REUTERS--Bank of America Corp said it would repay $45 billion of taxpayer bailout funds, a move that could free the top U.S. lender from pay curbs as it looks to hire a new CEO but also makes it more vulnerable to further economic shocks.
The surprise announcement on Wednesday marks a victory for outgoing Chief Executive Kenneth Lewis, who is expected to retire from his post by the end of the year.
WB7--Excuuuuuuuuse me, victorious? Don't get me wrong, its nice to have BAC's shareholders further diluted in order to enable the return of Hank's TARP squid pro quo. But at the Financial Nuremburg Trials, TARP is not at the top of Screwless Ken's list of crimes against transparent capitalism. Wall Street's pack of subprime hyenas each have their own bespoke set of CEO transgressions: Blankfein/AIG backroom bailout; Weill/killer of Glass Steagall; Thain/bonus potty banana head; Fuld/too big to fold; Cayne/subprime pothead etc.
Mr. Screwless' Ken has the honor of being a shareholder schtupp artist. Acquire Countrywide/schtupp; acquire Merrill without adequate diligence/schtupp; lie to shareholders about losses and bonuses for Merrill bankers/schtupp. Now for the final schtupp BAC will pay back TARP money by...giving its shareholders one last diluting schtupp for the road.
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