With the late breaking New York Times scoop: Cuomo Subpoenas Thain Over Merrill Bonuses, the Thain/Lewis squabble is fast becoming very serious and possibly criminal for one or perhaps both of them. The story has rapidly moved from the PR machine realm of spin and counter-spin and into the more unpredictable, potentially protracted criminal/regulatory litigation world.
When I read that "Ken Lewis hasn't been subpoenaed yet," as a former corporate PR hack, my immediate thought was that Cuomo delayed deposing Lewis to give BofA time to appoint an "interim" CEO replacement. Having CEO Lewis, really Bank of America by extension, tangled up a legal battle is a no-win for the company. And if this takes a wrong turn, Lewis has the most to lose; after all, Thain has already been fired.
Let's see if the BofA Board moves to sideline Lewis. They have a fiduciary duty to act on behalf of their shareholders, so now would be the time. If they don't now, they never will. And BofA will have chosen to double-down and ride it out with Lewis.
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2 hours ago
1 comment:
What jurisdiction does Cuomo have to subpoena anyone realted to this matter. Ntionally chartered banks are generally cobered by federal preemption that makes them effectively immune to state regulation.
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