Are You Going to "Get Motivated" in Charlotte?

If you read the Charlotte Observer surely you've seen the full page promotional program advertising speakers Colin Powell, Laura Bush, Rudy Guiliani and Zip Zigler (?) at the Charlotte seminar of  Get Motivated!.  This seminar title should be expanded to "Get Motivated to Buy Our Overpriced Investment Tools Because Jesus and Uncle Sam Want You To."

Husband and wife team, Peter and Tamara Lowe organize these seminars that profit handsomely from blurring the lines between inspirational, aspirational and motivational.  They've been at it for years.   What is especially disappointing to me are the "celebrity" speakers that have signed on to this.  I mean do President Bush (special guest speaker Fort Worth seminar) and First Lady Laura Bush, and President Clinton (who toured in 2002) really need the money?   I wonder what these speakers are being paid?  What a disgrace.

I sure hope you're not planning to attend this scam.  Oh, you are?  Well then surely don't waste your money registering for it.  Not when Craigslist is advertising for Charlotte seminar "volunteers" (to fill up seats for free) for this scam of an event.   Seat fillers are needed.

Will Charlotte Become Banking's Detroit?

From The Washington Post, This is the Bust in the Boomtown that Banks Built: Beneath Charlotte's shiny skyline, 'a new humility'

Few American cities prospered more over the past two decades than Charlotte, its growth propelled and gilded by Wachovia and its crosstown rival, Bank of America. Executives shoehorned gaudy mansions into old neighborhoods around downtown. Workers poured into vast subdivisions on the city's ever-expanding periphery. With coffers overflowing, giddy public officials spent tax dollars on a manmade river for whitewater rafting.

 Now Charlotte is suffering. Unemployment has spiked to 12 percent, well above the national average. Subdivisions sit unfinished. Mansions cannot be sold. The school system, which for years had recruited teachers from shrinking cities such as Detroit, laid off more than 1,000 employees this summer.

There is a grim picture being painted, but the story is still unfolding. Because Bank of America was headquartered here, this served as a bit of a buffer as the national economy faltered.  If Bank of America headquarters move from Charlotte, the city will become a shadow of its former self.  This city was built by the banks and real estate, and it will suffer as these industries do.


Note:  The author is this piece, Binyamin Appelbaum, worked as a business reporter for the Charlotte Observer prior to moving to the Washington Post.  He knows Charlotte.  While at the Observer he investigated and authored a great expose on the rampant fraud of Beazer Homes. 

Who Will Be the BofA/Merrill Scapegoat?

"Surely he hath borne our Griefs and carried our Sorrows; Yet we did esteem him stricken, smitten of GOD and afflicted."

Someone has to pay for the Bank of America overpaying for Merrill Lynch and awarding Merrill executives inflated bonuses.  Who will it be?  Ken Lewis is an obvious contender as he's already been banished from the top job at the bank. 

Or will it be the lawyers who, according to Lewis, advised him on his actions on behalf of the bank? Bloomberg notes, " A showdown is looming and many will be combing through the legal records of the BAC/Merrill transaction."

Eastover Elementary and Myers Park High School: Boundary Battles Heat Up

The overcrowding issues at Eastover Elementary and Myers Park High Schools have been contentious not just for families with students enrolled in those public schools, but for neighboring schools that might be affected by CMS rezoning proposals that counter this overcrowding. 

The Charlotte Observer writes CMS Will Get An Earful Tuesday and that as of yesterday afternoon, "45 speakers had signed up for public comments, ensuring that the board will spend more than two hours hearing views on possible changes to Myers Park and East Mecklenburg high schools, as well as Eastover, First Ward, Dilworth, Myers Park Traditional and Elizabeth Traditional elementaries. Advance signups continue through noon Tuesday, and speakers can also sign up on site."

 Websites and internet forums discussing and mobilizing families have sprouted up in the Dilworth, East Mecklenburg and Elizabeth neighborhoods (because they are most vulnerable?).

Dilworth For Positive Change (on Facebook)

Dilworth Online

Under the Watertower (Elizabeth community website)

CMS School Board, District 5 (East Meck)

I haven't seen anything online from the Myers Park, Eastover or Cotswold neighborhoods.  Are they mobilizing affected families in their communities?  I think the answer is yes. We'll see who shows up at the school board meeting tonight. 

