Krawcheck Leaving BofA in Shakeup

Sallie Krawcheck is leaving Bank of America, three years after leaving Citigroup.

The former chairman of Sanford C. Bernstein & Co. is leaving her post as president of Global Wealth and Investment Management at Bank of America, as Chief Executive Officer Brian Moynihan today announced a reorganization of the company's management.

Moynihan appointed David Darnell and Tom Montag to the newly-created positions of co-chief operating officers, accountable for all of the company's operating units. This reorganization is effective immediately.

Krawcheck landed at Bank of America after leaving Citigroup in September 2008. The had been in charge of the wealth management business there as well, but she had a falling out with Chief Executive Officer Vikram Pandit.

Krawcheck said that it was Citi’s responsibility to reimburse clients for defective investments distributed by Citi wealth management's brokers and bankers, but Pandit was opposed.

Citigroup's Smith Barney unit was later merged with Morgan Stanley's brokerage.

In addition to Darnell and Montag, continuing to report to Moynihan are:

• Cathy Bessant, Global Technology and Operations Executive.

• Anne Finucane, Global Strategy and Marketing Officer.

• Christine Katziff, Corporate General Auditor.

• Terry Laughlin, Chief Risk Officer.

• Gary Lynch, Global Chief of Legal, Compliance, and Regulatory Relations.

• Charles Noski, Vice Chairman.

• Andrea Smith, Global Head of Human Resources.

• Ron Sturzenegger, Legacy Assets Servicing Executive.

• Bruce Thompson, Chief Financial Officer.

Joe Price, president of Global Consumer and Small Business Banking, also left the bank.

"De-layering and simplifying at the scale in which we operate requires difficult decisions,’’ said Moynihan.

In May, Krawcheck told the general membership meeting of the Investment Company Institute, which represents mutual fund companies, that it is a myth that large wealth management firms are losing advisers to independent firms.

 At least it's a myth at Merrill Lynch, she said. Last year, Merrill Lynch only lost 36 of its advisers to independent firms, she said, and picked up 25 advisers from independents.