Bank of America shakes up its executive suite

@CNNMoney September 6, 2011: 8:04 PM ET

NEW YORK (CNNMoney) -- Bank of America is reshaping its management team, and two big Wall Street names are out.

The company will continue on without two honchos: Joe Price, the president of consumer and small-business banking, and Sallie Krawcheck, president of wealth and investment management.

The reorganization "aligns .... with [the company's] three core customer groups: individuals, companies and institutional investors," Bank of America (BAC, Fortune 500) said late Tuesday.

The move comes just weeks after BofA announced it would lay off 3,500 employees. That's on top of the 2,500 layoffs that the company announced earlier this year.

Amid the staffing issues, BofA is also dealing with massive litigation problems. Back in June, the bank proposed a $8.5 billion settlement with investors in mortgage-backed securities -- stemming from troubled real estate loans made by Countrywide Financial, which BofA acquired in 2008.

The agreement was meant to settle with 22 investors, including the world's largest bond fund, Pimco (PTTRX), and the New York branch of the Federal Reserve.

But the agreement is subject to court approval, and it's facing opposition from state attorneys general, members of Congress and smaller investors. Last week the Federal Deposit Insurance Corp. filed an objection to the settlement.

BofA shares are down a whopping 47.6% year-to-date as of Tuesday's close, though the stock got two recent spikes on upbeat news.

Shares jumped 11% in one day two weeks ago, when Meredith Whitney said there's no urgency for BofA to raise capital. That same week, legendary investor Warren Buffett's Berkshire Hathaway (BRKB) announced a surprise $5 billion investment in the bank. To top of page

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