Two Years After Hiring Her, Bank Of America Sacks Sallie Krawcheck, Announces Other "Delayerings"

Tyler Durden's picture

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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NoBull1994's picture

Top layer about to be gone...

Pladizow's picture

They are simply rearranging deck chairs as the Titanic sinks!

Ladies and children first.

Drag Racer's picture

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...

Pure Evil's picture

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?

Ahmeexnal's picture

they dumped Sallie Bouncedcheck? wonder why...maybe she refused to join the scientologists.

connda's picture

In charge of the shredders?  The SEC.

Rodent Freikorps's picture

She's in banking. She's no lady.

jez's picture


There's been a good deal of successful "De-layering" of the stock price as well.

Not mentioned, oddly.

1835jackson's picture

de-layering funny as fuck

caerus's picture

no is de-layering? grab yo last paycheck krawcheck!

Rainman's picture

...yeah, de-layering must mean she wasn't puttin out or talks too much. Both are grounds for getting de-layered.

ihedgemyhedges's picture

Maybe.  More likely was she didn't have any incriminating pics............

macholatte's picture

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

NumberNone's picture

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.

OpenEyes's picture

Women and children first!


RobotTrader's picture

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.

lizzy36's picture

Because they also warehousing gold and silver at those state of the art locations....duh.

Pure Evil's picture

Probably selling crack and pimpin' out whores in the back.

Ahmeexnal's picture

Pure Evil has the correct answer.

MayIMommaDogFace2theBananaPatch's picture

More likely they're out back SMOKIN' the crack...They don't have the sense left to stay out of the stash.

rcintc's picture

No safety deposit boxes in the new branches...not cost effective.

Dave Thomas's picture

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.

pods's picture

Pretty simple to make money like that:

Create money out of thin air and lend it at interest.  


QQQBall's picture

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.

SoCalBusted's picture

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.

mynhair's picture

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!

Pladizow's picture

You are confused with Re-lay!

Rodent Freikorps's picture

I think he's right.

You can't un-fuck someone.

HardwoodAg's picture frito and Kenneth's?

TideFighter's picture

Delayering? More like scraping off the jellied scum on a canned ham. Hopefully, there's some real pork down under.

TradingJoe's picture

Soon Sallie will be darn happy to be out the door when BAC goes down!

Misean's picture

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.

TideFighter's picture

Bravo. Get the pussy-cat out the door before the SHTF. She's somebody's favorite go-to gal. 

IMA5U's picture

everyone's favorite pussy or the back door.  and somebody's favorite go-go gal

falak pema's picture

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...

The Heart's picture

Could it be that people are finding out fast who and what the game is all about?

pods's picture

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.


Atlantis Consigliore's picture

"Merrills  sold  lock stock barrell,  for 40 cts on the dollar cheap.


cheep cheep cheep.....



bill1102inf's picture

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.

Pladizow's picture

You forgot to finish with "Sarc Off".

disabledvet's picture

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.

Dingleberry's picture

Hot or not, any chick can make 50k per year plus, if she is PROPERLY's only a question of inhibitions.

Seasmoke's picture

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

disabledvet's picture

She's unin...unin...uninhabited you say? Wow. I mean...WOW! Wow.