• 25 Mar 2009 at 9:05 AM

Ken Lewis Interested In Repaying TARP A-SAP, Still Loving Mozilo And MER

By Bess Levin

Picture 966.pngBank of Amerillwide chief Ken Lewis told the LA Times last night that he wants to start giving the government its $45 billion after the completion of the firm’s stress test, which he expects to pass, though no promises, on either front. Lewis said it’s possible BAC will pay it all back “as early as the fourth quarter of this year,” and also defended the Countrywide and Merrill Lynch acquisitions as “strategically sound in the long run.”

Comments (15)

  1. 1
    Posted by Investorcluzo | March 25, 2009 at 9:11 AM

    “we’ve been profitable for the first two months”…”we want to pay back tarp”. seriously, this is yet another tactic to scare the shorts (and try to keep his job). we all know his capital ratios do not support paying anything back. despite the “profitability”, their legacy assets are rapidly declining in value and will wipe out any “profits” they make from those $3.00 atm fees they charge to non-bank customers.

  2. 2
    Posted by guest | March 25, 2009 at 9:15 AM

    I want to know when all of these stress tests are going to take place. I think they are all going to hide behind them. A lot of talk but if they were serious, then they should say give me the test today.

  3. 3
    Posted by Anal_yst | March 25, 2009 at 9:17 AM

    Doubtful Lewis has ever read (nay, heard of) Keynes, judging from this and prior statements (i.e. “…in the long run”)

  4. 4
    Posted by guest | March 25, 2009 at 9:40 AM

    This is a ridiculously lame and borderline illegal attempt to talk up the BAC stock. There is NO WAY Ken Lewis is returning any money before all other TARP recipirnts have paid back.

  5. 5
    Posted by guest | March 25, 2009 at 9:41 AM

    Correction to my post #4, all other TARP recipients except Citi.

  6. 6
    Posted by guest | March 25, 2009 at 9:45 AM

    nah, nah, he’s joking, right? or does he have something in mind like a half a billion a month, christmas layaway plan… payable in 2019….

  7. 7
    Posted by guest | March 25, 2009 at 10:00 AM

    BAC is stronger than anyone of yall think! It’s about time to buy buy buy.

  8. 8
    Posted by guest | March 25, 2009 at 10:20 AM

    “the long run? well, in the long run we’re all dead!”

  9. 9
    Posted by guest | March 25, 2009 at 10:32 AM

    In the long run, Ken Lewis is drunk.

  10. 10
    Posted by guest | March 25, 2009 at 10:34 AM

    BofA’s net interest spread generates about $13 billion per quarter. I think they’ve got a shot at paying off TARP. Also, think in terms of NPV analysis on still earning assets — though they have required markdowns, they still flow cash to some degree and might advisedly be marked up…

  11. 11
    Posted by guest | March 25, 2009 at 10:38 AM

    BAC up 120+ % since 03/01. Dead Cat Bounce? I thinks not.
    While things look bleak right now, Countrywide and Merrill Lynch are still good solid sales franchises. They will return to positive value in the next cycle.
    That’s what I think he means by “in the long run.”
    Of course @8, by then, well, . . . .

  12. 12
    Posted by guest | March 25, 2009 at 11:07 AM

    He has piano playing fingers! I love your pics.

  13. 13
    Posted by guest | March 25, 2009 at 11:13 AM

    Is it true that countrywide is changing their name? Is it true that they removed the AIG sign from headquarters yesterday?

  14. 14
    Posted by Investorcluzo | March 25, 2009 at 11:15 AM

    @11 – BAC down 82% since 3/25/08. it’s all about perspective. as for the $13 bn per quarter from the spread, that still doesn’t pay for the $69 bn of level 3 assets on their books (not to mention held for investment portfolio). I have a feeling after haircuting the portfolio and stress testing the capital ratios, the hicks down in charlotte will be asking:
    http://www.youtube.com/watch?v=axmDT5JpzyQ

  15. 15
    Posted by guest | March 25, 2009 at 11:24 AM

    @13- the removed the name over the weekend, and it was written about here monday morning. try and keep up.

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