Should Microsoft Corp’s Directors Have Approved The Company’s Facebook Deal?

(NewsVisual, powered by IntellectSpace) -- At the time that Microsoft Corp (NASDAQ: MSFT) purchased a small share of Facebook, the criticism was relatively muted, and it’s only belatedly that the deal’s critics have become more vociferous in denouncing what they perceive to be its many downsides, including its overall lack of prudence on the part of Microsoft.

"Microsoft’s October purchase of a 1.6 percent Facebook stake implicitly valued the social-networking Web site at $15 billion. Even at the time, some people questioned such an eye-popping valuation. But as the months have passed, the number is looking even more bubbly," The New York Times reported in an online article on Friday.

This raises the question as to whether the company’s Board of Directors are protecting the interests of the company’s shareholders.

NewsVisual created an IntellectSpace Knowledge Map that illustrates the business connections among Microsoft’s Directors in order to determine whether they are prepared to meet the company’s challenges.

Citigroup to Shed Assets as a Method for Restoring its Financial Health

(NewsVisual, powered by IntellectSpace) -- In an initiative that appears to be designed to restore investor confidence, as well as to shore up its balance sheet, Citigroup Inc (NYSE:C) plans to sell off huge numbers of assets, according to news reports.

"The banking giant said Friday it will sell at least $400 billion of the $500 billion in assets it identified as 'not central' to its mission, including $170 billion worth of marked-to-market assets in its investment banking division,” Forbes.com reported in an online article on Friday.

“The planned sale, which will take place over the next three years, is more than double what analysts expected," the Forbes article added.

The Directors at Citi now have a strategic plan in place that could reverse the bank’s downward decline and that could help to ensure future earnings for the bank.

Wachovia Corp Separates the CEO and Chairman Roles as Reform Measure

(NewsVisual, powered by IntellectSpace) -- In a personnel change that could be imitated throughout the corporate world as a standard reform measure, especially among hard-hit financial institutions, the Charlotte, N.C., bank Wachovia Corporation (NYSE:WB) announced on Friday that it was splitting the role of Chief Executive Officer from that of Chairman of the Board.

The bank’s new non-executive Chairman will now be Lanty Smith.

Mr. Smith has served as a director since 1987 and as lead independent director since 2000, and he is the CEO/Chairman of Tippet Capital, a merchant banking firm headquartered in Raleigh, N.C., as well as a former partner with the international law firm of Jones Day, the bank said.

"At this challenging time for the financial services industry and for Wachovia, my management team and I are pleased that Lanty agreed to assume the role and responsibilities of Chairman, freeing me to focus 100 percent of my time and attention on guiding the company through the current environment and building and delivering enhanced value for the benefit of our shareholders, customers and employees," said CEO/President and now former Chairman Ken Thompson in the bank’s statement.

The bank has several other highly experienced Directors.

JP Morgan Has Only One More Hurdle to Leap in Order to Acquire Bear Stearns

(NewsVisual, powered by IntellectSpace) -- In what appears to be the vanquishing of the next-to-the-last obstacle in the planned acquisition by JPMorgan Chase & Co (NYSE:JPM) of the failed investment-banking firm Bear Stearns (NYSE:BSC), a class-action lawsuit by a group of Bear shareholders to block the firm’s purchase has been dropped by the plaintiffs, The New York Times reported.

"A group of major shareholders in Bear, which include public pension funds and institutional investors, have withdrawn their motion seeking to block the merger, just two days before scheduled hearings on the matter, the company reported in a regulatory filing Wednesday," The Times reported in an article on Thursday.

"At this stage, Bear’s sale to JPMorgan seems all but assured. But a few holdouts are still fighting it," The Times article added.

The last holdouts, Samuel T. Cohen from Maryland and Jerome Birn from California, have still have a lawsuit pending.

At this point, however, the Directors at JP Morgan have a responsibility to make certain that the bank’s management team is ready to absorb Bear and that the team is prepared for overseeing Bear’s day-to-day operations.

This is an unwieldy task that could place the bank under enormous stress.

Cablevision’s Board Must Allay Analysts’ Concerns Over the Company’s Long-Term Strategy

(NewsVisual, powered by IntellectSpace) -- In the immediate aftermath of the announcement on Wednesday that Rainbow Media, a subsidiary of Cablevision Systems Corp (NYSE:CVC), will purchase the Sundance Channel for $496 million, there has been a barrage of negative feedback by analysts directed at Cablevision for its entire long-term strategy, not just for this one acquisition, The New York Times reported.

