Sunday, August 02, 2009

Bank of America Revolving Board

Bank of America (BAC) announced several more directors have resigned. Media reports focus on why they were on the board. What Bank of America and the regulator need to come out with is “What is the strategy for appointing directors? The old guard leaving is good. How is the shareholder interest being protected? New directors must at least have some informal vetting from other major institutional shareholder. Also what residual liability exists for their past poor decisions? I must note that Mr Countryman who is on the Liberty Mutual Board is leaving. I have been very critical recently about Liberty Mutual’s financial reporting.