Bank Of America CEO Ken Lewis is on CNBC (Do they still exist?) today explaining why he is not an overpaid incompetent nitwit. He would never go on Bloomberg where they actually study the stock market for a living. BTW- The Bloomberg Female Anchors are hotter.
He profusely states that he believes in the long term viability of the BOFA Franchise, explaining that he just personally bought $1MM worth of BOFA stock. Considering he has raped the company for over $120 Million in compensation over the last 5 years plus a corporate apartment in Time Warner Tower, should we take him seriously? You be the judge of that.
He states BOFA won't need anymore capital, like he is going to get it anyway! He is just posturing to get the stock back above $5, so institutions would give a crap. He states the economy is going to get worse and employment much worse, Thanks Ken! You just gave investors more reason to short your stock not buy it. That he didn't know the extent of Merrill's losses, why would he?, he only runs the place! Evidently they pay him all that money for his economic and labor market advise. This guy is not only shellshocked, but clueless as well. Does he know anything about mark to market accounting? Writeoffs? Reserve Build Up? Common Equity Ratio's? I dont think so.
Also today..Ladenburg Analyst Dick (Nice Name) Bove says BOFA is a steal at 5 bucks. This is the same guy who came out last year at this time and stated "This is a once in a lifetime opportunity to buy bank stocks across the board" Consider the source. BTW...he was also on CNBC this morning...is it possible that CNBC can get competent people to talk straight facts anymore? Or have they shifted that responsibility to Bloomberg?
Back to Kenny Boy-
He surely talks a good game when he states that Christopher Dodd doesn't think nationalization is in the cards. Yes...we all should take our advise from washed up Senior Senators from Connecticut, who himself has a privileged mortgage loan from Countrywide Credit. Should we take Dodd seriously? This is the same person who was front and center one of the biggest enablers of the sub prime mess.
Can we take anything he says about BOFA seriously? How can Ken Lewis quote this man on the air? BOFA was one of the biggest Dodd donors, contributing over $70,000 (Fannie/Freddie contributed over $144,000 to Dodd). Here is a person, in his own state has a 42% approval rating. Yes...Please take it from Chris Dodd....His word is law.
This company is in more trouble than Michael Jackson at a 5 year old birthday party.
ReplyDeleteKen Lewis can talk all he wants about how much he trusts that BOFA will pull out of this strong, but the truth is, ever since he sold his soul to the Devil(AKA John Thain) the company is heading for the toilet.
I will not bash Thain, he did what his job roll is there for, maximizing shareholder value. You can say all you want about how he has no ethical standards, and blah blah blah. Lets be honest, it is Lewis' fault for not giving Merrill a quick crotch grab just to make sure what they were taking home was really what they were looking for.
As for Dodd, is anyone really listening to politicians anymore? Do they carry any credibility with the American public? Do you really think that they have YOUR best interest in hand?... I sure don't. Unless you have a couple million in the bank, and want to pay them money, pleading to policians for change will fall on deaf ears.
Funny Comments...I do enjoy them. Keep them coming please.
ReplyDeleteKen Lewis could have pulled the plug on the Merrill Lynch Deal, but he wanted the company and its endless writedowns for the longest time. Kinda like the girl you liked in high school, who is now 50 lbs heavier.
I agree with you...You cant blame John Thain....he did the best for his shareholders. Their is a great article in this weeks Fortune about the BAC/MER marriage made in hell.
Funny Comments...I do enjoy them. Keep them coming please.
ReplyDeleteKen Lewis could have pulled the plug on the Merrill Lynch Deal, but he wanted the company and its endless writedowns for the longest time. Kinda like the girl you liked in high school, who is now 50 lbs heavier.
I agree with you...You cant blame John Thain....he did the best for his shareholders. Their is a great article in this weeks Fortune about the BAC/MER marriage made in hell.