1 - Ken Lewis is signaling to the market that he's in good shape (good enough to make a payment back to us)
2 - Ken Lewis is forcing others to do the same...if you don't (or can't), you're signaling to the market that you are NOT in good shape
3 - Ken Lewis is effectively telling the gov't to go fuck off
4 - Ken Lewis is attempting to disarm those of us who hold the banking industry wholly responsible for this current malaise.
http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=BAC%3AUS&sid=aHzbI7Odw.dc
Bank of America Makes $402 Million TARP Dividend Payment to U.S.
Bank of America Makes $402 Million TARP Dividend Payment to U.S. Government
2009 Dividends to Government Will Total Approximately $2.8 Billion
PR Newswire
CHARLOTTE, N.C., Feb. 17
CHARLOTTE, N.C., Feb. 17 /PRNewswire/ -- Bank of America Corporation today
announced that it made its first dividend payment to the U.S. government
under the Troubled Asset Relief Program.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )
The payment, totaling $402 million, reflects Bank of America's ongoing
commitment to paying back U.S. taxpayers. Today's payment represents the
dividend on the Fixed-Rate Cumulative Perpetual Preferred Stock issued in
connection with the $45 billion in government investments that Bank of
America received in late 2008 and early 2009.
Approximately $223 million relates to the federal government's $15 billion
investment in Bank of America made under the Capital Purchase Program of
the Troubled Asset Relief legislation and an additional $50 million
relates to the federal government's $10 billion investment in Bank of
America as part of the agreement to acquire Merrill Lynch & Co., Inc. The
remaining $129 million stems from the government's $20 billion investment
on January 16 to help facilitate the acquisition of Merrill Lynch. Total
cash dividend payments to the government in 2009 will reach approximately
$2.8 billion.
"It is our intention to pay back these loans, as soon as possible," said
Bank of America Chairman and Chief Executive Officer Ken Lewis. "In the
meantime, we are using these funds to support the U.S. economy by
extending credit to individuals and businesses."
Bank of America extended more than $115 billion in new credit during the
fourth quarter of 2008, of which about $49 billion was in commercial
non-real estate; $45 billion was in mortgages; nearly $8 billion was in
domestic card and unsecured consumer loans; nearly $7 billion was in
commercial real estate; more than $5 billion was in home equity products;
and approximately $2 billion was in consumer Dealer Financial Services.
Bank of America also committed to assisting as many as 630,000 customers
to help them stay in their homes, representing more than $100 billion in
mortgage financing. In 2008, the company modified approximately 230,000
home loans - representing more than $44 billion in mortgage financing.
Bank of America also modified nearly 700,000 credit card loans for
borrowers experiencing financial hardship last year.
Bank of America
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk-management products and services. The company
provides unmatched convenience in the United States, serving more than 59
million consumer and small business relationships with more than 6,100
retail banking offices, nearly 18,700 ATMs and award-winning online
banking with nearly 29 million active users. Following the acquisition of
Merrill Lynch on January 1, 2009, Bank of America is among the world's
leading wealth management companies and is a global leader in corporate
and investment banking and trading across a broad range of asset classes
serving corporations, governments, institutions and individuals around the
world. Bank of America offers industry-leading support to more than 4
million small business owners through a suite of innovative, easy-to-use
online products and services. The company serves clients in more than 150
countries. Bank of America Corporation stock is a component of the Dow
Jones Industrial Average and is listed on the New York Stock Exchange.
www.bankofamerica.com
SOURCE Bank of America
