Bank of America CEO's top priority
I've voiced concern that the onerous effort to grapple with the foreclosure fiasco has left Bank of America poorly positioned to take advantage of the revival we're now seeing in the consumer mortgage market.
The sheer number of employees necessary to do right by all those broken mortgages is mind-numbing, and shifting that army to process fresh mortgages in a new era of compliance will not be easy.
Reuters notes that, "Even if the bank is moving past its worst home loan troubles, it still needs to figure out how to grow."
Unfortunately for Moynihan, there are plenty of skeptics.
"Analysts, investors and some in the industry are beginning to wonder if Moynihan is up to the task. Two executives who have worked with Moynihan said he has little experience growing revenues in the units he has fixed over the years."
This is a huge issue for the board, which has to ponder the possibility that while Moynihan fared decently in near-crisis conditions, he may not be the ideal candidate to lead a multi-year revenue growth program. The board is not likely to make a dramatic change, as Citigroup recently did.
The article notes that, "Moynihan still has time to prove he can boost revenue as well as fix problems. He is hardly experiencing a shareholder revolt, and many investors support him."
This is especially true after the more than 100 percent gain in the stock last year. But if the stock starts to flag again, people will revisit this issue.
- here's the article
Brian Moynihan's job status improves