Sure, Cuomo may have given him an alibi, but the SEC is still pissed off, and plans to remain so for some time:
Cuomo revealed in a letter yesterday to Congress and federal regulators that Lewis testified in December that then- Treasury Secretary Henry Paulson may have threatened to remove the bank’s management and directors if the lender tried to back out of buying Merrill. Lewis said he was instructed by federal officials not to disclose Merrill’s losses, his desire to back out of the merger or the intervention of regulators, according to Cuomo.
If you needed a more direct example of why it is simply a bad idea in every single instance to permit government ownership of banking firms except for the limited purposes of facilitating liquidation, this is it.
Consider what can only be a devastating long-term message to markets: You can never again believe the disclosures from any firm in distress when the government is involved.
Bank of America’s Lewis May Face SEC Probe on Merrill [Bloomberg]
squeal like a pig…
You are implying their disclosures are therefore totally believable if the government is nowhere to be seen. Eau contraire.
What is this new feeling I have towards Ken Lewis…..is it sympathy?
“Someone was always mad at him…….”
Can the SEC get this one right? Will they drop the ball and go back to SEC circa 1999-2007?
@2 Different water?
@5– I think @2 is referring to the House Representative for California’s 35th congressional district?
Everyone should know by now the management and boards of these banks have been compromised… They will not represent shareholders because the gov can trump up any charges against them. If Lewis left they would have found someone more than willing to play this game. At least he is limping along best he can. If he won’t play with the gov, he can run from the pitchforks…
Word on the street is that BAC’s dirty sister, Wachovia is set to hand out more pink slips across IB groups next week. Are we surprised?
@8- that was reported here yesterday, but thanks for playing.