by dionysus on 2009/10/05
Given that Bank of America is the recipient of $45 billion of our money, that makes us – that’s you and I dear readers, the tax paying hard working citizens of this timeless republic – shareholders in BofA with Uncle Sam as our voting proxy. We own 35% of BofA’s pro forma tangible equity. As of today, they have not repaid penny one of the principal.
One would imagine then, that the Federal Government is going to show some possible veto muscle when Ken Lewis’ successor is being discussed. As I said…”one would imagine”. Excuse my sudden burst of inadvertent cynicism. Excuse me, I’ll be OK in a moment or two.
OK, where were we? Oh yes, the selection of a new CEO – riiiiiight.
Thus, I have to wonder whether Treasury officials, et al are going to prefer a hard charging CEO that has the vision and energy (not to mention the Mother of All Rolodexes) to chart a profitable path forward for this banking behemoth, or a virtually faceless safe choice that is going to put the green eyeshades on and focus over the next 5 years or so, on cutting costs and avoiding pissing off regulators or anyone on the Hill.
Your intrepid scribe thinks that the list of people who can do this job without screwing it up is a rather small one.
Tagged as:
BofA
by dionysus on 2009/10/01
Bank of America board member and CEO Ken Lewis announced his resignation from his job, and departure from BofA’s board last night in a surprise conference call with board members. In a sickeningly sentimental self-indulgent letter of resignation, he seemed to claim that the job was done:
I now have a strong sense that the work that has consumed me for the past eight years is largely finished, and that it is time for a new leader to take on new challenges with all of you.
Then, somewhat disingenuously I think, he asserted that this was his decision:
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.
Yeah Ken…right. We believe you. Sure we do.
The board appeared to be caught off-guard by the timing of his announcement, and have yet to interview or name a successor.
But – according to a New York Times article – Clark Gifford a fellow board member is quoted as saying:
“He said he felt it was the time, and that he was the only one who could understand that,” Mr. Gifford said. “The guy just cares so much about the institution. I mean, that’s what he told us.”
“cares so much about the institution”? Gimme a break here!!! A CEO who genuinely cared about the institution he had led for eight years would have prepared carefully for this event, and not left the board or shareholders wondering what the hell happens next, or caused a wave of speculatve trading to torment the stock price until a successor is named.
This could and should have been handled differently.
Anyway, so long Ken, and don’t let the door hit ‘ya in the ass on the way out.
Tagged as:
BofA
