Bank of America Merrill Lynch boss Ken Lewis calls it a day

Ken Lewis, chief executive officer and president of Bank of America Merrill Lynch, surprised markets on Wednesday with an announcement that he will retire effective December 31. In addition to his executive roles, Lewis will also relinquish his directorship on the BoA board.

Lewis said in a written statement announcing his departure he felt the time was right for BoA to transition to a new leadership, given that the bank is "well positioned to meet the continuing challenges of the economy and markets". In a second-quarter earnings call on July 17, Lewis referred to the fact that operating conditions for the bank were improving, according to a transcript posted on seekingalpha. For the first time in a while, we feel less constrained by economic events and more capable of demonstrating progress and momentum, he said on the call.

Lewis is a BoA veteran. He joined the Charlotte-headquartered bank in 1969 and became CEO in 2001.

"The board will be moving in a deliberate and expeditious manner to select a worthy successor to Lewis," said Walter Massey, chairman of the board of directors at BoA, in the statement. Massey was appointed chairman of BoA earlier this year when Lewis relinquished the post in an attempt to appease enraged shareholders.

Some specialists suggest the fact that succession is not in place indicates that Lewis's announcement came as a surprise to the board.

This is in contrast to recent announcements by rival Wall Street investment banks Morgan Stanley and J.P. Morgan. Morgan Stanley said earlier this month that current co-president James Gorman will become CEO on January 1 next year when current chairman and CEO John Mack will give up the CEO role. Mack will continue as chairman for two more years. Meanwhile, J.P. Morgan announced on Tuesday that Jes Staley, currently head of asset management, will become CEO of the investment bank -- a move perceived by specialists as putting him in line for the top job at the US firm.  "With the credit crisis largely behind us and the economy recovering, the timing was right to begin the succession process," said Jamie Dimon, chairman and CEO of J. P. Morgan in a written statement announcing the move.