Henry Blodget (of 1999 AMZN $400 price target fame) even wants him fired. For buying stupid stuff like Merrill Lynch...
Unlike Vikram Pandit at Shitigroup and John Thain at Merrill, Lewis can't blame the need for this bailout on his predecessor's idiotic bets. Bank of America needs another bailout solely because of an idiotic Ken Lewis bet: His decision three months ago to buy Merrill Lynch.
No one put a gun to Ken's head and said "You've got to buy Merrill." There wasn't some secret backroom Treasury deal where Hank Paulson forced him to take one for the team...
Now... I say one does not need to wait till BofA's acquisition to appreciate Ken Lewis' stupidity.
It was Countrywide.
And it wasn't even their US$4b all stock offer for Countrywide in Jan 08. It was their US$2b ALL CASH infusion into Countrywide back in August of 07 for 16% (!?!) of Countrywide...
AND WHAT DID 孫柏文 SAY, when BofA took over Countrywide in Jan 08? (Apple Daily version)
除咗以上(Aug 07「資金自由行」)消息，仲有(Aug 07)美銀BOA宣佈以20億美元現金入股Countrywide，買16%股權。
原來，美銀只要等多幾個月，就可以自己印價值40億美元嘅「公仔紙」股票，去「買」成間Countrywide番嚟。之前用20億都冇控制權，今日畀40億仲要攬上身。
以前細個，跟老竇入馬場，佢話最忌就係「贏縮輸谷」。美銀要同我老竇傾傾。
Image first appeared 16 Jan 2008
If only Ken Lewis listened to my father's advice...
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