BofA Could Take Cue From Ford, IBM

The jury is still out on Whitacre, and while Nardelli has his defenders, he remains deeply unpopular due to a huge compensation package and a tough management style at Home Depot. While he may not have been able to keep Chrysler out of bankruptcy, the fact that it met that fate, and got bailed out by the government, has probably not endeared him to the public.

Despite the fact that the car companies have made it trendy to do so, it is hard to imagine BofA would bring in a CEO from outside its industry. Reports suggest the board is mostly focused on candidates inside the bank, such as Chief Risk Officer Greg Curl and consumer banking head Brian Moynihan. Apparently under pressure from investors, the board is reported to have broadened its search to include outsiders such as Bank of New York Mellon (BK)Chairman and CEO Robert Kelly and JPMorgan Chase (JPM) retail banking head Charles Scharf. The board could announce its decision as soon as this week.

Further complicating the issue is the role of the U.S. Government, which retains a $20 billion preferred equity stake in BofA as a result of the Troubled Asset Relief Program. BofA reportedly took heat from regulators earlier in the year for not having enough directors with banking experience. BofA fixed that by bringing in six new directors, including former Morgan Stanley (MS) co-President Robert Scully, who joined the board in August. Four directors who joined in June also had experience as bank regulators or at other banks.

-- Written by Dan Freed in New York.

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