Bank Of America Elects Brian Moynihan Chairman - Quick Facts

(RTTNews) - Bank of America Corp (BAC) said Wednesday its board elected Brian Moynihan as chairman, in addition to his current role as chief executive officer, effective immediately. Moynihan succeeds succeeding Charles "Chad" Holliday, Jr., who will remain a member of the Board.

"On behalf of the board and our shareholders, I thank Chad for his leadership and look forward to continuing to work with him, Jack, and the other directors to build on the sound governance processes the board has put in place," said Moynihan.

Moynihan became chief executive officer and a member of the board of directors of Bank of America on January 1, 2010.

Also the Bank said that Jack Bovender, Jr., a member of the board since August 2012, will become the board's lead independent director.

In connection with Bovender's appointment as lead independent director, the board amended the corporation's corporate governance guidelines to (1) specify that when the chairman position is not held by an independent director, a lead independent director will be designated by the board from among the independent directors by a majority of the independent directors to serve a minimum of one year; and (2) specify the duties and responsibilities of the chairman, if independent, or the lead independent director.

In Aug, Bank of America agreed to pay $16.65 billion to settle probes by the Justice Department and several states into the company's sale of mortgage-backed bonds in the run-up to the 2008 financial crisis. That settlement is the largest ever reached by the U.S. government with a single company and surpasses the $13 billion paid by JPMorgan Chase & Co. (JPM) in 2013 to settle similar allegations.

BAC closed Wednesday at $16.82, down $0.23 or 1.35%, on a volume of 88.6 million shares on the NYSE. In after hours, the stock gained $0.03 or 0.18%.