Ken Lewis / CEO Bank Of America "Banker Of The Year 2008"

Almost as good as the Satyam Award ( see Satyam Computer Services Ltd has won the coveted Golden Peacock Global Award for Excellence in Corporate Governance for 2008 ).......This guy makes the CEO of Deutsche Bank Jo Ackermann quite a likable & competent person.... Compare the quotes with todays news $ 138 Billion Bailout Needed To Save Bank Of America / Merrill Lynch............

Dieser Preis ist fast so aberwitzig wie der von Satyam für erstklassige Corporate Governance ( siehe Satyam Computer Services Ltd has won the coveted Golden Peacock Global Award for Excellence in Corporate Governance for 2008 ).....Verglichen mit diesem Typ wirkt sogar Ackermann von der Deutschen Bank sympatisch & kompetent....... Knapp 3 Monate später benötigt dieser Clown einen $ 138 Billion Bailout .........

FT Alphaville ( Thanks / Danke )!
"We’re good at this".…losing money, that is. Not due diligence or canny dealmaking.

Selected excepts from Ken Lewis (Banker of the Year) on the Bank of America/Merrill Lynch conference call, September 15th, 2008.

Enjoy!

…we could have rolled the dice and possibly could have got it at a cheaper price. We thought the long-term benefits were so overwhelming, it was such a strategic opportunity that we elected not to roll the dice and to go ahead and do it at this time.

Question: can you provide a little more colour on some of the due diligence that was done?

Well, Joe, you want to go over it again in terms of- and the JC Flowers piece is key because they were renewing something- an effort that had already gone on and been very, very extensive.

Errr…

Clearly we had a tremendous amount of historical knowledge both as a competitor with Merrill Lynch and reviewed and analyze the company over the years.

Mr Lewis, have you ever visited the planet earth?

…it’s not as if we don’t have a very significant knowledge of the markets around the asset classes that are most problematic. In addition, as you would expect, we deployed the team that we would ordinarily deploy in these types of situations, which had well over 45 people from our team on site as well as others offsite outside counsel and the like.

Well over45 people!

We’re good at this.

> That they can get away with such generous bailout terms tells you all you need to know..... The comparable Commerzbank/Dresdner Bailout ( see Biggest German Bailout Stands Now At € 18.3 Billion & Counting..... ) terms for honoring such misjudgement looks almost "draconian".....

> Das so ein massives Fehlversagen auch noch mit absolut geschenkten Bailoutkondidionen "belohnt" wird sagt eigentlich alles..... Dagegen sehen die Konditionen bei dem vergleichbaren Commerzbank / Dresner Bailout drakonisch aus

This Ponzi Scheme Won´t Get A Bailout.......

Unlike others...... I still hope that at least the $ 50 billion number won´t be confirmed but it really looks like this story has the potential to rival the failed auto bailout. Even if the real number is only a fraction this will send shockwaves trough the hedge fund industry and could lead to much more forced selling..... At least the players now burned with billions call themselves "smart money" so we really shoulnd´t feel any mercy ( especially after you have read the "Cassandra Does Tokyo" or "Ft Alphaville" link. Naked Shorts back in 2001 questioned this how "Bernie" Madoff "created" his performance Madoff tops charts;skeptics ask how ).... On the auto topic it wouldn´t surprise me if we will see a TARP solution for the automakers during the next few days..... Wouldn´t be the first u turn from Paulson... :-)

Das wird ein Schneelballsystem sein das im Gegensatz zu anderen an Wall Street nicht rausgehauen wird..... Ich hoffe insgeheim immer noch das die Summe von 50 Mrd $ nicht bestätigt wird aber nichtsdestotrotz hat diese Geschichte das Zeug selbst den gescheiterten Rettungsversuch der US Autoindustrie zu toppen. Selbst wenn die Summe um einiges geringer ausfällt wird dieser Vorfall zu einem weiteren massiven Vertrauensverlust und einem Run auf die Hedge Fonds und damit zu weiteren massivsten Zwangsverkäufen führen...... Dab zu den Geschädigten wohl in erster Linie andere Hedge Fonds gehören hält sich mein Mitgefühl aber sehr in Grenzen ( besonders nachdem man den Insiderbericht von "Cassandra Does Tokyo" & "FT Alphaville" Link gelesen hat die klar belegen das die ausgewiesenen Gewinne seit Jahren nicht stimmig sein können. Siehe auch diese Schlagzeile aus dem Jahr 2001 von Naked Shorts Madoff tops charts;skeptics ask how)........In Sachen Autoindustrie würde es mich nicht wundern wenn plötzlich ( binnen der nächsten Tage ) doch noch eine Lösung im Rahmen der TARP Gelder gefunden wird..... Wäre ja nicht die erste 180 Grad Wendung von Paulson & Co......

Bernie Madoff: The Indictment Original Filing / Original Anklagegeschrift via Henry Blodget / Clusterstock A MUST READ!

He Madoff with how much??? FT Alphaville

“This guy has managed to produce 1-1.2% PER MONTH, year after year after year…” Quote from a ( now money losing ...) client on May 2 2008 ...... via FT Alphaville

Madoff ‘Big Lie’ Hits Fairfield Sentry, Kingate Funds Bloomberg

A $50 Billion Fraud? So Where is the Money? Naked Capitalism

Ex-Nasdaq-Chef wegen Milliarden-Betrugsverdacht festgenommen Der Spiegel

The Madoff Complaint Calculated Risk

Bernie Comes Out of the Closet Cassandra Does Tokyo

> Hard to believe that this "likable" person has probably committed the "mother Of All Ponzi Schemes"....

> Fällt einem schwer zu glauben das dieser "sympatische" ältere Herr die "Mutter aller Schneeballsysteme durchgezogen hat.....

> Too bad that Madoff couldn´t hide his losses under some kind of level 3 accounting......

> Zu dumm das im Gegensatz zu den Banken Madoff seine Verluste nicht hinter der Level 3 Bilanzkosmetik verschleiern konnte......