Bank of America Corp. cut Chief Executive Officer Brian T. Moynihan’s compensation for 2011, granting him no cash bonus and freezing his salary, said a person briefed on the executive’s awards.
The bank is holding Moynihan’s salary at $950,000, said the person, who spoke on condition of anonymity because the Charlotte, North Carolina-based bank hasn’t yet announced his pay package. It gave him $5.9 million in restricted stock units, mostly linked to future performance, the firm said yesterday in a filing. For 2010, the grant had surpassed $9 million.
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ———————————————————x RICHARD DELMAN, derivatively on behalf of the Nominal Defendant, Plaintiff,
–against —
CHARLES K. GIFFORD, D. PAUL JONES, JR., FRANK P. BRAMBLE, SR., MONICA C. LOZANO, THOMAS J. MAY, VIRGIS W. COLBERT, CHARLES O. HOLLIDAY, BRIAN T. MOYNIHAN, DONALD E. POWELL, MUKESH D. AMBANI, SUSAN S. BIES, CHARLES O. ROSSOTTI and CHARLES H. NOSKI, Defendants,
–and–
BANK OF AMERICA CORP., a Delaware corporation, Nominal Defendant
EXCERPTS:
2. Thus, at the time the CWC acquisition closed in July 2008, BAC management and its Board had a full understanding of the potential liabilities which might arise in the future. Rather than coming clean, or resolving the CWC issues, BAC management and the Board adopted a wrongful and obstinate policy: refusing to cooperate with government regulators investigating the Company’s mortgage foreclosure practices; obtaining reimbursement on government guaranteed mortgages which were likely violative of the False Claims Act; failing to comply with an Arizona Consent Decree requiring that BAC fairly entertain mortgage modifications; engaging in massive “Robo-Signing” of foreclosure documents; agreeing to cease Robo-Signing, but then resuming Robo-Signing despite its questionable legality. (“Robo Signing” is the bulk execution of foreclosure-related documents without actual review for accuracy and adequacy).
[…]
4. The BAC Board knew that BAC was legally obligated to proceed with legacy mortgage foreclosures in a prudent lawful manner. This did not occur. Rather, the Board wholly failed to rein in management. On the contrary, it let management engage in blatantly unlawful excesses as outlined above and as discussed in detail below. The BAC Board is composed of banking, finance and business professionals who fully understand the issues facing BAC, and who fully appreciate why its response need to be lawful and transparent. Nonetheless, the Board ignored numerous c1ear-as-day reports of irregularity bordering on fraud, and allowed the Company to get drawn in to additional illegality, materially raising BAC’s potential liability. As a result, the BAC Board breached its fiduciary duty and should be held liable to BAC for the harm it has caused.
I could barely suppress a laugh when reading about Bank of America CEO Brian Moynihan begging Tim Geithner to settle the foreclosure fraud issue so they can get out from under their liability. As Yves Smith points out, if Tim Geithner had the power to get Bank of America out of their mess, he surely would have done it by now, before their stock dipped 36% in the last three weeks. Geithner simply doesn’t have jurisdiction over state courts, where many judges are simply not going to allow foreclosures when standing to foreclose cannot be proven (Moynihan apparently distinguished on a conference call between “states where foreclosure can take place” and “states where foreclosure is going through very slowly,” and he might as well have been distinguishing between states that respect the rule of law and states that don’t). Geithner may try, but he cannot compel Attorneys General in both parties to settle for pennies on the dollar and relinquish all of their liability for consumer protection violations and fraud upon state courts. He cannot influence investors who see a giant meal ticket in the form of forcing big banks to repurchase faulty mortgage backed securities. If there was a magic bullet in this debacle, it would already have been fired.
Advice to Brian….Never let them see you sweat the small stuff…LULZ
FOX BUSINESS
Bank of America Corp. Chief Executive Brian Moynihan faced contentious questions from several shareholders Wednesday at the annual meeting for the nation’s largest bank by assets, particularly regarding its mortgage problems.
[…]
Moynihan appeared to grow impatient with shareholder questions. While one man demanded Moynihan himself call him on the phone to discuss what the holder said was a wrongful foreclosure, Moynihan began checking his watch. He also tried to speed along proposals.
It should be readily apparent that there are an overabundance of reasons for Bank of America’s CEO, Bryan Moynihan, to be regarded as a massive rear end in a province undeniably replete with rear ends of utterly mammoth proportion. Even the adjectives in that last sentence don’t begin to do the nature of his posterior justice.
To begin with, let’s just acknowledge that Moynihan is a corporate lawyer. He graduated in 1981 from Brown University… a history major that co-captained the rugby team. He then went on to Notre Dame Law School.
In 1993 he went to work at Fleet Boston as deputy general counsel, but after Bank of America acquired Fleet in 2004 Moynihan became the bank’s president of global wealth and investment management, and from October 2007 to December 2008, he served as the bank’s president of global corporate and investment banking. But from December 2008 to January 2009, Moynihan once again returned to his roots, serving as general counsel for Bank of America, and he became CEO of Merrill Lynch after its oh-so-well-thought-out-and-executed sale to Bank of America in September 2008.
Once again, how will the eMortgage and eNote business take off when they can’t even do these things right. This complaint probably has a lot of meat on it. Can’t wait to see it.
Bank of America “did not properly record many of its mortgages when originated or acquired, which severely complicated the foreclosure process when it became necessary,” according to the complaint filed today in New York stateSupreme Court in Manhattan. The bank also concealed that it didn’t have adequate personnel to process the large numbers of foreclosed loans in its portfolio, the shareholders said.
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