Something clearly must be done to address this issue, but I don't think the solution is to bus the children that currently reside within these respective school zones to another, more far away school.  Whatever Peter Gorman (the Superintendent of CMS) and the school board decide, there will be howls.  However Charlotte will have a hard time justifying the relatively higher property taxes (in a declining real estate market no less) in  Myers Park and Eastover if living there doesn't even ensure families a spot in their neighborhood schools.  Will this issue ultimately come down to property tax monies?  I think it will.

Future BofA HQ: Charlotte vs. Boston

Now that Ken Lewis has been dispensed with, the foodfight for the heart and soul of Bank of America has begun. Wrapped up in this battle is the determination of BofA's corporate headquarters.  See Clusterstock's Bank of America's Board Starts to Crack Up Over CEO Hunt .

The primary factions in the internal battle are the old boys gang from Charlotte, North Carolina, and Boston, which had been the headquarters of Fleet Financial Group, the bank acquired by Bank of America in 2004. Both actions were Lewis cronies and deeply loyal to their boss. But with the top guy stepping out of the way, all bets are off.
snip
The Charlotte loyalists, who have been with the bank since its early days as North Carolina National Bank, are fighting against what they view as a Boston take-over of their bank. Led by Hugh McColl, Lewis's mentor and predecessor, and Meredith Spanger, the bank's largest individual shareholder, this faction has little representation on the board but exercises influence through extensive loyalty in the executive ranks.

You didn't think that BofA would just automatically stay in Charlotte, did you?  The stakes couldn't be bigger for the future of  Charlotte's and North Carolina's economies.  Expect the politicans to jump into this fray in 3...2...1.

Ken Lewis Resigns!

From Clusterstock, Ken Lewis is Stepping Down.  The end of a era at BofA. He did it his way.

Ken Lewis - Houdini Banker

Boom goes the dynamite! From Reuters, Bank of America rejects SEC claims in bonus suit:

Bank of America Corp (BAC.N) formally denied U.S. Securities and Exchange Commission claims accusing it of misleading shareholders about bonuses it let Merrill Lynch & Co pay employees before the companies' January 1merger, and said it is seeking an order dismissing the regulator's complaint.

In its answer to the SEC's complaint, Bank of America maintained that the proxy statement for the merger did not contain false or misleading statements, or omit key facts. It also said it was not negligent in preparing the proxy statement.

And so Ken Lewis escapes this newest SEC dragnet and lives to fight another day. Now, NY Attorney General Cuomo, Judge Rakoff or Congressman Townes, who's up next to try to land a punch against this guy...

Will Ken Lewis Make a Butch Cassidy-like Last Stand?

Sheriff Ray Bledsoe: [to Butch and Sundance] You should have let yourself get killed a long time ago when you had the chance. See, you may be the biggest thing that ever hit this area, but you're still two-bit outlaws. I never met a soul more affable than you, Butch, or faster than the Kid, but you're still nothing but two-bit outlaws on the dodge. It's over, don't you get that? Your times is over and you're gonna die bloody, and all you can do is choose where.

Ken Lewis and Joe Price must be feeling a lot like Butch Cassidy and the Sundance Kid these days. Today at high noon, we'll see what they do now that the FBI, the Atty General of NY and now the Chairman of the Committee on Oversight and Government Reform, Edolphus Townsare are all tightening the noose.

Was It Ken Lewis in the Conservatory with the Wrench?

NY Attorney General Andrew Cuomo is in hot pursuit of Charlotte's BofA (again). Will he land on punch on nemesis Ken Lewis this time? From the hit-and-run financial bloggers at ZeroHedge comes, "Andrew Cuomo Has Had Enough With Bank Of America's Cowardice, Plans On Filing Charges."

Now that Cuomo is on the verge of actually charging someone with criminal misdeeds, the only question remains who: will it be Bank Of America, with the likely fall guy being big man Lewis himself (and what more fitting end to the debacle than Ken going to jail, after being threatened by Paulson and Bernanke with eternal damnation, and deciding not to invoke the Mac clause), OR, will it be Wachtell Lipton's main lawyer, Ed Herlihy, who, as we discussed previously, was instrumental in the arrangement of the ML-BAC transaction.

Bank Of America now has four business days in which to decide, based on its disclosures, who is going to be charged and with what crime.

It's Elmo not Obama So Gather the Children for a Very Special Sesame Street

When parents need to tackle tough, complicated, real-life issues involving their children, who should they turn to? President Obama? Don't be ridiculous. Elmo and Al Roker, of course.

Tonight at 8 pm on Charlotte's PBS station (and PBS stations nationwide), Families Stand Together and Sesame Workshop present an "hour-long HD special, hosted by Al Roker, Deborah Roberts and Elmo, aims to help families with children, ages two to eight, experiencing difficult economic circumstances by offering strategies and tips that can lead to positive outcomes for their children’s physical and emotional well-being during this tough economic climate."

