Leadership changes are starting to ripple through Bank of America’s investment bank as disagreements over risk-taking and a struggle to keep pace with competitors spur high-level departures.
Bloomberg News reports that, on Wednesday, Christian Meissner said he’s stepping down as head of the corporate and investment-banking division he led through the tumultuous years after the financial crisis.
The departure was prompted by tensions over the bank’s appetite for risk and its struggle to retain market share advising on U.S. mergers, according to people with direct knowledge of the matter. More executives may follow Meissner’s lead, they said.
“That is not what the investment bankers signed on to be; they wanted to be ‘masters of the universe’ and make big bucks,” said Roy Smith, emeritus professor of management practice at New York University’s Stern School of Business. “They didn’t sign on to be low-risk public utilities.”
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