Bank of America’s outgoing chief executive Ken Lewis, whose resignation from the post came as a complete surprise to Bank of America’s board of directors, will essentially earn no money for his work in 2009 due to the mandate of Kenneth R. Feinberg, the Obama administration’s special master on compensation. Lewis will instead return about $1 million to the bank.
Feinberg, who has the authority to set executive compensation levels of seven major corporations that received federal bailout money, suggested that Lewis should receive no wages or special compensation for 2009. Lewis agreed with Feinberg’s suggestions and stated that he does not …read more

Former Bank of America chief executive Ken Lewis’s sudden departure announcement has left the financial giant struggling to fill the leadership gap that Lewis left. The situation has gotten so bad that the bank’s board of directors have considered a temporary fix, plugging the gap until the board can find another qualified leader for Bank of America.
 
People familiar with the situation have hinted at several Bank of America directors’ wishes to find a replacement that would hold Lewis’s job for only two years, giving the board of directors plenty of time to find an ideal candidate for the job. According …read more

According to a report posted by Bank of America, less and less customers are visiting banks to deal with withdrawing and depositing, relying on other methods of doing so. Instead of waiting in line at the bank, customers are relying more on virtual account access through the Internet and ATMs.
 
The report revealed that almost 50 percent of all deposits are made using ATMs, which marks a 17 percent increase from six months ago. About 2.8 million customers have begun banking via cell phone in the last year and a half, and Bank of America is responsible for 60 percent of …read more

Many industry analysts and shareholders wondered what Bank of America was thinking when it went through with its acquisition of struggling financial giant Merrill Lynch. However, former Treasury Secretary Hank Paulson will admit tomorrow at a congressional hearing to informing BofA CEO Ken Lewis that he would oust the executive if Lewis did not go through with the acquisition.
 
After Paulson releases his statements concerning his actions last December that essentially forced Bank of America to absorb Merrill Lynch, Paulson will be faced with questions from committee members. Paulson, however, has expressed his confidence in his actions, stating that everything he …read more

Federal Reserve Chairman Ben Bernanke has denied any wrongdoing in what appeared to be a case of corporate bullying. Bernanke was accused of going so far as to threaten Bank of America CEO Ken Lewis with punishment if he were to cancel Bank of America’s acquisition of Merrill Lynch in 2008.
However, Bernanke has admitted to a House committee that he did, in fact, talk to Lewis about the deal, but that he only warned Lewis against canceling it. Otherwise, Bernanke flatly dismissed the rest of the accusations against him in his first public comments since the House committee began its …read more

Ken Lewis, currently the CEO of Bank of America, may not have his position for too much longer if at least one shareholder has its way. Finger Interests Number One, an investment group that owns about .002% of the stock of Bank of America, wants Lewis replaced. Whether or not the wish will be granted will be decided at the April 29th shareholders conference.
Finger Interests Number One is most peeved about a perceived lack of respect shown toward shareholders when Bank of America was buying Merrill Lynch. The investment group said that Merrill Lynch’s failing status wasn’t made available to …read more