This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank of America's Last, Best Hope

Stocks in this article: BAC JPM WFC

"With many law enforcement people, it's kick 'em and, you know, that's it: put 'em out of business," Sporkin says "That impressed me, that he was willing to work with companies and not look at it only with a law enforcement mentality."

That style was in marked contrast to that of former New York Mayor Rudy Giuliani, who also led the criminal cases against Milken and Boesky as the U.S. Attorney for New York's Southern District. Giuliani favored attention-getting tactics like having federal agents escort Wall Street executives out of their offices in handcuffs. In at least one instance, the charges were eventually dropped, according to a 2007 report by Bloomberg News..

Gary Lynch as a young bank watchdog.

Friends of Lynch say he has always favored a low-key approach.

"In my professional life, to include the 7 years I served as an officer in the Marine Corps, there is no one I hold in higher regard than Gary Lynch when it comes to character and integrity," says Pat Patalino, who worked for Lynch at Davis Polk, Credit Suisse and Morgan Stanley, before taking his current job as general counsel of Baron Capital.

Character and integrity is certainly something Bank of America would like to have in its corner at the moment, as it has so far been unsuccessful in assuring investors it has a handle on mortgage-related legal headaches, many of them the legacy of its 2008 acquisition of Countrywide Financial.

"I don't know of anyone that's been particularly impressed with how Bank of America CEO Brian Moynihan has been running the company," says Gary Townsend, portfolio manager and founder at Hill Townsend Capital, which owns Bank of America shares on the theory that they are too cheap to pass up.

"Now that they need someone to advise the general counsel--maybe they do. It suggests to me that maybe the general counsel is deficient in some particular, but perhaps this guy is going to be more of a lobbyist with people that he knows quite well, and can be an effective advocate for Bank of America in dealing with attorneys general and other constituencies," Townsend says.

Advocacy certainly is something Lynch brings to the table, according to John Coffee, securities law professor at Columbia University.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs