Bank of America (NYSE:BAC) leads the league in fumbling stress-test submissions - three in last five years - but this year, the lender is tasking its own Winston Wolfe with tackling the job.
“She’s pretty much fearless," says former Ken Lewis executive Steele Alphin of Chief Administrative Officer Andrea Smith. "I asked her to do things that were very, very difficult to do."
Regulators have told the bank of their concern with excessive turnover in recent years of those running the test, and that the bank needs to stop viewing the CCAR as a once-a-year exercise, rather than part of a bigger-picture capital management effort. Part of Smith's job, writes Christina Rexrode, is to alleviate those concerns.
Her job leading this task is of particular interest given her human resources background. Executives at other lenders running the test typically come out of finance or risk.
"It’s kind of like an orchestra leader,” says COO Thomas Montag. "I have no idea if the orchestra leader can play any of the instruments, but if you don’t have somebody at the front providing the timing and the direction and the focus, it sounds kind of lousy.”
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