Regulators Pressuring BofA (BAC) to Shake-Up Board

According to a piece being ran in today's WSJ, federal regulators are pressuring Bank of America (NYSE: BAC) to take a look at revamping its Board of Directors, possibly adding directors with more banking experience. While the move certainly aims at improving operations at the embattled bank, stakeholders are concerned that the government influence could be a little overwhelming given that it currently does not hold a stake in BofA.

Following BofA's Annual Shareholder meeting earlier this month (where investors ousted CEO Ken Lewis from the Chairman position), the new Chairman, Walter Massey, has already unveiled an independent committee to review and recommend changes to board's size and structure. As bailout funds piled into BofA's coffers, regulators signaled to management that moves to improve the board would be "well received" by federal regulators.

The topic also highlights BofA's need for a reliable succession plan for whenever Mr. Lewis decides (or is forced) to leave the U.S.'s largest bank. On a call with analysts earlier this week, Lewis indicated that such a decision was not his but that he "would like to see us at least start to be able to pay back the government money, if not do it all..." before succession plans were exercised.

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