BofA's (BAC) Lewis Addresses Concerns In Internal Memo, Says Company Better Off Than Most Rivals
Down)
Bank of America (NYSE: BAC) CEO Kenneth Lewis sent out an internal memo to address nationalization concerns, saying the "market appears to be moving in part based on rumor, innuendo and falsehoods propagated by the misinformed." He said the company continues to be profitable, and their capital and liquidity are strong.
Lewis said the company doesn't need further assistance, not even the recently talked about plan to convert the government's preferred shares into common shares.
Lewis said BofA's business prospects and financial condition are far superior to those of most of their competitors.
Commenting on the upcoming government 'stress tests' to evaluate the current financial condition of banks, Lewis said BofA is constantly running their own 'stress tests', which, "continue to show that our capital and liquidity are sufficient to meet today’s economic challenges, as well as economic scenarios that include much higher unemployment rates than we have today."
Lewis said while he would not want to try to predict how much the company will earn in 2009, they do expect to have revenues of more than $100 billion. Lewis also said tangible common equity ratio is currently about 2.68%, very close to investors' standard threshold of 3.0%. He said some competitors who are experiencing greater stress have ratios that are about half that threshold.
Lewis said the company doesn't need further assistance, not even the recently talked about plan to convert the government's preferred shares into common shares.
Lewis said BofA's business prospects and financial condition are far superior to those of most of their competitors.
Commenting on the upcoming government 'stress tests' to evaluate the current financial condition of banks, Lewis said BofA is constantly running their own 'stress tests', which, "continue to show that our capital and liquidity are sufficient to meet today’s economic challenges, as well as economic scenarios that include much higher unemployment rates than we have today."
Lewis said while he would not want to try to predict how much the company will earn in 2009, they do expect to have revenues of more than $100 billion. Lewis also said tangible common equity ratio is currently about 2.68%, very close to investors' standard threshold of 3.0%. He said some competitors who are experiencing greater stress have ratios that are about half that threshold.
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