More on Ken Lewis's big bet

Jim Kim — Wed, 16 Jul 2008 12:27:28 -0400

Ken Lewis, CEO of Bank of America, really bet his career on Countrywide. We've made that point repeatedly. For all the savvy deals he's pulled off--MBNA and FleetBoston--this is the one that will matter most. Many have suggested that the deal will blow up for him--and painfully so. But maybe not. Portfolio notes that he has been quite savvy about the mortgage market, and has built a conservative mortgage business at Bank of America that wisely stayed out of the subprime mess, despite the obvious appeal before the crisis. You can imagine the internal debate. He's a sophisticated thinker when it comes to mortgages and how they can drive the complete customer relationship. Obviously, he's betting he can take Countrywide and integrate the best of it while discarding the worst. The jury is out. But he may surprise his critics yet.

For more:
- here's the Portfolio article

Is Bank of America's Ken Lewis the next to get sacked?

Jim Kim — Wed, 25 Jun 2008 13:17:22 -0400

In the recent furor over Lehman Brothers, many have suggested that CEO Dick Fuld's job is on the line. You really could say the same for other banks out there--big and small--as well. A commentary on Seeking Alpha weighs in with some thoughts on Bank of America CEO Ken Lewis. It's fair to say the jury is deliberating. On one hand, he has shrewdly built the company on acquisitions; Fleet Boston and MBNA come to mind. But will the Countrywide deal be his undoing? We've said before that he has bet his career on this deal. It has to work out for him. Seeking Alpha suggests that if the deal goes through, his career will be in jeopardy because the bank will undoubtedly struggle. The positive spin is that it's an opportunity to prove his worth all over again as a CEO.

For more:
- here's the item