After Wagoner, Bank of America's CEO may be the next to go

[HopeOverFear]

NEW YORK (Reuters) - Bank of America Corp Chief Executive Kenneth Lewis may be the next corporate boss to feel the heat after the administration forced General Motors Corp Chief Executive Rick Wagoner to resign in return for further government assistance.

The second-largest U.S. bank has received $45 billion from the government, making it one of the biggest recipients of government bailout money in the banking system.

Big shareholders have been calling for Lewis to step down since Bank of America announced in January it took a $20 billion government bailout to secure the acquisition of troubled Merrill Lynch & Co, which lost almost $16 billion in the last quarter of 2008.

The government may now add to the pressure from shareholders, analysts said. The sudden departure of Wagoner after nine years in the top job at GM signals the Obama administration is looking for management changes at bailed-out companies.

[PBS Poll-435]

1. Ken Lewis has already volunteered to resign

As soon as their TARP $$$ is paid back.

I guess it could be sooner...

[FrenchieCat]

7. Wouldn't hurt.....

[DJ13]

2. When Obama gives a major bank 60 days to straighten out their books

....or they will be nationalized, THEN I might begin thinking theres fairness in the bailouts.

[Skittles]

3. it will never happen

[FrenchieCat]

6. Bail outs aren't "fair" by nature.

[Bluenorthwest]

14. Ah but remember...

politics is also not 'fair' by nature. So that blade has two edges.

[Jennicut]

4. I think he will go as well. Time to rid the financial sector of its sucky CEOS

Of course didn't AIG do that? Did it change much?

[FrenchieCat]

5. Good....

If that's what it takes!

[MoJoWorkin]

8. I picked up on this possibility from the way Gibbs answered the

endless barrage of the "but aren't you being harder on Detroit" questions at his presser yesterday.

I believe some of those Wall Street CEOs may go, also. They are not done with the banks, yet.

I can't understand the knee jerk short-sightedness of some of the posters here on DU. I also can't understand how anyone would come away with the "he is selling labor down the river." He is trying desperately to SAVE their jobs.

Obama ALWAYS THINKS LONG TERM. That is why he is our President!

He has been at his job for a couple of months. This is going to take time to get right. Also WHEN some things are done are important. This is the most complex interdependent mess we have ever seen.

Have some patience, people. Lordy!

[shaniqua6392]

9. People are pretty pissed off at Obama

forcing Wagoner to resign while the bank CEO's still live on after we have bailed them out. It is a blue collar against white collar worker fight and Obama need to appear to be on the side of the blue collar worker. If he does not give one or more of these bank CEO's the boot, it will hurt him and the Democratic Party as a whole. The auto companies have only received LOANS and are being treated as if it is the same as the banks being handed cash without strings attached or repercussions.

[Inuca]

10. Wagoner is NOT blue collar n/t

[Romulox]

13. Obama demanded MORE concessions from UAW workers yesterday; NONE from Financial

sector employees. :hi:

[Bluenorthwest]

11. Why I personally want to see the Bank CEOs replaced

If manufacturing CEOs are told to take a hike, I do not see how the bankers are not treated the same.
Bank of America, for example. By Dad's bank, and then mine. Years of perfect record. A few months ago they jacked my interest rate from 9 to 24%, and also lowered my limit. I always paid more than the minimum, always paid early, sometimes multiple payments in a month. From 9% to 24% for no reason. When I called they were rude and insistant that their crisis meant I would pay. Later that day, I opened the newspaper to read that Bank of America had gone to the Government to ask for billions-because the were afraid credit card holders were going to default! They were jacking interest to usureous levels, chopping the limits of perfect customers, setting them up to default, then complaining about the potential for default. A scam, a set up, a con job. Cheating, lying, abuse of the customer trust.
Too bad for BofA, they can not make me default. They just lost my business for all time. Dishonest thieves, attempting to fleece the Federal Government by fleecing the customer byond what the customer can take.
So, when I see those CEOs having tea at the White House, while we are lectured that their contracts must be honored for sake of the rule of law, while Wagoner is shown the door and UAW is told their contracts are worthless and can not be honored, yes, my brothers and sisters, it is a glaring double standard.
At least the GM did not practice usury and the mugging of excellent customers. At least they created something other than debt and paper trails.

[Romulox]

12. Will Obama ask BOA employees and retirees for "sacrifices" too? If not, this is just theater. nt

[HopeOverFear]

16. You'd better wake the hell up and realize that Wagoner

is fucking you over.

[MadHound]

15. Most likely not,

After all, Wagner and his buddies in the automotive industry put their money on the wrong horse last fall, handing the Obama campaign less than a half million in campaign funds. On the other hand, Lewis and his buddies handed over 14 million to the Obama campaign, and now that he's in office, they're wanting some return for their investment, and it looks like they're getting it. I seriously doubt that Obama is going to force anybody in the financial sector out of business, after all, they paid to play, while the automotive industry essentially stiffed him last year.

Pay to play, same as it ever was.