At issue is what analysts interpret as an unconstrained buying binge by the company’s controlling family, the Dolan Family, that does not follow a rational logic when viewed in conjunction with its core business, the company’s critics suggest. 

"It is reportedly bidding against Rupert Murdoch for Newsday, a newspaper owned by Tribune. And Cablevision recently considered buying a stake in AEG Live, the concert promoter," The Times reported in an article on Thursday.

"This approach is not sitting well with some analysts, such as Rich Greenfield of Pali Research, who has been a vocal critic of the Dolans’ empire-building tendencies," The Times report added.

Cablevision’s Directors must address the analysts’ questions in a straightforward fashion in order to retain investor confidence with regard to these purchases.

Cablevision’s Directors Approve Rainbow’s Purchase of Sundance Channel

(NewsVisual, powered by IntellectSpace) -- A division of Cablevision Systems Corp (NYSE:CVC), Rainbow Media, announced on Wednesday that it has purchased the Sundance Channel for $496 million with an eye toward strengthening its entertainment presence, Cablevision said in a statement.

Rainbow is acquiring the Sundance Channel, which reaches nearly 30 million subscribers, from General Electric Co.'s (NYSE: GE) NBC Universal, CBS Corp.'s (NYSE: CBS) Showtime Networks, and entities controlled by Robert Redford, the statement said.

Founded in 1996 by Robert Redford as a creative endeavor, the Sundance Channel offers films, documentaries and original programs.

"Robert Redford is a true visionary and, through everything he has accomplished with Sundance Channel, has made immeasurable contributions to the world of independent film," said Rainbow Media CEO/President Joshua Sapan.

"Rainbow has experienced firsthand how impressive original programming like Mad Men and Breaking Bad can distinguish a network's brand. Sundance Channel has already established its own distinct voice through impressive programming like The Green and Iconoclasts and our vision is to build on this type of original content, further strengthening the uniqueness of the network," Mr. Sapan added.

For its part, Cablevision allowed the deal to go forward because it views Rainbow’s purchase of Sundance as a strategic acquisition that will facilitate future audience growth.

Yahoo! Inc Shareholders Go Public with Their Grievances Over Failed Deal

(NewsVisual, powered by IntellectSpace) -- In what could be a harbinger of a shareholder revolt against its Board of Directors, investors went public with their dismay over the failure of Yahoo! Inc (NASDAQ: YHOO) to negotiate successfully a deal with Microsoft Corp (NASDAQ: MSFT).

The Wall Street Journal reported on the frustration of some high-profile Yahoo shareholders on Tuesday:

"'I'm extremely disappointed in [Yahoo President] Jerry Yang,' said Gordon Crawford, a portfolio manager at Capital Research Global Investors, which owns over 6% of Yahoo's shares. 'I think he overplayed a weak hand. And I'm even more disappointed in the independent directors who were not responsive to the needs of independent shareholders,'" The Journal article reported.

Many of the shareholders believe that Yang was being unrealistic by demanding that Microsoft offer $37 per share as the price for entering into negotiations.

"Some of Yahoo's major shareholders had by late last week signaled to Yahoo that they were open to a deal around $33 or $34 per share, according to people familiar with the matter," The Journal article said.

In response to these shareholder complaints, Yahoo Chairman Roy J. Bostock told The Journal that Yahoo’s Board of Directors made the right determination and its members stand by their decision.

Bank of America Must Decide on Whether to Back Out of or Amend the Countrywide Deal

(NewsVisual, powered by IntellectSpace) -- In a fashion that could become analogous to Microsoft Corp’s retreat from its bid for Yahoo Inc, there’s some chatter in the business-news media that the Bank of America Corporation (NYSE:BAC) could be considering pulling back from its offer to buy Countrywide Financial Corporation (NYSE:CFC).

There is also some speculation that BofA merely wants to reduce the size of the price it’s offering, but the bank still wants to follow through with the purchase.

In particular, the media buzz is swirling around BofA CEO/President/Chairman Kenneth D. Lewis and is attempting to decipher his true intentions.

"Four months after Mr. Lewis, the chief executive of the Bank of America Corporation, agreed to buy the Countrywide Financial Corporation for $4.1 billion, Wall Street is buzzing that he may reduce his offer for the troubled mortgage giant or perhaps even walk away from the deal," The New York Times reported in an online article on Tuesday.

