This is l o n g overdue.
“Federal officials have pressured Bank of America Corp. to revamp its board by bringing in directors with more banking experience, as regulators place the bank under increasingly heavy government scrutiny.
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. [BR: Really? What about China Construction and Countrywide Credit ?]
The Merrill deliberations were the beginning of regulators’ deepening involvement in the Charlotte, N.C., lender’s day-to-day operations.
The moves underscore the balancing act faced by the federal government as it tries to steer the banking sector through its crisis while also involved in a broader pattern of engagement in the operations of individual U.S. banks.
BofA Urged by Regulators to Revamp Board of Directors
DAN FITZPATRICK and DAMIAN PALETTA
WSJ, May 15, 2009