No huge surprise that the Bank of America CEO is calling it a career after 40 years. Lewis, fairly or not, had become a distraction at a time when the company sorely needs leadership to hack through the entanglements of the Countrywide and Merrill Lynch deals.
And although NY AG Andrew Cuomo has already denied it, you can bet that Lewis’ departure dampens Cuomo’s zeal to take down Lewis in connection with the Merrill deal. The crusade for justice narrative gets a little ragged when the purported bad guy just wants to hang with the grand kids. This is why Brian Moynihan should worry. Cuomo has to target someone now, and who better than the guy groomed to be Lewis’ successor who happened to be a major player in the Merrill deal? Stay tuned there. The SEC’s probe will likewise refocus on Moynihan.
Of course, this would not be a big time local corporate change without Charlotte immediately trying to discern what this “means” for Charlotte. An honest answer — who knows? The nation’s financial sector remains fragile enough that anything is still possible. At the same time, BofA’s near future is somewhat set in stone — pay back the TARP funds, clear toxic assets left over from Countrywide and Merrill, play it safe, but wring ever penny out of customers.
No more wheelin’ and dealin’, buying banks, watching your colors spill across the map. Doesn’t sound like much fun, does it? No wonder Ken Lewis is leaving.
Update: Clusterstock calls Lewis’ departure “rushed” and wonders if the SEC is readying a personal suit against Lewis. Possible, but wouldn’t a retired Lewis just settle for some millions and move on? Would that satisfy the SEC?
