Bank of America (NYSE: BAC) CEO Ken Lewis has managed to survive a massive decline in shareholder value, two government bailouts, a raft of shareholder lawsuits, SEC investigations, civil fraud charges, and a wave of populist angst about the company's business practices.
But now CNBC reports that experts are questioning whether Lewis will be able to hang on as investigations of the company's acquisition of Merrill Lynch intensify. The FBI is reportedly taking a look, which suggests that criminal charges could follow.
Of New York Attorney General Andrew Cuomo's investigation, CNBC adds that "Whatever Cuomo and other investigators decide, legal issues can drag on for years, and companies often cut ties with executives to minimize such distractions, according to corporate governance experts."
Will Lewis be able to make it? At this point, I think you'd have to be crazy to bet against him. In terms of longevity and staying power, he's right up there with Cher and Tony Bennett. We're talking about a guy who destroyed wealth for his shareholders and his customers, while also dragging U.S. taxpayers into the mix -- and, according to the SEC, engaging in fraud in the process. Let's not even talk about all the employees who lost jobs because of his bungling.
But the fact that Lewis remains at the helm raises grave questions about the competence and impartiality of the company's board of directors. Lewis has pretty much no supporters left outside of the boardroom.
On the other hand, finding someone willing to step in and try to clean up the mess that Lewis created might not be so easy. Perhaps that was part of his management strategy: botch things so badly that you won't be fired because you can't be replaced.
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