The financial difficulties that beset Countrywide, The Times added, are far more grave than originally anticipated and, as a consequence, its share value has declined much further than expected.

Therefore, it’s reasonable for Mr. Lewis to believe that the first offer must now be considered far too generous and must now be amended.

Mr. Lewis, however, should proceed carefully and act in accordance with the advice of the other BofA Directors, since the long-term consequences of any missteps could be very damaging to the bank.

Did Microsoft’s Directors Force Ballmer to Withdraw Its Buyout Bid for Yahoo!?

(NewsVisual, powered by IntellectSpace) -- One of the largest corporate dramas of recent times came to an end Saturday when Microsoft Corp (NASDAQ: MSFT) announced that it had withdrawn its proposal to acquire Yahoo! Inc (NASDAQ: YHOO), while dispelling any speculation that Microsoft would make a hostile maneuver to acquire the company.

As had been the case from the moment that Microsoft issued its bid, the key stick point that thwarted any deal concerned irreconcilable differences over what constituted a fair price for Yahoo:

“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,” said Microsoft CEO Steve Ballmer in the company’s press release.

In a letter to Yahoo CEO Jerry Yang, Mr. Ballmer indicated that his reason for not initiating a hostile takeover against Yahoo revolved around a concern that Yahoo would pursue a scorched earth policy, where it would bring its own company to ruin rather than leaving Microsoft a company with strong market value.

The Times Reports G.M. Invests in a Second-Type Ethanol Process

(NewsVisual, powered by IntellectSpace) -- As large oil companies like Exxon and Chevron are experiencing record first-quarter earnings, The New York Times reported in an article on Thursday that General Motors Corp (NYSE:GM) is investing non-grain sources for creating ethanol.

Click here for an interactive version of this IntellectSpace Knowledge Map that illustrates the business connections of GM’s Board of Directors .

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

MarketWatch’s Report on how News Reports Affected Yahoo’s Stock

(NewsVisual, powered by IntellectSpace) -- In an article on Friday, MarketWatch reported on the jump in share value of Yahoo Inc (NASDAQ:YHOO) after it was reported throughout the media that it was in discussions with Microsoft Corp (NASDAQ:MSFT).

Click here for a fuller and an interactive version of this IntellectSpace Knowledge Map that illustrates the business connections of Yahoo’s Board of Directors .

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Cramer Gives His Advice on Trading Yahoo’s Stock

(NewsVisual, powered by IntellectSpace) -- In viewing it through the latest news regarding the talks between Yahoo Inc (NASDAQ:YHOO) and Microsoft Corp (NASDAQ:MSFT), the famed stock analyst Jim Cramer gives his view of what to do with Yahoo’s stock in an article on Friday.

Click here for a fuller and an interactive version of this IntellectSpace Knowledge Map that illustrates the business connections of Yahoo’s Board of Directors .

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Yahoo Directors Will Be the Ultimate Arbiters of Microsoft’s Buyout Offer’s Fate

(NewsVisual, powered by IntellectSpace) -- After several months of suspense, Yahoo Inc (NASDAQ:YHOO) and Microsoft Corp (NASDAQ:MSFT) could soon be entering the final act of their buyout drama, with a final decision possibly being only days away.

“Steven A. Ballmer, Microsoft’s chief executive, told employees on Thursday that the company would announce in 'short order' which of three paths it would choose in its pursuit of Yahoo,” The New York Times reported in an online article on Friday.

For its part, Yahoo also has not foreclosed itself from entering into a merger:

“But Jerry Yang, Yahoo’s chief executive, has said his company is not opposed to selling to Microsoft for more,” The Times article reported.

Yahoo rejected Microsoft’s initial bid price of $31 per share as to low, and the speculation in the news media is that Microsoft will offer a higher price for the Silicon Valley Company.

But whatever Microsoft decides to offer, it’s inevitable that it will be Yahoo’s Directors who make the final decision concerning the proposed deal’s fate.

Will Exxon Mobile’s Directors Advise the Company Effectively on PR Strategy

(NewsVisual, powered by IntellectSpace) -- As Exxon Mobile Corp (NYSE: XOM) again harvests record-breaking profits while American consumers are feeling the financial pinch of record-breaking gas prices at the pump, the oil giant’s Board of Directors has its work cut out for it.

