibitions.
thats $150 a day with not many days off......seems a bit high for many of the things i have seen walking (or using a scooter) lately
She's unin...unin...uninhabited you say? Wow. I mean...WOW! Wow.
when in doubt dim the lights. it turns back time. then she will look hot.
nah....it's: " the more I drink, the better you look"......
I always thought it was 'the more you drink, the better I look'. Isn't that why we buy them drinks?
No, that's why you use rohypnol or cloroform, that way they don't care how fat, ugly or smelly you are.
So you're sayin' that you wear that shit like cologne?
She could be a pillow case girl.
Hot? She used to be but that old thing called time is catching up with her. A few more years and she will be looking like Mary Shapiro..before her face lift. Regardless of her looks I am confident that Sally will land on her back somewhere with a huge income once again.
Why does Moynihan keep refering to BOA as a "franchise"?
Does he think he's running a freaking MAC Donald's? (McDonald's pronounced in the southern manner).
Yew meain laik "Baink ufv Umericuh"?
Having long memories we prefer to call it "That horrid bank that bought C&S, whatever it is that they call themselves these days." :-).
It's a Fed franchise, just like JPig, Citi, and the rest of the lot.
yes. would like a billion dollar margin account with that Big Mac Mr. Robot Trader? It's all the rage. They're called "McMargin accounts" actually and it's why "Greece never had a chance in hell to solve their problems." Wait 'till McMargin goes East!
WHERE IS "LITTLE" DICK BOVE NOW? That fucker is the biggest pumper of this shitty-assed company on TV. Why he is given air time is anyone's guess. Does Tyler (or anyone else) know what the over/under is when this piece-o-shit company goes under?????
little dick bove is the pumper of financials. and a fluffer
That's why i want to get to know her better. I heard Dick and thought "this Nancy girl's good. REALLLLL good."
but...but...the cash on hand is more than book value! Or some shit.....
Sally just won the BAC Executive LOTTO Big time! She will no longer be an insider with the stock still trading. Sell, Sally, Sell, then take 100% to short it.
Sally's a piece of shit, did nothing. I sat home did nothing, and she made $45 Million more than me, go figure.
these corporate press releases are the most puke laden, feces infested, puss filled doggie bags imaginable.....let's all put on a rubber smile for mr turdblender and pretend we smell roses and lilacs....
It's the old clean the purest puss out of the wound and pretend you're curing the corruption. Just be sure to leave behind the stinking rotting ugly ass green and yellow root puss.
So Krawcheck is giving us a huge clue about who is going to buy BAC.
She doesn't want to go back to work for citi.
Theres going to be a citiload of synergies from that deal!
I bet Citi buys/saves BAC,
Why not?
After all Citi is a standup, solid, reputable institution, isn't it?
She might make a good hire for Warren........she can give advice on his financial holdings. On second thought, does she really know any more than Becky?
Maybe Moynihan means that all of those bank owned homes are "franchises"
Sallie Krawcheck. Is she any relation to Johnnie Paycheck?
Nope, but she was affectionally known as Sallie Paycheck by all of her admirers. A self-promotor extraordinaire. She parlayed a Fortune magazine cover which erroneously proclaimed her as "The Last Honest Analyst", into beaucoup dollars. Too bad the shareholders at Citi and BoA didn't make out nearly as well.
Yes because the problem at BAC is Wealth Management. That must be it.
Stan O'Neal gets to keep his $200m severance payoff (that was his SEVERENCE ONLY) Angelo Mozillo keeps his and gets his legal bills paid by BAC. But the problem was definitly Sallie.
And the shareholders at Citi, were definitely fucked because of Sallie and not Chuck Prince. That must be it.
Because at Citi she fought with Pandit over reimbursing clients for defective investments distributed by Citi wealth management's brokers and bankers. Pandit said NO and she said goodbye.
BAC dumping Sallie= Sure sign of distress: Fire the competent and honest first.
We all know, no male executive has ever been a "self-promotor extradionaire" and parlayed that into a job amongst his fellow frat brothers, for which he is wholly unqualified right? (See Stan O'Neal and Chuck Prince).
I didn't junk you for what it's worth. Self-promotion is gender neutral and there are certainly a larger number of male self-promotors given the demographics on Wall Street. All of these senior numbnuts get paid like they are generating alpha when in reality it is only highly leveraged beta.
Yes, Krawcheck is not solely to blame for the problems at both Citi and BofA. However, her tenure as the CFO of Citigroup was an utter debacle because she had ZERO qualifications for the postion (experience in risk management, treasury, funding, MTM, etc. = NONE) at a time when Citigroup needed someone who had deep experience as a senior financial officer within the financial services industry. I said this when she was promoted to CFO and I would have said the same thing if the individual's name was Sam Krawcheck.
Okay fair enough.
We defiantely agree on the alpha/leveraged beta thought.
