UPDATE: The Bank of America directors subpoenaed by NY AG Cuomo were members of the bank’s audit committee at the time of the Merrill takeover, and include current Chairman Walter Massey and retired U.S. Army General Tommy Franks, according to The Wall Street Journal.
Franks and two additional supboenaed directors — John Collins and Bill Barnet — left the board earlier this year after “regulatory demands that the bank improve its corporate governance and find more directors with banking expertise,” the WSJ said.
Andrew Cuomo’s war against Bank of America (BAC) continues. The latest, says CNBC: The New York AG has subpoeanaed five BofA directors. The ambitious Cuomo probably wants to know if the board was totally sleeping in the months leading up to the crash, and then in approving the Merrill acquisition — to the detriment of BofA shareholders.
Of course, it’s the job of the directors to look out for shareholders, and make sure that a cocky CEO isn’t driving them off a cliff.
Being forced to fly up to New York for a Cuomo grilling won’t make the directors any more fond to Ken Lewis.