When Brian Moynihan stepped in as CEO, BofA was one of the most despised companies, reeling from the financial crisis with huge mortgage losses.
The new CEO, as per Fortune July 25, 2011, was seen as a "charisma-challenged" and "rough-around-the-edges" personality with a "just-the-facts demeanor" ... Also, he won't win any awards for public speaking ... or do any PR ...
Does that sound like a "good fit" for the biggest turnaround operation in the history of financial services?
Look at his strengths ... hard-core banking brainiac ... dealmaker ... team builder ... crisis manager ... totally immersed in the data and the details.
Moynihan recently announced a settlement that takes a giant step toward ending the home loan mess. This not only removes doubts about BofA's future, but might even turn out to be a model for the rest of the industry.
Moynihan wants to run the bank the way banks were run before the industry started chasing growth at all costs. He does not want to make lots of money in good times, then hand it all back in a downturn, and repeat the cycle. His 2-step strategy:
1. First retain virtually all earnings to build sufficient capital cushion
2. Then return all earnings to investors
Moynihan believes that his strategy will turn BofA into one of the world's most profitable companies. Experts are betting on his promise. If he can really pull it off, Moynihan's remaking of BofA will be considered one of the greatest turnarounds ever.