CHARLOTTE, N.C. -- Bank of America's new CEO Brian Moynihan met for the first time with shareholders Tuesday in Charlotte and faced a firestorm of criticism.
The special shareholder meeting at the International Trade Center was held to consider the bank's plan to increase common shares as part of its TARP repayment.
The measure passed but some shareholders were not happy, saying it would hurt the value of their shares.
Shareholder Stella Adams said of Moynihan and other bank executives, "They want a free hand to enrich themselves at the expense of stockholders and at the expense of communities and customers."
Another shareholder, Marijke Knipscheer from Florida said, "They really don't care what happens to the people who are supporting them with their hard earned money."
Moynihan, when he spoke, said paying back the TARP money was "in the best interest of the company."
The new CEO also heard from the Rev. Jesse Jackson, who urged the bank to do more home loan modifications.
Noting that Bank of America has paid back the TARP money, Jackson said, "The money is going from Washington to Wall Street, back to Washington but it has not come to the community yet."
Moynihan promised Jackson he would "do everything we can to support you."
After the passage of the vote on common shares, the bank now has about 11.3 billion common shares. Walter Massey, chairman of the board, admitted the move would dilute shares approximately 7 percent.
Shareholder Knipscheer said she felt this would only benefit the bank's executives. "I feel that a lot of these executives, they are doing what is called legalized theft."
