Yet again, a behind-the-scenes email exchange is causing public discomfort.
This time, the chat occurred between two Bank of America directors during a conference call. Board members were discussing a dividend cut that was a condition of the $20 billion government bailout.
The New York Times reports that Charles Gifford wrote to Thomas May: “Unfortunately, it’s screw the shareholders!!”
Gifford & May
May, evidently more astute about the digital record, responded: “No trail.”
The messages were among the documents that Bank of America handed this week provided to the House Committee on Oversight and Government Reform, which is investigating the company’s purchase of Merrill Lynch.
The Times reports that the company plans to provide additional documents to Congress, the New York attorney general and the Securities and Exchange Commission.
As of the last proxy statement, Gifford personally held more than 325,000 shares of Bank of America stock, currently valued at about $5.8 million. The bank cut its quarterly dividend in January, from 32 cents a share, to one cent.
Gifford and May share more than one connection. May is chairman and CEO of NSTAR, a Boston electric-and-gas company. Gifford is a trustee.
The two also sit on a six-member committee to choose a successor to BofA chief executive Kenneth D. Lewis, who is retiring.
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