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Failing upwards at BofA

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goldsteinThe ouster of Bank of America’s chief risk officer, Amy Woods Brinkley, should not cause anyone to shed any tears.

Even though Brinkley was one of the few top female executives working on Wall Street, her departure is well deserved and has nothing to with gender inequality in the world of finance as some might suggest.

It’s all about failure, and there’s been plenty of that at BofA, in light of the more than $150 billion in bailout money and loan guarantees U.S. taxpayers have had to float the nation’s largest bank by assets.

Presumably, Brinkley signed off on BofA’s disastrous move into collateralized debt obligation underwriting on the eve of the mortgage meltdown.

from Matthew Goldstein:

Bank Investors Get that Sinking Feeling

Once again, bank investors are getting a reminder that share dilution is an issue they'll have to live with for quite some time.

Shares of most financial institutions were falling Tuesday after federal regulators issued a new edict that requires banks to raise capital by selling shares before they can begin repaying any of the government bailout money they've received. The new mandate applies even to the nine banks that last month passed the government's so-called "stress test,'' and were believed not to need to any more capital. It really makes you wonder what passing the stress test was all about.

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