GO
Loading...

Enter multiple symbols separated by commas

CFO Departure Hurts Bank of America Shares

Shares of Bank of America declined Monday, with some analysts surprised by news that the bank's popular chief financial officer will resign.

The company on Friday said its chief financial officer, Al G. de Molina, will resign at the end of the year and will be succeeded by fellow executive Joe Price on Jan. 1.

De Molina, who was named to the position 15 months ago, said he wants to pursue other business opportunities. Analysts speculated that de Molina is leaving because he wants to try running a company, an opportunity that might not soon present itself at Bank of America.

"We believe the CFO role is crucial, and given our respect for Al this is clearly a negative and surprising development," wrote Citigroup analyst Keith Horowitz in a client note. He has a "Buy" rating on shares. De Molina's strength was in communicating with investors, the analyst wrote.

Credit Suisse analyst Christopher Mutascio, who has an "Outperform" rating on shares, likewise said de Molina is well liked by analysts for his candor.

"His sudden departure after taking on the role of CFO roughly a year ago will take many by surprise and could certainly conjure up concerns about the quarter," wrote Mutascio.

But Merrill Lynch analyst Edward Najarian, who has a "Buy" rating on shares, said he doesn't expect the CFO change to affect the company's finances or structure.

"While this news could cause BAC shares to decline on Monday, we expect any weakness to be modest and short-lived," wrote Najarian.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Thomas Lee

    This year's flat market is reminiscent of 1904, says Thomas Lee of Fundstrat Global Advisors in an interview with Amanda Drury.

U.S. Video