Friday, May 15, 2009

Feds Teach Corporate Governance to Bank of America

So, the Feds are pressuring Bank of America to reconfigure their board so someone actually knows what they are doing. OK, they didn't say that exactly, but the point remains. The BofA board is lacking in financial talent. While there is room for improvement, I think the key is for the board - regardless of who sits in the seats - to actually do their jobs. They've sat by for far too long, especially in their continuous support for CEO Ken Lewis after each major multi-billion dollar gaffe. If it takes the Feds to bring better corporate governance to Bank of America, so be it. We can't be happy with this unprecedented involvement of the federal government in how companies are run, but what does it say about corporate governance in America if boards won't fix themselves?

One final point - if the board can't move off of Ken Lewis, perhaps the Feds can help there too...

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