WSJ: Gov't Pressuring Bank Of America Board Change

IEVA M. AUGSTUMS

CHARLOTTE, N.C. (AP) — A report Friday said federal officials are pressuring Bank of America Corp. to revamp its board and bring in directors with more banking experience.

The story in The Wall Street Journal called the regulators' move "unusual" as the government does not own a stake in the company, and most of the bank's problems are the result of its purchase of Merrill Lynch & Co., which was advised by regulators.

Bank of America said last week it was looking for new directors, but gave little detail. The announcement came as the government, after completing its stress test of the bank and 18 other financial companies, said Bank of America needed to raise nearly $34 billion. The bank has received $45 billion in government funds as part of the Treasury Department's $700 billion financial rescue package.

The Journal said regulators including the Federal Reserve and the Office of the Comptroller of the Currency had previously signaled to the bank's leadership that changes in the board would be well received by the federal government, the Journal report said.

Bank of America spokesman Scott Silvestri declined to comment on the report, but said every bank that participated in the recent U.S. stress tests was advised to review its board and management.