Moynihan has not met bank's goals
22.02.12
“We have everything we need,’’ he said, receiving a standing ovation from workers. “We just have to flat out execute.’’
Two years later, Moynihan has yet to execute a turnaround. Bank of America remains mired in investigations and lawsuits over its mortgage and foreclosure practices. Losses continue to mount. Its stock has plunged by nearly two-thirds since Moynihan took over, briefly falling below $5 a share last week for the first time since early 2009.
For Moynihan, 52, cleaning up the mess left by his predecessor has been a long, difficult slog, complicated by a weak economy in the United States and the threat of a financial crisis in Europe, which has pummeled bank stocks everywhere. He has moved deliberately to clear the backlog of lawsuits, increase capital reserves, and streamline operations - selling peripheral assets, closing branches, and preparing to cut 30,000 jobs over the next three years.
In an interview with the Globe, Moynihan conceded that progress has been slower than he had hoped or expected, and it could take at least two more years to clear away bad mortgages and related issues.
Source: The Boston Globe