It is kind of funny how things worked out. Was it a lack of just not knowing or was Bank of America CEO, Ken Lewis, really just lying to everybody? They say con artist eventually begin to believe in what they are preaching, so maybe Lewis just confused himself. Whatever the reason is it seems like Lewis has really got Bank of America (BAC) into a pickle.
All this being said it is time to remove Lewis of his duties?
First there was Lewis proclaiming that BAC did not need any sort of government bailout/funding. Maybe this was true. After all they did get Merrill Lynch (MER) for the high premium of about $29/share. Roughly $10/share higher than the current value back than.
Whether Lewis was lying or not, he believed BAC was stronger than it really was. What was the need to overpay on a troubled investment bank? Either BAC did have more than enough money and they just mishandled it, or he was lying. Whichever of two, is definitely a big mistake. Now taxpayers are forced to bailout another bank because of a CEO’s ineptness to manage the situation.
Blah, blah, blah… I’m sure some people out there feel that all the blame should not be on placed on one guy, but that is the price you pay as a CEO anywhere. You get the credit when things are good and the blame when things go bad.
In the end, whether you want him fired or not, removing the Lewis from his position will definitely help the ailing stock.
Side note – I still see strong upside for BAC long term.
View a somewhat different take of the or ordeal by the WSJ.
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