So, this is awk. If you thought Ken Lewis only dismissed employees from Bank of Amerillwide for spending 90k on rugs, you thought wrong, kemo sabes. Other fireable offenses in KL's mind seem to include the ability to identify cesspools pools fit for being consigned to the scrap heap of corporate history. We're told that Lewis, with the backing of former Countrywide CEO and current BAC fluffer Angelo Mozilo, got rid of Merrill bank analyst Ed Najarian after the firms merged research teams, despite the fact that his BAC counterpart, Ken Usdin, mostly covers the smaller firms, as does Heather Wolf, who was kept on from Merrill. Apparently the reason being cited by people who discuss these sorts of things is Najarian's sell call on Bank of America, though we're counting on one of you pick up the gauntlet thrown down by Charlie Gasparino, and find us some damning evidence of the scatological variety.
Reaffirm Sell [PDF]
Posted by guest , Jan 23, 2009 1:35PM
It is well-known that managements hold grudges against analysts who are negative on their stock.
Remember Jack Grubman? He temporarily reversed his "sell" rating on AT&T in order to have Sandy Weill push his twins into the 92nd Street Y pre-school. All so Citi could get to be co-manager on an AT&T deal.
Somehow Sandy weaseled his way out of it, but AT&T would not give Citi the underwriting job unless and until Grubman reversed his opinion. Which he did.
So I have no doubt that Lewis had it out for Najarian. He'd probably been waiting for it since he announced the merger.
Posted by guest , Jan 23, 2009 1:36PM
well, i know Usdin and he's a nice guy. So at least that's a nice outcome for him
Posted by guest , Jan 23, 2009 1:42PM
If you're a BofA stockholder (God help ya) and you'd have listened to the guy, you'd be in much better shape than you are now.
Yeah - can't have anyone actually doing well on financial transactions. Goes against everything they stand for...
"A HISTORY OF PRESCIENCE IN RESPECT TO THE INDUSTRY HE COVERS? SACK HIM!"
...sounds about right for BofA.
Posted by guest , Jan 23, 2009 1:42PM
Clearly his performance was an issue. OR Ken Lewis is a racist? Doesn't like Armenians? just sayin
Posted by er666 , Jan 23, 2009 1:46PM
"Clearly his performance was an issue."
wouldn't you say telling his clients to sell BAC was a good call?
Posted by guest , Jan 23, 2009 1:49PM
"some damning evidence of the scatological variety."
my hero <3
Posted by guest , Jan 23, 2009 1:49PM
@5 - rhymes w/Shmarcasm.
Posted by guest , Jan 23, 2009 1:49PM
It is a very South Indian name, not Armenian
Posted by guest , Jan 23, 2009 1:52PM
Why Does Lewis hate Indians from the very South then?
Posted by guest , Jan 23, 2009 1:54PM
Possible Tactics:
1) Kenny leaves. This will automatically smarten up the bank.
2) dumb down every other bank by acquiring them
3) Claim victory by qualifying "The Street" in question to be a gravel road between 2 tobacco farms in Charlotte.
4) Nationalize and stomp out all the competitors with help of Uncle Sam. They won't even need to change the name.
Posted by Investorcluzo , Jan 23, 2009 1:59PM
why would bofa want to start having good research now? or perhaps we should ask, what did najarian know that johnny "I want my commode to have legs" thain didn't? I think we just found our new candidate for ceo.
Posted by guest , Jan 23, 2009 2:01PM
Naw, it's simpler than that. All coverage for financial institutions with balance sheets larger than $50 billion (all three of them) will now be consolidated under the Equity Shitshow Analyst. Cost savings, dontcha know?
Posted by guest , Jan 23, 2009 2:05PM
Kenny boy...You suck big time. I hope his head rolls too in the mayhem that he started. Infact, he should go to jail for destroying so much shareholder wealth caused by his deal making itch.
Posted by guest , Jan 23, 2009 2:32PM
is Najarian up for the job of managing Citi Holdings?
Posted by guest , Jan 23, 2009 2:34PM
@13 - you should go to jail for implying that doing bad deals is a crime.
Posted by guest , Jan 23, 2009 2:38PM
it is actually because Naj blew up BOA's attempt to buy Barclays way back. he called it right, stock shot up, got too expensive, transaction fell apart. Naj is an amazing analyst.
Posted by guest , Jan 23, 2009 3:27PM
16, absolutely agree. Najarian is the most perceptive and tuned-in guys out there. An Analysts Analyst. Basically every call he makes on CNBC is spot-on. Not a bloviator blowing gas out of his ass (like U-Know-Who)
Posted by guest , Jan 23, 2009 3:37PM
Ken Lewis, John Thain, Angelo Mozillo, et. al should all be executed. China has the right idea. I hope someone offs these guys.
Posted by guest , Jan 23, 2009 4:35PM
@ 18 - hate to see what you'd have done to Fuld and Ken Thompson.
Posted by guest , Jan 23, 2009 6:29PM
1. Najarian is Armenian. All Armenian names end in "ian." And Najarian is a very common Armenian name.
2. Lost my Merrill (F.I.) coverage Thursday - was getting calls from him Wednesday, gone on Thursday. He was in SF.
3. B of A paired back FI sales in their LA office same day.
It's getting ugly out there...
Posted by guest , Jan 24, 2009 8:17AM
Usdin has been covering the large banks since they kicked out John McDonald last year. But who trusts the sell-side bank analysts anymore anyway?
Posted by guest , Jan 24, 2009 8:26AM
It has nothing to do with who the best analyst is and I doubt lewis gives two craps what any analyst (or investor for that matter) on the street says (otherwise why would he keep making the same dumb mistakes again and again like making bad ill-timed acquisitions and putting the same ineffective mgmt (ie Moynihan) in senior slots, and generally running what should be a well-positioned business into the ground?). The truth is usdin is a premier ass-kisser and company-man, while ed can be on the abrasive side and generally not thought of as good "team-player."
Posted by er666 , Jan 24, 2009 10:03AM
@17 you flipping idiot. the guy with the last name najarian on cnbc is PETE. the analyst is ED.
Posted by guest , Jan 24, 2009 10:50AM
Naj is a douche. Hate KL, but this was a good call. He should bring back John Bernstein.
Posted by guest , Jan 24, 2009 10:52AM
Whoops....meant McDonald..now at A. Bernstein....sorry guys
Posted by guest , Jan 25, 2009 1:05AM
Ken Lewis has one ....and only one...chance to save his job. Bring back Al D.
Only BAC alum who knows the markets well enough to deal with the ML crap and the street loves him.
Supposedly Al and KL left remain on very friendly terms so why not pull the only lever you have. Al has done in bringing GMAC back to life, I'm sure he would love to help bring BAC back to $35.
Posted by guest , Jan 25, 2009 2:58AM
Ken Usdin is good analyst, I have known him for several years.
Anyway, if nothing else, he is probably a whole lot cheaper on the payroll than a guy like najarian.
Posted by guest , Jan 25, 2009 11:13AM
@26 I totally agree. Kenny needs to bring back Alvaro G. de Molina pronto.