The market spent the day as it has many a Friday in the summer: slowing going no where.

The University of Michigan/Reuters consumer sentiment index showed a very modest increase in June up to 69, from 68.7 in May. The same survey showed that expectations for six months from now actually dropped.

Oil and gas prices still dominated the headlines. Oil still hovers around $72 and the average price of gas rose for the 45th consecutive day to $2.63. The has to rattle consumers who have precious little discretionary income as it is.

This Wall Street Journal (subscription required) blurb says it all: "A BofA director has quit and more resignations are expected as the company seeks to remake its board with bank and finance experts."

Aha! What a novel idea!

One of the largest banks in the world has decided that maybe, just maybe, it would be a good idea to put people on its board of directors who are experts in the world of banking. This is a perfect example of the corporate governance breakdown that drove Bank of America (NYSE: BAC) to its current state -- and a great example of why CEO Ken Lewis and every other member of the company's board of directors should be kicked out as a condition of the billions in bailout money the company has received.

Say what you will about Bank of America (NYSE: BAC) CEO Ken Lewis, but you have to give him this: He's a survivor.

Here's a guy who made acquisitions that should have bankrupted his company, but was able to get the United States government to take on the risk and leave the upside to him and his badly-beaten shareholders -- and then tried to blame the whole thing on the Treasury Department.

But through all that, he got to keep his job as CEO. True, he did lose his title as chairman of the board: But doesn't that seem kind of like kicking the Unibomber off the co-op board?

Bank of America (NYSE: BAC) CEO Ken Lewis has been trying to sell the South Carolina vacation home he owns in partnership with a North Carolina restaurateur for three year. He just slashed the price by 13% -- to $3.3 million.

The Wall Street Journal reports (subscription required) that "the 5,700-square-foot Low Country home is on Spring Island, a causeway-accessible private community near Hilton Head Island, and has three bedrooms, a screening room and an office. The property has a deepwater pier and is near the island's 1,300-acre nature preserve. The home was off the market for a number of months."

Everyone's favorite corporate outhouse/welfare diva Bank of America (NYSE: BAC) has begun its search for directors to replace deposed former chairman Ken Lewis, along with any other directors who might step down.

The company is also considering changes to its board structure that could result in a search for more new blood, but the Wall Street Journal reports (subscription required) that the ward of the state hasn't yet hired a firm to find new directors.

Here are the unofficial closing numbers:

Dow 8,169.00 -16.73 (-0.20%)
S&P 500 872.42 -1.22 (-0.14%)
Nasdaq 1,715.10 +3.16 (0.18%)

The largest pension fund in the country, the California Public Employees' Retirement System (Calpers), wants Ken Lewis and every single one of Bank of America's (NYSE: BAC) 17 other directors sent packing for not disclosing mounting losses at Merrill Lynch or the company's secret meeting with the Treasury Department looking for money to complete the acquisition.

Calpers joins the Service Employees International Union, CtW Investment Group, and a number of other influential shareholders and proxy advisors in voting for Ken Lewis to be kicked off the company's board of directors.

When the history of this financial crisis is written, this story story will be a contender as a standout example of its kind. It is one of the slickest, under the table, sleight of hand deals ever.

Picture this. The financial markets are falling apart right and left. Lehman, Bear Stearns and Merrill are going down for the count. In the midst of this confusion Bank of America Corp (NYSE: BAC) is in the process of taking over Merrill Lynch. Merrill executives and employees are in a state of panic but at the last moment they regain their composure and have the audacity (word is too mild) to pay themselves $3.6 billion in bonuses just days before the BofA takeover.

Bank of America (NYSE: BAC) CEO Ken Lewis has based what is left of his reputation on the fact that the firm does not need another dime in government money. As a matter of fact, he regrets taking as much TARP cash as he did.

According to Bloomberg, Oppenheimer & Co. believes that "Bank of America Corp., the largest U.S. bank, needs to raise $36.6 billion in equity to bring capital ratios in line with its peers." In this environment, that money is not going to come from the private sector. The only entity with the stones to put it up is the U.S. government.

While the money may not come in exchange for common stock, any instrument is likely to have some conversion provisions, which means that dilution is possible. With a market cap of $44 billion, current Bank of America shareholders will be facing a large haircut if Oppenheimer is right. The stock trades at $7.

Douglas A. McIntyre is an editor at 24/7 Wall St.