Bank of America Corp (NYSE:BAC) has announced that its CFO, Bruce Thompson, would be staying with the company and would assume the role of Vice Chairman. Initially, BAC had announced, in July, that the CFO would be leaving the company, to start his own business. The return of Thompson is just what the bank might need right now, as concerns about declining revenue continue to rise. However, BAC is not the only one affected, similar conditions have been observed throughout the investment banking sector.
Lawrence Di Rita, a spokesperson for the BAC, had earlier pointed out that Thompson was the one responsible for building record capital, clearing of legal issues and having earnings of $5 billion in a single quarter. Thompson has had previous experience working in the bank’s global markets. Now his new role would require him to be based in New York and report to CEO, Tom Montag. Added to this, he would also be a member of the global banking and market leadership team, apart from heading the global acquisition finance and capital commitments team.
A recent report, compiled by a research firm, indicated that Fixed Income Currencies & Commodities business has seen a decline of 9%, during the current year. The figures had been collected from 12 of the country’s largest banks. One of the main factors for this decline is the fear of the global economy slowing down. Added to this, most banks have also been cautious, while conducting their business, which has further depressed revenues. However, this is mainly due to the legal charges the banks had faced, in the last financial crisis. Furthermore, as the commodities market continues to suffer from price fluctuations, investment banks are reducing their exposure to these markets. The news of Thompson’s return has certainly attracted attention from the BAC investors. However, it remains to be seen if he can turn the bank profitable once more.
Bank of America Corp (NYSE:BAC) gained a total of 3.34% during the February 22 session, after having a trade volume of 88.87 million, to reach a close at $12.53.