Is this a sign another bank is seeing the strings attached to the money is making the money not worth it?
Bank of America’s request for $20bn of government money to prop up its acquisition of Merrill Lynch was a “tactical mistake” that made the bank appear as weak as Citigroup, Ken Lewis, BofA’s chief executive told the Financial Times on Monday.
At the end of the article he says that he will see it through.
“I want to repay the Tarp money before I go anywhere, and by then I think we will be seeing the success of the Merrill Lynch acquisition,” he said. “It would be very easy to disappear into the sunset but we have to slug through this.”
What comes to mind is how much of a bonus did he get or will he get as he sees Bank of America through this mess that even he admits is a mess. The other thing is would he consider this a mess if confidence in the company wasn’t in a free fall along with the stock market.
Updated on 3/2/2009 to add article that answers questions about bonuses.