Uneasy Lies The Head - Is Top CEO's Job At Risk ?

Brian Moynihan with Batphone

Bank of America CEO Brian Moynihan has had an interesting week.

An unusual conference call with investors, a visit to see the US Treasury Secretary, his firm's stock price all over the place, and opinions coming from all quarters about whether he is likely to be around for the long haul.

With Fox Business News' Charlie Gasparino reporting that Moynhian will probably be toast if Bank of America has to go back into the market and raise additional capital to resolve its mortgage woes, the pressure is really on - especially as The Financial Times has reported that the bank is 'facing difficulties' selling its 10% stake in China Construction Bank (which was at one point was worth around $20bn, and is now worth several billion less).

Moynihan, however, remains bullish, saying: 'My performance in terms of tranforming the company has been strong'. He added: 'The most important point to keep in mind is that our company remains financially strong - in particular, much stronger that we were either during or coming out of the economic downturn of 2008 - 09. Most of the factors driving market volatility are beyond our control. But for matters within our control, we are taking action'.

It's a huge task, however, with FBR Capital Markets analyst Paul Miller pointing out: 'How in the heck are they (Bank of America) going to settle all these (mortgage) suits unless there's some way to break away from the Countryside liabilities ?'. Even Moynihan admits: 'Obviously, there aren't many days when I get up and think positively about the Countryside transaction'.

Sources - Bloomberg, Fox Business Network, The Wall Street Journal

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