Bank of America boss Brian Moynihan is finally getting religion on risk-taking — here’s why

Bank of America CEO Brian Moynihan Shakes Things Up

Bank of America’s CEO, Brian Moynihan, known for his cautious approach, has surprised insiders and investors by promoting Jim DeMare to group co-president, positioning him as a potential successor. DeMare, a longtime trader, represents a shift towards embracing risk-taking to drive earnings and stock price growth.

While Moynihan’s risk-averse strategy has kept BofA stable since the 2008 financial crisis, critics argue that more risk-taking is needed to compete with the likes of JPMorgan, whose stock has seen significant growth. DeMare’s success in leading profitable divisions reflects a new direction for the bank under Moynihan’s leadership.

With Dean Athanasia also elevated to co-president, a competition between top executives is underway, hinting at a changing landscape within the bank. While Athanasia was previously seen as the top contender for the CEO position, DeMare’s charisma and expertise in capital markets position him as a strong candidate.

As Moynihan, 65, plans to stay on as CEO until he’s 70, the emergence of potential successors like DeMare and Athanasia raises the possibility of leadership changes sooner than expected. Other contenders for the top position include Holly O’Neill, Lindsay Hans, and Wendy Stewart, reflecting a diverse pool of talent within the bank.

Amidst speculation about Moynihan’s tenure, the future leadership of Bank of America remains uncertain. Whether DeMare or another executive takes the helm, the focus on driving growth and competitiveness in the banking sector is clear.

Source: NY Post