Saturday, 7 March 2009

Change To Win target Bank of America chief

From the CTW Investment Group website:
CtW Investment Group Calls On Bank Of America Board To Remove Lewis Or Face Ouster Vote
Thursday, March 5, 2009

CONTACT: Rich Clayton, 202-255-6433

WASHINGTON, D.C. -- In a letter to Bank of America (NYSE:BAC) Lead Director O. Temple Sloan, the CtW Investment Group called on BAC's board to remove Ken Lewis as Chairman and CEO in light of his disastrous missteps. Since the September 15, 2008 announcement of the merger with Merrill Lynch, BAC has:

Suffered a 90% drop in share price
Allowed Merrill to pay out $3.6 billion in bonuses, even as the firm was hemorrhaging money
Denied any active role in determining the size of Merrill bonuses, a claim subsequently contradicted by documents that have emerged in the NY Attorney General’s investigation
Failed to timely disclose over $20 billion in pre-tax losses at Merrill
Failed to invoke the Material Adverse Effects clause of the merger agreement to protect BAC shareholders from these losses
Removing Mr. Lewis is now a necessary prerequisite to restoring BAC’s credibility with shareholders, regulators and the public. If the board refuses to remove Mr. Lewis, CtW will call on shareholders at Bank of America’s Annual Meeting in April to vote against the re-election of Mr. Lewis, Lead Director Sloan and Corporate Governance Committee Chairman Thomas Ryan.

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