Bank of America CEO: 'The Big 3 is one too many'

**nadepalma** · 11-19-2008, 09:29 AM

SOURCE: Detroit News

Wednesday, November 19, 2008
Bank CEO: 'The Big 3 is one too many'
Nathan Hurst / The Detroit News
DETROIT -- The CEO of Bank of America Corp. said Tuesday that he wasn't in favor of a bailout for the Big Three unless it meant major consolidation of the industry.

"The Big Three is one too many," Bank of America's Kenneth Lewis told a lunchtime audience during a meeting of the Detroit Economic Club Tuesday afternoon at Cobo Center.

"I think the American people are suspect of just giving more money and buying more time. They want to see that the companies have in fact changed and the strategies have changed."

Lewis' comments came as the banking executive spoke to the gathering of business leaders on the future of American homeownership in the midst of the country's growing foreclosure crisis.

His remarks soon turned toward Detroit's heated battle in Washington over a bailout of General Motors Corp., Ford Motor Co. and Chrysler LLC. All three automakers have been hemorrhaging cash in light of a rapidly deteriorating sales environment. None of them has been able to cut back quickly enough to halt the flow of red ink, and with cash reserves running low, national lawmakers are considering a $25 billion bailout program that the companies say would help tide them over until the economy picks up.

Despite the losses those in the automotive industry would suffer in the short term, Lewis said consolidation should be seen as positive in the long term.

"If those things save it, then they should be real happy," he said. "You can either be happy for a short period of time or moderately happy for a long time. I'm just trying to make sure the industry survives, with so-called 'tough love.' "

MORE HERE

**sigma** · 11-19-2008, 09:32 AM

Hmm... The bank CEO's criticizing the Big Three? Didn't they just receieve a massive... oh yeah. Why don't they put their house in order first?

Josenez11 · 11-19-2008, 09:38 AM

Couldn't have said it better. If you ask me there are one too many broke banks.

bcjohnso99 · 11-19-2008, 09:39 AM

Japan is the third largest auto market and has at least 8: Toyota, Honda, Nissan, Mazda, Subaru, Suzuki, Mitsubishi, Isuzu

How is 3 domestics too many for the largest market?

The US gov needs to enable GM and others to make use of the new union agreement before they conclude that they can't survive (until 2012?)

Rngr07 · 11-19-2008, 09:44 AM

The pot calling the kettle black.

Hoboken Tim · 11-19-2008, 09:49 AM

A Banker who was able to take over another Bank with a government handout, has a set of Ba**s talking like this

K-1 · 11-19-2008, 09:50 AM

Pot, meet kettle.

texassierradude · 11-19-2008, 09:51 AM

Quote:

Originally Posted by Josenez11

Couldn't have said it better. If you ask me there are one too many broke banks.

I couldn't have said that better either.

wescoent · 11-19-2008, 09:52 AM

Yes, there are quite a few broke banks.

Why should the auto industry get a free pass when so many banks had to die?

Bigbee60 · 11-19-2008, 09:57 AM

Typical clueless CEO. I bet he only has two of them as clients

By this rationale, little Japan doesn't need one of Toyota, Nissan, or Honda (not to mention Mitsubishi, Mazda, or Suzuki). Germany should be killing off one of BMW, Mercedes, or the VW/Porsche/Audi Group. France needs to get rid of either Renault or Citroen/Peugeot. The UK .... oh never mind, they don't have any car companies anymore ....

GMFAN85 · 11-19-2008, 10:31 AM

Quote:

Originally Posted by wescoent

Yes, there are quite a few broke banks.

Why should the auto industry get a free pass when so many banks had to die?

1) GM/Ford/Chrysler aren't going to get a free pass. There are going to be some serious strings attached if the bailout is approved.

2) The banks were one of the root causes of this current credit crisis.

3) Name three banks that employ (directly and indirectly) 3 million people and have gone under since this recession has begun.

prowlerjc · 11-19-2008, 10:36 AM

Methinks Mr Brokebank Mountain just wants more of the bailout dinero for himself. BoA is such a joke anyway. Its like a press release that Bozo the Clown thinks there are too many automakers.

ss925 · 11-19-2008, 10:43 AM

Quote:

Originally Posted by GMFAN85

1) GM/Ford/Chrysler aren't going to get a free pass. There are going to be some serious strings attached if the bailout is approved.

