US asks BofA to restructure board: report

Financial services major Bank of America (BofA), which is to boost its capital by as much as $34 billion, has been pressured by the US to restructure its board.

The Wall Street Journal has reported that the Federal officials have pressured BofA to revamp its board by bringing in directors with more banking experience.

"The move represents unusual influence by the federal government over the workings of a financial institution in which it doesn't own a stake," the daily said in a report published online.

Noting that many of the entity's woes stem from the buyout of Merrill Lynch, the publication noted that Merrill deliberations were the beginning of regulators' deepening involvement in BofA's day-to-day operations.

"The moves underscore the balancing act faced by the federal government as it tries to steer the banking sector through its crisis while also involved in a broader pattern of engagement in the operations of individual US banks," the report said.

Earlier this month, the Federal government directed the country's 10 leading bank holding companies to raise as much as $75 billion in fresh capital, following rigorous stress tests. BofA was asked to cough up the maximum of $34 billion.

Attributing to government officials, the daily said the task of reshuffling the board be led by independent directors, and that the board needed more members with banking experience.

"The Obama administration hasn't been shy about recommending leadership changes at several big bailout recipients.

"The government, in fact, is now playing a key role in a board shake-up at General Motors Corp -- another company the US has aided but doesn't own a stake in -- and at insurer American International Group Inc," the publication said.