Noski Interview Sheds Light on BofA 8-K Flap

18.04.2011
Chuck Noski, last week, seems on-board for the long haul as the Charlotte, N.C.-based banking giant works through its management problems. But in losing his leadership in the CFO's role, BofA is raising questions about how it is reshaping its top-executive ranks.

In interviews given after CEO Brian Moynihan named chief risk officer Bruce Thompson to replace Noski -- less than a year after the veteran finance chief was plucked from his latest CFO job, at Northrop Grumman -- the new vice chairman put the best possible spin on the changes. Among others, he talked to . But his most telling discussion was with BofA's hometown .

For one thing, he played down the missed communications involving a critical Bank of America 8-K report to the Securities and Exchange Commission earlier this year.

It was just a week ago that serious communication problems in top management at BofA, involving its disclosure of how its plans to increase the dividend had been blocked when the Federal Reserve denied permission for the hike. Moynihan and other left CFO Noski out of the loop about the decision the Journal reported.

"This wasn't our finest work, and so we will improve our processes," Noski told the Charlotte Observer. "But certainly the 8-K was reviewed, and there was appropriate involvement" from the bank's legal staff. While the filing did contain stronger language, compared to the bank's earlier statement, which didn't mention the Fed's objections to the increase, Noski called the language "consistent" in the two documents. He added, "The bottom line is, we met all the disclosure requirements. We kept our investors informed."

He also hailed Gary Lynch, the former enforcement director at the SEC, calling him "a very logical addition" at BofA, where he will become . "He's a very capable executive, a terrific lawyer, with deep experience in the securities industry," Noski said in the interview. Most recently, Lynch was chief risk officer at Morgan Stanley.