2) The banks were one of the root causes of this current credit crisis.

3) Name three banks that employ (directly and indirectly) 3 million people and have gone under since this recession has begun.

Thank You! LOAN! not Grant

Buickman · 11-19-2008, 10:54 AM

there are many opinions and positions on the subject at hand. been on NPR and Fox News. next... Stand UP! w/ Pete Dominick on P.O.T.U.S. SIRIUS 110 / XM 130. will post time if anyone would care to listen.

neshapop · 11-19-2008, 10:57 AM

When you look at business models the most important this is to make money next quarter, everthing else can go to hell. In the meantime you can sue your parents for negligence too.

11-19-2008, 09:29 AM	#1 (permalink)
nadepalma GMI Staff Member Join Date: Jan 2003 Location: NJ Posts: 6,690	Bank of America CEO: 'The Big 3 is one too many' SOURCE: Detroit News Wednesday, November 19, 2008 Bank CEO: 'The Big 3 is one too many' Nathan Hurst / The Detroit News DETROIT -- The CEO of Bank of America Corp. said Tuesday that he wasn't in favor of a bailout for the Big Three unless it meant major consolidation of the industry. "The Big Three is one too many," Bank of America's Kenneth Lewis told a lunchtime audience during a meeting of the Detroit Economic Club Tuesday afternoon at Cobo Center. "I think the American people are suspect of just giving more money and buying more time. They want to see that the companies have in fact changed and the strategies have changed." Lewis' comments came as the banking executive spoke to the gathering of business leaders on the future of American homeownership in the midst of the country's growing foreclosure crisis. His remarks soon turned toward Detroit's heated battle in Washington over a bailout of General Motors Corp., Ford Motor Co. and Chrysler LLC. All three automakers have been hemorrhaging cash in light of a rapidly deteriorating sales environment. None of them has been able to cut back quickly enough to halt the flow of red ink, and with cash reserves running low, national lawmakers are considering a $25 billion bailout program that the companies say would help tide them over until the economy picks up. Despite the losses those in the automotive industry would suffer in the short term, Lewis said consolidation should be seen as positive in the long term. "If those things save it, then they should be real happy," he said. "You can either be happy for a short period of time or moderately happy for a long time. I'm just trying to make sure the industry survives, with so-called 'tough love.' " MORE HERE __________________ Email: nadepalma@gminsidenews.com "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!" "You cannot help men permanently by doing for them what they could and should do for themselves" -Abraham Lincoln

11-19-2008, 09:32 AM	#2 (permalink)
sigma GMI Staff Member Join Date: Sep 2005 Location: In the Galactica CIC Drives: 2005 Chevy Malibu Posts: 3,937	Re: Bank of America CEO: 'The Big 3 is one too many' Hmm... The bank CEO's criticizing the Big Three? Didn't they just receieve a massive... oh yeah. Why don't they put their house in order first? __________________ "The best committee is the committee of one" -Bob Lutz

11-19-2008, 09:38 AM	#3 (permalink)
Josenez11 2.4 Liter SIDI ECOTEC Join Date: Jan 2007 Location: Warren, OH Drives: 07 Trailblazer SS Posts: 139	Re: Bank of America CEO: 'The Big 3 is one too many' Couldn't have said it better. If you ask me there are one too many broke banks.

11-19-2008, 09:39 AM	#4 (permalink)
bcjohnso99 2.4 Liter SIDI ECOTEC Join Date: Oct 2005 Location: Ottawa, Ontario, Canada Drives: '03 Pilot, '03 Vibe Posts: 424	Re: Bank of America CEO: 'The Big 3 is one too many' Japan is the third largest auto market and has at least 8: Toyota, Honda, Nissan, Mazda, Subaru, Suzuki, Mitsubishi, Isuzu How is 3 domestics too many for the largest market? The US gov needs to enable GM and others to make use of the new union agreement before they conclude that they can't survive (until 2012?)

