Bank of America Called Out on CEO Search

Rochdale Securities analyst Richard Bove -- who believes Merrill was a wise and profitable acquisition, despite the public furor -- notes that whoever the next CEO is, he or she will face several near-term challenges.

Bove suspects an outsider would bring "sweeping" changes to whittle down the company's operations, similar to those mandated by the government at Citigroup (C). But an insider, too, could face heavy-handed government actions. BofA may be pushed into selling profitable businesses -- especially given Citigroup's recent divestiture of Phibro, and the "too big to fail" kerfuffle -- or have to change pricing strategies to benefit consumers.

BofA shares were down 6 cents to $14.57 in afternoon action.

-- Written by Lauren Tara LaCapra in New York.

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