Do parents trust Elmo to "get it right" on this discussion about the economy? Where's the outrage about Elmo inserting himself in parent/child communication? I don't know about you but I need to read the transcript beforehand.

Coming to Charlotte: Kate - (Jon & 8)

Get out your calendars and clear September 17-20. Why? Because Kate Gosselin, the wretched and overexposed mother of 8, is coming to the Charlotte Southern Women's Show:

Meet TV’s Busiest Mom of 8, Kate Gosselin! Meet the star of TLC's reality hit
'Jon & Kate Plus 8'! Kate Gosselin has been blessed with twins and
sextuplets in the past three years.

Just think, if Kate works out, maybe Octomom will come next year.

On Labor Day....Are You Thankful for Your Job?

Try viewing Labor Day from the other side....the unemployment line.

Rutgers University has published a survey, "The Anguish of Unemployment,” Nationwide Work Trends Survey of 1,200 Unemployed U.S. Workers Reveals the Economic and Personal Costs of Prolonged Joblessness. Some of the grim findings:

The survey finds that 60% of the recently unemployed lost their jobs suddenly, without advance warning. Eight in ten got two week’s notice or less. Just 15% of the jobless received any severance, and virtually none were offered retraining. Three in four unemployed workers say the economic situation has had a major impact on them and their family.

Only 40% of the currently unemployed received unemployment insurance to help them weatherthe economic crisis and 83% of those who did receive aid are concerned that their benefits will run out before they find a job. Underscoring another important debate, only half of the jobless have health benefits.

More than half of the jobless think the changes in the economy will be
fundamental and lasting,and when the unemployed are asked when the economy will recover, only 20% believe it will do so in the next year.

BUT if you are unemployed in North Carolina, you may also be worrying about
when and if you receive your unemployment insurance. From the Charlotte
Observer, "More NC Firms Fall Behind on Payroll Tax." Here are some troubling facts from the article:

"The Charlotte region's jobless rate is 12.4 percent, topping the statewide
11.1 percent. New U.S. data is out today, and some economists expect the
national rate to tick up to 9.5 percent. (Charlottemom - the national rate is 9.7)

The state has borrowed almost $925 million from the federal government since February – the sixth highest in the nation, according to the U.S. Department of Labor. (Charlottemom - with less revenue and more unemployed - how is NC going to repay these borrowed monies?)

Are You Living in Sin?

From Wired Magazine comes these fascinating graphics of American Vice: Mapping the 7 Deadly Sins. Check out how angelic or devilish your State is. Obviously, this is science-lite, but note that North Carolina finished strong in the envy, wrath, gluttony, lust and pride categories!

Memorial Day: Remembering American Brothers in Arms

Memorial Day more that marks the beginning of Summer.

Memorial Day is a United States federal holiday observed on the last Monday of May. Formerly known as Decoration Day, it commemorates U.S. men and women who died while in the military service. First enacted to honor Union soldiers of the American Civil War (it is celebrated near the day of reunification after the Civil War), it was expanded after World War I to include American casualties of any war or military action.

In honor of Memorial Day, Brothers in Arms from Dire Straits. Have a peaceful weekend.

LEAVE KEN LEWIS ALLLLOOOOONNNEE!

Will he or won't he? Be fired? Lose BofA chairmanship? Be kicked off the Board? From Dealbreaker, There's Going To Be a Showdown in Charlotte

After what's felt like months of discussing whether or not Ken Lewis should be canned from Bank of America, shareholders are finally getting their big moment today, at the firm's annual investor meeting.

Things are scheduled to get going later this morning, but ahead of the main event, SEIU is reiterating its message to, among other things, throw 2008's Banker of The Year out on his ass.* That truck's been circling BAC's corporate headquarters for the last hour.

*Meaning whether or not to re-elect Lewis to the board, but no one ever said they couldn't see him out of the building Fresh Prince-style.

12:26 Update: Lewis now says he was kidding about that stuff he said about Paulson and Bernanke coercing him.

11:45 am Update: CNBC is currently polling that 55% of viewers responding to their survey want him fired. To those 55% I ask, remember what happened to Wachovia when the Board showed Thompson the door?

That being said, I don't think Lewis will be removed from the Board (see my earlier post), perhaps he'll lose his Chairmanship. BofA is struggling mightily, and will continue to do so into the foreseeable future. An outright firing of Lewis now could be its death blow.

