Merrill brokers: Sontag’s sayonara stings

Dan Sontag’s departure from Merrill Lynch isn’t sitting well with some of the firm’s brokers.

“Everybody is unhappy” about the loss of Mr. Sontag, said one Merrill representative who asked not to be identified. The departure has had a “very negative impact emotionally because there is no one left on the Merrill side to fight for us,” he added.

Mr. Sontag, a veteran of the firm and a former broker, had been running New York-based Merrill Lynch & Co. Inc.’s retail unit until Monday, when Merrill’s parent, Charlotte, N.C.-based Bank of America Corp., tapped Sallie Krawcheck to run the business.

Mr. Sontag had been in the position for only a few months, having replaced Robert McCann, who was recruited by Merrill last year when it was sold to Bank of America.

“It’s a big loss,” said recruiter Danny Sarch, founder of Leitner Sarch Consultants Ltd. of White Plains, N.Y. “He’s a guy who’s been there forever [and] knew the [Merrill] system and knew the culture.”

Observers expect that Ms. Krawcheck will bring in former Smith Barney executives to fill the management ranks.

“It’s pretty natural for an executive to do that — to reach back for people she trusts” and has worked with, said Darin Manis, chief executive at RJ & Makay LLC, a recruitment firm in Colorado Springs, Colo.

Merrill brokers say that Ms. Krawcheck should be an improvement over Brian Moynihan, who had been running the retail business and was appointed head of the bank’s consumer banking division this week.

“He never seemed comfortable with us,” said another Merrill rep who asked not to be identified.

Mr. Moynihan joined Bank of America from FleetBoston Financial Corp. in 2004, when Bank of America bought Fleet. He formerly ran Bank of America’s brokerage business, and prior to taking over for ousted chief executive John Thain in January, he served as Bank of America’s general counsel.

Related Topics: Bank Of America Corp., Merrill Lynch, UBS AG