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BofA CEO Ken Lewis pressured by Fed

admin — Thu, 11 Jun 2009 05:33:52 +0000

Bank of America CEO Ken Lewis heads to Capitol Hill on Thursday, and he’s likely to be grilled by lawmakers about the government’s role in ensuring that the bank complete its controversial merger with Merrill Lynch.

According to emails released Wednesday that pull back the curtain on heated negotiations, Federal Reserve Chairman Ben Bernanke had suggested to another Fed official that “management is gone,” if BofA managers tried to flee the deal and later on needed further government assistance.

He is expected to be asked specifically about whether the Federal Reserve and other government officials pressured Bank of America (BAC, Fortune 500) into completing the merger even after BofA realized how badly Merrill Lynch’s fourth-quarter losses would be.

(source: cnnmoney.com)

Colonial BancGroup Inc. – biggest bank failure for 2009 Colonial B

Citigroup and Bank of America need more capital after stress test

admin — Tue, 28 Apr 2009 17:07:23 +0000

NEW YORK (Reuters) – U.S. regulators are talking to Citigroup Inc about its capital levels after stress testing the bank, people familiar with the matter said, while the Wall Street Journal reported that Bank of America Corp may need billions in fresh capital.

The reports sent Bank of America and Citigroup shares down as much as 10 percent and 5 percent respectively before both pared losses, and hit global stocks, already shaken by fears about the spread of swine flu.

Financial stocks more broadly were jarred by analysts’ reports that other banks may also need to raise funds.

Wells Fargo & Co could need more capital, according to a client note from Deutsche Bank analysts, and regional banks may also need to bolster capital levels, Oppenheimer & Co analysts said in a report. The KBW Banks Index slid as much as 4 percent in morning trading before recovering most of its loss, and was down 1.7 percent at late morning.

Banks and TARP NEW YORK (
Colonial BancGroup Inc. – biggest bank failure for 2009 Colonial B

Bank of America shares plunge

admin — Tue, 21 Apr 2009 05:25:30 +0000

NEW YORK (Reuters) – A surge of troubled loans overshadowed better-than-expected earnings at Bank of America Corp, and the largest U.S. bank said it expects the credit situation to worsen, driving its shares down 24.3 percent.

While first-quarter profit more than doubled, the results failed to end calls by investors for Kenneth Lewis to step down as chief executive or give up the post of chairman.

US stocks rally. A recap.

admin — Tue, 24 Mar 2009 04:31:25 +0000

Finally, a bit of good news from the forefront.

U.S. stocks rallied, capping the market’s steepest two-week gain since 1938, as investors speculated the Obama administration’s plan to rid banks of toxic assets will spur growth and investor Mark Mobius said a new bull market has begun. Treasuries and the dollar fell.

Bank of America Corp. and Citigroup Inc. both soared at least 19 percent as the U.S. Treasury said it will finance as much as $1 trillion in purchases of distressed assets. Exxon Mobil Corp. and Chevron Corp. jumped more than 6.7 percent after oil rose to an almost four-month high. The Standard & Poor’s 500 Index extended its rebound from a 12-year closing low on March 9 to 22 percent as all 10 of its main industry groups advanced.

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