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Is BofA headed for the Big Apple?

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Published November 3, 2009 at 1:15 PM
bankofamerica-125x100.gifIt looks like Bank of America Corp. (NYSE:BAC) may have to think about moving its headquarters to New York from Charlotte, N.C., as it pins down candidates for a new chief executive.

As The Deal pointed out in August, the bank will probably have to move its headquarters to the Big Apple, or keep dual headquarters, if it is seeking candidates to replace CEO Ken Lewis who have no ties to Charlotte -- even though Lewis has always maintained that the bank's headquarters should stay where they are.

As the Charlotte Business Journal points out, the only candidate based in Charlotte is chief risk officer Greg Curl, who may be out of the running due to being a top dealmaker on BofA's deal with Merrill Lynch & Co. Another internal candidate, Brian Moynihan, the bank's consumer and small-business banking chief, has shown no desire to relocate from his base in Boston.

In addition, Bloomberg reports that former BofA CEO Hugh McColl Jr. told a Charlotte group "that it's unclear whether the next CEO will be based in the city, according to four people who heard his comments at the meeting."

Sources told Bloomberg that the bank also has contacted several New Yorkers about the position, including Charles Scharf, retail banking head at New York-based J.P. Morgan Chase & Co. (NYSE:JPM), and Robert Kelly, CEO of Bank of New York Mellon Corp. (NYSE:BK). Both executives are reportedly not interested in the position.

The moving of BofA's headquarters isn't necessarily a bad thing, according to Jonathan Finger of Finger Interests Number One Ltd., a major shareholder in Bank of America.

"I think it reflects the changing nature of the company," Finger told The Deal Tuesday. "It is a major positive and reflects that the board is being more realistic and broadening its search."

Finger filed an SEC filing Monday night asking that the board seriously consider outside candidates for the CEO spot. The filing contains a list of suggested dealmakers:

  • Al de Molina, CEO of GMAC Financial Service
  • Jim Hance, chairman of Sprint Nextel Corp. (NYSE:S)
  • William S. (Bill) Demcheck, appointed senior vice chairman of PNC Financial Service (NYSE:PNC) in February
  • Richard K. Davis, president (2004), CEO (2006) and chairman (2007) of U.S. Bancorp (NYSE:USB)
  • Edward "Ned" Kelly, second in command at Citicorp as vice chairman and head of strategy and M&A
  • Charles W. Scharf, chief executive officer, Retail Financial Services at J. P. Morgan Chase & Co. (NYSE:JPM) since its merger with Bank One. Responsible for integration of Washington Mutual Inc.
  • Arkadi Kuhlmann, chairman and president, ING Direct USA
  • John J. Mack, CEO and chairman at Morgan Stanley (NYSE:MS)
  • Bill Winters, co-chief executive of investment banking at J.P. Morgan from 2004 to 2009
  • Eugene (Gene) M. McQuade, CEO of Citibank NA (banking division) since July 2009
  • John Kanas, CEO of private equity buyout of failed Bank United (Fla.)
  • Alfred Kelly, president of American Express Co. (NYSE:AXP) since 2007
  • Michael E. O'Neill, director of Citicorp and a member of Audit & Risk Committees
  • Rich D. Fairbanks, chairman and chief executive officer of Capital One since 1994
  • Jerry Grundhoffer, director at Citicorp; CEO and chairman of U.S. Bancorp from 2001 to 2006
  • Tony Terciano, chairman of Sallie Mae (NYSE:SLM) since January 2008
  • Gerald J. Ford, chairman and formerly CEO of First Acceptance Corp. (NYSE:FAC)
  • David W. Nelms, chairman (2009) and CEO (2004) of Discover Financial Services (NYSE:DFS)
In any case, odds are that any CEO replacements will be New York-based, and perhaps he or she should be. Since BofA took over Merrill Lynch & Co., there is more of a chance and maybe even a need that Lewis' replacement be intimate with Wall Street. - Maria Woehr

Follow me on Twitter @newsgirlmw 

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