First North Carolina, then USA, then the Universe!

Chalk up another first in the nation for North Carolina. If you haven't heard, Miss North Carolina won Donald Trump's Miss USA pageant. I personally feel the Carolina blue evening gown sealed the deal.

Miss North Carolina USA Kristen Dalton was crowned Miss USA 2009 on Sunday, beating out 50 other beauty queens in the live pageant televised from Planet Hollywood Resort & Casino in Las Vegas.

The 22-year-old aspiring motivational speaker and entertainer from Wilmington edged out first runner-up Miss California USA Carrie Prejean, of San Diego, and second runner-up Miss Arizona USA Alicia-Monique Blanco, of Phoenix.

Don't confuse her with Miss America and please, please don't EVER confuse her with Miss Teen South Carolina. We are soooooooo much smarter than our brethren immediately to the South.

Tarheels: Let's Finish This Thing

Today's rain brought a bright Tarheel blue sky (admittedly with a few clouds) and news that former Tarheel Michael Jordan was elected to basketball's Hall of Fame.

Will it be Carolina's night too? Tipoff for the NCAA Championship game pitting UNC against Michigan State is at 9:15 pm.

You know who we're rooting for.

Guess Who's Speaking in Charlotte Today?

From the Observer, FED's Bernanke to speak in Charlotte today.

The Queen City is excited to host our FED Chairman and in his honor, I submit for your listening pleasure, a Falco classic from 1983, Der Kommissar.

Enjoy!

For Ken Lewis Hope Springs Eternal on TARP Pay Back

From the Los Angeles Times, BofA chief Ken Lewis says he plans to repay bailout funds soon

Bank of America Corp. Chief Executive Kenneth D. Lewis said Tuesday that he wanted to start repaying $45 billion in federal bailout funds next month, after the government's "stress test" of his bank, and to give back the remainder as soon as the nation's wobbly financial system is stabilized.

Ken, I hear ya' and let me say that I hope that I look like Angelina Jolie by April. Let's see which if any of these things come true.

Bitter NCAA Coach Or Concerned American: You Be the Judge

(click here to view President Obama's NCAA bracket picks)

On the NCAA Conference's "March Madness" kickoff day, comes this from Duke's Coach K (and long-time Republican donor) after Obama picks UNC to win the tournament:

Duke Coach to Obama: Worry About the Economy, Not NCAA Picks

"Somebody said that we're not in President Obama's Final Four, and as much as I respect what he's doing, really, the economy is something that he should focus on, probably more than the brackets," Duke coach Mike Krzyzewski said from the Blue Devils' first-round site in Greensboro, N.C.

HAHAHAHAHAHA! Leave it to our favorite, feisty "rat-faced" (Correction:Blue Devil) Coach to call out the President on playing the bracket game. I'll bet it's the first time Coach K has ever discouraged anyone from catching the ever-contagious "March Madness Fever." So what is he - snubbed NCAA coach or patriotic American?

Good Luck to all North Carolina teams!

Charlotte Public Schools: Prune the Top

In the Observer, "Amid protests, CMS sets stage for teacher cuts."

The Charlotte-Mecklenburg school board on Tuesday approved a plan that could lead to laying off 456 teachers and 83 assistant principals, but not before getting an earful from anxious, angry teachers who demanded more administrative cuts first.

Superintendent Peter Gorman stressed that the plan was only that – a plan, one made necessary by budget shortfalls that officials say could be as large as $87 million. Money from the federal stimulus legislation might help, he said, but planning for class schedules and renewing teacher contracts requires action by this spring.

Watch out for the plan that Peter Gorman and the school board cook up!

When Gorman came to Charlotte as the new Superintendent of schools he immediately set upon creating nine separate "learning centers" at a total cost of around $9 million. This restructuring seemed to put down calls from teachers and families for more localized participation in CMS policies. I also think it helped get the school board's $500 million bond passed (it had failed a referendum in the previous year).

But now with tax revenue shrinking and budget cuts on the horizon, these "learning centers" (really administration centers) must be trimmed or better, eliminated. These centers (totaling approx 100 staffers) effectively are mini-systems within larger CMS system. Under Gorman, the number of CMS administrators has ballooned, especially for the $100, 000+ salaried set.

Eliminating teachers when the schools are swelling with students just sounds wrong. Granting bonuses to administrators that earn $100,000 when some schools don't have adequate school supplies is indefensible.

No cuts for any "learning center" staffers? No cuts for the 180 paid consultants/supervisors or 700 clerical workers? Really Gorman... just cuts for teachers and assistant principal staff?

