Bank of America has confirmed the resignation of former Merrill Lynch chief executive John Thain, who was appointed as head of global banking and global wealth and investment management for the combined company just three months ago.

The company named long-time BoA executive Brian Moynihan to replace Mr Thain.

While BoA gave no official reason for the departure, a spokesman for the firm was quoted in the press saying Mr Thain agreed with BoA boss Ken Lewis that his situation was not working out and that he should resign.

The news of Mr. Thain’s departure follows a reported $15.4 billion loss by Merrill in fourth-quarter reporting, which prompted Bank of America to seek a further $20 billion capital injection from the

US government.

As a result of BoA’s $50 billion purchase of Merrill, completed in January, the combined firms will have about 20,000 financial advisors.

Mr Thain’s successor was most recently general counsel of Bank of America. Before the merger with Merrill Lynch, Mr Moynihan was the head of global corporate and investment banking for Bank of America, and before that he was president of global wealth and investment management.

Before taking up his present role in 2007, Mr Thain was CEO and a director of NYSE Euronext, the stock exchange group. He joined the New York Stock Exchange in 2004 and has previously held senior positions at Goldman Sachs.