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The firm's Board of Directors is said to already be planning to select Lewis' successor by the end of the year.
Lewis has come under pressure since Bank of America's acquisition of Merrill Lynch and whether he was up front with shareholders about the financial health of Merrill and the billions in bonuses awarded despite the firm's large losses in 2008.
A judge recently rejected a potential settlement between Bank of America and the Securities and Exchange Commission to pay a $33 million fine to settle the issue over whether shareholders were misled over the bonuses paid out. The judge has set the case to go to trial as early as next February.
In addition, New York Attorney General Andrew Cuomo is also threatening to file charges relating to the Merrill deal. Cuomo released a statement after Lewis' announcement saying his retirement will not impact his ongoing investigation.
In a news release on his retirement Lewis said, "The Merrill Lynch and Countrywide integrations are on track and returning value already. Our board of directors and our senior management include more talent, and more diversity of talent, than at any time in this company's history. We are in position to begin to repay the federal government's TARP investments. For these reasons, I decided now is the time to begin to transition to the next generation of leadership at Bank of America."
And in his memo to employees after the announcement Lewis explained, "Certainly, this journey has been a rocky one, and not for the faint of heart, but perseverance is paying off. There is no question in my mind that our success in these businesses will continue and grow over time."
He added, "Some will suggest that I am leaving under pressure or because of questions regarding the Merrill deal. I will simply say that this was my decision, and mine alone."
