The company is making efforts to diversify its business and concentrate more on consumer and commercial banking.
The appointment of Jenkins marks a shift away from the trading and investment banking culture Diamond represented back toward the consumer and corporate banking business that is perceived to be steadier and less risky.
FORBES: Barclays Taps Retail Banking Chief Antony Jenkins For CEO Slot
Bank of America is concentrating on the same business the two together will derive more than half their revenues from consumer and small-business banking.
As a result, net income in consumer and business banking declined slightly from 2012.
In the fourth quarter, however, it reported a 10.48% return on average allocated equity in its consumer and business banking segment, an increase from 9.47% the previous quarter.
The San Francisco-based bank, a consumer and business banking giant, is considered unique from its biggest bank rivals on the East Coast like JPMorgan Chase, Citigroup and Bank of America, because it has less of a presence in capital markets activities and trading.
FORBES: Record Quarter For Wells Fargo, Rocky Start For Stock
Joe Price, president of Global Consumer and Small Business Banking, will also leave the company.
's head of consumer and small business banking, said in a recent interview.
Krawcheck was let go last month 6 amid a major management restructuring at BofA. Joseph Price, president of consumer and small business banking, was also given the boot.
FORBES: Bank Of America Coughs Up $11 Million To Ousted Execs
For one thing, JPMorgan operates a huge investment bank, which leads to higher volatility in results, as opposed to Wells Fargo, which is more focused on consumer and small business banking.
Comerica is a bank holding company with businesses that engage in corporate and consumer lending, mortgage loans, small business and individual banking, and mutual fund and annuity products.
FORBES: Martin Whitman's Third Avenue Value Fund: Four New Buys
Despite the slowdown in mortgage lending, Fried believes WaMu will still be able to achieve profitable growth in other banking operations, particularly consumer and business accounts at its 2, 400 branches.
Still, the consumer banking, credit cards and mortgage business remains week and banks with heavy exposure to U.S. consumers may find it difficult to generate significant upside to current stock values.
FORBES: Bank Of America Faces Slow Recovery In Consumer Banking
When housing crashed, it was the lack of new asset backed securities that pushed the economy into recession by freezing up the banking system and destroying consumer and small business credit markets.
Perhaps that will not worry WaMu too much, because WaMu wants to reduce exposure to the mortgage market and commercial lending, to concentrate instead on its consumer-banking business.
Lloyds yesterday announced that its managing director of consumer banking and payments, Paul Pester, would become chief executive of the business being sold, which goes by the code name of "Verde", and would oversee the disposal.
应用推荐