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 The government is not the only one seeking to revamp Bank of America Corp.'s (NYSE:BAC) board. Some shareholders are already prepared to see change.Shareholders such as CtW Investment Group -- which was involved in the proxy that separated Ken Lewis' roles as CEO and chairman in April -- believe the entire BofA board needs to be reconstituted and therefore welcomes the government's reported involvement. CtW spokesperson Michael Garland told Dealscape, "Given the taxpayer dollars now at risk at BofA, it's appropriate and necessary that the government also weigh in. It certainly intensifies the pressure on the board to move aggressively to both reconstitute itself and accelerate CEO succession." The government is apparently pressuring BofA to bring in a board with more banking experience after stress tests showed it needed $33.9 billion in capital, The Wall Street Journal is reporting. The move is an unusual and significant one, according to the Journal: "The move represents unusual influence by the federal government over the workings of a financial institution in which it doesn't own a stake. It's particularly significant because many of the bank's woes stem from its purchase of Merrill Lynch & Co. -- an acquisition that was completed after heavy prodding by federal regulators. The Merrill deliberations were the beginning of regulators' deepening involvement in the Charlotte, N.C., lender's day-to-day operations." Separately, Temasek Holdings Pte. Ltd. sold its stake in BofA and is planning to invest in Asia instead, according to the Financial Times. The Singapore sovereign wealth fund is "bringing its unprofitable investment to an end," the FT wrote. Can you blame them? BofA shareholders have watched their investments fall by 70% since the purchase of Merrill Lynch & Co. last year, according to the Charlotte Observer. Boston University professor James Post, who teaches corporate governance and ethics, told the Observer that it could take a while to replace the board and name Lewis' successor. But one thing is for sure: Massey must step down next year due to his age. The board's mandatory retirement age is 72. Other board members who might be replaced, according to the report, include:
The Journal says board replacement candidates include: Brian Moynihan,
Barbara Desoer and Joe Price. - Maria Woehr
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