Bank of America CEO Search Finds Outsiders Uninterested

CHARLOTTE, N.C. (TheStreet) -- Bank of New York Mellon (BK) CEO Robert Kelly's reported rejection of an offer to take the same job at Bank of America (BAC) illustrates the difficulty of convincing a talented outsider to lay his head at BofA's door for the next several years.

Even for lower-level managers and associates, the proposition is bleak in today's environment. The possibility that BofA has room to grow becomes ever-more narrow as the chorus for breaking up the largest financial firms in the country becomes louder and more hostile.

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After enduring criticism for months over the "too big to fail" issue, Treasury Secretary Timothy Geithner told Congress on Thursday that he will seek new regulatory powers to break up such firms. Bank of America is the largest bank in the country. If those authorities are approved, it will also be the bank most likely to be broken up.

It is also operating under a memorandum of understanding with regulators, who are scrutinizing the top gun's every decision. Furthermore, Bank of America's pay packages are likely to be among the least competitive in the industry, after the Obama administration's pay czar took the axe to seven institutions' pay plans, chopping the average large salary by 50%.

The merits of the "too big to fail" argument can be debated, but the CEO situation is fairly logical. High-powered executives who have spent decades building their reputations generally want to move on to new roles that offer challenges, along with rewards. The Bank of America job will require experience, connections, political savvy, patience and longevity. It will not come with a rock star's salary, and may deal more with regulatory negotiations than the business of banking for many years to come.