While Citi seems to be on the verge of agreeing to a so-called "informal action," Bank of America may be working on a more formal "Memorandum of Understanding" that also gives the government much more sway over bank activity. The news from the Wall Street Journal seems a bit surprising, especially if you were of the opinion that the bank was mending. The order was imposed in early May, shortly after shareholders of the bank stripped Chief Executive Kenneth Lewis of his duties as chairman.

The MOU is the most serious procedural action taken against Bank Of America by regulators so far in the crisis. Of course, it was supposed to have been a secret. Perhaps that explains the recent move to overhaul the board. The MOU was apparently imposed in May. You have to wonder if an MOU is in place with Citi. 

For more:
- here's a Reuters article

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