Bank of America Corp. named its consumer products chief, Amy W. Brinkley, as chairwoman of credit risk policy, a new position that aims to make revenues less volatile by putting more focus on risk at the business level.
Ms. Brinkley, 45, has been put in charge of all credit and risk management activities at B of A, especially its effort to get each business head to assume accountability for risk in individual business lines. She will join the Charlotte, N.C., companys eight-member risk and capital committee, which includes the companys top executives.
Kenneth D. Lewis, chairman and chief executive officer of Bank of America, has been making top-management shifts over the last year and concentrating on building revenues from the inside after years of growth through acquisition.
One of its biggest changes in recent months has been its willingness to sacrifice loan business that does not lead to additional business with a particular corporate customer.
Many other commercial banking companies have begun weeding out these unprofitable lending relationships, but it is notable for Bank of America given its history of fierce competition with other lenders and that it has consistently been one of the top two banks in lending market share, along with the former Chase Manhattan Corp.
Ruchi Madan, an analyst at Citigroup Inc.s Salomon Smith Barney, said Mr. Lewis is absolutely trying to reduce volatility in Bank of Americas businesses, particularly lending. And they have been willing to sacrifice league table rankings to do it.
In the second quarter Bank of America was second in U.S. syndicated lending, with a 19.3% market share, behind J.P. Morgan Chase & Co., with 40%, according to Thomson Financial Securities Data.
Ms. Brinkley was not available for comment Monday, but a spokeswoman said that in her new job, which begins next Monday, Ms. Brinkley will work with business heads to identify and quantify risk in their businesses and then to measure how that risk could affect future earnings.
She will report to F. William Vandiver Jr., the companys corporate risk management executive. The two will take risk management to the next level for the company, Mr. Lewis said in a press statement.
Lori Appelbaum, an analyst at Goldman Sachs & Co., said Bank of America is simply trying to make sure it gets paid for loan risk by insisting that corporate customers throw additional fee business in its direction.
B of A marketing head Barbara J. Desoer will succeed Ms. Brinkley as head of consumer products. Ms. Desoer will report to Mr. Lewis and be in charge of the companys card, real estate, community development, consumer finance, and telephone and Internet banking services. She will also join the risk and capital committee.
Ms. Desoer will also remain in charge of marketing while the company searches for an outside successor.