Will Bank of America's CEO resign?

Intrade is taking bets on whether embattled Brian Moynihan will be out by June.

By Kim Peterson Dec 23, 2010 1:54PM
Bank © Charles Smith/CorbisDoes WikiLeaks have enough dirt on Bank of America (BAC) to force chief executive Brian Moynihan out of office?

Intrade, the market prediction site, has now opened up that possibility for betting. You can buy and sell "shares" in the chance that Moynihan will depart by June 11. The contract is here. So far, it doesn't look like anyone has made a trade on this.

The founder of WikiLeaks said last month he has enough insider dirt to take down one or two major banks. He didn't say which ones, but Wall Street gossip quickly focused on Bank of America -- and the bank's shares dropped 3% in one day.

The bank didn't do much to deny those rumors, and it even reportedly created a legal swat team to take on WikiLeaks if necessary.

Moynihan has been CEO for only a year now -- not enough time to do anything other than put out the fires left by previous executives. And he hasn't been able to instill much confidence in investors, which is evident in the bank's basement stock price.

Bank of America shares were down nearly 2% Thursday to $13.12. Post continues after video:
"Many investors are trying to put their arms around Bank of America's problems and have been left fluttering in the wind," one analyst told The New York Times. "The company hasn't given investors much assurance or confidence. It's like they're in the twilight zone."

Back to WikiLeaks, where founder Julian Assange is set to unveil the dirt on the banks in question sometime next year. Banking analyst Dick Bove said in a note to clients that "it is highly questionable that Mr. Assange has new information about Bank of America."

Bove added that "it may just be the case here that the sound is greater than the fury."

But at CNBC, editor John Carney says Bove is probably wrong. Assange has a huge chunk of bank-related documents he will release, Carney writes.

"If he doesn't have the documents -- or doesn't release them -- his credibility will be badly hurt," Carney writes. "He's got too much to lose here for us to assume he's being anything but honest."

At the time of this writing, Kim Peterson owned shares of Bank of America in her personal portfolio.
3Comments
Dec 23, 2010 8:56PM
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Mr Moynihan is not stupid, and likely is the victim of Ken Lewis' leftovers. Ken Lewis was dirty as the day is long and along with Steele Alphin, is guilty of much, whether criminal in nature or just vicious greed. I hope Mr Moynihan does not resign, but if he should, the shareholders, employees and customers would lose a great ally.
Dec 23, 2010 7:26PM
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This articule is a bunch of bunk!  If you want to waste your time reading rumors just read this articule.  It's all just a bunch of rumors garther from enought corners to make a story.  Reminds me of the days of the old interconnected telephone lines which you could pick up any time and listen to all your neigbors gosup.

 

Moynihan is the perfect man for the present job and is doing a great job after being left in a difficult mess.  He isn't going any where.  Bank america stock is beginning to be seen as a bargin buy.  It's price is rising.  It may be the best bank stock to buy this year.

 

Be an invester, don't get caught up in these bunk articules......

Dec 23, 2010 4:12PM
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Would much rather see some other CEOs in the unemployment line:  GM,  TIME MAGAZINE, QWEST, Street.com,  & MSN Moneycentral!,  etc...

 

Harrumph

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