While I do think the teacher compensation structure must change to becomee more performance- than tenure-based, I side with the CMS teachers on this one.

I've grown weary of Peter Gorman's "empire-building" and agree with one sign at yesterday's teacher rally that read "Prune the Top."

NC Holding Residents' Tax Refunds Hostage

The Tarheel State joins California in delaying personal income tax refunds. Tax payers getting hosed....again!

Per today's News & Observer, "NC income tax refunds are slow in getting out."

North Carolina individual income tax refunds are slow in getting out because the Department of Revenue wants to ensure it has enough steady cash to cut the checks, agency Secretary Kenneth Lay said Thursday.

The "temporary backlog" described by Lay is the latest fiscal problem for North Carolina state government, which is dealing with dwindling tax collections due to the recession. Gov. Beverly Perdue is trying to close a projected $2.2 billion shortfall this fiscal year.

How Tough Will Things Get in Charlotte? Very Tough

A sobering piece entitled "The Rust Belt Comes to Charlotte" from freebie Creative Loafing. Basically, the pain is just beginning here.

HBO's 'Battle for Tobacco Road: Duke vs. Carolina'

In North Carolina, college basketball dominates sports talk, more specifically UNC-Duke basketball dominates sports talk. And it seems like almost everyone in this state has lined up behind one of these teams (admittedly Wake Forest and NC State have fans too, but they aren't as vocal).

Now HBO Sports offers a compelling and even-handed documentary on this basketball rivalry and tradition. "Battle of Tobacco Road: Duke vs. Carolina" is reviewed here at the Charlotte Observer. It should be mandatory viewing for NC transplants trying to understand the passion and devotion of students, alum and fans to these teams.

Like other regional sports rivalries (Ohio/Michigan or Yankees/Mets), the teams share the same intrinsic values (fair play, excellence, competitive drive, dedication); its their traditions, personalities and game strategy that separate them. And that makes the games so much fun to watch. This documentary is worth seeing.

The Nationalization Train is Leaving the Station; Next Stop BofA? Citi?

Without comment, I bring you today's headlines:

CNN's Dawn of the Bad Banks
Financial Times' Greenspan backs nationalisation
Washington Post's Nationalize the Banks! We're all Swedes Now

Stay tuned! Even Drudge is getting in on the action.

Fire and Ice: A Tale of Two Plane Crashes

I wonder how the survivors of USAirways plane crash into the Hudson River feel when they read or see this headline today: Deadly Plane Crash Near Buffalo Kills 49?

Prayers and condolences to the families of those who died in this tragic crash.

Charlotte Needs Some Love From Stim-Useless and TARP funds

Ripped from today's Charlotte Observer headlines:

CMS looks at cutting 1,200 jobs as money trouble grows

Whitewater Center defaults on loans

Critical Need fund gives out $826,000

Banker Congressional Testimony = Annual Shareholder Report = Contrived Drama

Ken Lewis flies coach from Charlotte to DC to testify, with other banker CEOs, before a Congressional committee. He will get a tongue-lashing for sure, will we get a mea culpa? I'd love to see Lewis cornered and forced to come clean on the Merrill/BofA merger and bonus mess, but that may be asking for too much. Reportedly Jesse Jackson is "in the house"; will he provide any dramatic flair?

The Congressional Committee testimony replacing the Annual Shareholder Meeting as THE Reporting Event for these banks? Hmmm.....Bankers presenting their investment strategy and results (vis a vis TARP and TALF funds) before stakeholders (taxpayers -- Congress by proxy) with the individual disgruntled shareholders (Jesse Jackson and protesters) providing some noise but remaining inconsequential to the outcome.

Like the Shareholder Meeting, these proceedings will provide some contrived theatre, but not change the current bank business model trajectory in any meaningful way. And as far as drama, it's the CEOs getting there (via commercial transport) that will provide all the fun.

You've Seen Slumdog Millionaire, But Have You Seen Scumbag Billionaire?

Epic Battle at BofA for $5 Share Price - Updated

Charlotte's Bank of America is fighting for its life. The volume on BAC was yesterday and is again today truly astounding...to the downside. Paging Ken Lewis...come out wherever you are. Some assurances, if any exist, would be good about now.

Just my 2 cents, but if BofA closes under $5, I fear for it and Charlotte.

BAC defending at $5.15 range now. Now, back to baking my cookies.

