BofA's Moynihan faces stress test

Brian Moynihan With Batphone

When Bank of America shareholders gather next month to decide if Brian Moynihan can keep his chairman title, they won’t be the only ones about to weigh in on his career.

Bloomberg News reports that the September 22 vote comes a week before the bank has to prove it has a firm grip on risk as it resubmits a capital plan to the Federal Reserve.

If the Fed finds the bank didn’t fix weaknesses disclosed in March, it could crimp dividends or share buybacks for the third time during Moynihan’s tenure as CEO. That’s already a sore point for investors getting one of the smallest payouts among U.S. banks.

'If they fail this time, I’d call for his head', said E.E. 'Buzzy' Geduld, who owns 2.5m Bank of America shares as head of hedge fund Cougar Capital. 'At the very minimum, you split the CEO and chairman roles, and I’d like to see someone from the outside who’s smart enough and strong enough that Moynihan’s going to have to answer to'.

To access the complete Bloomberg News article hit the link below:

BofA’s CEO Faces a Stress Test of His Own From Impatient Investors

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