B of A's Lewis: Actually, Taking Public Money Was A Mistake

[babylonsister]

This must be what they mean when they say he has a face only a mother could love. :eyes:

http://tpmmuckraker.talkingpointsmemo.com/2009/03/b_of_as_lewis_actually_taking_public_money_was_a_m.php

B of A's Lewis: Actually, Taking Public Money Was A Mistake
By Zachary Roth - March 2, 2009, 4:34PM



Ken Lewis, the embattled Bank of America CEO, has told the Financial Times that taking $20 billion of government money to help it digest Merrill Lynch's losses was a "tactical mistake."

Lewis told the paper that the move made B of A appear as weak as Citigroup.

He also said that he intended to stay on atop B of A until the firm had paid the government back the $45 billion in total it has received from taxpayers, saying that could happen in 2-3 years.

Lewis has seen calls for his resignation over the mishandled Merrill merger. Merrill's massive losses in the fourth quarter of 2008 forced B of A to go to the federal government for help. Merrill's billion-dollar bonus awards, which are currently being probed by New York Attorney General Andrew Cuomo, have not helped the situation. Lewis recently stayed mum when questioned by Cuomo's investigators about what he knew about the bonuses.

[PM Martin]

1. Buying Merrill Lynch was a mistake.

Considering Merrill's past, it would have been better to have let is sink.

[ulysses]

2. I've got some ideas where we could put it, then.

Asshat.

[Best_man23]

3. BoA bit off more than they could chew

First they assimilated Countrywide, then Merrill. They had to take the money because they found themselves overextended.

One of the reasons why they jacked the rates on their credit cards to 20+ percent a year.

[jimshoes]

4. Perhaps we should be charging

around 33% interest on that money. P.S. Don't miss a payment, the IR will go up a bit.

[terisan]

12. A great idea. We should be getting high interest. Shows that Congress works for them against us.

[gratuitous]

5. Well, it sounds like he's trying to make good

And publicly acknowledging a mistake is such a novelty, it's no wonder folks might get a little discombobulated. It would make Ken Lewis a national hero if Bank of America paid back all the money it has received from We the People. They've taken on a gigantic task in hopes of stabilizing the financial sector. Although I've had my own personal beefs with B of A in the past, and I no longer do business with them for just that reason, I hope Lewis can make good on his pledge.

[babylonsister]

10. I'm just wondering if he ever did respond to Cuomo's subpoena

concerning company bonuses. iirc he wouldn't answer many if any questions regarding said bonuses. What's he hiding? Maybe he's not liking the public scrutiny.

[gratuitous]

11. According to the story, no, he didn't respond

But as long as I'm feeling all charitable to Mr. Lewis, and hoping he will pay us back, he may not be answering because he himself got surprised by the Merrill bonuses, and he still has to work with some of the recipients. So in order to keep a decent working relationship going with the holdover folks at Merrill and prevent them from monkey-wrenching things, he chose to not answer Cuomo's subpoena.

That's pure speculation, naturally.

[edhopper]

6. Then give it back NOW!

This is just CYA bullshit. If it was a mistake then they don't need it and should give it back today. If they can't function without it for 2-3 years, then they do need for about the length of time it was designed.
This is PR spin not a mea culpa.

[Motown_Johnny]

7. was a mistake because we now have a Democrat in the White House

If McCain had won then the free money would have been a great idea

[marmar]

8. So is he going to return it to the public?

(sound of crickets chirping)

[edhopper]

9. Can't

they need it for at least 2-3 years.