This Day On The Street
Continue to site
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

Bank of America's CEO Should Follow Pandit: Street Whispers

NEW YORK ( TheStreet) -- Citigroup (C - Get Report)'s firing of CEO Vikram Pandit shows that bank boards may finally be taking their responsibilities seriously, so maybe Bank of America (BAC - Get Report)'s board will step up to the plate and dump their CEO, Brian Moynihan.

Bank of America shares have lost 37% since Moynihan took over as CEO in 2010--while Citigroup shares are up roughly 10% over the same time period. While most of Bank of America's problems stem from the acquisition of Countrywide in 2008, which can't be pinned on Moynihan, he hasn't been able to convince the market he's got his arms around the problem. He also hasn't been able to clearly articulate his strategy for the bank going forward, which is the reason a major investor in the shares and a prominent analyst who covers the company can't agree on what it is.

Also, as longtime Bank of America shareholder Jonathan Finger of Finger Interests points out , Moynihan could shed some additional light on whether Bank of America has considered putting Countrywide into bankruptcy and why it hasn't gone that route.

More important, though, and also noted by Finger, is that Bank of America's brand is in the toilet, and management seems to be unconcerned about this issue. In order for Bank of America to rebuild its consumer business, it will need to find a way to counter its image as a sleazy, inept corporate monolith that screws up people's paperwork and chucks them out of their homes. Since Moynihan can't seem to figure out a way to do that, Bank of America's board needs to find someone who can.

Finger doesn't want to see Moynihan get the boot as he believes it would just be a distraction at this point. There are also concerns about whether the bank could find anyone qualified to run it. But now that the housing market is rebounding, turning around Bank of America seems far easier than it did just a year ago. Attracting outside candidates ought not to be so difficult. Look at AIG (AIG) and the remarkable job Bob Benmosche has done turning around that institution. Before Benmosche was brought in to lead AIG, no one would've believed anyone qualified wanted that job either.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.05 0.00%
C $44.06 -0.38%
FB $119.25 1.20%
GOOG $708.50 1.00%
TSLA $215.58 1.90%


Chart of I:DJI
DOW 17,685.39 +24.68 0.14%
S&P 500 2,046.99 -3.64 -0.18%
NASDAQ 4,701.3840 -15.71 -0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs