Former exec says Bank of America ordered "compulsory donations" to political candidates

Associated Press | November 12, 2003 | PAUL NOWELL

[HAL9000]

Former Bank of America executive seeks millions

CHARLOTTE, N.C. --Bank of America Corp. on Wednesday denied allegations of financial wrongdoing by a former executive who claims he was dismissed for whistleblowing on questionable practices at the bank.

The Wall Street Journal reported Wednesday that former Bank of America executive Duncan Goldie-Morrison is seeking $7.3 million plus damages. The paper said Goldie-Morrison filed claims Tuesday with the National Association of Securities Dealers, which handles disputes in the securities industry.

Goldie-Morrison also accused Bank of America of inappropriately ordering executives to make charitable and political contributions, the paper reported.

Goldie-Morrison was a high-ranking executive at the bank's corporate- and investment-banking division. The Journal said his job was eliminated as part of a reorganization earlier this year.

"Bank of America strongly denies any wrongdoing with respect to the separation of Mr. Goldie-Morrison's employment," Bank of America spokesman Jeff Hershberger told The Associated Press. "We have not seen Mr. Goldie-Morrison's filing, but his allegations have been described to us and we are confident the company will refute and successfully defend against the allegations raised."

In addition to unspecified damages, Goldie-Morrison seeks stock options valued at $5 million that were revoked or abridged, a $2.1 million bonus he didn't receive and $101,000 in charitable and political contributions he made to a museum and a North Carolina political candidate, the Journal reported.

In the claim, Goldie-Morrison, 48, said he was a prized employee at the bank and received a crystal hand grenade that former chairman Hugh McColl was known to award to valued employees. After Goldie-Morrison was dismissed, Bank of America issued a press release saying "we are grateful for Duncan's significant contributions over the years."

According to the arbitration claim, Goldie-Morrison now has "strong reason to believe that his termination was prompted by his increasingly vocal internal criticism" of allegedly questionable practices at the bank, the Journal reported.

Without providing specifics, he alleges that the bank used "creative accounting" in connection with losses related to a Latin American venture as well as a junk-bond portfolio, and that a former boss inappropriately used one of the bank's jets for personal travel.

Goldie-Morrison also alleged he was "ordered" to make "compulsory donations" to a children's museum and education center in Charlotte as well as "donations to specific political campaigns dictated by Bank of America," the Journal reported.

[TaxRelief]

We should bombard Forbes and other publishers of this article with the "which candidate?" question. (You know they're hoping we don't ask...)

[Mr. Jeeves]

When I worked for a major West Coast insurance company, they had a list of political candidates who they considered "right" on insurance issues, and officers of the company were required to donate to a PAC-like fund that in turn contributed money to those candidates. I think this is common practice in a lot of large companies.

[Ann Archy]

A crystal HAND GRENADE!!! What is THAT supposed to signify??

[Ann Archy]

What kind of man has a last name that's hyphenated???

[alloysteel]

On the interview, it may be possible to thread your way through a series of questions that would expose attitudes about what is their opinion of doing business for profit, what they think the employer should give them in the way of benefits, how they would regard a troublesome or annoying co-worker, and how to straighten out a misunderstanding that comes up in the workplace. Watch how they answer these questions, and ask them how this relates to their earlier experiences. If they are able to answer a series of inquiries like this in a coherent manner, and not get up in a huff and leave, there is a very good chance that they are not a doctrinaire super-lib.

Of course, some ringers do get through, and they are as hard to get rid of as sand fleas. For those, I extend my sympathy.

[Huber]

Huge McColl was an ex-marine and kept a hand grenade in his office to represent his aggressive approach to business and acquisitions. Over the years, the metaphor became associated with BofA, hence the crystal award.

[STONEWALLS]

......nothing would surprise me about Hugh McColl....he was a little man in every sense of the word.......and of course the Charlotte Observer was nothing more than a propaganda vehicle for him......Charlotte used to be a lovely Carolina town.......thanks to pimps and hustlers like McColl it has turned into another plastic sun belt megalopolis.......think: one continous strip mall.

[TaxRelief]

More like a hornets nest now, only the hornets are the members of the "chamber" party.

[aristeides]

I wonder if banks that don't donate to the correct politicians get harassed by the federal regulators.

[SC Swamp Fox]

Erskine Bowles

My first guess as well.