- For Bank of America’s Dealmaker, One Deal Too Many?
- Ken Lewis farewell memo
- He’s not even cold
- A look at potential successors to Lewis
- Lewis departure catches BofA board off guard
- J.P. Morgan Hopes to Heal N.Y.-London Lacerations
- Super rich are $300 billion lighter
- CIT Draws Up Bankruptcy Option
- Moody’s Says Review Sees No Wrongdoing
- Moody’s Offered Ex-Staffer ‘Old Mushroom Treatment’
- KKR to Trade in Europe a Year After Pulling Initial Offering
- Firms Have $4.52 Billion to Purchase Toxic Assets
- Saturn Falls Along With Penske Deal
- Comcast in talks to buy stake in NBC Universal
- Comcast denies talk of NBC Universal deal
- Jay Leno has fewer guests to choose from thanks to rival networks’ boycott
For Bank of America’s Dealmaker, One Deal Too Many? – Washington Post
Bank of America chief executive Kenneth D. Lewis, whose relentless dealmaking drove the nation’s largest bank to heights of astonishing profitability and then to the brink of collapse, epitomizing the rise and fall of an industry, will retire at the end of December, the company said Wednesday.
The announcement capped nine months of free fall for Lewis, who was widely lauded last autumn for the apparent strength of his company and for his willingness to buy the crippled investment bank Merrill Lynch in a deal that he said was partly motivated by patriotism…..
Ken Lewis farewell memo – Financial Times
To my teammates:
As some of you may know, I always end my summer in the mountains, giving me time to reflect on the bank’s challenges and our strategies to meet them. I have always returned to the company in the fall energized and ready to get to work with all of you to meet those challenges and pursue our goals.
This year, though, has been different. This year, I returned with a strong belief that the major strategic challenges of my tenure as CEO have been met. We have built leading market positions in every major product category in our industry. We have come through the worst economic downturn in 80 years with all the tools, assets and talent we need to succeed and win. We have taken the most important steps to reduce and remove the need for government support of our company…..
He’s not even cold - NY Post
Even before Bank of America CEO Ken Lewis formally announced yesterday that he would step down, the bank’s board was scrambling to find a replacement for the embattled boss.
Sources tell The Post that BofA board members have reached out to a handful of top execs and second-in-commands at other banks, feeling out their interest in taking the reins at the Charlotte, NC-based financial giant….
A look at potential successors to Lewis – BizJournals.com
Kenneth Lewis’ planned retirement from Bank of America Corp. at the end of the year, announced late Wednesday afternoon by the bank, set off broad speculation about potential successors.
Brian Moynihan, the recently appointed head of consumer banking, is believed to be a leading candidate. Dan Montag, a former Goldman Sachs and Merrill Lynch & Co. executive and BofA’s chief of investment banking, is another likely contender. CFO Joe Price, Barbara Desoer, president of Bank of America Home Loans, and Sallie Krawcheck, head of wealth management, are also potential candidates.
Another intriguing name suggested as a candidate is former BofA CFO Al de Molina, the CEO at GMAC Financial Corp……
Lewis departure catches BofA board off guard – Financial Times
Ken Lewis said that the acquisition of Merrill Lynch would be the last major purchase he ever made as chief executive of Bank of America. He was right.
Last September, as the financial world reeled from the prospect of bankruptcy at Lehman Brothers, he swooped in to buy Merrill in an all-stock deal for $17bn. At a press conference the next day, he rejoiced over the potential of the combined power of his extensive banking operation and Merrill’s unparalleled network of financial advisors…..
J.P. Morgan Hopes to Heal N.Y.-London Lacerations – Wall Street Journal
As the new head of J.P. Morgan Chase & Co.’s investment bank, Jes Staley will have a tough task besides overseeing deals. He now is responsible for quelling long-simmering tensions between the bank’s New York and London offices.
But it could take work for Mr. Staley on both sides of the Atlantic. This week, he jumped right into the mission…..
Super rich are $300 billion lighter – CNNMoney
The recession has taken its toll on the nation’s super rich, whose collective net worth fell for only the fifth time in 28 years, according to a survey released Wednesday.
The collective worth of the 400 richest people fell by $300 billion, or 19%, to $1.27 trillion, according to the survey released by Forbes magazine.
As a result, the price of admission to appear on the list this year dropped to $950 million from $1.3 billion in the 2008 list…..