In particular, Exxon’s Directors must deal with the public relations problem of reaping profits while so many Americans are in a rage of gas and diesel prices.

What people often interpret as excessive profits on the part of the oil companies has already become an issue in the Presidential campaign.  For example, Senator Hillary Clinton is not only proposing a suspension of the gasoline tax, but she is also proposing the implementation of a windfall-profits tax on the oil companies.

In addition, truck drivers, a group that’s been especially hard-hit by fuel price increases, have been launching protests throughout the country, with one recent demonstration taking place in Washington, DC.

With such a backlash against its industry being now so palpable, Exxon’s Directors need to act proactively in order to stave off a public relations nightmare as well as news laws that could adversely impact the company’s bottom-line.

Microsoft’s Directors Could Authorize a Higher Price for Yahoo, The Times Suggests

(NewsVisual, powered by IntellectSpace) -- After they met on Wednesday, reports say that the Directors at Microsoft Corp (NASDAQ:MSFT) could be planning to instruct the company’s negotiating team to increase its buyout bid for Yahoo Inc (NASDAQ:YHOO).

The New York Times, citing an unnamed source, reported on Thursday the range of decisions facing the software behemoth’s board:

"The board was expected to consider a range of options, including Microsoft raising its offer in an attempt to break the stalemate between the companies," The Times article said.

"In recent days, Microsoft has considered increasing the bid, currently valued at $29.06 a share, to $32 or $33," the report added.

The article also said that Microsoft could back out of its bid altogether, which would cause Yahoo’s share price to plunge.

This maneuver would leave Microsoft with the option of making another buyout bid sometime in the future, which would presumably be under more auspicious circumstances for the Redmond giant.

Whatever the strategies under consideration, there can be little doubt that the company’s Directors are playing a key role as this drama unfolds before a worldwide audience of business-news watchers.

Can Citigroup’s Directors Ensure Its Investors Receive Future Earnings from New Stock?

(NewsVisual, powered by IntellectSpace) -- In an effort to rebuild its capital resources and to restore its balance sheets, Citigroup Inc (NYSE:C) announced on Wednesday that it will make a $4.5 billion public offering of common stock.

Given the billions of dollars that the bank lost as a result of the subprime mortgage, it’s not surprising that the bank should be replenishing its coffers.

The bank also recently offered an issuance of $6 billion of preferred stock.

"We were pleased to increase the offering size to $4.5 billion in response to strong demand from a broad base of investors," said Citi CFO Gary Crittenden.

"This optimizes our capital structure and further strengthens our balance sheet," he added.

The Directors must now develop a strategic plan that will reverse the bank’s downward decline and that will make certain that the investors’ money results in future earnings for the bank.

GM Corp Makes Tactical Decision to Cut Production of Pickup Trucks and SUVs

(NewsVisual, powered by IntellectSpace) -- In response to a shift in market conditions brought about by rising fuel prices, General Motors Corp (NYSE: GM) announced on Monday that it will curtail the production at its full-size pickup truck and its full-size SUV in order to reflect a downturn in consumer demand.

The company will implement its production cuts in two plants in Michigan and one in Ontario for its full-size truck, and it will cut back on its full-size SUV production in Wisconsin, GM said in its statement.

“With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities,” said GM North America President Troy Clarke.

“This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market,” he added.

News Corp’s Acquisition of the Dow Jones Company Pays Off

(NewsVisual, powered by IntellectSpace) -- When its Board of Directors allowed Rupert Murdoch to purchase the Dow Jones Company, News Corp (NYSE:NWS)  assumed a certain amount of risk that now appears to have been worth taking in terms of the current performance of the company’s new assets.

In particular, the Dow Jones property The Wall Street Journal is performing very well in an industry that is plagued by financial losses.

"The increase in individually paid subscriptions to the Journal print version stems from Dow Jones' strategy of 'focusing on growing home-delivery subscribers while reducing other paid circulation,' the company said. Subscriptions totaled 1.35 million for the period," MarketWatch.com reported in an online article on Monday.

“Meanwhile, paid customers of the Journal's online edition grew to 1.04 million from 931,000 in the same period a year earlier,” MarketWatch.com added in its report.

The Directors at News Corp can take a lot of credit for allowing the decision to acquire the Dow Jones properties.

