BofA's Ken Lewis: We Won't Need More Bailout Money
In remarks to the Chief Executives Club of Boston right now, Bank of America chief executive Ken Lewis -- possibly the most embattled banker on Wall Street -- said that he believes his bank will not require more taxpayer bailout money.
"While some banks may need more public support in the future, I don’t believe we will," Lewis said. "It’s possible that the government could compel us to take more capital pending the results of their stress test. But I’m confident we’ll pass the stress test."
He called bank nationalization a "nightmare."
"The last thing we need to do is start nationalizing banks," Lewis said in his speech, which you can read here. "By nationalization, I mean a full-scale takeover of an institution by the government in which common shareholders, and possibly debt-holders as well, would be wiped out. This, in my view, would be a nightmare."
Lewis said he thinks the government will provide "some relief" in loosening mark-to-market accounting standards, giving accountants some wiggle room in how to value toxic assets in an illiquid market.
March 12, 2009; 1:58 PM ET
Categories: The Ticker | Tags: Bank of America, Ken Lewis
Save & Share: Previous: Geithner Reaffirms $1 Trillion to Clean Up Toxic Assets
Next: GM to Feds: We Won't Need That Extra $2 Billion
The comments to this entry are closed.