The news that two of Bank of America's top accounting executives were not consulted before the bank disclosed that a proposed dividend increase had been rejected by regulators is a devastating indictment of the bank's internal controls.
It's fair to ask what else is being kept from the Chief Financial Officer and Chief Accounting Officer. The bank's dividend policy goes to the core of what these gentlemen do. If they aren't involved in these public filings, who the Hell is running the place?
Bank of America has a long history of these kind of missteps. It infamously fired its chief counseljust four days after the shareholder vote to approve the acquisition of Merrill Lynch. The reasons are still obscure.
It only makes matters worse that the exclusion of Chief Financial Officer Chuck Noski was not deliberate. That implies that the top officers are divorced from the day-to-day operations. Can their statements about the bank be trusted if their underlings are making the decisions for them?
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