Jerry and Jonathan Finger are the father-son duo behind Finger Interests, an investment firm, and like most Bank of America (NYSE: BAC) shareholders, they're none too pleased with the company's performance.But instead of cowardly selling the stock or crying into their pillows about it, they're taking on the company's management, and calling for the ouster of the company's CEO.
"We believe the board allowed management to pursue acquisitions that have permanently reduced shareholder value through dilution, particularly with the acquisition of Merrill Lynch approved by shareholders without access to full disclosure on Dec. 5, 2008," father Jerry Finger told Forbes. "The board -- including its leadership -- and management knew, or should have known, of massive fourth-quarter losses at Merrill during October and November prior to the shareholder vote but did not communicate those losses or amend the proxy that shareholders used to vote on the merger."
Mr. Finger added that "I am convinced that the current Bank of America board and management failed in their responsibility to protect the interests of shareholders on the Merrill Lynch acquisition."
Here's what I don't understand: Why just push for the dismissal of the CEO? Ken Lewis is obviously an idiot, but he's an idiot enabled by the board of directors. The fact that the company's directors allowed him to embark on a course of value destruction and haven't fired him yet shows just how deep the changes at BofA need to go. They need a new CEO and an entirely new board of directors.
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Reader Comments (Page 1 of 1)
3-16-2009 @ 3:24PM
davis10oregon1 said...
CAUGHT BETWEEN TWO TOP LEADERS, ONE IN, THE OTHER OUT. THE ARM TWISTING STARTED--- WHERE ?
THE SAGA CONTINUES--- CURRENTLY PLAYING AT A THEATRE NEAR U .
REST ASSURE ONE IS NO IDIOT .
CHECK THE GAME PLAN PRIOR TO .
THOSE ACCOMPLISHMENTS WERE NOT DONE BY A LESSOR ONE (AS IN IDIOT.)
3-16-2009 @ 11:52AM
basement frog said...
Sounds like two short sellers who got on the wrong side of the current market.
3-16-2009 @ 11:42AM
BHarrison said...
This is a very succient position and action to take . . . but doesn't this SAME thing apply to ALL of the FIs who have been involved in the "derivatives' and other frauds?
The "rubber stamp" Boards of Directors should be held fully responsible for having failed to perform their fiduciary responsibilities to serve "the best interests of the stockholders", not corporate management.
The "revolution" needed to address these economic problems and "CRIMES" is to oust all of the guilty and/or irresponsibile "upper management" . . . including the errant Boards of Directors.
3-16-2009 @ 11:53AM
basement frog said...
Personnally as a shareholder I love the idea that BoA has both Countrywide and Merrill Lynch.
After the recovery begins, the stock will be golden.
Those are two major purchases and bought for cheep if you ask me.
Great steal. But the company was a bit forced into this by the Paulson, as I recall, with the promise of some government aid.
Fisher sounds too fishy.
3-16-2009 @ 1:11PM
gerald said...
Bank of america has the worst customer service of any bank I ever used. Two of my friends and myself have all stiffed this bank because of its poor customer service.
3-16-2009 @ 1:36PM
Matthew said...
STAY AWAY FROM B OF A BE WARN!!!!!!!!
3-17-2009 @ 12:05AM
mjbrooks said...
Call me an idiot if you want, but I see BAC in the $30-40 range by year end. There is still a credit derivative market to hit bottom, but I agree with earlier comments that Merrill Lynch and Countrywide were better long term buys.