At Bank of America, Merger Still Hasn't Paid Off

Bank of America (BAC Quote) shareholders have their annual meeting Tuesday, more or less two years after NationsBank and BankAmerica agreed to merge to form the nation's second-largest bank. But they don't have much to celebrate, according to several analysts and investors.

While several of its competitors are flourishing, the Charlotte, N.C.-based institution has been showing weakness in its large consumer and commercial divisions. First-quarter results, released last week, showed these trends clearly. And investors have continued to vote against the merger: Bank of America shares are off 35% over the last two years, compared with a 10% decline in the KBW Banks Index, which tracks the nation's 24 largest banks.

If these shortcomings persist, investors naturally will wonder whether management, led by Chairman and CEO Hugh McColl, can make the merger a success. ...