Merrill’s Thain to run Bank of America’s wealth management division
Boston Business Journal - by Tim McLaughlin
The balance of power inside Bank of America’s Boston-based wealth management division shifted toward New York on Thursday with the announcement that Merrill Lynch Chairman and CEO John Thain will take a major role in the $50 billion BofA-Merrill combination.
In a press release, Bank of America Chairman and CEO Ken Lewis said Thain will become president of global banking, securities and wealth management in the combined company once the takeover is completed. Thain’s responsibilities will include what is now in global corporate and investment banking (GCIB) and most of what is now in global wealth and investment management (GWIM) at Bank of America, which will be merged with similar functions at Merrill Lynch.
The wealth management division’s Boston headquarters represented a key win for the city when Bank of America acquired FleetBoston Financial in 2004. It’s unclear how Thain’s new role will affect Keith Banks, the Boston-based chief of BofA’s wealth management division. There was no announcement regarding Banks, who heads a wealth and investment management unit that includes Banc of America Securities and the Columbia asset management and mutual fund businesses.
Lewis also announced that Brian Moynihan will continue as president of global corporate and investment banking at Bank of America until the merger, and will take on a key newly created enterprise-wide role effective immediately.
Moynihan will continue as president of GCIB until the merger occurs. After that, he will become president of private equity and global operations reporting to Lewis. The Bank of America private equity business, LaSalle Global Trust Services, Enterprise Technology and Delivery, Legal, and Supply Chain Management will begin reporting to him immediately.
“Our company will look quite different after the merger,” Lewis said in a statement. “I have asked Brian to lead an effort that will redefine our business model, taking into account the strengths of both predecessor companies and our extensive opportunities around the world. Brian’s background in corporate development, wealth management and corporate and investment banking make him the ideal person to lead this initiative. As part of this effort, he is to ensure that we have optimized our infrastructure investments to drive growth in the merged company.”
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