(By Salman - iStockAnalyst Writer)

It is becoming increasingly difficult for Kenneth Lewis to survive in his job as the CEO of Bank Of America (NYSE: BAC). The acquisition of Merrill Lynch and subsequent row over losses/bonuses has enraged a group of shareholders, who are now demanding the removal of  Lewis.

Jerry Finger, who holds 1.5 million shares of the firm, and is leader of a class-action lawsuit against Mr. Lewis and other bank directors is spearheading the campaign against Lewis. “Firstly, we want a change to split the role of C.E.O. and chairman,” Finger has been reported assaying. He has been quoted as saying that the group is seeking “various governance changes” at the bank. “We also have the support of institutional investors,” Finger insisted.

The problem started after Merrill Lynch posted enormous losses in the fourth quarter, which necessitated an emergency government bailout of the Bank to keep it solvent. Kenneth Lewis, angry at the way former Merrill CEO, John Thain, handled massive loss, asked him to resign in January. Before resigning, Mr. Thain ensured that 2008 bonuses could be collected before the end of the year, when the firm ceases to be an independent entity. According to the norms of the company, the bonuses were supposed to be paid in January. Moreover, it was reported that Thain spent $1.22 million to renovate his office, shortly after he was named as CEO of Merrill in January 2008.

Meanwhile, Ken Lewis insisted that he was kept in dark about the massive losses at Merrill Lynch. John Thain then shot back by saying that Kenneth Lewis had full knowledge about the problems at the brokerage firm. Thain also asserted that Bank Of America knew about the December payouts and that the fact is supported by the bonus agreement between the two parties.

New York Attorney General Andrew Cuomo has subpoenaed Merrill Lynch and John Thain. Cuomo is also investigating whether federal bailout loans to Bank of America were used appropriately, and if shareholders of both companies were given complete information about Merrill's finances.

BofA investors are getting increasingly restless as Merrill Lynch's merger has turned out to be a big disaster. The Wall Street veteran, who had been named "Banker of the Year" for 2008 by American Banker, now faces an uncertain future. The current financial crisis has destroyed the careers of many Wall Street titans. Lewis’ name may very well end up in the list of disgraced heroes as incensed shareholders push for his ouster.

Bank of America plunged 61 cents or 10.33% to $5.38. Shares are down over 85% from 52 week high.

Disclosure: Author does not own any of the stocks discussed here.