The New York Post has reported that Bank of America is struggling to bag a quality external candidate to take over as CEO from Ken Lewis, who is due to stand down at the end of the year.

People like Barclays President Bob Diamond, ex-Merrill Lynch executive Greg Fleming and JPMorgan co-CEO Bill Winters are all said to have turned their noses up at the opportunity, and BlackRock CEO Larry Fink is thought to have shown little interest. And with the firm embroiled in a number of probes launched in connection with the acquisition of Merrill Lynch, and US pay czar Kenneth Feinberg limiting the upside for senior executives, its little wonder that BofA is struggling to find a new top dog.

So that leaves the field clear for internal candidates (unless the bank, as some expect, appoints an interim CEO from among its main board members). The favoured internal candidates, however, are Chief Risk Officer Greg Curl, and Brian Moynihan, who runs the bank's consumer and small business units. But both these individuals, although no doubt capable, are burdened by the legacy of working closely with Lewis. They are tied to the old regime, and many will see them as part of the bank's problems, rather than as a solution. And then there's newly-appointed wealth management head Sallie Krawcheck, who is surely too inexperienced for such a job (at the moment). So what's the answer ?

Well, there is one man waiting in the wings who would jump at the chance of turning around Bank of America. One man who would probably do it for free - in order to redeem himself and restore his reputation. One man who has the right kind of experience, and the drive and determination to prove the doubters wrong. But this man, John Thain, is the last person the Bank of America board would probably consider appointing.

But think about it. Thain has excellent credentials - a former Goldman President, CEO of The New York Stock Exchange (which is succeeded in turning around), and CEO of Merrill Lynch (credited by many as the man who saved Mother Merrill from a Lehman-like fate). Thain was the fall-guy for Bank of America's acquisition of Merrill Lynch, although, as time has gone on, many feel that he was treated harshly. He has consistently denied that he was anything but truthful about the extent of the losses at his firm, and the amount and manner of the firm's controversial 2008 bonuses. And, so far, no one has been able to contradict him.

Before being acrimoniously fired by Ken Lewis earlier this year, Thain had an unblemished track record in the industry. He is viewed by many as an honest and honorable man. His appointment would prove popular among Merrill Lynch staff (and he will clearly have a head start understanding this business). And he will also have a vested interest in co-operating with lawmakers and public officials to ensure that the truth about Bank of America's acquisition of Merrill Lynch finally emerges.

Bring back John Thain. After all, it's been done before. Think of John Mack at Morgan Stanley.

Reader Comments

1. 'As an ex-Merrilite, I agree that John Thain is the best man for the job I can think of. However, not in a million years will Bank of America pick up the phone to him. But what a glorious return it would be though!'.

2. 'As an ex-Bank of America employee, I agree Thain would be the perfect man for the job. He did a wonderful job for employees and shareholders at Merrill during the most acute financial crisis in history'.

3. 'What an excellent suggestion. Mr Thain would be a win-win selection for the bank. It would demonstrate that BAC is ready to focus on business issues, and it would give a much-needed boost to Merrill Lynch Wealth Management financial advisors and their clients'.

4. 'How do we make this happen ? Shareholders write to the board!!'.

5. 'He's clearly a strong operator. And, as far as Europe is concerned, BofA is basically Merrill Lynch now anyway'.

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