Kenneth Lewis ousted as Bank of America chairman


After attacking him over the acquisition of Merrill Lynch, shareholders vote narrowly to keep the beleaguered chief executive on the board. Walter Massey replaces him as chairman.

By Walter Hamilton
3:18 PM PDT, April 29, 2009

Reporting from Charlotte, N.C. -- Amid the chorus of criticism that descended on Kenneth Lewis, shareholders of Bank of America Corp. ousted him today as chairman but, in a narrow vote, kept him on the bank's board of directors.

Elected as chairman was Walter E. Massey, while Lewis remains chief executive and president, according to a statement.


Lewis and 17 other directors have presided over the dramatic plunge in Bank of America's stock price during the financial crisis.

Lewis, in particular, has faced sharp disapproval for his role in Bank of America's hastily arranged merger with Wall Street investment bank Merrill Lynch & Co. last year and a series of embarrassing revelations since then, including Merrill's huge fourth-quarter loss and Merrill's early payment of bonuses to its employees.

He also came under blistering criticism recently for not alerting shareholders to Merrill's woes immediately after he learned of them and for proceeding with the deal after that. Lewis has maintained that top federal officials pressured him late last year to keep quiet and complete the Merrill purchase for fear of dealing another blow to the reeling financial system.


At the meeting, shareholders lined up before microphones to express their anger at Lewis.

"You knew what was going on at Merrill Lynch," one woman said. "You kept it from us."

Lewis defended his actions and the Merrill purchase. He pointed out that Merrill and former mortgage lending giant Countrywide Financial Corp. in Calabasas greatly boosted Bank of America's first-quarter earnings.

"These acquisitions are not mistakes to be regretted," Lewis said. "Both are looking more and more like successes to be celebrated."

BofA shares rose 53 cents, or 6.5%, to $8.68 before the final vote tallies were announced.

walter.hamilton@latimes.com

http://www.latimes.com/business/la-fi-b ... 3139.story