Back To Selling Shoes

Kenneth Lewis at Bank of America seems to have perhaps bitten off a bit more than Bank of America can chew. Seems some of the "crown jewels" at Merrill Lynch are ending up in someone else's crown, just when Bank of America is struggling with reduced earnings and a greatly reduced stock price. I guess $40 billion doesn't buy what it used to. Personally I thought Bank of America was toast when it bought Countrywide Financial, even if it can take advantage of some tax rulings at the IRS. When they added Merrill to the mix, they just became extra-crispy toast. They are probably in the too-big-to-fail category, so good old Paulson will prop them up if need be. The problem might become one of too-big-to-save if things get really nasty. The immediate problem for Lewis, however, is stemming the tide of defections. If he can't, he can always go back to his old job of selling shoes. I believe there are a few mall vacancies right now, so setting up shop in a prime retail location should not be a problem.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aMzHGkCEv2P0&refer=home

Disclosures: None