Don’t look now, but Bank of America has completely digested Merrill Lynch. Big surprise.
The latest round of executive musical chairs has put Citigroup retread Sallie Krawcheck in charge of what was the ML unit. Krawcheck replaces David Sontag, a 31 year ML vet. Like many ML execs, Sontag started off as a broker and worked his way up. As a result, Merrill execs at least had the attention, and often the respect, of ML’s far-flung brokerage empire when they spoke. And recall it was this brokerage machine that Ken Lewis called the “crown jewel” of BofA’s acquisition of Merrill.
But that was then, this is now. The now is all about clearing the decks of competing talent so that Brian Moynihan, newly elevated to head of BofA’s vital consumer banking op, can succeed Lewis. Settling with the SEC was likewise a step in this direction, a $33m. wrist-slap as it were.
Next up, putting a bow on TARP-related write-downs and restructurings to please regulators and members of Congress. As soon as that is done — and it’ll probably be about a year — Ken Lewis rides off into the sunset.
