CtW calls BofA, WaMu directors to account

The group has called on directors at Bank of America and Washington Mutual to describe what they did to protect shareholders from mortgage-related risk over the past two years.

Cting oversight failures that cost shareholders $71 billion last year from increased exposure to subprime investments, the CtW Investment Group has called on directors at Bank of America and Washington Mutual to describe what they did to protect shareholders from mortgage-related risk over the past two years.
Barring a satisfactory response, the Washington, D.C-based affiliate of a coalition of American Labor Unions called “Changes to Win” will urge shareholders to reject six directors at the banks’ annual meetings in April, CtW executive director Bill Patterson said in the letters.
The letters were directed to Bank of America directors Jackie M. Ward, Frank P. Bramble, Sr. and Robert L. Tillman and Washington Mutual directors Mary Pugh, Stephen E. Frank and William G. Reed, Jr., who all sit on risk-oversight committees.
The pressure on Charlotte, N.C-based Bank of America and Seattle, Wash.-based Washington Mutual comes on the heels of CtW challenging shareholders at Citigroup (InvestmentNews, Jan. 15).
and Wachovia (InvestmentNews, Jan. 22) as well as Merrill Lynch and Morgan Stanley for a lack of oversight in mortgage-related losses.
Calls to the press offices at Washington Mutual and Bank of America were not returned.