A day after his leadership was called into question, Brian Moynihan is unveiling a big new plan for Bank of America.
CEO Moynihan was not happy with a couple of the bank’s statistics from 2010.
Firstly, the lender lost $2.2 billion last year. That’s not cool.
Secondly, BofA’s efficiency ratio (which measures expenses to revenue) was 62%. Moynihan didn’t like that figure either. He wants the ratio to be closer to 55%.
So, he has a plan. And that plan has a name: Project New BAC.
Yesterday, in a posting on BofA’s internal website, Moynihan revealed the new scheme, according to the WSJ. It’s intended to last one year and will “scour the bank for best ideas on how to lower expenses, lift revenue and otherwise improve” the lender.
Moynihan is hoping the initiative will do a couple of things specifically — improve the efficiency ratio and cut costs, according to the WSJ.
As for Project New BAC, there are apparently 44 executives assigned to work full-time on the project over the next few months. Two consulting firms are helping out. “They’ll fan out around the company to ask employees low- and high-level for ideas on how they can do their jobs better and how BofA can tweak its financial-product offerings to make them more appealing,” the WSJ said.
The first businesses in line for examination include consumer banking operations, home loans and human resources. Other units will follow.