The Golden Era Of Financial Services Is Over Via 60 Minutes [Bank of America]
Bank of America CEO Ken Lewis on 60 Minutes in 12 minute video.
Excerpts:
...The largest of the banks is Bank of America - now partly owned by the United States of America.
The head of Bank of America, Ken Lewis, says that when he and the others met at the Treasury Department, it became clear that Secretary Paulson's "offer" was an ultimatum - no negotiations.
"So in other words, take it or take it?"
"Right. Right, right."
"Do you have any choice in this?" Stahl asked. "In other words, can you take the money and not lend?"
"We wouldn't want to do it that way, because you can make more money lending," Lewis said, "and so the intent will be to use it to grow loans and to make more net income."
But under the Treasury's plan, there's no requirement that a bank use the money to lend. It could use it to acquire weaker competitors - or put it in Treasury bills.
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