Bank of America Memo on Retail Bank Restructuring

The following is a copy of an internal memo from Bank of America chief operating officer David Darnell obtained by American Banker

Message from David Darnell, Co-Chief Operating Officer

Today I am announcing additional changes to Consumer and Small Business Banking and Home Loans, and how we serve our customers. These changes are consistent with our goals to streamline our company, make us more efficient and effective, and align to our customer-centered strategy. The changes also better position us in continuing to accelerate our strategy while implementing ideas from phase one of New BAC.

It is critical to deliver a seamless experience to the Retail, Preferred and Small Business customers across all products and services. Central to that effort is integrating the Home Loans and Consumer and Small Business Banking organizations. As you have heard many times, no customer thinks of us as individual business units. They rightly think of us as Bank of America. Our strategy has not changed:

Customer teams will define what our customers want and need.

Products teams will build the right product solutions to meet those needs.

Distribution and service teams will deliver to our customers, providing the ability for them to choose how and when they want to bank with us.

As we focus on the critical day-to-day activities of running our organization, we also need to make sure the New BAC ideas are executed across the entire organization while managing risk, maintaining business continuity and optimizing our business model. Remember, we have the best franchise, capabilities, and customer base in the industry.

To drive out the strategy of the combined organization I have asked the following leaders to take on these roles reporting to me effective immediately:

Katy Knox will lead the newly combined Retail Banking and Distribution organization which serves 42 million retail households and provides end-to-end delivery through banking centers, online & mobile and ATM/VTM.

Dean Athanasia leads the Preferred and Small Business Banking organization which serves 8 million preferred households and 4 million small business clients and will now include home loans sales. The Client Development Group and Small Business will combine to provide end-to-end accountability for our Small Business customers.

Susan Faulkner continues to lead Consumer and Small Business Products with the addition of home loans products, secured credit underwriting, fulfillment and quality control.

Tim Huval will assume responsibility for consumer Service & Operations consolidating all of the call centers, fraud, claims, and customer experience functions from Consumer and Small Business Banking & Home Loans.

Laurie Readhead will assume responsibility for Consumer Market and Distribution Optimization focusing on driving out the New BAC ideas across the consumer organization while managing announced divestitures.

Walter Elcock will assume accountability for consumer Business Controls and Readiness Management including oversight across consumer for vendor management, operational controls and issue management, business continuity, associate & community impacts related to New BAC and California / Northwest conversion.

Barbara Desoer will continue supporting the Home Loans transition and the integration with Consumer and Small Business Banking.

Collectively, these leaders are responsible for making it easier for our customers and clients to do business with Bank of America, to empower our employees to deliver for our customers and for our businesses to achieve strong financial results.

Other organizational moves that continue to align our capabilities across the enterprise: