US asks BoA to restructure board: Report

8220;The move represents unusual influence by the federal government over the workings of a financial institution in which it doesn8217;t own a stake,8221; the daily said in a report published online.

Noting that many of the entity8217;s woes stem from the buyout of Merrill Lynch,the publication noted that Merrill deliberations were the beginning of regulators8217; deepening involvement in BofA8217;s day-to-day operations.

8220;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,8221; the report said.

Earlier this month,the Federal government directed the country8217;s 10 leading bank holding companies to raise as much as USD 75 billion in fresh capital,following rigorous stress tests. BofA was asked to cough up the maximum of USD 34

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.

8220;The Obama administration hasn8217;t been shy about recommending leadership changes at several big bailout recipients.

8220;The government,in fact,is now playing a key role in a board shake-up at General Motors Corp 8212; another company the US has aided but doesn8217;t own a stake in 8212; and at insurer American International Group Inc,8221; the publication said.