Bank of America 2011 Annual Report Download - page 9

A CONVERSATION WITH DAVID DARNELL AND TOM MONTAG
CO-CHIEF OPERATING OFFICERS
In September of 2011, CEO Brian Moynihan named David Darnell
and Tom Montag co-chief operating officers of the company. David’s
organization serves retail customers, wealthy clients, and small
businesses inside the U.S., while Tom’s organization serves middle-
market companies, large corporations and institutional investors
globally, and wealthy individual clients outside the U.S.
What’s your strategy for growing your
respective businesses?
David: In Consumer Banking, it’s all about growing existing
relationships. One out of every two U.S. households does
business with us today. Because these customers already
know us — and we know them — it makes sense to focus
on expanding existing relationships by offering high-quality
service and a broad range of innovative products.
In Merrill Lynch Wealth Management and in Business
Banking, we are expanding relationships through referrals
across the company, and working to attract new clients
as well. Across all our businesses, one theme is constant:
By expanding a one- or two-product relationship to a half-
dozen or more core services, and creating real financial
solutions for those we serve, we can win customers’ and
clients’ loyalty and build strong, long-lasting and profit-
able relationships.
Tom: It’s the same principle at work with our corporate
and institutional clients. The products are different, but
the idea is the same. Our client base includes 98 percent
of the U.S. Fortune 1000 and 85 percent of the Global
Fortune 500. When you combine that geographic reach with
strong capabilities, the opportunities are very compelling
both for us and for our clients.
How do you plan to offset the revenue that
has been lost by new regulations?
David: This is primarily an issue in Consumer Banking,
and it’s not as simple as just finding a way to replace lost
revenue. We’re in a competitive marketplace, and we have
to win business by understanding customers’ needs and
offering the best combination of products, service and
value. New regulations change the rules of the game for
all financial services companies, but they will not change
our approach. We still have to provide the best products
and service at a fair price that enables us to generate
a good return for our shareholders. And that’s what
we’re focused on doing.
Can you provide an update on your plans
to build out the global franchise?
Tom: We are committed to doing business wherever our
global clients need us to be to serve their needs. That
includes western Europe, the U.S. and the Pacific Rim —
and it also includes a growing presence in emerging global
markets in regions like Latin America and the Middle East.
The key is to continue building our capabilities with a
balanced approach, with risk management and other func-
tions to support the client-facing teams, so that we can
not only win new business, but execute every transaction
to the standards that we and our clients expect.
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Pictured left to right: David C. Darnell and Thomas K. Montag
BANK OF AMERICA CORPORATION