For more we went right to the source and spoke with Jonathan Finger, a managing partner at Finger Interests Number One Ltd.
He told us the BofA’s board ignored their obligation to act in shareholders’ best interests when they okayed the purchased Merrill Lynch.
Specifically he alleges the board did not provide shareholders with proper disclosures about Merrill's mounting losses or the amount of toxic assets on the books. “Those are required shareholder disclosures that they should have made,” Finger says on Fast Money
And Finger is hardly the only one making these types of accusations. Several other shareholders have voiced similar charges – and have demanded Lewis step down or they too will vote against his re-election at the annual meeting.
“Probably 10 to 15 other investors have filed lawsuits making allegations that Bank of America violated securities laws and disclosure requirements,” Fingers adds.
As you may remember, the government helped orchestrate the sale of Merrill to Bank of America over the same weekend in September that Lehman Brothers, went under.
In the ensuing months, the Merrill acquisition has faced heavy scrutiny because of a $15 billion loss Merrill recorded in the fourth quarter – and also due to the $3.6 billion in bonuses Merrill paid out to employees despite the need for government aid to stay afloat.
In fact the concern over impropriety is so great that the New York attorney general's office is investigating.
The election of board members is scheduled to take place at Bank of America's annual shareholders meeting on April 29.
What do you think? We Want to know!
BofA Shareholder Looks To Oust CEO From Board
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Trader disclosure: On Mar. 24th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (MT), (BAC), (EEM), (FXI), (TTM), (BX); Finerman's Firm Owns (MSFT), (PBR), (RIG); Finerman's Firm Is Short (BBT), (WFC); Finerman's Firm Owns (DNA) Call Spread; Finerman's Firm Owns (WFC) Preferred; Najarian Owns (C) Call Spread; Najarian Owns (AGN) Call Spread; Najarian Owns (AAPL) Call Spread; Najarian Owns (BX) Call Spread; Najarian Owns (GS) Call Spread; Najarian Owns (GD) Call Spread; Najarian Owns (MS) Call Spread; Najarian Owns (POT) Call Spread; Najarian Owns (PALM) Stock & (PALM) Calls; Najarian Owns (TGT) Call Spread; Najarian Owns (XHB) Call Spread; Najarian Owns (SWY) Calls; Najarian Owns (MSFT) ; Najarian Owns (FIG)
CNBC.com with the Associated Press