BAC's Ken Lewis Mulls Another Deal as Lehman Reaches Brink

As soon as Lehman Brothers (LEH) shares hit $4 yesterday and reports came out that the company is up for sale to try and survive, only one name came to my mind as a potential buyer; Bank of America (BAC) CEO Ken Lewis. The guy loves doing deals. Who else would have bought Countrywide (CFC)?

Since Peridot is long BAC, one of the two things I am worried about (the first is obviously Lehman's ugly balance sheet) is the price that Lewis might agree to pay for Lehman should a deal be reached. Lewis isn't shy about overpaying for firms he really wants, and he loves to grow by acquisition. FleetBoston, MBNA, U.S. Trust... not a bargain among them (Countrywide is still a question mark).

Now that Lehman CEO Dick Fuld has completely blown it (even after seeing exactly how things played out with Bear Stearns (BSC)!), BAC is likely the most probable suitor at this point, and thus I am not surprised its name was already being mentioned in press reports last evening.

Don't overpay, Ken!

Full Disclosure: Long shares of BAC at the time of writing.

Comments

[DonSuper:]

If they do make a deal, I hope they only buy the Neuberger Berman (at a cheap price) unit, since it is the only part probably worth buying...

The name, the traders, and the assets, are mostly toxic IMHO. As a BAC shareholder, I too hope Ken doesnt overpay, and doesnt buy toxic assets.

2008 Sep 12 12:06 PM

[helplessobs...:]

All BAC is trying to do is become really "too big to fail". Obviously Lewis does not know the difference between value and price. This bank is bankrupt, just look how they are treating their credit card accounts using every device to extract capital from card holders, laying off thousands of employees etc. A healthy bank like BBT needs not resort to these stringent capital conservation actions.

2008 Sep 12 01:21 PM

[Brutto:]

Which CEO of a leading American Bank said: "I've had all the fun I can stand in investment banking right now" when things started to implode last year?

First to answer correctly gets a LEH share. Second prize: two LEH shares.

Write to Kenneth Lewis, c/o Bank of America to claim your prizes.

2008 Sep 12 02:06 PM

[User 99065:]

ken lewis of bac


On Sep 12 02:06 PM Brutto wrote:

> Which CEO of a leading American Bank said: "I've had all the fun
> I can stand in investment banking right now" when things started
> to implode last year?
>
> First to answer correctly gets a LEH share. Second prize: two LEH
> shares.
>
> Write to Kenneth Lewis, c/o Bank of America to claim your prizes.

2008 Sep 13 03:45 PM

[nyka:]

Don Super....try DOESN'T, not doesnt. Apostrophes do not bite, despite what your mother might have told you.

2008 Sep 13 08:53 PM

[daffy:]

Yeah, I am long BAC. Yeah, I am not so happy about it. Yeah, the only reason I hold onto it is the realization tha there has to be at least one bank out there that doesn't fail over this financial mess we are in. At least one Ken. AT LEAST ONE!

2008 Sep 14 08:26 AM