Perhaps some of your disgust should be placed on the Board of Directors (who had ultimate authority to promote her to this position) and in particular X-Treasury Secretary Robert Rubin who took $150m plus from citi shareholders, all the while doing nothing more than encouraging the bank to "lever up".
I'm guessing that you and I are more or less on the same page. I'm not some crazed misogynist. Sallie is taking a beating from me because she is simply today's special on the menu. Everyone you referenced, Stan O'Neal, Anthony Mozillo, Robert Rubin, all got paid a lot more than Sallie and are guilty of far more transgressions. Board of Directors are by and large ineffectual because every member is a "friend" of the CEO and each other. They abdicated their responsibility to shareholders long ago.
I am guessing we are on the same page as well.
The accountability page. The one that is sadly lacking today.
Nice, when we arrive at the same place :)
Annnnndddd? You seem to be implying something here. I'm not sure if i should be offended but i do resemble that remark...
Firing Bitchezz!
Firing Bitchezz!
Now if Moynihan could just let that audit department head report to the Audit Committee instead of himself, the word might just get out about what's really going on over there at TBTF. Critical structural flaw, unless you are Moynihan,
Buy the puts!
I wouldn't mind Brian firing himself too.
never happen since it would be good for the company!
It seems that's how BofA is letting the shareholders know that they are in trouble....
I couldn’t help but notice how desperately BAC stock struggled to hang on to its seven handle today. Hmm, I wonder who has responsibility for that end of the triple B (Buffett bathtub boost) deal? Finally, they managed to eke it out by a few pennies at the close.
"Only by streamlining and focusing our resources behind our customers will we truly deliver on the promise of what we have built."
Right. And they built a sack of shit.
Lots of female execs getting punched in the vagina today.
sallie paycheck never should have risen this far. She is the Russo of finance.
I'm sure Lady Gaga can run BoA...
Warren Buffet will step in and save B of A just as good as he dood it with Solomon Brothers.
They are only keeping those who are prepared to piss over the rail of a lifeboat.
They fired the head of wealth management. What does that tell you? It tells you that anyone with any frigging sense and substantial money already closed their accounts with B of A a couple of years ago. Since the retail banking trade depends on people who have jobs, obviously B of A is fucked. No doofus customers are around except working class tools who are sucking their last 400 bucks out of the B of A teller machines every two weeks.
she got Brian to dis-robe and measured
http://www.cnbc.com/id/44417689/How_Moynihan_Forced_Sallie_Krawcheck_Out
Maybe she can get one of them shovel ready jobs POTUS is handing out on Thursday and get to work delayering some earth. Or she can have a slumber party with Bartz, get stinking drunk, and go on a whirlwind tour on CNBC giving the staff a hand-job (including Bartiromo) and licking Boves ass in return for all of his puffery.
She was worthless at Smith Barney back in the day under our attorney leader. Merrill never had their act together and she was the answer to our problems.
Funny - it never happened. Now Merrill doesn't love her. I feel so baffle this high paid millionaire. Another job will be in her future.
she was a joke hire to begin with...so overrated..
Classic!! - "Implement[ing] our 'New BAC' decisions from among the hundreds of thousands of ideas employees have submitted" - comes down to massive layoffs? (S.O.P.)
The ONE THING that immediatly affects year-end bonuses.
Wow - CEOs sure do 'earn' that sick cash they make. Moynie was set up from the beginning as a major fall guy, surprised they haven't put ALL 'systemic risk' on his shoulders - seeing as how since day one, that dude looks like a deer in headlights, in WAY OVER his head.
Wow. What a bunch of horseshit executive do-nothings under the CEO. No wonder American can't compete. You wouldn't see this kind of top layer fat in Japan, China or Korea. It's simply ridiculous. These people don't have a clue what it takes to run a business. No wonder they are such catastrophic failures. All that matters is their real estate agents, social clubs and the schools they send their stupid kids. Amazing bunch of phonies. Sickening. Pathetic. Bullshit.
"I am proud of my accomplishments while in various positions at Bank of America, especially the turnaround we are engineering in Consumer and Small Business Banking," blah blah blah blah blah blah. Blah blah blah. Blah blah blah, blah blah blah blah blah...
Corporate psycho-babble. Most companies would function just fine without a CEO and most of the upper-executive staff.
John Exter’s inverted pyramid of assets. The idea is that things high on the pyramid are derivatives of asset classes further down the pyramid. See how do your assets compare.
http://lonerangersilver.wordpress.com/2011/04/17/john-exter%E2%80%99s-in...
I've been delayered good luck to all going forward... Delayered?
Answer: Horse shit drenched in perfume.
The Question: What my computer would smell like while reading the statement above if it had a scratch and sniff screen.
Come on Sallie. Someone of your stature and ginormous comp on Wall Street should at least have the guts (if not the balls) to post on ZH how you really feel. You can remain anonymous if you want to. I recommend a screen name borrowed from one of Kathy Griffin’s shows; “Gurl Down”.
I’m calling you out Krawcheck!