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....