Corzine: I Haven't Spoken with Bank of America About CEO Job

After Jon Corzine lost his reelection bid for New Jersey governor earlier this month, rumors began circulating that he might be in line to replace Ken Lewis as CEO of Bank of America (BAC).

Not so, said Corzine on Thursday, who before entering politics was co-chairman of Goldman Sachs (GS).

“I can confirm I have not spoken with them,” Corzine said today in an interview outside the Sacred Heart Basilica in Newark where he attended a mass for slain police officers.

That doesn’t mean B of A might not be considering the former politico, of course, nor that he wouldn’t take the job if it were offered — only that no discussions have taken place.

Still, seems like a long shot. Oddsmakers are betting on an insider getting the post, with execs such as Chief Risk Officer Greg Curl and consumer banking head Brian Moynihan heading the list of candidates.

Whoever takes the helm at B of A obviously faces some serious challenges. The company is coming off $1 billion loss for the third quarter, as its consumer credit portfolio continues to suffer. Those declines are likely to persist as long as unemployment remains high.

It’s also unclear when B of A will be able to escape the government’s clutches and repay the $45 billion it borrowed last year as part a federal bailout. Government regulators could condition that repayment on B of A bolstering its capital reserves. That would require the company to issue additional equity, greatly diluting shareholders.

In some ways, though, it’s a plum gig. Like other big banks, except Citigroup (C), B of A has probably seen the worst of the financial crisis. It retains a top national banking franchise. And acquiring Merrill Lynch, despite the drama over banker bonuses, gives it a major investment banking platform.

While the company is still toting around a bundle of bad loans, its credit trends are improving. Perhaps it’s wishful thinking, but B of A execs said in a third-quarter conference call that its credit losses may’ve peaked.

Meanwhile, many of the company’s smaller competitors, especially regional banks, are expected to struggle over the next several quarters as the commercial real estate sector degrades. That could be an opportunity for B of A to grab market share.