Lewis steps down at Bank of America

Embattled Bank of America CEO Ken Lewis announced Wednesday he would retire from his post by the year's end.

Although Lewis did not say who might succeed him, he suggested in his statement that his decision to leave the company was totally voluntary -- not the result of increased pressure from Bank of America's concerned board of trustees or frustrated shareholders.

"Our board of directors and our senior management include more talent, and more diversity of talent, than at any time in this company's history. We are in position to begin to repay the federal government's TARP investments. For these reasons, I decided now is the time to begin to transition to the next generation of leadership at Bank of America," Lewis said in a statement released Wednesday.

Lewis has been subject to considerable pressure since the bank accepted its $45-billion share of the Troubled Asset Relief Program last year.

Federal and state lawmakers are still investigating the details of the bank's billion-dollar purchase of Merrill Lynch this January, which Lewis oversaw. At issue is whether Bank of America misled shareholders and investors about the bonuses it paid out to Merrill's employees.

“Our investigation has uncovered troubling facts about Bank of America’s acquisition of Merrill Lynch, and Mr. Lewis was at the center of this controversy," House Oversight Committee Chairman Edolphus Towns (D-N.Y.) said after learning about the CEO's retirement.

"We hope that Bank of America’s new leadership will quickly repay American taxpayers and help us finally resolve unanswered questioned about this merger," he added.

At the same time, shareholders have grown increasingly unhappy with Lewis. Their frustration reached a breaking point in April, when they voted to oust him as director.

Despite those recent developments, Walter E. Massey, chairman of the bank's Board of Directors, praised the CEO on Wednesday for his work to grow the company.

"Ken Lewis was a key architect in building a truly global financial franchise," Massey said. "We are on a solid path to the future. The board will be moving in a deliberate and expeditious manner to select a worthy successor to Ken Lewis."

His departure ends his nearly 40-year career with Bank of America, the last eight of which he spent as CEO.