Bank of America shifts risk posture as Moynihan elevates DeMare to group co-president

Bank of America named Jim DeMare to group co-president, a promotion insiders say signals a shift toward greater risk-taking at the bank. The move, described by On The Money as a bid to keep Moynihan’s job and broaden leadership depth, comes as the CEO approaches the end of his tenure and seeks to rebalance growth with risk.

DeMare is a longtime trader who has run BofA’s capital markets division and its real estate lending business. The appointment is seen as the opposite of Moynihan’s retail-banking roots and legal background, underscoring a push from inside and on Wall Street for BofA to lean more on the bank’s trading and market-facing businesses to juice earnings. The reception to the promotions has been largely positive among insiders and investors who have long pressed Moynihan to unleash more aggressive growth moves. The bank’s stock performance during Moynihan’s tenure has risen substantially, though JPMorgan Chase has outpaced it overall.

Athanasia, head of regional banking, was also elevated, nudging the leadership balance toward a dynamic that some insiders described as a projectable “horse race” for the top job. Moynihan’s supporters say DeMare’s results — including a run of profits for 13 straight quarters in his division — reflect trust in the CEO’s decision to empower a hands-on leader who can push through big, capital-intensive opportunities. Critics caution that expanding the use of the balance sheet to pursue deals could increase risk, a concern Moynihan has periodically faced but now appears to be testing in a more formal way.

Stock-market context matters: BofA’s shares have advanced significantly during Moynihan’s tenure, but JPMorgan Chase’s stock has surged even more, a reminder of the scale of competition in U.S. banking as lenders recalibrate funding and risk management. The 13 straight quarters of profit from DeMare’s division are cited by supporters as evidence that a more aggressive stance can be profitable when global markets rebound and financing conditions improve.

Beyond DeMare and Athanasia, industry observers point to other internal candidates who could factor into any future leadership transition, including Holly O’Neill in consumer and retail, Lindsay Hans in wealth management, and Wendy Stewart in global commercial banking. Moynihan, who is 65, has said he intends to stay as CEO until he is 70, but several people familiar with BofA’s discussions say the horizon could shorten if the right opportunity arises elsewhere. One insider quipped that Moynihan’s long-term forecast echoes corporate promises that have drifted as leadership needs evolve, underscoring the pressure to stay competitive with JPMorgan.

Internal debate about the path forward has intensified as U.S. banks confront capital requirements, regulatory scrutiny, and the need to translate a storied balance sheet into sustained earnings momentum. The bank declined to comment on the leadership shifts, and no formal replacement plan has been announced. Still, the focus on risk appetite signals a potential pivot in how BofA allocates capital, approaches clients, and positions itself against the market’s best-performing peers.

As the industry watches, the leadership moves at Bank of America could reshape the bank’s strategy for years to come, with potential implications for how the company balances risk, growth, and the succession timeline amid mounting competition from peers such as JPMorgan. The bank has not disclosed any change to its official leadership roadmap, and observers say a lot hinges on market conditions, internal alignment, and Moynihan’s own plans.