Lewis Puts Money Where Mouth Is

Bank of America Corp. Chairman and Chief Executive Kenneth Lewis purchased an additional 200,000 shares of the Charlotte, N.C., bank's common stock Wednesday in his latest effort to convince employees, investors and the board that he and his management team can lead it out of its current crisis.

The bank's shares fell on Thursday to their lowest level since October 1984 before rebounding to close at $4.84, up 2.98%. Analysts attributed the volatility to concerns about how involved the U.S. government is in the affairs of the nation's largest bank by assets.

Government officials played a heavy hand in Bank of America's acquisition of securities firm Merrill Lynch & Co., for which Mr. Lewis has been under fire. The stock's price improved once U.S. Sen. Christopher Dodd (D., Conn.) publicly dismissed speculation that the U.S. could soon nationalize Bank of America.

Last week, Mr. Lewis went before his directors in Charlotte for "the longest board meeting in anyone's memory," he told employees in a memo. "The board unanimously endorsed our business model, strategic direction and the team. The burden of execution and accountability, as always, rests squarely on our shoulders to vindicate their confidence in us."

He called the company's performance in January "encouraging." The "extreme dislocations in the capital markets we suffered last quarter seem to have moderated" but "credit costs continue to be a big issue."http://online.wsj.com/article/SB123388497589255167.html?mod=testMod

Thain Fires Back at Bank of America

The Wall Street Journal - John Thain came out swinging against his former boss, Bank of America Chairman and Chief Executive Kenneth Lewis, saying Monday he was "completely transparent" about big fourth-quarter losses at Merrill Lynch & Co. that cost him his job last week. Monday's unusually pointed remarks by Mr. Thain exposed the personal tensions between the two men and a cultural rift between Bank of America and Merrill. The feud is deepening doubts that the giant commercial bank will be able to successfully absorb the world's largest brokerage firm, which it bought this month.

In a parting shot emailed to a small group of Merrill executives, the 53-year-old Mr. Thain also insisted that officials at the Charlotte, N.C., bank were involved in the decision to pay out 2008 bonuses at Merrill so that employees would get them by year end.http://online.wsj.com/article/SB123298094568215539.html?mod=testMod