Bank of America Corp. hired Gary Lynch, formerly a U.S. Securities and Exchange Commission enforcement director and Morgan Stanley’s legal chief, as it seeks to resolve disputes with regulators over soured mortgages.
Lynch, reporting directly to Chief Executive Officer Brian T. Moynihan, will fill a new position overseeing legal and compliance operations and regulatory relations, Charlotte, North Carolina-based Bank of America said today in a statement. Chief Risk Officer Bruce Thompson, 46, will take the post of chief financial officer from Charles Noski, 58, who will become vice chairman. Noski, appointed CFO last year, is stepping back from the role to deal with an illness in his family, the bank said.
“Gary’s global legal and regulatory expertise and relationships will be a valued addition to our leadership,” Moynihan said in the statement. “We are delighted he has chosen to join Bank of America and help guide the execution of our customer-focused strategy.”
Moynihan, 51, is reshaping management as the company struggles to boost profit while dealing with lawsuits and investigations tied to soured loans from the housing boom. In February, the firm named Terry Laughlin to oversee $1 trillion of assets in a new division he called a “bad bank.” Last year, Moynihan moved more than 2,000 people from the lender’s sales side to its servicing areas.
Lynch, 60, headed the SEC’s enforcement division from 1985 to 1989 and led insider-trading investigations of Ivan Boesky and Michael Milken. Former Morgan Stanley CEO John Mack hired Lynch to work at Credit Suisse First Boston in 2001 and then at Morgan Stanley when Mack moved there in 2005. Mack is now chairman.
Lynch, Morgan Stanley’s chief legal officer from 2005 to 2010, is among at least three former SEC enforcement directors helping oversee legal departments at the largest global banks. Deutsche Bank AG General Counsel Richard Walker stepped down at the agency in 2001. In 2006, JPMorgan Chase & Co. appointed Stephen Cutler to be its top legal officer, a year after he left the government.