Tom Montag, head of investment bank Bank of America, who led the division during the 2008 financial crisis, is retiring at the end of the year.
The bank said in a statement that Montag, who joined Merrill Lynch in the midst of the 2008 financial crisis ahead of the merger with Bank of America, will step down in late 2021. Anne Finucane, vice chairman of the bank, will also retire. Bank of America will announce their successors in the coming weeks, the report said.
Montag joined Bank of America in 2008 as Executive Vice President and Head of Sales and Trading after more than 22 years at Goldman Sachs. He led an investment bank during a turbulent post-crisis period, when Merrill Lynch’s tough culture was integrated with the relatively stable retail and commercial bank Bank of America.
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“Tom joined the company during one of the most challenging times in financial services history and has skillfully managed the business to become one of the few financial institutions that can help clients raise cash, transfer money, enter new markets and manage risk across all major areas. marketplace around the world, ”said Brian Moynihan, the bank’s chief executive, in Montag’s retirement announcement.
Montag wears many hats in his role as President of Global Banking and Global Markets and Chief Operating Officer. The bank may decide to separate roles and appoint managers to positions that would make them potential successors to Moynihan.
Jim DeMare was named president of global markets at Bank of America last July as part of a broader management shake-up at the bank. Meanwhile, its head of global banking, Matthew Coder, who was named to replace longtime investment banking boss Christian Meisner in 2018, is another potential internal candidate to replace Montag.
Montag was seen as a potential successor to Moynihan. However, a harsh New York Times article in May claimed that he favored certain employees, encouraged a culture in which employees feared for their jobs, and objectified women by citing people familiar with the matter. Moynihan defended Montag in an interview with CNN that month: “This is not a cultural issue and Tom has done a great job running this business,” he said.
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“We will remember Tom’s work ethic, innovative thinking and dedication to clients and teammates. Very few people are as successful in business as Tom and are as famous around the world as his clients. We wish him well as he enters a new chapter in his life. life, ”Moynihan said.
Finucane is also the chairman of Bank of America Europe, its post-Brexit hub in Dublin, and the first-ever female deputy chairman of a lender. She also chairs the banking ESG committee and will remain a non-executive director of Bank of America Europe after her retirement.
Montag will remain on Bank of America’s advisory board.
It has been a year of change at the top echelons of Wall Street’s largest banks, with Morgan Stanley and JPMorgan nominating key executives to compete for the CEO position in 2021.
At JPMorgan, Marianne Lake and Jenn Pipsack, former CFOs, were named co-heads of consumer and public banking in May, while co-president and co-COO Gordon Smith announced his retirement, handing over to Daniel Pinto single-handedly. responsibility for these roles. The bank has since made it clear that it expects current CEO Jamie Dimon to stay with the company for several years, giving him a new $ 50 million hold bonus in July in the form of options that he can exercise in 2026.
Also in May, Morgan Stanley appointed Ted Pick, head of institutional securities, and Andy Saperstein, head of asset management as co-presidents, allowing them to replace James Gorman as CEO.
Jane Fraser also replaced Michael Korbat as CEO of Citigroup in March.
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