Updated: Bank Of America Continues Collapse, Only $4.70 To Go (BAC)

Window for BofA Board to Cut Lewis Loose is NOW

With the late breaking New York Times scoop: Cuomo Subpoenas Thain Over Merrill Bonuses, the Thain/Lewis squabble is fast becoming very serious and possibly criminal for one or perhaps both of them. The story has rapidly moved from the PR machine realm of spin and counter-spin and into the more unpredictable, potentially protracted criminal/regulatory litigation world.

When I read that "Ken Lewis hasn't been subpoenaed yet," as a former corporate PR hack, my immediate thought was that Cuomo delayed deposing Lewis to give BofA time to appoint an "interim" CEO replacement. Having CEO Lewis, really Bank of America by extension, tangled up a legal battle is a no-win for the company. And if this takes a wrong turn, Lewis has the most to lose; after all, Thain has already been fired.

Let's see if the BofA Board moves to sideline Lewis. They have a fiduciary duty to act on behalf of their shareholders, so now would be the time. If they don't now, they never will. And BofA will have chosen to double-down and ride it out with Lewis.

Wells Fargo Taking a Page Out of BofA's Playbook?

From Bloomberg: Wells Fargo May Face Doubt on Wisdom of Wachovia Deal Coming in right on schedule for Wells Fargo's earnings report later this week. Will Wells' earnings report read like a Groundhog Day-version of Bank of America's? Will it soften the blow and lower expections for Wells? See BofA's template after it aquired Countrywide and then Merrill Lynch. It goes something like this...

(The hopefully-too-big-to-fail-company) will report (some-"amazingly"-big-number) percent decline in fourth-quarter profit to (some-small-number-that-will-freak-out-analysts-and-investors). That doesn’t include (the-latest-toxic-company-swallowed) , which it acquired (on-purpose-for-the-postTARP-world) .

With foreclosures at a record and the jobless rate at a 16-year high, analysts have speculated (the-we're-praying-for-more goverment-money-company) will need to raise (a-HUGE-amount) of cash and cut its dividend to (the-lowest-its-shareholders-will-tolerate-without-pulling-out-altogether) to cover ($ enormous-dollar-amount-for-the-short-term) from (the-acquired-company-saddled-with-gobs-of-debt).

The short read on Wells' will be: We missed! Sorry! Who knew! It's all Wachovia's fault!

What they don't say...Wells went into WB to: 1) paper over their own losses; 2) knew WB losses would be massive; 3) added WB to make Wells too big to fail; and 4) this is only the beginning of the capital injections that Wells will need.

Yes, I am extremely cynical.

NC Slotted for $15.98 Billion of Proposed Stimulus Maximus

The Center of American Progress's Interactive Map: Nationwide Allocation of $541 billion.

The new national stimulus plan introduced by Reps. Obey and Rangel contains funding for infrastructure projects and investment in energy, among other spending. Two-thirds of the funding monies are to be allocated to the States.

This map shows state-by-state allocations for the aspects of the plan for which we could establish where the money is going. This constitutes 66 percent of the total cost of the package. The map also shows the proportion of the funds that will help each state balance their budgets rather than providing additional funding for specific programs.

Of note: Almost twelve percent of North Carolina's $15.98 billion share of the stimulus is to balance its budget.

BofA's Messy Lewis/Thain Divorce

Paging Dr. Phil.....this has become sickeningly disfunctional.

The fur is flying over who's more to blame for the BofA mess. It's Team Thain vs. Team Lewis with CNBC as that annoying, two-faced friend "trying help" but really fanning the drama flames:

Team Lewis: Lewis statement leaked by Gasparino (CNBC)

Team Thain: Thain interview with Maria Bartiromo (CNBC)

This drama scene is also being fully played out on the financial blogs. Everyone has an opinion on who is the most hated - Thain or Lewis? The Drama sub-plots include: 'Is Lewis safe?' and 'Who will replace Lewis?'

Meanwhile, who's minding the BofA house?

NC Led States in Inauguration TV Viewship

According to the Observer: Charlotte Rates 6th In Inauguration Viewership

Nielsen overnight ratings showed Wednesday that 41 percent of Charlotte-area households tuned to the Obama inauguration this week, the sixth-highest rating in the nation and far above that of Chicago in Obama's adopted state of Illinois.

Raleigh was No. 1 in household viewing nationally (51 percent), Greensboro No. 5 (42 percent) and Greenville-Spartanburg, S.C., was No. 10 (36 percent). It was a snow day in much of the Carolinas, and that may have increased home viewing. (emphasis mine)

The snow day was absolutely a factor, seeing that Obama beat McCain by only 14,000 votes in the Tar Heel State. That, or the fact that North Carolina is intensely interested in Presidential politics. (I'd love to think this but this seems doubtful!)

