Ken Lewis's Waterloo?

We've noted frequently that Bank of America's Ken Lewis has bet his career on the Merrill Lynch and Countrywide deals. Sadly, it looks as if the Merrill Lynch gambit may prove to be "a deal too far." Lewis is under enormous pressure now for paying what strikes many as an exorbitant premium for an investment bank that has forced it right back to the government trough for more bailout funds. "... the BofA-Merrill deal has proved unique only in the speed of its unraveling," according to the Financial Times.

Lewis now has some huge decisions to make. Does he slash the inherited-from-Merrill securities and advisory business? How does he quell the anger on the Merrill side of the shop? Bank of America's stock portends disaster unfortunately. And the more indebted to the government it becomes, the less room Lewis has to do much at all. Shareholders have a right to be angry.

For more:
- here's the FT article

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