Business OpportunitiesBofA shareholder opposes insiders as CEO candidates
One of the shareholders of Bank of America (BofA) has opposed the firm"s idea to zero in on an insider to replace its outgoing CEO Kenneth D Lewis and has described the current management team as "tainted and not credible".
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The shareholder -- investment management firm Finger Interests -- has called for appointing an outside candidate as the bank"s CEO, while urging institutional shareholders to act now in advising the board of directors regarding this issue.
Recently, Lewis said he would step down as CEO with effect from December 31, 2009.
According to media reports, BofA"s Chief Risk Officer Gregory Greg Curl and Consumer and Small-Business Banking Chief Brian Moynihan are being considered to succeed Lewis.
Describing the "current management team tainted and not credible", the filing noted that the team (except for Sallie Krawcheck) is under investigation by at least five separate governmental agencies including the New York Attorney General"s Office, the Securities and Exchange Commission and the Department of Justice.
"This group of senior managers are not credible representatives who are focused on building shareholder value or increased transparency," it added.
BofA has come under fire for its takeover of Merrill Lynch, which many see as the main reason for the problems at the bank.
Finger Interests said that Curl has been cited in the press as the individual responsible for negotiating the merger of Countrywide and Merrill Lynch acquisitions.
In addition, the family questioned about Moynihan operational experience to run the nation"s largest bank.
"...These senior managers would have had direct knowledge of the day-to-day operations and financial results of Merrill Lynch prior to the shareholder vote, yet none of them protested the disclosure failures or made any attempt to change the course of action by this management," the filing noted.
Finger Interests has also held the current management responsible for decisions related to the non-disclosure of the Merrill Lynch operating losses prior to the shareholders vote (for takeover) on December 5 and non-disclosure of the Merrill Lynch bonuses.
In April this year, irate shareholders voted to oust Lewis as chairman of the company. He was severely criticised for troubles at BofA forcing it to seek two federal bailouts.