Monday, October 06, 2008
uh oh -- BoA to raise capital
Chief Executive Officer Kenneth Lewis took advantage of the financial industry's disarray to buy Countrywide, the largest U.S. home lender, and last month agreed to buy Merrill Lynch & Co., the world's largest securities brokerage, for $50 billion. Lewis said the outlook for the economy has darkened.
``We've seen in the last 45 days things worsening in the economy and a view that the recession is going to be a little deeper than we thought,'' Lewis said today on a conference call. ``It's going to take some more time and some more pain.''
after eating the worst book in banking in CFC, perhaps it shouldn't be surprising that BAC would have indigestion. but one has to wonder how unduly optimistic lewis might have been, and just how much danger BAC might be in as house prices crash and the Great Unwind permeates every corner of credit.
UPDATE: and what about lloyd's, RBS and barclays? this is unbelieveable.