WALL STREET: Bank of America's CEO is tightening his grip on the bank
Jul 23, 2015, 22:30 IST
- One Wall Street insider said the firm has "an extremely weak board of directors" that has not been aggressive with leadership.
- Mike Mayo, bank analyst with CLSA, went a step further, describing the bank's corporate governance as "horrendous".
- He added that the bank is too big to buckle to shareholder pressure, and that it would take a combination of hedge funds and regulators to force the bank to break up into smaller pieces.
- He said "the Boston power is tightening its grasp," referring to the group of former FleetBoston executives now in senior posts at Bank of America.
- He also views Thompson's ouster as a mystery. "Between the Loch Ness Monster, Stonehenge and the real reason why the CFO of Bank of America got fired, I think it's among the world's great mysteries."
- One Wall Street insider said: "Clearly Moynihan is increasing his influence over the organization, which is a good thing, because it's a f****d up organization."
- Chris Whalen, senior managing director and head of research with the Kroll Bond Rating Agency, said it's possible Bank of America could consider asset sales including Merrill Lynch under Moynihan. "What the Fed has told banks is to get smaller," Whalen said. "And, to avoid risk."
- Another analyst points out that between the departure of Thompson and wealth management head David Darnell, Bank of America has reduced the list of potential candidates to replace Moynihan yet again.