Bank of America said on Wednesday it had named a top manager, Brian Moynihan, as its new chief executive officer to take over from embattled Kenneth Lewis, stepping down after being embroiled in a storm.
Moynihan, 50, is currently president of consumer and small business banking, the company said in a statement.
“Brian’s wide range of experience, his relationships inside and outside of the company, and his demonstrated ability to understand business dynamics and effect constructive change made him the best person for the position,” chairman Walter Massey said.
Bank of America said last week it had completed repayment of US$45 billion to the US government from a capital injection under a program launched last year to stabilize the financial system amid a global downturn.
Lewis, who was at the center of a storm over a government-backed deal by Bank of America to buy Merrill Lynch last year, announced in September that he planned to retire on Dec. 31 after eight years at the helm.
He was also chairman of the largest US banking group by assets until earlier this year, when he lost the post at an angry shareholder meeting.
“While we considered external candidates, the board decided after listening to shareholders, regulators and others that Brian’s experience was commensurate with or better than any of those candidates and he offered the advantage of a smooth transition,” Massey said in the statement.
Bank of America had received US$20 billion in federal aid to help it acquire the nearly bankrupt Merrill Lynch. The bank also received US$25 billion in government capital under the Troubled Asset Relief Program to shore up the banking system.
The new chief executive Moynihan joined FleetBoston Financial, a predecessor to Bank of America, in 1993 and rose to take on more senior positions in the company. Fleet was acquired by Bank of America in 2004.
“What we need to do now is very simple,” Moynihan said on Wednesday. “This company has a long tradition of operational excellence and strong execution. My goal is to refocus our efforts and attention on those core capabilities that will make us the best financial services firm in the world.”
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