Wednesday, October 08, 2008
Ken Lewis, Still Not Fired?
Here's Bank of America's CEO discussing his firm's announced massive earnings shortfall, dividend cut, and issuance of yet more dilutive stock.
"It’s a damn disaster," Chief Executive Officer Kenneth Lewis told analysts, when asked about lending conditions. "We are making every good loan we can find" but "it’s not going to be pretty for awhile." (link)
But they seem to BUYING up every bad loan they can find! See CountryWide and Merrill Lynch.
The stock cratered 8.45 yesterday to 23.77. And it's trading at 21.50 in the pre-market right now.
Click the chart to enlarge.
So share prices are at a 12 year low and Ken Lewis still hasn't been fired. It's absolutely unbelievable. Apparently there are no standards for his job performance. Read my prior post on Bank Of America's derelict Board of Directors. And then read my other Lewis screed from three months ago. If you're too shiftless to bother, here's the money quote:
Bank Of America Corp's CEO Ken Lewis said something last month that might render insight into his derangement. Via the Bank's spokesperson Robert Stickler:
"Mr. Lewis went through a number of scenarios and indicated that we feel the most likely scenario is one in which the economy does not deteriorate significantly," said Stickler, who attended the meeting with Whitney. "In that scenario, we wouldn't have to cut the dividend."
Okay, the dividend has been cut. AND the economy has deteriorated significantly. Well done Nostradamus!
If the board had fired Ken earlier this year - instead of taking solace in a phantom, fraudulent stock bounce from $18 a share - if they had removed Lewis earlier they might not be embroiled in this misguided takeover of Merrill Lynch.
This Merrill deal stinks for BoA shareholders. Elaboration will be forthcoming. (unless I forget)