BofA’s Got a Brand New Board

[Update 1 includes new details on departures from BofA.] Of the 19 largest US banks, a few passed the government-initiated stress tests with plenty of capital, some were found to be lacking a few billion dollars, and then there was Bank of America (BAC). In need of billions dollars in fresh capital and reeling from a board of directors exodus — including the departure of 13-year company veteran O. Temple Sloan Jr. from the lead post on the board — BofA needed some new talent. And quick. With its balance sheet still bearing fresh ink from the recent Countrywide Financial and Merrill Lynch acquisitions, BofA seemed to represent the exception to the government stress test. Arguably the largest US bank still standing, it also took one of the largest capital injections from the US Treasury Department — a total $45bn — and was found to be lacking the most capital of all banks tested. Regulators determined BofA would need $33.9bn in fresh capital to withstand more severe economic circumstances. The bank touted last week it would “comfortably exceed” that requirement through certain capital-enhancing measures. That didn’t stop the bank, however, from initiating a substantial shuffling of executives and strategists in an effort to restructure its executive hierarchy. The latest hiring spree came Friday as BofA brought on four new directors to its board. Susan Biles, a former governor of the Federal Reserve system and former CFO and executive in asset liability and risk management at First Tennessee National Corp., joined the board of directors. Former Federal Deposit Insurance Corp. chairman Donald Powell joins the board after 38 years of banking experience. William Boardman brings a history in law practice to BofA’s board. He chaired Visa International until his retirement in 2005 and served in executive roles at Bank One Corp. before that. D. Paul Jones joins the board with executive experience at Compass Bancshares. BofA’s chairman Walter Massey said in a media statement that the additions will help the bank in “achieving its true potential.” On Monday, the bank suffered two more departures from the board of directors although no formal announcement had been made at the time this story went to press. Jackie Ward and Patricia Mitchell both resigned from the board of directors effective June 3, “not as a result of any disagreement with the corporation or its management,” according to a filling with the Securities and Exchange Commission Monday. The day before the four additions to the board, 31-year bank veteran Gregory Curl was named chief risk officer. Curl takes over for Amy Woods Brinkley, who remains at BofA until her retirement later this summer. Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.