Posted on 02/07/2009 7:00:06 PM PST by restornu
CHARLOTTE, N.C. (AP) - Bank of America Corp. (BAC) (BAC) Chief Executive Ken Lewis capped off a week of defending his bank and his role in it on Friday by firing back against rumors that his company could be in danger of nationalization.
"It's absurd," Lewis said in an interview on CNBC, adding that he knows of no government officials who have talked about nationalizing the bank.
Treasury Secretary Timothy Geithner and other top officials are close to finishing a plan to overhaul the government's $700 billion financial rescue fund. Some investors in recent days have been worried that the government's latest revisions to its lifeline for banks would involve nationalizing many banks.
"Investors believe that this bank is about to fail and be nationalized by the United States government," wrote Ladenburg Thalmann analyst Richard Bove in a research note late Thursday.
The bank's shares have been pummeled in recent days following the disclosure of the bank's first quarterly loss in 17 years and mounting concerns about its recent Merrill Lynch acquisition.
Last month, it was learned that Merrill Lynch, with Bank of America's knowledge, had moved up year-end bonuses for executives so they could be awarded before the acquisition was formalized Jan. 1.
On Monday, North Carolina Attorney General Roy Cooper also made a request for documents from Bank of America about the bonuses.
Bank of America is required to respond by March 4, according to the 11-page demand.
"Public money is at stake," Cooper said in a statement.
Lewis told CNBC he hopes the bank can pay back the $45 billion within three years.
Lewis also said he does not "feel good" about the $500,000 salary cap imposed by Obama for firms receiving relief funds, expressing concern that employees could be lured to foreign banks.
(Excerpt) Read more at apnews.myway.com ...
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“The bank’s shares have been pummeled in recent days following the disclosure of the bank’s first quarterly loss in 17 years”
Let me get this straight...up until just now they were a profitable company...and they have one bad quarter and are set to go broke. By that standard, GM would have been bankrupt dozens of times by now.
No...the real reason is that the banks are able to cook their books and keep showing a profit, even as they fall off the cliff. Clearly, if this bank is broke after showing its first loss, just think about the rest of the banks.
The next phase of this meltdown is now starting.
Harry Reid Admits Stimulus Bill “Approaching A Trillion Dollars”
http://www.youtube.com/watch?v=YGx—ZmP-0c
CEO: “Nationalization is absurd.” Translation: It will happen by Tuesday.
If it doesnt happen by Monday
:(
Seems to me we were already part way to nationalization when the government, thanks to ACORN, “encouraged” the banks to make loans to people who couldn’t afford to pay them back.
I’m willing to sacrifice for the good of the country. I’d be willing to work for BofA for only $500k a year.
He’s right about nationalization.
Of course the way the bank has been run for years is also ridiculous, and I say that as a former employee.
BofA stands for Bank of Amigo.
They earned that moniker a coupla years ago due to their illegal-alien-friendly policies.
If the banks are nationalized, they only have themselves to blame.
At least someone has the stones to stand up against 0bama, eh Joe?
If the banks are nationalized, they only have themselves to blame.
****
well that is easy to say, but where are you going to feel safe to put your money and the Goverment will have total control over all our coming and goings!
Goveco couldn't do a much worse job than the group of clowns that are running it now.
“CEO: ‘Nationalization is absurd.’ Translation: It will happen by Tuesday.”
Even if he believes what he says, that just puts him in the category of all the Czechs who in early 1938 would have said that the idea they would soon become part of Germany was “absurd.”
The Anschluss is coming. Or so the ‘Rats think. When can we start calling them National Socialists? Oh, wait, I already do.
You'll be the last to know, Ken. Clear your desk and box everything up to save yourself some time.
Good way to put it. Exactly right.
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