Brian Moynihan Named New CEO of Bank Of America

With the start of the new year, Bank of America will have a new CEO and President. Brian Moynihan has been named the next CEO of Bank of America.

The Board elected to hire from within to replace retiring Ken Lewis, who has been the CEO since 2001. Brian Moynihan has been with Bank of America since it acquire FleetBoston Financial in 1993.

Moynihan's selection came after an extensive hunt of both external and internal candidates. Robert Kelly, CEO of Bank of New York Mellon Corp was considered the leading candidate for the Bank of America CEO position. On Monday, Kelly announced he was not leaving New York Mellon.

Attempts to hire from the outside has been hampered due to pay restriction placed by the government pay czar Kenneth Feinberg. These restrictions would require someone coming into the CEO position from outside Bank of America to be restricted on the amount they could be paid. For most of those considered for the CEO position, this would mean a pay cut.

Moynihan has been the President of Consumer and Small Business Banking at Bank of America since August, 2009. This division of the bank serves 53 million US households and small businesses.

In the few months Moynihan has been been over the Consumer and Small Business division, he has led the introduction of the new Basic Credit card. He has also involved in the freezing of credit card rates and improving the overdraft policies for the consumers benefits.

Moynihan,50, graduated from Brown University and the Law School at Notre Dame. He joined FleetBoston in 1993 and was promoted to oversee the Corporate Strategy and Development division.

Moynihan was later promoted to lead the Global Wealth and Investment Management division. In 2004, Bank of America acquired FleetBoston.

Moynihan became the President of Global Wealth and Investment Management until 2007. He was then named President of Global Corporate and Investment Banking. Moynihan held that position until he took over the Consumer and Small Business in August of this year.

"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," said Dr. Walter E. Massey, chairman of Bank of America.

Moynihan has a full plate of work to do when he takes over on January 1, 2009. Bank of America is still dealing with the problems over the 2008 purchase of Merrill Lynch with the government.

Plus, Bank of America as are other banks, are still trying to come out of the banking crisis. Bank of America repaid the $25 billion of TARP loans on December 8th.

"We have everything we need at Bank of America to be the best financial services company in the world" Moynihan said in a statement released by the bank. "What we need to do now is very simple,"

Moynihan continued. "We need to execute. 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.

Wednesday's decision by Board of Directors of Bank of America to elect the insider Moynihan to lead the nation's largest bank into the next decade answered the question of who would take over after Ken Lewis. Brian Moynihan will need the Board's support to repair some of the damage that has occurred in recent years with the government and consumers.

Written by Denise Clay
For Huliq