BofA Building Up Capital-Markets Unit as Montag Set to Depart
BofA Building Up Capital-Markets Unit as Montag Set to Depart
(Bloomberg) -- Bank of America Corp. is building its capital-markets business to be even more competitive as longtime leader Thomas Montag steps aside, Chief Executive Officer Brian Moynihan said.
“It’s a difficult business that you have to spend hundreds of millions of dollars a year” on, Moynihan said Tuesday at his company’s 2021 banking and financials conference. It’s how “we can bring it to a size” and “become more competitive.”
Bank of America in August announced its biggest leadership shakeup in over a decade. Montag, who long led the firm’s massive investment-banking operations, will leave his post at the end of the year. Matthew Koder took over global corporate and investment banking, Jim DeMare continues to run global markets including trading and Dean Athanasia took over commercial banking and business banking.
Global banking and markets were bright spots in the company’s third-quarter results. Total investment-banking fees rose 23% and advisory fees surged 65%, boosted by a record-breaking period for mergers and acquisitions.
The capital-markets team has been Montag’s “heritage where he grew up” and grew the business, Moynihan said Tuesday. The new team will take the reins and continue the momentum, he said. “It’s taking the risk we want and driving it.”
And while Bank of America is taking risk, it’s been intentional about growth of the markets unit since the financial crisis, Moynihan said. “We are careful where we play.”
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