What in the world is going on at the top of Bank of America (NYSE: BAC)? It turns out that CFO Chuck Noski and Chief Accounting Officer Neil Cotty weren't even informed about a regulatory filing that detailed how the Federal Reserve Board had rejected a request to increase dividends. Kevin Stitt, head of IR, apparently only found out about the filing the night before it was made official at the SEC.

This does not reflect well on the executive team, and in fact suggests that the process for important decisions is ad hoc and haphazard. That is not the reputation that Brian Moynihan is shooting for.

CNBC has not pulled any punches, saying this "is a devastating indictment of the bank's internal controls. It's fair to ask what else is being kept from the Chief Financial Officer and Chief Accounting Officer. The bank's dividend policy goes to the core of what these gentlemen do. If they aren't involved in these public filings, who the Hell is running the place?

It adds, "Bank of America has a long history of these kind of missteps. It infamously fired its chief counsel just four days after the shareholder vote to approve the acquisition of Merrill Lynch. The reasons are still obscure."

This is one area where the board needs to take charge. In fact, this is precisely why boards exist. At a minimum, some sort of public explanation or assurance that the control issues are being fixed is necessary. The board should also look into the fact that this was made public.

For more:
- here's the CNBC item

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