Even after it reported strong earnings for the second quarter, Bank of America late Wednesday announced a management shakeup. The personnel moves come four months after the banking giant barely passed a U.S. Federal Reserve stress test.
Bruce Thompson, 51, has decided to step down after four years as the Charlotte, N.C. company’s chief financial officer and chief risk officer, Bank of America said. He will be replaced by Paul Donofrio, effective Aug. 1. Donofrio is currently CFO of the consumer banking and wealth management businesses, and has been with the company since 1999.
“As CFO, Bruce has put our company on a strong, stable financial foundation, with record levels of capital and liquidity,” BofA’s chief executive Brian Moynihan said in a press release. “David is mentor and friend to me, our management team, and so many leaders of our company, past and present.”
A Reuters story said that CFO Thompson played an important role in the company’s stress-test submissions to the U.S. Federal Reserve.
“However, BofA failed to win unconditional approval from the U.S. Federal Reserve in March and was asked to get a better grip on its internal controls and data models,” Reuters wrote.
Bank of America more than doubled its profits to $5.32 billion in the second quarter, up from $2.29 billion a year ago.
In other changes, David Darnell, vice chairman and the head of wealth management, will retire by the fourth quarter to be replaced Terry Laughlin, currently president of strategic initiatives. BofA named Anne Finucane vice chairman; she will continue as the company’s global chief strategy and marketing officer.
BofA also announced that Sheri Bronstein, the human resources executive for the company’s global banking and global markets businesses, would be the new global HR executive. Bronstein replaces Andrea Smith, who was named to the newly created position of chief administrative officer.
Thompson joined Banc of America Securities in 1996 as a managing director in the high-yield origination group.
Photo: Bank of America