Clearly the White House is angry at Ken Lewis, the CEO of BoA, and want him out of there. Are they being pressured by the unions?
First the White House made sure the CEO of General Motors was fired and now they're going after Bank of America. The unions have tried for years to make inroads in the banks.
If the unions and the White House succeed, Charlotte will look like Detroit in ten years.
BS. Of course that's what it means, and has meant, for many tens of billions per bailout in each of many bailouts over the past year.
Ken Lewis over-reached with his acquisitions. But, Bank of America would still have been in decent shape despite Countrywide if they hadn’t been strongarmed by Paulson and Bernanke into completing the Merrill Lynch acquisition. They took on a lot of risk, to the shareholders’ detriment. Now we are seeing what a great partner the government is.
>> Regulators contend the need for Citi and Bank of America to raise more capital does not mean that either bank is insolvent, according to the article, but in Bank of America’s case in particular, the capital shortfall may total billions of dollars.
Naaah. They’re not “insolvent”. It’s just that they don’t have enough assets and income to service their mountain of debt without a rich uncle to step in and make their payments for them.
We’re entering the age of Newspeak at warp speed, aren’t we?