For the record, I was tuned into the Inauguration the entire day!

Ken Lewis Says 'Don't Hate Me, Hate Him (Thain),' Then He 'Resigns' Thain

Wall Street Journal: BofA Chief Said to Meet With Thain About Future

Dealbreaker: Live-Blogging Thain's Fate

Then the ax: John Thain Out At Bank Of America

With Thain out of the way at BofA/Merrill Lynch, Lewis truly is now the most hated there. Unintended consequence, much.

Everybody Hates Ken Lewis (BofA)

The blogosphere is pretty much unanimous in its criticism of Ken Lewis and his leadership in BofA's purchase of Merrill Lynch (funny that BofA purchase of sketchy Countrywide isn't even discussed anymore). Anyway, here's the quick round-up:

Naked Capitalism: Merrill Execs Pay Selves Bonuses Ahead of Schedule (and Before BofA Closing)

Seeking Alpha: How Safe Is Ken Lewis?

Bloomberg: Bank of America’s Lewis Has to Pay for Blunders: David Reilly
Clusterstock:Merrill Gives Itself Huge Bonus For Snookering Ken Lewis And BOFA (BAC)
Ken Lewis Should Be Fired* (BAC)
75% Of Latest Bank Of America Bailout Used To Pay Merrill Lynch Bonuses (BAC)
The Big Picture: Drumbeat for Ken Lewis Resignation Builds

Reuters: Investors sue Bank of America over Merrill merger

Jake Delhomme Throws Keys To Wrong Valet - HUMOR

From the folks at The Onion, a send-up on our Jake:

CHARLOTTE, NC—Claiming that he felt "rushed," Panthers quarterback Jake Delhomme failed to connect on a 5-foot pass to his Capital Grille restaurant valet Sunday, instead sending his car keys into the hands of the wrong parking attendant. "It's frustrating, because I knew as soon as I let go of the keys that the throw was off target," said Delhomme, adding that he should not have been throwing off his back foot. "I don't want to make excuses, but I may have injured my throwing hand on the sharp edge of a key while I was in the pocket. Hopefully, I can watch film from the valet's security camera and correct that next time." Once inside the restaurant, Delhomme fumbled a steaming hot dinner roll, kicked it across the dining room while trying to pick it up, and was blocked into a side table by a busboy, who eventually recovered the baked good.

Miracle! All USAir Flight 1549 Passengers from LGA to NC Safe After Crash - UPDATED

Per MSNBC, ALL SAFE AFTER AIRLINE CRASH!

UPDATE: Charlotte Observer in BofA, Wachovia workers were on plane, has more information on the passengers, which seemed to include many business travelers, i.e. NY-Charlotte commuters:

As many as 20 Bank of America employees may have been on the US Airways flight that crashed this afternoon into the Hudson River. The employees were part of a team that had been flying often to New York to work on the acquisition of Merrill Lynch.

Wachovia, now part of San Francisco-based Wells Fargo, said it was aware of three people on board and that they have been confirmed safe.

Charlotte-based Belk had six employees on board.... All are OK, spokesman Steve Pernotto said.

Retirement giant TIAA-CREF, which has a major Charlotte office, had two employees returning home to Charlotte from New York.

Ken Lewis (BofA) Finding Out What It Was Like Being Ken Thompson (Wachovia)

More on Bank of America....the anger at Ken Lewis is palpable. He is under fire. The shouting has begun. Why did Lewis take BofA a merger-too-far? Will he be joining Ken Thompson (Wachovia) under the bus?

From TheBigPicture: Time to Fire Ken Lewis of Bank of America

From Clusterstock: Today's Outrage: Bank of America's Secret Backroom Bailout

From DailyBail: Bank of America Jealous that Citi was Getting All Hank's Attention

From Charlotte Observer: BofA's Ken Lewis Caught In Struggle of His Life

Cat is Out of the Bag: BofA in Trouble

From Mish: Is Bank of America The Next Citigroup?

As Citigroup Goes To Sleep attempting to sell off everything but stripped down core applications, the number of strong banks ready, willing, and able to absorb the pieces is now down to zero.

Bank of America is already choking on Countrywide Financial and Merrill Lynch. JPMorgan is choking on Washington Mutual and a mass of derivatives a mile thick. Wells Fargo needs to digest Wachovia's mass of toxic pay option ARMS.

(snip)

Meanwhile Bank of America is now so bloated with accumulated toxic waste it needs another taxpayer bailout. Is this a great strategy by the Fed and Treasury or what?

