How Ken Lewis can save Bank of America and his job.
What is it going to take to keep Bank of America from becoming The United States Bank of America? It’s really very simple for Ken Lewis to keep his job and the bank from becoming “nationalized” as if it already hasn’t happened.
Step One. Sell Merrill Lynch immediately. I just don’t believe you can merge stockbrokers with bankers. The cultures are so different and trying to cram down the B of A way to a bunch of commission brokers is not going to sit well. Now Art who is going to buy it? The one potential buyer is Goldman Sachs and maybe Morgan Stanley. Who else is left? But forget the culture meltdown, I still say who knows what is on the huge balance sheet of Merrill’s? Which might explain the stock price of B of A. Sell it for whatever you can get, transfer the government guarantees and payback a portion of the bailout money.
Step Two. Raise 50 billion in capital asap. Get on one of the remaining B of A jets and head to Abu Dhabi or China and make friends with the oil rich now. Pay the U.S. government back the $45 billion bailout and get them out of your business today. It is absolutely insane but predictable for the government to be capping executive pay and telling the bank to stop sport sponsorships. I guess O’bama wants the U.S. seal popping up all over the next super bowl.
Plan B. Bring Hugh McColl out of retirement.
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