A Troubling Trend at Bank of America

When looking at the leadership of any big bank from an investing perspective, the CEO often gets most of the focus while the board of directors can sometimes be overlooked. After the financial crisis, Bank of America (NYSE: BAC  ) had several experts from highly regulated industries appointed to its board of directors. Now that several of those experts are leaving, Fool financials analyst David Hanson highlights one trend he sees as worrying in the relationship between Bank of America CEO Brian Moynihan and several of the new board members coming in to replace those on the way out. Will these new board members have the banking savvy to challenge Moynihan and keep him in check or are they just yes men?

Bank of America’s stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it’s critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool’s premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.


Read/Post Comments (5) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On March 25, 2013, at 5:44 PM, Rusty56 wrote:

    Dave, really? This is just lame!

  • Report this Comment On March 25, 2013, at 8:32 PM, tooearly2retire wrote:

    Changing management is normal and necessary. Assuming they don't agree with M is a reach, and if they don't, why is that a reason to doubt his leadership. He is dealing with the hand dealt and making changes is normal. Some will be good and some will be bad, but hopefully net positive. As for having a bunch of former bankers on the board to "challenge" the strategy. Yeah, that makes no sense. Can you imagine a bunch of former self-important bankers trying to one-up eachother to lead the show? Turmoil that will be devastating from the top down. Dave is showing is lack of experience here.

  • Report this Comment On March 25, 2013, at 8:42 PM, funfundvierzig wrote:

    An insightful observation, Dave Hanson.

    Investors might keep in mind the Chairman of the Board of Directors and Chairman of the Executive Committee of the Bank of America Corp is the ex über boss of the DuPont Company, Chad O. Holliday, Jr. Holliday has no banking or financial background of which we are aware.

    DuPont can be characterised as one of the most unethical chemical enterprises on the globe in the 21st century with a long history of dirty-dealing and fraud-mongering. Evidence of lack of integrity includes criminal price-fixing, toxic Teflon chemical cover-ups, robbing Monsanto of superior patent-protected seed technology, FRAUD on the U. S. DIstrict Court hearing the Monsanto patent infringement case, as well as defrauding investors and the public as to DuPont lagging seed business and its phony right to "use" Monsanto's know-how, misrepresentation of DuPont medical products, breaking FDA rules, systematic lying about the toxic contamination of an entire town in West VA, Spelter, the tree-killing Imprelis consumer product fraud, BENLATE litigation fraud, numerous instances, worker-killing SHAM SAFETY in cost-slashed DuPont factories and cooking OSHA books, undsoweiter.

    The DuPont corporate culture is hardly what this bank needs in the year 2013. ...funfun..

  • Report this Comment On March 25, 2013, at 10:34 PM, Itzel1fx wrote:

    OK. In the last week I have seen at least 6 articles saying Buy BoA and at least 6 saying don't buy BoA.

    Does the Motley Fool have an official position or is it "Any Fool's Choice?"

  • Report this Comment On March 26, 2013, at 8:59 AM, TMFHurricane wrote:

    @Itzel1fx,

    Here on Fool.com, we like to look at companies from all angles. Some of us are bullish on these companies, some are bearish. In this case with B of A, I am actually bullish on the stock in the next 2-3 year time frame, my take in this video was a trend for long-term investors (5-10 years) to be aware of and watch for! Thanks for your comments.

    Fool on!

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