And from Calculated Risk: Another Bailout for BofA (Sounds like a severe case of indigestion and the earlier Countrywide acquisition can't be helping too.)

US Negotiating More Aid for Bank of America (WSJ).

The U.S. government is close to committing billions in additional aid to Bank of America Corp. as the nation's largest bank by assets tries to digest its Jan. 1 acquisition of Merrill Lynch

...... Bank of America ... told the U.S. Treasury Department it was unlikely to complete its purchase of the ailing Wall Street securities firm because of Merrill's larger-than-expected losses in the fourth quarter...

Any possible arrangement might protect Bank of America from losses on Merrill's bad assets. There would be a cap on the amount of losses the bank would have to absorb with the federal government being on the hook for the remainder.

Drama Scene at BofA/Merrill

Per Dealbreaker's writeup about Gasparino's blog report: Trouble In Bank of Amerillwide Paradise?

The lovefest is a sham and that Merrill Lynch CEO John Thain and Bank of America CEO Ken Lewis don't even like each other. Also, BAC is apparently having a case of buyer's remorse re: MER.

There has been nothing stable and confidence-building about watching these two firms work out their differences. Inside Bank of America, people I speak to say they can't believe what they have gotten into.

Wow! Also that John Thain wants to be the next Ken Lewis!

Bumbling Panthers Demolished By Cardinals

What they're reporting in Arizona....an amazingly bad performance by Jake Delhomme. Are five interceptions a record?

Charlotte's Big Read: To Kill a Mockingbird

Per the Charlotte Observer, "The Charlotte-Mecklenburg Library system is playing Oprah by challenging the community to pick up a copy of ‘To Kill A Mockingbird' and read it together."

“Re-reading this book at this moment, when we're beginning to take for granted having an African American president, is a powerful reminder of how far we've come, (snip) but also a reminder that a lot of the hurts and injustices are still there.”

Is Skipper Beck Getting Spitzer-ed? Where's the Rest of the Story?

Remember Charlotte's Hush, Hush Prostitution Scandal? Here's the latest from Charlotte Business Journal:

Longtime Charlotte car dealer Skipper Beck has been charged with soliciting prostitution. He has been ordered to appear in state court on Feb. 6.

The charge carries a maximum punishment of 60 days in jail.

According to an affidavit from the Mecklenburg County Sheriff’s office, Beck is accused of contacting Sallie Saxon, owner of Hush Hush escort services, to request a prostitute. The affidavit alleges Beck went to a local hotel and met with a “known prostitute … and paid the agency fee” of $400.

The Charlotte Observer also sez that he's "client 4."

That's it? Where's "the rest of the story?" Why were Beck's the only "client" initials leaked to the press? Who are clients 1 -3? Will they be revealed?

In other (related?) news, it appears that the Nick Mackey, Charlotte's former sheriff, has been cleared by the DA of his wrongdoings. No details provided as to why.

Now a newly-elected N.C. Rep. ,Nick Mackey no longer faces prosecution over a charge of failing to turn over business documents in connection with a nearly $100,000 civil judgment against him.

John & Ken's Excellent Adventure at BofA

Caption contest winner at Layoffs Watch '09: BAC on Dealbreaker.com:

Thain: (I can't wait for this part, (giggle), tell em' Ken, tell em! (giggle))

Lewis: "As we position ourselves for the future, we must re-evaluate our business functions and personnel requirements..."

Jerks...

BofA's Bad Day

Yesterday, the news was all bad for Bank of America's Ken Lewis. BofA is in executive compensation CYA and cash preservation mode.

Bank of America reduces holdings in Chinese bank (International Herald Tribune)

No bonus for Bank of America Chief (International Herald Tribune)

BofA begins layoffs (NY Post)

I'd thought of linking to Powter's Bad Day, but have opted for Annie's Tomorrow. Hang in there, Ken: The sun will come out tomorrow.

Housing Collapse Hits "Idol" Star in Charlotte

Per the Observer's, 'Idol' Fantasia's house up for auction:

Court documents show one of former “American Idol” winner Fantasia Barrino’s homes in Charlotte is up for auction.

A company says Barrino failed to repay money it loaned her to cover her taxes in 2006, according to the documents. The Mecklenburg County Sheriff’s Office is scheduled to sell the home, valued at $1.1.million, in January. The home – on Bevington Place, off Rea Road in southeast Charlotte – isn’t in foreclosure, but rather is being used to compensate the company that loaned Barrino money to cover taxes.

The housing bust continues....