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FIRST ON FAST: BofA's Ken Lewis To Step Down By Year's End

In the after hours, shares of Bank of America moved higher after CNBC’s Charlie Gasparino reveals that, according to his sources, Bank of America CEO Ken Lewis decided to step down from his position by the end of the year.

Gasparino emphasizes that Lewis was not pushed out – the resignation was his decision.

Minutes later Bank of America confirmed the news.

Gasparino also says the resignation is not the result of a regulatory action rather it comes after Lewis took a vacation and made a decision to retire.

Meanwhile New York Attorney General Andrew Cuomo says the retirement will have no impact on his the continuing BofA investigation.

According to Gasparino, possible successors to Lewis include Thomas Montag, head of Global Markets; Barbara DeSoer, Bank of America Home Loans; Sallie Krawcheck, president of Global Wealth, Brian Moynihan, head of consumer and small business banking; Joe Price, CFO and Greg Curl, chief risk officer.

What should you make of the news?

Instant Insights with the Fast Money Traders

I think it’s mildly positive for the stock, muses Karen Finerman. But the resignation isn’t a huge surprise.

It makes me wonder if more trouble lies ahead for Bank of America, muses Guy Adami. However I do think BAC is an investible stock, long-term.

The market seems to find the move a positive because so much anger is focussed on Ken Lewis, explains analyst Dick Bove. But Ken Lewis is a brilliant bank executive and I think it's a loss.

If you hold the stock, I still find the outlook for the firm extraoridnarily positive over the long-term and I would not sell on the news, adds Bove. And I'd assume that Brian Moynihan is the front runner to take over.

> For complete coverage of this developing story click here.

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As you know, when the Street smells blood it wants more. Late Wednesday chatter resumed about who's next. According to Charlie Gasparino it's Citigroup chief Vikram Pandit. We'll be watching.


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Trader disclosure: On Sept. 30th, 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); Finerman's Firm Owns (BAC) Preferred Shares, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred Shares And (BAC); Finerman's Firm And Finerman Own (WFC) Preferred Shares; Finerman's Firm Owns (BKC), (DRI), (MSFT), (YUM); Finerman's Firm Is Short (CAKE), (TLT), (USO), (IJR), (IWM), (SPY), (MDY), (USO), (UNG); Grasso Owns (AAPL), (ABK), (ASTM), (BAC), (C), (COST), (CSCO), (PFE), (PRST), (V), (WMT), (FAZ); Terranova Owns (FCX), (ANR), (SU), (BUCY), (GEX), (POT), (CAM), (MSFT), (AMZN), (GDX), (KCE), (ABT), (SUN); Terranova Owns (XOM) Calls; Terranova Owns (FTO) Calls; Terranova Is Short (GRMN), (ESS), (CCL), (FII), (JWN), (JCI), (WYNN); Terranova Owns March Sugar Futures; Terranova Owns December Copper Futures; Terranova Owns December Crude Oil Futures; Terranova Owns December Gold Futures

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