This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Ken Lewis Says BofA Is Fine. Do We Buy It?

Lewis' recent declarations are clearly an effort to wipe away some of the negative attention Bank of America has received for the deal, and bolster confidence in the firm's financial health. That's not to say he is misleading the public about BofA's financial standing -- which would be illegal -- but that his carefully-worded statements are not guarantees.

"These are officers of public companies and they're fully aware of their responsibility when it comes to misinformation," says Leo Tilman, former chief strategist at Bear Stearns and BlackRock (BLK) and author of the book Financial Darwinism. "Therefore I have no reason to believe that any of these statements are purposefully misleading."

However, he continues, "in the case of BofA and Merrill, and in the case of Wachovia and Golden West and other things, there was a disconnect between executive decisions and risk management. The rationale was business rationale -- synergies between business lines and market share -- but the risks were discovered later on."

Past performance is no guarantee of future success, and Lewis may well trump competitors to shepherd Bank of America back to pristine financial condition managing risk appropriately, paying off government debt and boosting profitability. The Mississippi native has been in charge of BofA since 2001, expanding its business while limiting exposure to subprime woes that crippled competitors.

Jim McDavid worked with Lewis, as well as his predecessor Hugh McColl, years ago at North Carolina National Bank, which eventually became Bank of America through a series of acquisitions. He characterizes Lewis as an honest, "cautious kind of guy" who is "laid back and reserved," especially in comparison to McColl who was more of a firebrand.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AIG $56.00 0.69%
BAC $16.29 1.80%
C $53.05 -0.95%
AAPL $127.62 0.96%
FB $80.38 -1.00%


DOW 17,936.38 -199.34 -1.10%
S&P 500 2,081.01 -20.03 -0.95%
NASDAQ 4,945.5730 -37.2360 -0.75%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs