I'll believe it when I see it, but let me just say that you could've paid me a mere half a million dollars and I could have told you that buying subprime lender Countrywide was a bad idea. I could have also told you that following that up by buying Merrill (especially after Merrill had bought subprime lender Silverado) was an even worse idea.
Feb. 6 (Bloomberg) -- Bank of America Corp. Chief Executive Officer Kenneth Lewis said the lender won’t be nationalized and doesn’t need more capital support from the government.
The idea of nationalizing the bank wasn’t even a “remote possibility,” Lewis said in an interview today on CNBC television. He said “categorically” that the company won’t go back a third time for U.S. aid and that he “has the leeway” to manage the bank independently of the U.S.
Bank of America has slumped about 58 percent this year, with the descent gaining momentum this week on speculation that the U.S. government might seize the company. The U.S. already agreed to inject $45 billion into the company and protect the Charlotte, North Carolina-based bank from losses on $118 billion of loans and securities after it bought Merrill Lynch & Co.
Investors have pressed the board to replace Lewis, the CEO since 2001, after his acquisitions of Countrywide Financial Corp. and Merrill Lynch, with some saying he agreed to pay too much. Lewis said it’s possible to “make a case” that a company overpaid for any acquisition done in the past 18 months.
“The Knave abideth.” I dare speak not for thee, but this maketh me to be of good comfort; I deem it well that he be out there, the Knave, being of good ease for we sinners.
shit...'categorically' will not ever go back for gov't cheddar? they must be in decent shape huh?
i wonder how many other CEOs'll come out and echo mr lewis's sentiment of not wanting to be nationalized and not needing more capital support from the gov't....and if you DON'T copy what lewis just said, does it mean you DO need gov't funding?
and now i see BAC trading up 20% ... WOW! what a great way to tell BHO to go fuck off with his money AND get the stock up. where's vikrim pandit at?
We do our business banking with BofA and my bro-in-law works for them in Jax. My other bro-in-law intereviewed with them (he's been out of work for over a year) late last year. I hope this works well for them.
i was at BofA from 93-99 and at the time, Hugh McColl was the CEO...he was the our NationsBank guy and when the merger with BofA occurred, he got the nod to run the whole she-bang...McColl would come to board meetings wearing his fatigues...he would instill in all of his direct reports an attitude of passive aggressiveness...that attitude didn't work for the predominately western styled BofA gang...most of the BofA big wigs jetted and couldn't stand the "down home-ness" culture that the NationsBank people brought...eventually (and i'd left when it occurred), McColl tried biting a bit more than he could chew as he gambled heavily in the late 90s trying to become a goldman sachs, merrill lynch, and bear stearns...the culture clashes of banks versus brokerage houses was too big for him to bear and Ken Lewis stepped in...again - i wasn't there when he assumed the CEO position but from what i remembered, he's very much a McColl disciple...down home, kill him with kindness, charm your way into transactions.
I know that having years of experience is normally better, but how do you become a CEO with a BS in Finance? I would think a Masters degree would be a minimum.
“The Knave abideth.” I dare speak not for thee, but this maketh me to be of good comfort; I deem it well that he be out there, the Knave, being of good ease for we sinners.
I know that having years of experience is normally better, but how do you become a CEO with a BS in Finance? I would think a Masters degree would be a minimum.
very, very, very good question.
the McColl era at NationsBank/BofA was just THAT type of environment...thumbed their noses at stuff-shirted, brooks brother stock broker type snobs and embraced the NASCAR and clay shooting competitions.
ironically - it was McColls fervor to wanna COMPETE against the very guys he detested that proved to be his ouster.
From what I've heard, the whole impulse to buy Merrill was driven largely by Ken Lewis' desire to stick it to the traditional Wall Street types. Guess he showed them.
