Why Does Brian Moynihan Still Have A Job?

Excuse me, institutional shareholders, how are you feeling about your Bank of America BAC position? When you bought in, you probably thought you were getting a nice bargain, right? The stock has been trading significantly below book value for a very long time. Heck, the smartest hedge fund managers in the world, such as John Paulson and David Tepper, couldn't buy enough BAC not that long ago. Now, they both have bailed out and they are hardly the only ones. Let's see, Bank of America (BAC) shares are down another 35% in just the last month. This year, the stock is down more than 50%. Over the last 5 years, BAC has shed around 87%. Despite this record of abysmal failure, Brian Moynihan, the bank's CEO, still has a job. How is that even possible? Shouldn't institutional investors be pressing for some change? Things have gotten completely and totally out of hand at the bank, and the worse part is that Moynihan has been totally disingenuous about the state of his firm. On conference call after conference call he has been optimistic about a potential turnaround. Remember, Lehman Brothers executives spent a considerable amount of time trying to calm investors prior to that investment bank's collapse. How did that work out for those that trusted management? Brian Moynihan, at this point, has lost all credibility. The board of director's at Bank of America should have taken action a long time ago, but now things are getting critical. Today, American International Group AIG is suing BAC to recover more than $10 billion of losses from a "massive fraud" on mortgage debt. The suit accuses Bank of America and its Countrywide and Merrill Lynch units of misrepresenting the quality of mortgages placed in securities and sold to investors. Things are getting surreal at BAC. Instead of acting like a deer in headlights, it is time for the board of director's to take decisive action. The first step - fire Brian Moynihan.