Bank of America 'power struggle' rumors rear their head again

Power Drill

A surprise departure of a well-respected executive has the rumor-mill working overtime again.

Bank of America investors expressed consternation Thursday over the surprise departure of a well-respected Chief Financial Officer who saw the lender through years of legal battles and cost cuts.

Bloomberg News reports that for many, Bruce Thompson was the main guide to the company, dominating public conference calls to discuss quarterly results and representing the bank at investor gatherings about as often as Chief Executive Officer Brian Moynihan.

Thompson’s exit in a broad management shakeup is 'disappointing', Morgan Stanley analyst Betsy Graseck wrote in a note to clients after the bank’s announcement.

The stock, which had climbed 37% since Thompson was named CFO in 2011, slid 1.5% Thursday, the second-worst performance in the 24-company KBW Bank Index.

The lack of public explanation for his departure fueled concern that power struggles that once shaped a previous generation of senior management are again rearing their head, said investors including Jonathan Finger, whose firm owns 900,000 shares in the company. The bank said it was Thompson’s decision. 

To access the complete Bloomberg News article hit the link below:

BofA’s CFO Change Rekindles Investor Concern Over Power Struggle

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