CEO Hunger Games Erupts at BofA as Three Execs Forced to “Fight To The Death” For Top Job…

“Roses are red, portfolios are blue, who wants to be CEO when Brian won’t move?” – Bank of America, probably

Bank of America just dropped its own version of a Bachelor rose ceremony, minus the champagne and questionable decision-making. The bank named Dean Athanasia (consumer + commercial banking boss) and Jim DeMare (global markets guy) as co-presidents which means they’ve just been thrusted into BofA’s CEO hunger games… a.k.a., “Fight to the death, gentlemen.” 

(Source: Giphy) 

Not to be left out, CFO Alastair Borthwick got an extra stripe on his sleeve, now rocking the title of EVP. His portfolio isn’t exactly light: underwater bonds, unrealized losses, and now the company’s entire real estate footprint. Translation: if the bank is a leaky ship, he’s been handed the mop, the life raft, and the deck chair all at once.

(Source: Wall Street Journal) 

This reshuffle matters because Brian Moynihan has been running BofA since 2010… through the financial crisis hangover, through negative headlines, and now through a stock performance that looks like it’s been lapped by every major rival. Since the Fed kicked off rate hikes in 2022, BofA’s return = 34%. Which is quite the a$$ kicking when compared to rivals at 78%. Still, Moynihan has made it very clear he’s not done: “My focus as Chair and CEO remains the same.” Translation: “He’s not f*cking leaving”. Which makes this all even more awkward.

But alas, the co-presidency move is less about immediate change and more about sending a smoke signal to investors about their vision ahead. The bank is also teeing up an investor day in November (first one in years), which should be entertaining, if only to watch execs explain how they plan to “close the relative value gap” without admitting they’ve been underperforming.

(Source: Giphy) 

To be fair though, at least BofA is still green this year. Shares are up +14.20% YTD, and +29.36% over the past twelve months. But again, that’s all fine and dandy until you see what you could have had instead with their competitors. 

As for the actual investors, the only clear exciting bet here is if you’re betting on when or IF Moynihan actually hands over the keys. Meaning, for the most part, investors don’t like  uncertainty, and Wall Street doesn’t hand out participation trophies. Translation: BofA needs more than a dance of titles… it needs an actual pulse. And right now, it’s still trying to find it. For now though, keep your eyes on BofA and place your bets accordingly. Until next time, friends…

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.