Ken Lewis (executive)

Kenneth D. Lewis (Born April 9, 1947 in Meridian, Mississippi) is the current Chairman, CEO, and President of Bank of America, the largest bank in the United States, positions he has held since the retirement of Hugh McColl in 2001. He joined the organization (at that time NCNB) as a credit analyst in 1969, and served as the head of both international and domestic operations during his tenure at NationsBank.

He is a graduate of Georgia State University, where he earned a bachelor of arts degree in finance from J. Mack Robinson College of Business. He is also a graduate of the executive program at Stanford University.

Lewis was named "Banker of the Year" in 2001, and was the same year honored as "Top Chief Executive Officer," according to US Banker. In 2007, Lewis was listed among Time Magazine's 100 Most Influential People in the world by Time Magazine. He was again named "Banker of the Year" in 2008. He is a member of the Financial Services Roundtable and the Financial Services Forum; the Fifth District’s representative on the Federal Advisory Committee; a member of the board and the executive committee and past chairman of United Way of Central Carolinas, Inc.; a member of the Committee to Encourage Corporate Philanthropy; a director of the Homeownership Education and Counseling Institute; vice chairman of the Corporate Fund Board of The John F. Kennedy Center for the Performing Arts; and past chairman of the National Urban League.

Merrill Lynch Controversy

Lewis was sharply criticized for his purchase of Merrill Lynch in January 2009 after it was revealed he knew of massive losses before the deal closed and declined to inform Bank of America shareholders. Merrill recorded an operating loss of $21.5 billion in the Q4 2008, requiring an additional $20 billion cash infusion from the U.S. government, bringing the government's total investment to $45 billion. The Bank's stock price fell 78% from $33.74 on September 12, 2008 (the last trading day before the deal was announced) to $7.18 on January 16, 2009 (the day the Bank's earnings were released), eliminating $108.2 billion in market capitalization. The stock price declined further ($3.93 on February 19, 2009) in the following month. The Bank now expects Merrill Lynch to dilute earnings for at least two years.

One issue is whether Ken Lewis and team performed adequate due diligence on the complex portfolio on Merrill's balance sheet during the weekend of September 13-14, 2008, when the deal was conceived and announced, or in the following two months leading up to the shareholder vote on December 5, 2008. The Bank took pains to convince its shareholders it performed appropriate analysis and also cited extensive work by J.C. Flowers to evaluate Merrill's operations and assets.

Also in question is the Bank's decision not to inform shareholders of the extent of Merrill's losses before the deal closed, and how much Lewis knew about the deteriorating situation by December 5, 2008. The fixed income markets suffered major dislocations in October and November, ahead of the shareholder vote, but Lewis claimed on the January 16 earnings call that the problems only surfaced in mid to late December.

External links

• Biography from bankofamerica.com
• Kenneth D. Lewis granted, take home, and expensed compensation from Bank of America (BAC). Also view Kenneth D. Lewis's accumulated wealth, board compensation, recent equity awards, and material updates., from Equilar
• USA Today profile Sept. 2008