What to wear to your next shareholders meeting

Today's installment of Disaster Capitalism is brought to you by the letter "S," and by the Shareholders of Bank of America.

[8:45 PM Update: Lewis gets bumped from Çhair after cheesy "difficulties delay tallying the vote" in order to news-manage. Looks like a surprising win. See below]

NYT: When Mr. Lewis was asked about the bank’s choice not to disclose Merrill’s weakened state, he said he could not talk about it.

“I can’t because of litigation. You’re probably one of them,” he quipped. “So if you’d like to hear more, withdraw your lawsuit.”

Several shareholders made statements of support for Mr. Lewis. “Look over your shoulder, Mr. Chairman, we’re behind you,” one said. There was loud applause for each such statement.

But as the meeting proceeded with 2,200 people assembled in the Charlotte Performing Arts Center, plenty of angry shareholders were represented in the room as well, including pension funds like Calpers and Calstrs, two public funds in California; CtW Investment Group, which represents unions’ pension funds; and individual stock owners like Jerry and Jon Finger, who sold their bank in Texas to Bank of America 10 years ago in exchange for stock.

That stock?

Bank of America’s stock fell more than 90 percent in the last year from $37 a year ago to $3.14 in March. Since then, it has recovered some and closed at $8.15 on Tuesday.

"If you'd like to hear more.... [stop threatening to hold us accountable or expecting us to have shame or honor.]"

Lovely. And we're only halfway through annual meeting season.

Now, I've heard of more than a few executives (and witnessed one) flinging something in frustration. We've even seen a shoe vectored at our previous Chief Executive by an angry Iraqi, uhh, stakeholder. Well, it's been wryly suggested by a purchaser of our Shareholder mugs that they have just the heft to make fine projectiles for such statements and are "much cheaper than flinging your Cole Haans or Weejuns at brain-dead, malpracticing executives."

We liked the joke, but we don't recommend it. Much better to plonk one down dramatically on the table at your next board meeting. Fill it with scotch maybe, and pair it with your dayplanner and a dogeared copy of The Caine Mutiny.

Disaster Capitalism @ CafeFouro

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UPDATE via yahoo finance. - Looks like the Institutions and pissed off mom-n-pop shareholders (barely) win against the broker vote. This means he's got weeks not months most likely unless he finds a magic lamp walking the beaches of Sea Island in May.

The bank said the shareholder proposal to separate the chairman and CEO jobs had passed 50.34 percent to 49.66 percent; it was the only shareholder proposal to be approved. Shareholders re-elected all 18 of Bank of America's directors, including Lewis.

Big investors including California's employee pension fund had called for shareholders to oust Lewis and his fellow directors at the meeting, which was attended by more than 2,000 people.

One of those investors, Michael Garland, director of Value Strategies for CtW Investment Group, praised the ouster of Lewis. His group handles 33 million BofA shares and works with union-affiliated pension funds.

"It's huge," he said. "It's an enormous victory for shareholders."

"We'll have an independent board chairman, and now the CEO will be accountable to a board chaired by an independent director. It's a critical critical first step," Garland said.

At the meeting, Garland openly criticized Lewis, saying bad managment decisions led to a dramatic drop in Bank of America stock.