Schultz Struggles to Reinvent Starbucks Corp by Jettisoning Failed Projects

(NewsVisual, powered by IntellectSpace) -- Ever since its CEO/President/Chairman Howard Schultz returned to the helm, the Starbucks Coffee Company (NASDAQ:SBUX) has been subjecting itself to a period of relentless self-assessment, with one-time pet projects falling by the wayside as their performance comes under the cold-eyed scrutiny of the company’s number crunchers.

More specifically, Starbucks announced on Thursday that it is restructuring its entertainment business to focus on digital strategy and core content with music and books.

“As part of our ongoing transformation, we are committed to examining all aspects of our business that are not directly related to our core,” Mr Schultz said in the company statement.

Although he pointed out that the company’s entertainment division has chalked up numerous successes, including eight Grammy Awards, his following comments make clear that the company cannot rest on its laurels:

“Now is the appropriate time to restructure our Entertainment business to better align our efforts with our overall business strategies,” Mr Schultz said.

Investors will want to know if the business judgment of Mr Schultz can help to guide the company toward a turnaround.

Is Microsoft Corp’s Board of Directors Advising Against the Yahoo Buyout Plan?

(NewsVisual, powered by IntellectSpace) -- As the deadline of Saturday imposed by Microsoft Corp (NASDAQ:MSFT) for Yahoo Inc (NASDAQ:YHOO) to enter discussions on the former’s buyout bid quickly approaches, Microsoft has been issuing ambiguous comments as to whether it still wants to acquire Yahoo, leaving many to wonder whether the deal is being abandoned.

This new round of speculation was set off as a result of Microsoft’s fiscal third-quarter earnings report on Thursday that showed the company’s net income declined by 11 percent.

Yet a company spokesman attempted to give a positive spin to the results:

“Our third-quarter results demonstrate the benefit of our diversified business model,” said Microsoft CFO Chris Liddell in a company statement.

“Our broad span across geographies, product categories and customer segments is a tremendous asset and supports our outlook for double-digit revenue, operating income and earnings per share growth for this fiscal year and also for fiscal year 2009,” he added.

According to a report in The Wall Street Journal, however, Mr Liddell appeared to be preparing investors for the abandonment of Microsoft’s plan to buy Yahoo.

"Microsoft Chief Financial Officer Chris Liddell seemed to be preparing Wall Street for the prospect of a deal's not happening. Mr. Liddell said 'speed is of the essence' in completing a deal, but the process 'has been anything but speedy,'" The Journal reported in an article on Friday.

This raises the question as to whether the company’s Board of Directors are pulling the plug on the buyout bid because of the company’s disappointing earnings.

Merrill Lynch to Reform Its Board of Directors, The Journal Reports

(NewsVisual, powered by IntellectSpace) -- After having suffered $6.6 billion in write-downs due to the subprime mortgage debacle, Merrill Lynch & Co Inc (NYSE:MER) has begun the process of reforming its own structures of corporate governance by shortening the electoral terms of the members of its Board of Directors, according to The Wall Street Journal.

The investment-banking firm’s nominating committee recommended that it “eliminate its practice of electing directors of its board to multi-year terms,” The Journal reported in an online article on Thursday.

“The process of ‘destaggering’ boards is being widely adopted in corporate America under pressure from shareholder activists,” The Journal added by way of explanation.

Investors will be concerned, however, that it might not the firm might not be able to attract the best candidates to serve as its Directors if they must stand for election on an annual basis.

Will the firm be able to attract the most experienced individuals with the ability to make sound judgments on complex financial issues?

Ford Motor Co’s Leadership Guide the Company Towards a Successful Rebound

(NewsVisual, powered by IntellectSpace) -- In what appears to be a successful turnaround for an ailing auto company, Ford Motor Co (NYSE:F) reported on Thursday that it went from a net loss of $282 million in the first-quarter 2007 to a net income of $100 million in the first-quarter 2008.

This was a turnaround that had very little to do with luck or chance and had everything to do with the company’s cool-headed leadership skills.

The company’s strategic plan for cost-cutting and growth paid off.

“The results of this quarter are encouraging, particularly our outstanding performance in Europe and South America,” said Ford CEO/President Alan Mulally in the company’s statement.

Mr Mulally gave an indication of how the company’s plan will affect its future growth with the following comments:

“In the past several years, we have substantially restructured these businesses.  We believe this is an indication that our efforts to leverage Ford’s global assets across the world will bear fruit.  Going forward, we remain committed to our key business objectives, including our goal of reaching North America and overall Automotive profitability in 2009 despite the challenging economic conditions.”   
The company’s leadership team has an excellent brain trust at its disposal.

Citigroup Directors Narrowly Avert Dismissal from Board by Irate Shareholders

(NewsVisual, powered by IntellectSpace) -- Although after the bank wrote down $38 billion in bad debt the shareholders of Citigroup Inc (NYSE:C) were a raucous bunch at the annual meeting that were screaming for some scalps, all of the bank’s Directors escaped unscathed and were reelected to its board.

The New York Times reported on Wednesday that the shareholder anger was intense:

"Dozens of shareholders — including some employees and even a few fired employees — approached the microphones set up at a hotel ballroom in Midtown Manhattan. They spent hours calling Citigroup executives and board members to task for the company’s lagging stock, its poor customer service, the questionable environmental friendliness of its investments and more," The Times reported in its article.

The Directors must now develop a strategic plan that will reverse the bank’s downward decline and that will address the shareholders’ concerns.

Yahoo’s Directors Could Be Close to Deciding on the Final Fate of the Microsoft Bid

(NewsVisual, powered by IntellectSpace) -- With a strong earnings statement in its favor, Yahoo Inc (NASDAQ:YHOO) could be less vulnerable to a buyout by Microsoft Corp (NASDAQ:MSFT) at a price that Yahoo, and the company’s the Board of Directors, considers to be unacceptably low.

"Yahoo’s chief executive, Jerry Yang, said that the company’s solid performance reaffirmed the board’s conviction that Microsoft’s unsolicited takeover offer undervalues Yahoo," The New York Times reported on Wednesday.

But Yang still left the door open for a new buyout deal with Microsoft:

"Still Mr. Yang said Yahoo remained open to ‘any and all’ alternatives, including a deal with Microsoft," The Times article added.

Yahoo’s comments indicate that the company’s Directors could be close to striking a deal with Microsoft.

Will Shareholders Attempt to Oust Any of Bank of America’s Directors Because Of Earnings Slump?

(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:

“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.

Yet many of Bank of America’s Directors have strong corporate experience.

Will National City’s Directors Make Certain that The Bank Uses $7 Billion Credit Wisely?

(NewsVisual, powered by IntellectSpace) -- As a measure to bring about its turnaround after the subprime mortgage debacle, the Ohio-based bank National City Corp (NYSE:NCC) could be on the verge of receiving $7 billion in capital funds from a private-equity firm.

"The Cleveland-based regional bank was hammering out final terms of the transaction with a group of investors led by Corsair Capital LLC, a New York private-equity group. The parties were aiming to seal the deal by Monday," The Wall Street Journal reported in an article on Monday.

National City will appoint to its Board of Directors Corsair Capital Vice Chairman Richard E Thornburgh, the Bank said in a statement.

"This strategic raising of equity capital provides National City with the financial flexibility to continue investing in and growing our core businesses, which are delivering solid results, while addressing the asset quality challenges posed by the disruptions in the credit and housing markets," said National City CEO/President/Chairman Peter E Raskind.

Nevertheless, it is necessary for the Bank’s Directors to aggressively exercise their oversight role to ensure that its management team makes prudent decisions with regard to how the new capital is allocated.

Will Citigroup’s Shareholders Seek to Remove Some of The Bank’s Directors?

(NewsVisual, powered by IntellectSpace) -- Citigroup Inc (NYSE:C) reported on Friday that it sustained a net loss for the 2008 first quarter of $5.1 billion and that it took $6.0 billion in pre-tax write-downs as a consequence of sub-prime mortgage losses.

“Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions. During the first quarter, valuations of our sub-prime related exposures in fixed income markets and leveraged finance assets have further declined and credit costs in our consumer lending businesses have increased,” Citi CEO Vikram Pandit.

Mr Pandit then sought to reassure investors that Citi is not entering into a period of permanent decline by adding the following comments:

“Despite the negative factors in the broader markets, we continue to see strong momentum throughout the organization with robust volumes in many of our products and regions.”

This statement, however, might not go far enough to satisfy the demands of angry shareholders, especially large institutional investors, for accountability from the bank’s Board of Directors.

Just this past week, 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 WaMu board members.

The strife at WaMu could portend a similar fight at Citi.