Bank of America names Brian Moynihan as new CEO effective 1 January

After a two-and-a-half-month search, Bank of America (BoA) finally named Brian Moynihan, the head of its consumer banking business, to take over from Kenneth D Lewis as CEO.

Lewis steps down from 1 January.

The announcement ends speculation over one of the most talked about successions in recent times.

According Bank of America chairman Walter E Massey who led the CEO search, ''Brian's wide range of experience, his relationships inside and outside of the company, and his demonstrated ability to understand business dynamics and effect constructive change made him the best person for the position.''

Moynihan joined BoA in 2004 from FleetBoston Financial Corp, a Boston, Massachusetts-based bank founded in 1999, acquired by Bank of America, where he led global wealth and investment management. He has served as president of investment banking and as general counsel at BoA.

Moynihan takes on the formidable responsibility of steering the bank into its post-bailout future after the lender repaid $45 billion of bail out debt a few weeks back.

Analysts say that while Lewis transformed Bank of America into a national behemoth, it is now up to the 50-year old Moynihan to grapple with the problems stemming from this legacy. They say that repairing the bank's relationship with regulators and perhaps set it on a new course must top Moynihan's list of priorities when he takes over.

According to Moynihan, he is not looking to lead a major shift in strategy at the largest US bank when he takes over from Lewis. However, with mounting loan losses amid double-digit unemployment rates, it remains to be seen whether investors would embrace staying the course.