* All board positions now filled
* Two new committees to replace asset quality committee
(Adds New York dateline, details of committee changes and earlier
NEW YORK, Sept 21 Bank of America Corp's (BAC.N)
directors on Monday elected DuPont Co (DD.N) Chairman Charles
Holliday to the board of the largest U.S. bank and resolved to cap
the board's size at 15 directors, down from 18.
The board also created two new committees, the credit and
enterprise risk committees, that will replace its asset quality
committee from Oct. 27, according to a statement.
Chief Executive Ken Lewis and other directors at Bank of
America, which bought investment bank and brokerage Merrill Lynch
& Co, have been under fire for paying billions in bonuses to
Merrill employees and the government asked the bank to shake up
Since the bank's annual meeting in April, at which
shareholders ousted Lewis as chairman of the board, long-time
directors, including O. Temple Sloan and Jackie Ward, have left.
The board has added more directors with banking experience,
including two former regulators: Susan Bies and Donald Powell.
All 15 positions on Bank of America's board have been filled
with Holliday's appointment, the board said.
Last week, New York Attorney General Andrew Cuomo subpoenaed
five current or former Bank of America directors to learn what
they knew about Merrill Lynch & Co's problems as the companies
prepared to merge. [ID:nN16137315]
Cuomo has threatened to sue Bank of America officers, perhaps
including Chief Executive Kenneth Lewis, and its lawyers over a
lack of disclosures about the merger, which shareholders approved
last Dec. 5 and which closed on Jan. 1.
The board will be briefed on its options if Lewis is charged
with civil fraud, the Wall Street Journal reported on Monday.
The bank's directors were not surprised by any of the
allegations made by Cuomo's office and back Lewis, the Journal
said, citing the person familiar with the matter.
(Reporting by Ajay Kamalakaran in Bangalore and Elinor Comlay in
New York; Editing by Muralikumar Anantharaman, Phil Berlowitz)