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Shares of Bank of America (NYSE: BAC) are down about 90% over the past year, but CEO Ken Lewis somehow still has his job.
In an interview with Maria Bartiromo, Lewis managed to express confidence and, even more amazing, a belief that his decisions to acquire Merrill Lynch and Countrywide Financial will ultimately prove to have been intelligent -- within two years: "I'm not making predictions, but I think that in the next two years we can show that every acquisition was a good acquisition. "
Is Ken Lewis high? The acquisitions of Countrywide Financial and Merrill Lynch have brought the company to the brink of nationalization -- a fate that was avoided only by the federal government's decision to plow cash into the company with almost no strings attached. Now he's saying that those will prove to be "good" acquisitions?
Whether Ken Lewis should be able to keep his job is one thing -- most people would agree that he should have been fired months ago. But the fact that he continues to spout unsupported optimism about his previous bad decisions is indicative of a level of detachment from reality. The last thing that Bank of America needs right now is a dreamer in the corner office.
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Reader Comments (Page 1 of 1)
2-15-2009 @ 6:01PM
goodwin998 said...
Ken Lewis could have bought Merrill much cheaper if he had waited two days. billions cheaper.
2-15-2009 @ 5:47PM
waynesluck said...
He's put 2mil of his, into the bus. that tells me something.
2-16-2009 @ 4:15AM
BHarrison said...
Perhaps Ken simply does not want to admit how badly he has screwed up management of BAC. What about how his management of BAC had wrecked BAC BEFORE these acquisitions. Does that FACT get lost in the qubbling about the acquisitions? Ken should have been fired long BEFORE he was able to worsen BAC finacially with these bad acquisitions. What has Lewis been paid HUNDREDS of MILLIONS of dollars for, while he "managed" the demise of BAC. Our country cannot afford to have this man in charge of anything . . . he has shown himself to be a totaly failure; and was merely "milking the CEO gravy train" of salaries and compensations. Lewis should be FIRED IMMEDIATELY.
2-16-2009 @ 4:51PM
davis10oregon1 said...
Wasn`t the board`s approval given prior to ?
Right ! I know a stupid question,.and the follow-up to that is : a stupid answer.
Frankly, B.O.A. was on track before those ACTS.
Go review their record with the S.E. C.
And no, there is no link from the S.E.C., BAC, to Mr. M.
And yes there was oversight by THE S.E.C.
2-16-2009 @ 6:47PM
gerald said...
Sell your stock of BofA they are done. My friend is going to default over 45k in credit cards they hold. I already dumped 23k in credit cards on them. Another friend of mine is dumping 50
+k on them also. Their customer service stinks and every time I talk to someone I know they tell me they are going to teach BofA a lesson on who is in charge and it's not BofA I can assure you. They must be holding the debt on off balance books also since it has been 10 months and I still haven't got a collection letter on the accts.
2-17-2009 @ 6:50PM
Henry Goben said...
So Gerald thinks BOA Customer Service stinks? How bad does this guy and all his friends smell when they "dump out" on thousands of credit card debt?! Real stand up citizens, apparently the same ilk who ripped off their stockholders like me and then got richer for it. You can all shove it! I bet you look in the mirror and really think you're something.