Sallie L. Krawcheck, who had been one of the highest ranking women on Wall Street before she left Citigroup Inc. last September, has landed on her feet at Bank of America Corp.
Krawcheck, 44, will become the bank’s head of global wealth and investment management as well as a member of the executive management team, announced CEO Ken Lewis.
Credit the new job to contacts, Krawcheck told The New York Times.
Sallie L. Krawcheck
She’s on the board of Carnegie Hall, which also includes Sanford I. Weill, Citigroup’s chairman emeritus, and Anne M. Finucane, the chief marketing office of Bank of America.
Weill spoke to Finucane about Krawcheck recently and then Lewis met with Krawcheck, and the job offer ensued.
Krawcheck was the CEO and chair of Sanford C. Bernstein & Co., an independent research firm, before joining Citigroup in 2002 to head the firm’s newly created retail brokerage firm, Smith Barney.
She oversaw 13,000 brokers and analysts and reported directly to Weill, who was then Citigroup’s CEO and chairman.
In 2004, Krawcheck became Citigroup’s chief financial officer and head of strategy. In 2007, she was named CEO of Citigroup’s wealth management business.
Her departure from Citigroup reportedly was the result of tension between her and Vikram Pandit, the firm’s CEO.
According to Fortune magazine, Krawcheck had argued that Citigroup should pay clients back for money put into toxic investments recommended by the firm.
Pandit was opposed to this approach and preferred to take a “tougher line with clients,” the magazine reported.
He then proposed taking away Krawcheck’s CEO title, removing her from the leadership of the wealth management unit. Krawcheck then left the company.
At the time of Krawcheck’s departure, Fortune quoted one Citigroup executive as saying, “The people who work with her love her. Whoever gets her will be lucky.”
In addition to the hiring of Krawcheck, Lewis also made several changes in Citigroup’s upper management.
Brian T. Moynihan, the head of global corporate and investment banking and of global wealth management, becomes the head of consumer banking.
According to The Wall Street Journal, the promotion puts Moynihan in a “strong position to compete for Mr. Lewis’s job since this new assignment will give him experience in nearly every part of Bank of America’s business.”
Lewis also announced that Thomas K. Montag, the firm’s head of global markets, will also be in charge of global corporate and investment banking.
Montag joined Bank of America late last year after it acquired Merrill Lynch and Co., Inc.
He had been head of global sales at Merrill, having joined that company in May 2008. He received a bonus of $39.4 million when he came to Merrill.
Previously, Montag had worked at Goldman Sachs Group, Inc., for 22 years, seven of which he spent in Japan as head of the firm’s Asian operations.
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