CIT Draws Up Bankruptcy Option – Wall Street Journal
CIT Group Inc. upped the ante with its creditors by drawing up a prepackaged bankruptcy plan, two people familiar with the matter said Wednesday.
The move pressures its bondholders to participate in a proposed debt restructuring, or take their chances in bankruptcy court….
Moody’s Says Review Sees No Wrongdoing – Wall Street Journal
A senior Moody’s Corp. executive said at a congressional hearing that an outside legal firm investigating claims of misconduct by a former analyst has so far found no evidence of wrongdoing.
But the update on Wednesday from Richard Cantor, chief credit officer of Moody’s Investors Service and chief risk officer at the rating firm’s parent, raised questions from lawmakers over how the findings of the investigation were reported back to Moody’s and regulators…..
Moody’s Offered Ex-Staffer ‘Old Mushroom Treatment’ – Bloomberg
Moody’s Corp. gave former compliance executive Scott McCleskey the “old mushroom treatment” by “keeping him in the dark and burying him in fertilizer,” said Edolphus Towns, a New York Democrat and chairman of the House Committee on Oversight and Government Reform.
McClesky told the committee today that Moody’s executives ignored his warnings that ratings on municipal bonds weren’t updated at regular intervals. Another former employee at the firm, Eric Kolchinsky, said Moody’s violated securities laws by knowingly providing “incorrect” ratings. The House is considering legislation that would increase oversight of credit- ratings companies….
KKR to Trade in Europe a Year After Pulling Initial Offering – Bloomberg
KKR & Co., the private-equity firm created by Henry Kravis and George Roberts in 1976, will begin trading in Europe today, completing a two-year process to list the firm after dropping plans in 2008 for an initial offering.
The firm is being renamed KKR & Co. (Guernsey) LP and will trade under the new symbol KKR in Amsterdam after merging with its publicly listed European fund, KKR said today in a statement. KKR last year abandoned a plan to sell shares in a New York Stock Exchange IPO filed in mid-2007, just before the global credit crisis froze equity and debt markets…..
Firms Have $4.52 Billion to Purchase Toxic Assets - Wall Street Journal
Investors have agreed so far to plow more than $1.13 billion into a long-awaited Treasury Department program to buy the toxic assets at the heart of the financial crisis.
The Treasury announced that two of the nine investment firms tapped earlier this year to participate in the Public-Private Investment Program have raised at least $500 million — a precursor to obtaining government financing…..
Saturn Falls Along With Penske Deal – Washington Post
General Motors is closing its Saturn business, ending the once-ballyhooed effort to build “a different kind of car company,” as the implosion of auto sales that started last year continues to ravage the industry.
The decision Wednesday to abandon Saturn came after negotiations broke down to sell the brand to Penske Automotive…..
Comcast in talks to buy stake in NBC Universal – Financial Times
General Electric has sounded out Comcast, the US cable operator, over the sale of at least part of NBC Universal if Vivendi decides to divest its 20 per cent holding in the television and movies group that it controls.
People familiar with the matter said the talks were at a very early stage and the likelihood of a deal was slim. However, the move underlines GE’s expectation that Vivendi will exercise its option to sell its 20 per cent holding in NBC back to the US conglomerate…..
Comcast denies talk of NBC Universal deal – CNNMoney
Comcast Corp. has denied news reports that it was hammering out a deal to buy entertainment giant NBC Universal from its parent General Electric.
Reports first started surfacing late Wednesday that the two companies were in talks. According to Web site TheWrap, a $35 billion deal had already been completed.
But Comcast refuted the reports. “While we do not normally comment on [mergers and acquisitions] rumors, the report that Comcast has a deal to purchase NBC Universal is inaccurate,” Comcast spokeswoman Jennifer Khoury told CNN…..
Jay Leno has fewer guests to choose from thanks to rival networks’ boycott - LA Times
Despite a new prime-time perch and a larger audience, NBC comedian Jay Leno is fishing for guests from a substantially smaller pool of talent.
Rival networks ABC and CBS are discouraging their stars from appearing on the prime-time talk show. They are determined not to let Leno’s 10 p.m. program undercut viewership of their costly dramas when they are trying to build audiences at the start of the TV season…..
Tags: Autos, Bank of America, CIT, GM, JP Morgan, Ken Lewis, KKR, Revolving Door, TV, Wealth
