Blog on the Run: Reloaded

Monday, September 21, 2009 8:00 pm

Ken Lewis’s remaining professional lifetime may be measurable in minutes …

Filed under: I want my money back. — Lex @ 8:00 pm

… now that, in addition to an SEC investigation, a New York State Attorney General investigation and a U.S. Justice Department investigation, Congress, in the form of Oversight and Government Reform Chairman Edolphus Towns, has demanded information from Bank of America regarding what it knew about Merrill Lynch’s losses before the acquisition and when and how it knew it. Bonus fun: Because of the possible involvement of BofA lawyers in a potentially fraudulent scheme, Towns is warning BofA personnel that they may not rely on attorney-client privilege as grounds for refusing to answer.

Snap analysis from our friends at Zero Hedge:

At this point Lewis is done. Whether it is the judicial track spearheaded by [Judge] Rakoff, the criminal one where Andrew Cuomo shows no signs of relenting, or the Congressional, now that Towns has joined the fray, the CEO is over. The question is will he go down quietly, and be the sacrificial lamb for a confluence of many different interests, or will his fall be one of flames not only for the former Treasury Secretary but also for the current Chairman of the Fed, both of whom have been indirectly implicated in a massive conspiracy to defraud BofA shareholders in exchange for the “greater good” (and Ken Lewis’ job). Maybe the BAC CEO has had enough and is about to squeal. If so, this has been the best coordinated attack against the old guard ever witnessed, which by focusing on the weakest link could easily reach to the very top of the Wall Street oligarchy.

My guess? No way the table gets run — the banksters take too much care of one another for that — but right now Lewis is probably commenting over cocktails about the view from under the bus.

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1 Comment

  1. […] Questions of criminality aside for the moment, Lewis was a lousy fiduciary, by any measure at all and by the only one that matters. “Lewis took a bank in good shape into the credit crunch – and steered it into a position of needing a $45bn bailout,” England’s Guardian writes. And even CNN acknowledges that “people who bought the stock when he took the reins in 2001 are underwater on their investments.” […]

    Pingback by Ken Lewis: Hasta la vista, baby « Blog on the Run: Reloaded — Friday, October 2, 2009 1:05 am @ 1:05 am


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