California Public Employees stand up to BofA

[ColbertWatcher]

From the Los Angeles Times
CalPERS stands up to Bank of America management
Pension fund says it will vote to oust all 18 directors. The symbolic move could unite other shareholders upset about BofA's takeover of Merrill Lynch.
By Tom Petruno
April 29, 2009

The California Public Employees' Retirement System joined with other activist shareholders irritated by the company's failure to tell shareholders about the financial woes of Merrill Lynch & Co. before the bank bought the brokerage last year.

The California State Teachers' Retirement System also has said it would vote against all BofA directors.

New York Atty. Gen. Andrew Cuomo disclosed last week that Bank of America Chief Executive Ken Lewis said he was pressured by the federal government to go through with the takeover despite alarm over Merrill's rising losses.

Instead of backing out of the deal, Bank of America received a second large infusion of government capital in January. The bank's shares are down 42% this year, compared with a 28% drop in the BKX index of 24 major bank stocks.

"The entire board failed in its duties to shareowners and should be removed," CalPERS Board President Rob Feckner said in a statement.

(more at the link)

--Los Angeles Times

[DJ13]

1. BofA delays release of votes on Lewis, directors

CHARLOTTE, N.C. (AP) -- Ken Lewis is keeping his seat on the Bank of America Corp. board, but his job title is less certain.

Shareholders at Bank of America's annual meeting Wednesday voted to re-elect the bank's entire 18-member board including Lewis, according to a person with knowledge of the vote tally who spoke on condition of anonymity because he was not authorized to disclose the results. But executives said at the nearly four-hour meeting they needed more time to count the ballots for the 11 proposals that were put to a vote -- including a shareholder proposal to strip Lewis of his chairman's title, leaving him with just the CEO's job.

It was likely that the vote on that proposal was close, and industry analysts saw this as a sign that Lewis has lost support following the Jan. 1 acquisition of troubled Merrill Lynch & Co.

"In effect, it's a vote of confidence against him," banking industry consultant Bert Ely said of Lewis. Even the possibility that the vote is so close that ballots are still being tallied is a sign of unrest among investors, he said.

http://finance.yahoo.com/news/BofA-delays-release-of-votes-apf-15072881.html?sec=topStories&pos=3&asset=&ccode=