It is hard to imagine why one of the world’s largest money center banks would have an admiral and a general on its board, but Bank of America (BAC) has done a number of odd things over the last several years, including buying Merrill Lynch under pressure from the Fed and Treasury, destroying tens of billions of dollars in shareholder value in the process.
Retired General Tommy Franks and retired Admiral Joseph Prueher stepped down from the board. The bank has been in the process of adding new directors that have significant banking experience.
The changes would not seem to matter. The federal government watches B of A like a hawk because the firm has been in so much trouble. And most of the bank’s really huge problems, which should have been caught by the board serving in 2006, 2007, and 2008 slipped by the body undetected.
Douglas A. McIntyre