Perhaps you have not read -
My previous posts, however I will provide you just a few examples.
1. When Goldman Sachs was charged with Fraud last April, BAC actually took a larger hit percentage wise than the accused! Yet it took Moynihan and BAC investment relations dapartment more than 3 months to issue a simple press release stating that they had not received an SEC Wells Notice. At that point BAC had declined nearly 28%!
2. The ensuing months, BAC continued to take the lead in the financial sector decline, whilst Moynihan was repeatedly late and behind the curve in setting the record straight! As BAC experienced the worst 3 month period since the Financial Meltdown, (August - Thru - October) Moynihan was traveling the world expounding the virtues of "Leadership". When BAC desperately needed leadership, Moynihan was talking about leadership rather than providing it! When BAC hit $10.91, a new 52Wk Low, Moynihan was at a resort in Brazil!
3. I realise BAC has some extraordinary challenges, yet leadership is at the core of these issues. When it was revealed that Pimco, the Fed, and Bank of NY and other institutional investors were demanding "putbacks" on BAC to the tune of $47 Billion, Moynihan declared that BAC would FIGHT and I quote "Mortgage by mortgage"! Less than three weeks later it was revealed via a press release that in "the interest of shareholders" BAC is in advanced negotiations with the investor group! That does not inspire confidence, when the CEO does a turnabout so quickly on such a matter that has the entire market suspect of BAC's rebound potential. It displays a certain lack of strategy and core value in dealing with the crisis.
4. Three months prior to the revelation that major investors were seeking putbacks from BAC, a small hedgefund in San Fransisco was distributing a Sell Side prospectus for nearly 2 months that BAC may need to repurchase (putbacks) to the tune of $78 billion. Nearly twice the amount actually in question. Yet BAC never did anything to discredit this outfit, remind the market that this hedgefund had the largest short position in BAC! Never tried to refute the claims, even though, they had already received notice from Pimco and so forth. Thus by their silence, they allowed a small fund to frame and shape BAC troubles!
5. During the 4th Q call, Moynhian delivered by what some described as one of the worst Conference calls in recent times by a financial giant. So much so that Morgan Stanley's Financial Sector Analysts stated in their report that it was hard to decipher if if Mr. Moynihan was the CEO or a "sell side advocate'. These sentiments were echoed by Morning Star and Dick Bove.
6. It was not until early February that Moynihan finally stated that the putback amount was probably in the $7 to $10 billion range. Far less than $47 Billion and considerably lower than the $78 Billion purported by that ridiculous outfit in the Bay Area.
7. Moynihan received more than $700,000 in salary for fiscal 2010. Yet he also received $9.8 Million in deferred stock grants for 2010 as his bonus. Whilst we, the shareholders have taken nearly a 40% hit since the highs of April 2010, Moynihan and the BOD felt he was deserving of such an outrageous "Bonus"! Mind you that the CEO of UBS, a stock that is at or near its 52 week high, has refused his bonus two years running because as he has stated, the stock is well below it's BV and he feels that since he has not added to shareholder value he cannot accept a bonus in good faith!
8. Moynihan's strategy for BAC is upselling and cross selling. We basically have a glorified bank teller at the largest financial institution in the United States!
I can go on and on, yet the reality is that BAC takes it on the chin for every single distressing news on the financial sector. And yet hardly moves when there is significant movement in the DOW. Evidenced these last two days, in fact since Thursday the DOW has gained 411 points and BAC has actually lost .14 cents!
That sort of disengagement from the DOW when you're a DOW 30 component means the Street (as stupid as Wall Street is) has absolutely no confidence in BAC strategy! The first part in alleviating this ridiculous trend in BAC is disposing of the cancer that is eating away at BAC's potential! Moynihan.
I hope I answered your question.
Cheers
