BofA is forced to change its managers

The Bank of America becomes object of observation from the direction of government officials. Regulators urged the bank to change the Board of Directors staff by bringing in the member with more great experience in banking sphere. 

The move of such influence of government regulators appears to be unusual due to the fact that the government hasn’t stake in this financial institution. All woes of the bank started from the acquisition of Merrill Lynch & Co., which was prodded by federal regulators.

As a result, Chief Executive of the bank Kenneth Lewis has been replaced by Walter Massey. A week after that, on May 7, Mr. Massey built up a committee, which will recommend changes to the board's structure and size and supervise the bank’s responsive actions to a federal "stress test», which demands an additional equity.

Prior to that, the government regulators (the Federal Reserve and the Office of the Comptroller of the Currency) had signaled the bank’s management the need of such steps. Also the regulators suggested that the reformation of Board of Director should be supervised by independent directors.