Friday, Nov. 13, 2009

Bank of America CEO search in countdown minus clear pick

CHARLOTTE, N.C. -- With Bank of America Corp. Chief Executive Ken Lewis retiring in less than seven weeks, analysts don't see any candidate emerging as a front-runner for his successor.

The bank said this week that Lewis' replacement could be announced by late November. The board is considering a handful of insiders including Chief Risk Officer Gregory Curl and Brian Moynihan, the head of consumer banking. Other heads of Bank of America's major business units are also being considered, the bank has said.

The company has not identified anyexternal candidates, but media reports have said Bank of New York Mellon Corp. CEO Bob Kelly remains a possible candidate although he has repeatedly expressed his lack of interest.

The search has turned into a difficult task, said Bart Narter, a senior vice president at consulting firm Celent.

"This is one of the most complex companies out there," Narter said.

"You need to find someone who knows how to run an investment bank, a retail bank, and a mortgage bank, and a credit card business. That's tough."

Curl, 60, has been with the bank since 1996 and became chief risk officer in June. If chosen, it's possible his term could be for a transitional period of one to three years.

Curl was a key player in negotiating the bank's acquisition of Merrill Lynch & Co. in January, which could potentially hurt his chances of getting the job, some analysts say. Bank of America's new CEO will need to restore the company's relationship with federal regulators and improve its standing with members of Congress who have sharply criticized Lewis and the bank for much of the 11 months since the Merrill Lynch deal closed.

Lewis is believed to have decided to leave the bank because of the strife that has surrounded Bank of America over the Merrill Lynch acquisition. And the company has become more conciliatory toward regulators since Lewis' planned departure was announced Sept. 30.

Other inside candidates include Tom Montag, 52, who runs the bank's global markets unit and took over the global corporate and investment banking unit in August during a management shake-up; and Barbara Desoer, 57, who has led the bank's mortgage unit since the July 2008 purchase of Countrywide Financial Corp.

Because of the many problems the company has had over the past year, especially since its acquisition of Merrill Lynch, some analysts believe Bank of America should seriously consider an outsider.

"Investors are going to want someone with experience, but an outside voice," said Tony Plath, a finance professor at the University of North Carolina at Charlotte.

Besides Kelly, outside candidates mentioned in media reports as contenders are Bob Diamond, president of British bank Barclays Plc, and Larry Fink, CEO of asset manager BlackRock Inc.