Krawcheck tabs Thiel to head Merrill brokerage

Krawcheck tabs Thiel to head Merrill brokerage
It's been a while coming, but BofA wealth-mangement boss Sallie Krawcheck has finally chosen a successor to Merrill Lynch head Lyle LaMothe. No surprise, it's a Merrill veteran.
MAY 03, 2011
Sallie Krawcheck, president of Bank of America Corp.'s wealth-management division, picked John Thiel to replace Lyle LaMothe as head of the firm's Merrill Lynch brokerage, according to a memo. Thiel, who runs the firm's private banking and investment group, will gain responsibility for the 15,500-person brokerage as head of Merrill Lynch U.S. Wealth Management starting May 1, according to an internal memo obtained by Bloomberg News. LaMothe said March 4 he's retiring from the Charlotte, North Carolina-based bank to pursue personal interests. Krawcheck's selection of a Merrill Lynch veteran may solidify her relationship with top members of the brokerage, known as the “Thundering Herd” because of the firm's bull logo. Thiel, 50, started at Merrill as a financial adviser in Tampa, Florida in 1989 and held several management jobs before leading the private bank. Krawcheck, 46, joined Bank of America from New York-based Citigroup Inc. in August 2009. “John possesses deep wealth-management and Merrill Lynch experience and has a strong commitment to our advisers, our clients and our culture,” Krawcheck said in the memo. The brokerage is the biggest contributor to Krawcheck's operation. Almost 80 percent of the division's $16.7 billion in 2010 revenue came from the adviser group. The unit posted a 4 percent increase in revenue last year to $13.1 billion, or about $854,000 per adviser. The search for LaMothe's successor focused on managers with roots at Merrill Lynch, two people with knowledge of the process said last month. LaMothe joined Merrill in 1987 as a financial adviser in San Bernardino, California, and held several supervisory jobs before being promoted to head of U.S. wealth management in 2009. Merrill Lynch was taken over by Bank of America at the start of 2009 after subprime-related losses weakened the firm's capital. Thiel joined Merrill's private-banking and investment group, which caters to the wealthiest individuals, in 2000 and opened the firm's Pacific West department as a regional director based in San Francisco. The private-banking unit has more than $160 billion in assets, according to the memo. He won the appointment over Andrew Sieg, who runs the division's retirement services operations. Sieg joined Merrill Lynch in 1992 as an analyst in the firm's private-client group, and at one point reported to Krawcheck while both were at Citigroup. He was hired to join Bank of America in 2009. --Bloomberg News--

Latest News

Advisor moves: Succession planning, fresh starts trigger exits at Osaic and LPL
Advisor moves: Succession planning, fresh starts trigger exits at Osaic and LPL

Teams head for W-2 independence models with practices totaling almost $1B.

Empower strikes $340m deal to take on Milliman's retirement book
Empower strikes $340m deal to take on Milliman's retirement book

Acquisition adds 400 defined benefit plans and 1.5 million participants, pushing Empower deeper into workplace benefits.

EP Wealth lands fifth deal of 2026 in Silicon Valley
EP Wealth lands fifth deal of 2026 in Silicon Valley

Menlo Park firm brings $900m in AUM and specialist expertise serving Apple and Google employees.

Wealth Enhancement to absorb 88-year-old New York advisory dynasty in $760m deal
Wealth Enhancement to absorb 88-year-old New York advisory dynasty in $760m deal

Acquisition of the Shufro-Glass Group pushes the national RIA's total client assets above $157 billion.

IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth
IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth

IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.