Thain to manage investment banking, client wealth at BofA

John A. Thain, who engineered the sale of Merrill Lynch & Co. to Bank of America Corp., was picked to oversee corporate and investment banking and wealth management at the combined firm, marking him as a potential successor to Chief Executive Kenneth D. Lewis.

Thain, 53, will lead units that contributed 35% of Charlotte, N.C.-based Bank of America’s $37.3 billion in revenue for the first half of 2008. Merrill Lynch, where Thain had been chief executive since December, generated $18.7 billion during that period -- largely from investment banking activities and managing money for clients.

“I can’t imagine John Thain would take this job without the prospect of running the company someday,” said Michael Holland, who oversees more than $4 billion worth of assets at Holland & Co. in New York. “It would be very reasonable to assume Thain is now the heir apparent.”

Merrill, the world’s largest securities brokerage, succumbed to the global credit crisis on Sept. 15, when Thain agreed to sell the New York-based company to Bank of America for about $50 billion, or $29 a share.

Lewis, 61, seized the opportunity to buy the 94-year-old Wall Street icon after its write-downs and losses tied to the mortgage market exceeded $52 billion and the stock plunged more than 80% since the start of last year.

James Mahoney, a Bank of America spokesman, said Thain’s new role doesn’t mean he’s in line to succeed Lewis at what is now the second-largest U.S. bank by market value, after JPMorgan Chase & Co.

“There’s been no commitment around that,” Mahoney said. Thain “is joining the team as a senior leader.”

Merrill spokeswoman Jessica Oppenheim said Thain was traveling and unavailable for comment.

Bank of America shares fell $1.76 to $36.37.