Bank of America Corp. said it will continue participating in the Federal Deposit Insurance Corp.'s temporary liquidity guarantee program as it also announced the retirement of credit-card chief Bruce Hammonds.
Ric Struthers, the company's consumer-credit risk executive since May, will take over on Jan. 1, overseeing Bank of America's credit-card and unsecured-lending operation.
Hammonds has been overseeing the company's credit-card business since Bank of America's $35 billion acquisition in January 2006 of MBNA. He was part of the initial management that established the company in 1982 and was its president and chief operating officer when the takeover closed.
Struthers was also part of MBNA's initial management and oversaw Bank of America's North American card operations before assuming his current post, which includes responsibility for various credit-card aspects, including portfolio acquisition and marketing.
Meanwhile, Bank of America's decision to stay in the FDIC program follows the announcements of numerous banks in recent days to do the same. All eligible institutions were automatically enrolled in the FDIC program when it began in October for an introductory period through early December and were given the opportunity to opt out.
The program provides full insurance coverage for U.S. non-interest-bearing transaction accounts, regardless of their amount, through the end of next year. Another part guarantees new senior unsecured debt issued by eligible banks.
Bank of America also has received a $15 billion capital infusion under the federal government's Troubled Asset Relief Program.
Bank of America's shares recently traded at $16.60, down 2.1%.