Thursday, August 16, 2012

What Merkel Can Learn from Ken Lewis

In the heart of the financial crisis, Ken Lewis (Bank of America's former CEO), was conducting due diligence on acquiring Merrill Lynch.  Apparently Lewis wanted to pull the offer away, but his hand was forced by the powers that be.  In the end, the Merrill acquisition went through and Lewis ended up getting the axe.

Fast forward three and a half years and we have a similar situation.  Instead of John Thain (Merrill's CEO at the time of the deal), we have Antonio Samaras.  Both characters were pushing for better deals for their shareholders/citizens and in Thain's case, he succeeded.  Lewis ended up being fired and to this day, Bank of America is still struggling (granted not all of their struggles are due to the Merrill acquisition).  Will Merkel follow down the same path as Lewis?  Will she concede to playing nice with the other Eurozone children and end up bailing out everyone just for her own country to bail on her?


















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