Trust in Banks Diminishing?
JANUARY 26, 2009

Impropriety by chairmen of several major banks raise deep concern on trustworthiness which places a stigma on the banks that are reputable; a critical review of deals made by Bank of America is just one example.
A review of some of Bank of America’s financial deals should have raised concerns of federal lawmakers prior to giving the bank $25-billion of taxpayer’s money in September 2008. In December 2008 Bank of America Corp. said that it would cut 30,000 to 35,000 jobs by 2011.
Bank of America CEO Ken Lewis announced on July 1, 2008 that it had purchased Countrywide Financial Corp; Countrywide was in financial trouble. Countrywide mortgage policies, and involvement in subprime mortgages, contributed to the mortgage and foreclosure woes in America.
On Sep. 15, 2008 CEO Ken Lewis announced that Bank of America acquired Merrill Lynch & Co., an investment banking and brokerage services company. Merrill Lynch posted a loss of $6.6-billion during the first half of 2008 and was expected to post more than $15-billion loss in the 4th quarter.
Bank of America was involved in a massive acquisition and CEO Lewis decided to keep secrets about the Marrill Lynch losses from its own shareholders and investors; also from federal lawmakers who were funding their bailout. Lewis told Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke that he might walk away from the deal unless the government could promise additional bailout money; the Bush administration on Sep. 15th authorized an additional $20-billion to the bank.
John Thain Chief of Merrill Lynch under BanK of America spent $1.2-million redecorating his office and in December 2008 distributed bonuses between $3-billion to $4-billion. Federal lawmakers should require Bank of America to return the money spent on bonuses and office redecoration to the government. Ken Lewis should be ousted from his position as CEO; there should also be a shake-up in the executive staff.
JP Morgan Chase, Goldman Sachs, Morgan Stanley, Wells Fargo and other major players are putting their own interest first by spending rescue money to buy weaker smaller banks, and hoarding some of the funds that should be used to end the freeze in the credit market, making availability of money for car loans, mortgages and small businesses.
I, a common American taxpayer, can research and obtain information on operations within the financial markets. Where were our lawmakers and staff before handing out bailout funds, asleep at the switch? There was no oversight and accountability required of funds handed out, Treasury Secretary Paulson was given a free hand.

Darrell W. Weston, 3491 W. Daffodil Dr., Beverly Hills, Florida 34465, (352)527 - 4449