Bank of America Holder Rebukes Lewis

TheStreet.com: It seems like Ken Lewis is determined to stay there until he pays back the TARP money, and he promotes Bank of America as a healthy institution in order to turn sentiment around. What do you think will happen if he does stay at the firm?

Jerry: We need a change. We need a different method of corporate governance and a different leadership and management. I don't think it's a good idea that he stays, and that of course is the object of our efforts.

Jonathan: We think there is a significant credibility issue that Mr. Lewis has with investors and Wall Street analysts... I think people were shocked when they did the Merrill Lynch deal, but then they were also shocked when he didn't tell anybody about Merrill Lynch's losses in October and November, and then also he comes out in January and says, 'Oh, by the way, we're going to take another $24 billion in TARP money.

TheStreet.com: As a high-profile investor in Bank of America, do you have any plans for what you're going to do with your position? Have you sold any of your shares or changed your position at all amid all of this turmoil with Bank of America, and do you have any plans to do anything whether or not Lewis is ousted from his roles on the board and as CEO?

Jonathan: We are long-term holders. We've held our stock for over 10 years at this point. The reason we continue to hold the stock is because we do believe that the company has significant franchise value. So we would continue to expect to hold the stock, perhaps two or three years down the road if it recovers, having gone through this situation, we may reduce our stake somewhat.

Jerry: Look, we have reduced our stake over the last 10 years just to have some diversification. We were long; we plan to be long-term holders of these million-and-one shares... We hope with some change, the stock can go back to the $30 level, even if not the $50 level it was before.

TheStreet.com: So it's not a Bank of America issue, it's an issue with management right now?

Jerry: Yes, it is. In fact, I think it's an issue that really pervades the whole corporate structure in this country. Boards of directors must realize their responsibility and accountability to shareholders.