You’ve probably already heard of the widely discussed Bank of America® “Shake Up”, but what do all these moves mean for the consumer? It seems like not a day goes by where we don’t hear news of the too-big-to-fail bank struggling, well, not to fail.
Bank of America®’s Chief Executive Officer, Brian Moynihan, has had no problem demonstrating his hold over the corporate side of Bank of America® this week as he announced the reshuffling of some top leaders.
Bank Of America’s Leaders: Who Went Where?
Moynihan announced the restructuring in an effort to simplify the scale in which the bank operates. Along with new position titles, there will now be a three-layer management system that mirrors Bank of America®‘s (NYSE: BAC) operating units:
- Institutional Investors
The shift will place David Darnell and Tom Montag as co-chief operating officers — newly created positions covering the three units above.
Did BofA Take A Risk
The change, effective immediately, has caused quite a stir across the financial community. Whenever a big corporation has a shift in internal structure it is an instant sign of weakness.
Appointing Darnell as the man behind business operations is an extremely bold move considering he is as not well known to investors as other head executives. Investors want leaders they know and trust, not being familiar with Darnell could prove to be a deadly move by BofA.
Bank of America®’s tactic for appointing Darnell is getting a “fresh set of eyes” on an ever growing problem according to those close to the issue. To his credit, Darnell has a reputation of decreasing costs, while keeping a good name with clients — hopefully this will translate to a larger scale.
What This Means For Employees
If you are a BofA employee or know of one, chances are the past year has been a tumultuous one. To save money, BofA made a plan to cut nearly 10,000 jobs from their list, earlier this week the number jumped to 30,000 in the next few years.
Bank of America® employees are clearly unhappy, but a lot of them already mentioned the lack of job security the corporation has.
As everyone from media to customers watch the constant changes and corporate shuffle it begs the question: Will this work? Unfortunately it is hard to tell at this point. What looks like a blind game of darts, may result in hitting the bulls eye for the large corporation, or it may just hit the guy sitting at the bar.