This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank CFO Short-Timers

These days, the CFO job at a financial-services firm is the perfect gig for a short-timer.

Unlike at big tech companies -- where a chief financial officer often can hang on for years just balancing the books and exercising stock options -- the lifespan of a CFO on Wall Street increasingly seems to be measured in months.

In December, Al de Molina resigned as Bank of America's (BAC - Get Report) CFO, just 18 months after getting the job. On Monday, investors learned that Sallie Krawcheck's tenure as Citigroup's (C - Get Report) top financing officer won't be much longer than Molina's.

Krawcheck, who is moving back to run Citigroup's brokerage, private banking and stock research operations, became CFO just over two years ago, in September 2004.

In her quick turnaround, Krawcheck is hardly alone. Jerome Bailey, who left insurance broker Marsh & McClennan (MMC - Get Report) early last year to become the CFO of the New York Mercantile Exchange (NMX), lasted just seven months at Nymex. The exchange pushed Bailey out the door on the eve of its highly successful IPO last November.

In many ways, the CFO position on Wall Street is a thankless job with little glamour -- even if it is certainly well-compensated. For many, it's either a stepping stone to a better job, or a temporary stint.

The job of the CFO at all companies has become increasingly more stressful with the stiffened reporting mandates under the Sarbanes/Oxley corporate governance reform law. But bank CFOs have had the added pressure of dealing with a tricky interest rate environment, which makes it hard for lenders to find high-yielding investment opportunities to reinvest customer deposits.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
NYX $0.00 0.00%
BAC $16.29 -0.37%
C $52.82 -0.99%
JPM $63.92 -0.75%
MMC $56.45 -0.04%

Markets

DOW 17,841.98 -86.22 -0.48%
S&P 500 2,080.15 -9.31 -0.45%
NASDAQ 4,919.6440 -19.6830 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs