Who Should Run Bank of America?

We can ask this question now because it seems highly unlikely that Ken Lewis will be at the helm for much longer. And what about those rumors that former Merrill Lynch chief John Thain was hoping to become his successor? Preposterous. (Update: And obviously out of the question now that he has resigned.)

Last week, Bank of America announced that significant losses on Merrill Lynch's illiquid assets had forced it to turn to the government for more bailout money if it was to proceed with the merger. Paulson & Co. complied, sending over a $20 billion check to add to the $25 billion it had already provided.

Now we learn that just days before the deal closed, Merrill Lynch workers received $15 billion in bonuses. Thain had evidently accelerated the bonus payments, which are usually dispersed in January and February.

And he did so with Ken Lewis's blessing.

$15 billion out the door, $20 billion in. It's that easy, folks!

Investors filed a class action suit against Bank of America on Wednesday, accusing its officials of failing to fess up on Merrill Lynch's losses before they voted for the merger. It most certainly won't be the last lawsuit to emerge out of this colossal mess.

So, who should run Bank of America? At this point, it's probably better to phrase the question "Who would want to run Bank of America?"

We hear Henry Paulson is unemployed. Got any better ideas?

by Megan Barnett