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Bank Of America CEO Buys $1 Million In Shares

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The Associated Press

Published: February 7, 2009

CHARLOTTE, N.C. - In his latest move to show support for his bank, Bank of America Corp. Chief Executive Ken Lewis spent almost a million dollars this week to buy additional shares of his struggling bank.

He also told employees in a memo that the bank's board "unanimously endorsed our business model, strategic direction and the team," at its regular meeting on Jan. 28.

And Lewis reiterated the strength of his company, saying in an interview with CNBC on Friday that Bank of America would not need additional funding from the federal government and it still believes its acquisition of brokerage Merrill Lynch & Co. was the right thing to do.

"It's been painful ... I am still as convinced as ever that strategically this makes sense," Lewis said.

The moves are Lewis' latest effort to convince employees, investors and the board that he and his management team can lead Bank of America out of the current crisis.

Lewis purchased 200,000 shares for $958,340 on Wednesday, according to a filing with the Securities and Exchange Commission on Thursday. It's the second time in recent weeks that Lewis has pumped his own money into the Charlotte, N.C.-based bank. Two weeks ago, he bought 200,000 shares for $1.2 million.

The filing came as Bank of America's shares rebounded from a 25-year low Thursday afternoon, following other financial stocks higher as reports surfaced that the government may modify accounting rules that have been blamed for contributing to banks' troubles.

Shares of Bank of America rose 14 cents, or 3 percent, to close at $4.84 on Thursday. Earlier in the day, shares had tumbled as much as 20 percent to $3.77 - a level not seen since 1984. It closed up $1.29 to $6.13 Friday.

The bank's shares have been pummeled in recent days following the disclosure of the bank's first quarterly loss in 17 years and mounting concerns about its recent Merrill Lynch acquisition. There's also unrelenting concerns that the government's future plans to help prop up banks could hurt shareholders.

Last week, Lewis went before directors for "the longest board meeting in anyone's memory," he told employees in the memo issued Monday.

"Every member of the management executive team participated, as we discussed in great detail the company's most recent performance and our plans for getting through the recession in a position of strength," he wrote in the memo.

Some analysts said Lewis' job might be on the line, but lead director O. Temple Sloan Jr. later issued a statement of support for the bank's management team.
Bank of America has already received $45 billion in government aid, including a $20 billion injection last month to help it absorb losses from its Merrill Lynch acquisition.
Bank of America spokesman Scott Silvestri declined to comment on the stock price, the likely effect of a new rescue plan or calls for management changes.

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