Dirty Tricks At Bank Of America ? (Updated)

CNBC reports that, according to its sources, 'a few top executives' at Bank of America are 'privately trashing' Sallie Krawcheck, who heads up the firm's wealth management arm, 'angling to oust her'.

The story goes that Ms Krawcheck was 'imposed' on Bank of America during the time last year it was at the mercy of the US government. Now that TARP has been repaid, it is alleged, some bank executives are said to be pushing to get rid of the banker and bring in their 'own' person.

Fox Business News reports, however, that this is nonsense, as Ms Krawcheck retains the full support of the board and CEO Brian Moynihan. Fox goes on to say that 'people inside BofA suspect the story was planted not by employees of the bank, but by associates of one of Krawcheck's rivals, Robert McCann, who used to run the brokerage department of Merrill Lynch (now part of BofA), but who now runs the brokerage unit of UBS'.

It appears that McCann may have been trying to lure away some of BofA's top brokers (without much success), and that this may be an effort by unknown persons to destabilize the BofA broker ranks. There have also been rumours for some time now that BofA may be looking at changing its broker compensation structure, but the bank has repeatedly said that should speculation is unfounded, and some feel that this, too, is an attempt to unsettle BofA brokers.

Ironically, for all UBS's alleged efforts to bag Merrill brokers, the Swiss bank has confirmed that it has lost 45 to Bank of America since McCann came aboard in October last year. Going the other way (to UBS) - 19, including 3 who are said to produce revenues of over $1m.

Sources - CNBC, Fox Business News

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News