Announcement coming soon. Sharon Miller and Raul Anaya will co-head the combined new organization, which will remain under Dean’s Regional Banking org. With the change, Business Banking will no longer be part of Global Banking (which includes GCB, GCIB, and Markets). Unsure how or if this will impact BB REs, MEs, and RMs. The change will consolidate and streamline finance, business support, operations functions. This has been done before. If you review BAC’s annual reports, you’ll notice Business Banking as a standalone business has struggled to grow deposit and credit balances over the last decade. Additionally, BB’s YoY revenue has follows a historic downtrend, with the exception of benefiting from higher rates. Combining with Small Business may have a positive impact on lending scorecards in that BB may no longer be weighed by the Global Banking credit underwriting guidelines.
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Can't wait for the town Hall on Tuesday should be lots of fun for all. This bank can never just leave well enough alone.
Seems like alot of duplication especially in the mid managers levels. It will be interesting to see who stays and who goes.
News finally out today.
One by one I am watching all the senior people of business banking retiring. Clearly very few people in Business Banking want to be part of this change.
I heard they’re also increasing the TRE to $10 million to be handled by centralized underwriters. This will reduce the staff needed for support credit in the local markets.
I think it’s a great idea. Combine SB and BB and then have criteria for a banker to reach levels based on their knowledge and experience, provide training too. Eliminate the waste of executive and middle management and use the money to incentivize the people driving revenue and profitability. What they used to call Pay for Performance. They should also combine middle market with corporate bank. For far too long middle market has ridden on the backs of investment banking being “local” teammates. They are by far the laziest most arrogant and worthless employees at BAC. If small business bankers who are hungry had the right tools and training, they would run circles around both business banking and middle market relationship managers.
Forcing business banking to go through the same credit/risk approvers as middle market does not make any sense if the goal is to grow a portfolio. These approvers will almost always have a middle market banking bias and will not support credit structures that are competitive in the market. Businesses banking credits can still be structured in a way that keeps losses and risk of default within the banks targets without underwriting them as if they were larger middle market companies.
Business Bankers will run like Usain Bolt once they have exposure to the Orwellian regime that is Consumer Retail. If you're not in the sorority, you don't get to play the game.
Good lord, we've been hearing this since before i was born!
@fnj+1rFRoYd0 - amen, brother. BB has never reached the revenue levels they had when he was in charge. The current guy's "Vision" is to reach the revenue level GS had in 2015!
(ok, so rates were a bit higher back then, but we also had a lot MORE customers!!)
Long time coming. (and good riddance, RA is among the fakiest fakers)
No surprise. BB banker pay will flatten and decrease to SB levels. As for Credit org, whoever is the stronger CO by market will win. (been there, done that.)
BB gave it a good run. Should have kept G. Smith who was a "real" leader. Genuinely good human being who actually cared about the teams and clients. And understood what it took to run this business profitably with high Client Sat. They've never seen such numbers since. (oh, but RWA is a bit better, so there's that.)
Pretty sure Sharon with the botox enhancements will rule the empire at the end of the day.
Wonder how this will impact the gcb and bb credit org?