Need to Know
- Bank of America has promoted Faiz Ahmad and Mike Joo to co-heads of global investment banking, with all investment banking global group heads now reporting to them.
- Outgoing co-heads Alex Bettamio and Thomas Sheehan move to chair roles in the global corporate and investment banking unit, focusing on key client relationships.
- The leadership reshuffle coincides with pressure on BofA’s investment banking franchise, including a 9% drop in Q2 fees, slippage in M&A and equity capital markets rankings, and strength in debt and loan markets.
- These changes are intended to better integrate capital markets, push U.S. middle-market growth, and help achieve medium-term profitability and fee-share targets.
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The appointment of Faiz Ahmad and Mike Joo as co-heads of Bank of America’s global investment banking line reflects two intertwined strategic priorities: both reinforcing internal leadership in capital markets, and restoring competitive positioning in advisory and fee-based businesses.
Ahmad’s background in global capital markets indicates that BofA is pushing to better integrate capital markets functions into investment banking, especially given its improvement in debt capital markets and loan market shares. Joo’s continuation to prioritize the U.S. middle market (transactions between US$500 million to US$2 billion) suggests management believes strong leverage exists in that sector, particularly with local market penetration across its 97 U.S. local markets. [1]
However, the bank faces headwinds: Q2 investment banking fees fell by 9% to US$1.4 billion, and BofA dropped from fourth to fifth in global M&A rankings. Equity capital markets share slipped, showing weakness in underwriting and IPO activity. Equity weakness likely dragged gross fee pool performance. [1][2]
The reshuffle—including elevating Karim Assef (already chair of global investment banking) to take on a more active role, and naming new co-heads for global capital markets (Lisa Clyde and Sarang Gadkari) and a new head of global corporate banking and leasing (Brendan Hanley)—suggests a rebalancing of leadership to better align with strategic growth vectors. [1]
Strategically, this move supports BofA’s broader plan (announced at its November 2025 investor day) of improving profitability (target ROTCE of 16-18%), expanding into more U.S. cities, and growing its share of investment banking fee pools by 50 to 100 basis points over three to five years. The Ahmad/Joo co-leadership could be key in executing that plan. [3]
Open questions remain: whether dual leadership will streamline decision-making or dilute accountability; how Ahmad and Joo will divide responsibilities; how they intend to reverse declines in equity underwriting; and whether investments in middle market capability and local market presence will yield enough return amid macroeconomic and regulatory headwinds.
Supporting Notes
- Bank of America promoted Faiz Ahmad and Mike Joo to co-heads of global investment banking. [1][2]
- Ahmad had been co-head of global capital markets; Joo led North America global corporate and investment banking (GCIB). [1][2]
- All global group heads in investment banking will now report to Ahmad and Joo jointly. [1][2]
- Alex Bettamio and Thomas Sheehan become chairs of GCIB, focusing on global client relationships. [1][2]
- In 2025, BofA’s global investment banking revenue ranked third globally, with a 6% deal-maker market share. [1][2]
- M&A ranking slipped from fourth to fifth; equity capital markets share fell slightly; debt capital markets and loans increased. [1][2]
- Investment banking fees declined 9% to US$1.4 billion in Q2. [1][2]
- Joo emphasized U.S. middle market business across 97 local markets. [1]
- New appointments include Lisa Clyde and Sarang Gadkari as co-heads of global capital markets; Brendan Hanley as head of global corporate banking and leasing; Karim Assef will become more active. [1][2]
- BofA’s medium-term goals include achieving ROTCE of 16-18%; boosting investment banking fees share by 50-100bps over 3-5 years. [3]
Sources
[1] www.reuters.com (Reuters) — 2025-08-20
[2] www.bloomberg.com (Bloomberg) — 2025-08-20
[3] www.reuters.com (Reuters) — 2025-11-05