Bank of America Corp. (BAC) said on Tuesday that it is combining the Global Card Services and Deposits under Susan Faulkner. Previously, Ric Struthers had led Global Card Services. But as part of management changes begun in mid-January by Chief Executive Brian Moynihan, Struthers has decided to leave BofA.
Susan Faulkner will run the combined business and report to Joe Price, the former chief financial officer who took over the consumer bank in mid-January. Faulkner’s new designation will be Deposits and Card Product Executive and she will have offices in Charlotte and Wilmington. The latter is where the card business will continue to be based.
Faulkner has been with BofA for 25 years. Since 2007, she has served as BofA Customer Segments, Deposits and Payments executive. Prior to this, Faulkner was Global Consumer & Small Business Sales, Service & Marketing executive.
BofA’s credit-card business has been one of the worst performing divisions during the recession. BofA’s fourth quarter 2009 loss came in at 60 cents per share, a nickel worse than the Zacks Consensus Estimate of a loss of 55 cents. This compares unfavorably with the loss of 48 cents in the prior-year quarter.
The market turmoil was more harmful to BofA than its peers. However, the company has concluded its biggest acquisitions. BofA acquired Merrill Lynch almost during the height of the financial crisis last year. It also acquired Countrywide Financial Corporation in Jul 2008. The CEO views these deals as beneficial for stakeholders of the company. Furthermore, this will allow the bank to focus on rebuilding customer relationships.
Finally, differences of opinion with regulators and lawmakers over Merrill’s 2008 bonus payments issues amid escalating losses will end with the recent $150 million settlement between the Securities and Exchange Commission (SEC) and BofA to conclude the civil allegation against BofA for misleading its shareholders in its purchase of Merrill Lynch & Co. last year.
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