Magazine article American Banker

BankBoston Organizes Retail Banking Group with an Executive VP at Helm

Magazine article American Banker

BankBoston Organizes Retail Banking Group with an Executive VP at Helm

Article excerpt

In a sweeping management shuffle, BankBoston Corp. has promoted Bradford H. Warner to head up a newly organized retail banking group.

Mr. Warner, an executive vice president who had run the $71.4 billion- asset company's capital markets activities, was named the fifth member of the bank's senior management team. He reports to president and chief operating officer Henrique de Campos Meirelles.

BankBoston announced the appointment, along with other management realignments, in a memorandum to employees last week. The changes took effect last Wednesday.

In addition to the retail group, the bank has created a wholesale group, led by vice chairman Paul H. Hogan, and a global banking group, headed by executive vice presidents Manuel R. Sacerdote and Geraldo Carbone.

Mr. Meirelles and Charles K. Gifford, chairman and chief executive officer, said in the memo that the company is working to streamline its major businesses, "allowing for more focus, specialization, and consistent execution of business strategy."

"We need to transform BankBoston from a functionally based company to a customer-focused one," the memo said.

Most of the changes related to the retail group, which now includes consumer banking, small-business, private banking, marketing, operations, and technology.

"They are cleaning up the reporting lines to Henrique (Meirelles), and they are bringing in another manager to provide focus," said Sally Pope Davis, an analyst at Goldman, Sachs & Co.

Analysts said the reorganization appeared to signal the company's desire to improve performance. Earnings from retail banking have lagged higher- growth corporate and Latin American banking units for the last few years.

"It's clear that they need to improve efficiencies in the retail operations," said Michael Mayo, an analyst at Credit Suisse First Boston. …

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