Bank of America boss Brian Moynihan is finally getting religion on risk-taking — here's why

Core Insights - Bank of America CEO Brian Moynihan is making strategic changes by promoting Jim DeMare to group co-president, potentially positioning him as a successor, indicating a shift towards embracing risk-taking to enhance earnings and stock performance [1][4][13] - DeMare is viewed as the "anti-Moynihan," with a background in trading and capital markets, contrasting with Moynihan's cautious management style [2][12] - The promotions of DeMare and Dean Athanasia to co-presidents suggest a competitive environment for the future leadership of Bank of America, with DeMare being favored for his expertise in capital markets [7][14] Management Style and Performance - Moynihan's cautious approach has been credited with keeping Bank of America stable since the 2008 financial crisis, resulting in a stock increase of over 400% during his tenure, although competitors like JPMorgan have seen even greater gains [5][6] - The internal pressure for Moynihan to adopt a more aggressive risk-taking strategy reflects concerns about the bank's ability to compete effectively with rivals [4][18] Future Leadership Dynamics - The potential for a leadership transition is heightened by the ages of Moynihan (65), Athanasia (59), and DeMare (56), with speculation that they may seek other opportunities if not promoted soon [14][15] - Other candidates for future leadership roles include Holly O'Neill, Lindsay Hans, and Wendy Stewart, indicating a broader pool of potential successors [14]