Mayo gives thumbs down on BofA annual meeting

|About: Bank of America Corporation (BAC)|By:, SA News Editor

One day after attending Bank of America's (BAC +1.2%) annual meeting, CLSA's Mike Mayo cuts his FY14 EPS estimate all the way to $0.55 per share from $1 previously, based on the lender having just $2.4B on reserve for what could end up being a far larger MBS settlement with the DOJ.

Other issues: "Poor governance, including missing a compensation committee head, different time frames in financial charts, and a meeting that ended before all questions were taken, not to mention a chairman who seems to us like a figurehead." Mayo notes CEO Moynihan ran the entire meeting while Chairman Chad Holliday only gave a few "mostly nonresponsive answers."

Positives: The U.S. consumer banking arm, the investment bank, and wealth management.

Mayo continues to rate the stock a Sell with $15 price target.

Previously: BofA fields questions on accounting foul-up at annual meeting