(NewsVisual, powered by IntellectSpace) -- In one more blow caused by the subprime mortgage crisis, Bank of America Corporation (NYSE:BAC), the nation's largest retail bank, reported on Monday first-quarter 2008 net income declined to $1.21 billion from $5.26 billion a year earlier.
"The weakness in the economy and prolonged disruptions in the capital markets took their toll on our performance," said Bank of America CEO/Chairman Kenneth D. Lewis in a statement.
Mr. Lewis sought to reassure investors that the Bank has a strategic plan in place in order to attain a turnaround when he added the following comments:
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"We are continuing to invest in growth initiatives across the company, and believe our core strengths - including our diverse income stream, liquidity and capital - put us in a strong position to withstand the jolts to the system and emerge even stronger when conditions improve."
Yet the Bank's large institutional shareholders may not be as sanguine regarding its future earnings prospects. And they may seek to hold some of its Directors accountable for taking on excessive risks.
Just recently, the shareholders of Washington Mutual Inc (NYSE:WM) forced the resignation of one WaMu Director and they were nearly successful in voting down the reelection of several other Directors to the WaMu board.
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Yet many of Bank of America's Directors have strong corporate experience.
NewsVisual created an IntellectSpace Knowledge Map that illustrates the corporate connections of the Bank's Board of Directors, which would ultimately serve to make them formidable opponents of any activist shareholders.
For example, several Bank of America Directors also sit on the boards of some very well known corporations, including McDonald's Corp, Sun Microsystems Inc and the Walt Disney Company, to name just a few.
These business associations can help these Directors to withstand any suggestions from shareholders who are apt to accuse them of incompetence.