11-19-2008, 09:44 AM	#5 (permalink)
Rngr07 2.4 Liter SIDI ECOTEC Join Date: Feb 2005 Location: Friendswood, TX Drives: 2006 Ford F150 XLT; 2009 Pontiac G8 GT Posts: 112	Re: Bank of America CEO: 'The Big 3 is one too many' The pot calling the kettle black.

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11-19-2008, 09:49 AM	#6 (permalink)
Hoboken Tim 2.4 Liter SIDI ECOTEC Join Date: Sep 2007 Location: Hoboken, NJ Drives: 2008 Cadillac SRX 1992 GMC Safari 1941 Packard 1 Posts: 121	Re: Bank of America CEO: 'The Big 3 is one too many' A Banker who was able to take over another Bank with a government handout, has a set of Ba**s talking like this

11-19-2008, 09:50 AM	#7 (permalink)
K-1 4.4 Liter Supercharged Northstar Join Date: Oct 2005 Location: Ann Arbor, Michigan Drives: 2008 Saturn ASTRA 5dr XR 2009 Saturn AURA XE Posts: 2,579	Re: Bank of America CEO: 'The Big 3 is one too many' Pot, meet kettle. __________________ 2008 Saturn ASTRA 5-door XR - Sandstone - Me 2009 Saturn AURA XE - Quicksilver - Wife 2009 Maclaren Quest Sport Stroller - Black/Champagne - Son 2008 Radio Flyer Sport Trike - Classic Red - Son 2008 Fisher-Price Power Wheels Lil' Kawasaki ATV - Green/Yellow - Son

11-19-2008, 09:52 AM	#9 (permalink)
wescoent 6.2 Liter LS9 Supercharged V8 Join Date: Dec 2004 Posts: 6,462	Re: Bank of America CEO: 'The Big 3 is one too many' Yes, there are quite a few broke banks. Why should the auto industry get a free pass when so many banks had to die? __________________ "It's only when the tide goes out that you learn who's been swimming naked." -Warren Buffet(t)

11-19-2008, 09:57 AM	#10 (permalink)
Bigbee60 2.4 Liter SIDI ECOTEC Join Date: Mar 2008 Location: Auto Land Drives: 2008 Colorado Crew Cab Z71 RWD Posts: 139	Re: Bank of America CEO: 'The Big 3 is one too many' Typical clueless CEO. I bet he only has two of them as clients By this rationale, little Japan doesn't need one of Toyota, Nissan, or Honda (not to mention Mitsubishi, Mazda, or Suzuki). Germany should be killing off one of BMW, Mercedes, or the VW/Porsche/Audi Group. France needs to get rid of either Renault or Citroen/Peugeot. The UK .... oh never mind, they don't have any car companies anymore .... __________________ Current Driveway Fleet: 2009 Honda Civic Hybrid 2008 Colorado CrewCab Z71 2WD 2008 Suzuki SX-4 Crossover AWD Touring (wife's liking it in the snow) 2005 Malibu Sedan LT2 (college duty) 2003 Porsche Boxster S (sunny days and track events)

11-19-2008, 10:36 AM	#12 (permalink)
prowlerjc 4.6 Liter Northstar V8 Join Date: Jan 2003 Posts: 1,841	Re: Bank of America CEO: 'The Big 3 is one too many' Methinks Mr Brokebank Mountain just wants more of the bailout dinero for himself. BoA is such a joke anyway. Its like a press release that Bozo the Clown thinks there are too many automakers.

11-19-2008, 10:54 AM	#14 (permalink)
Buickman Banned Join Date: May 2005 Location: Flint MI Drives: 08 Enclave Posts: 2,366	Re: Bank of America CEO: 'The Big 3 is one too many' there are many opinions and positions on the subject at hand. been on NPR and Fox News. next... Stand UP! w/ Pete Dominick on P.O.T.U.S. SIRIUS 110 / XM 130. will post time if anyone would care to listen.

11-19-2008, 10:57 AM	#15 (permalink)
neshapop 5.3 Liter Vortec V8 Join Date: Sep 2005 Location: Toronto, ON Drives: Buick Allure CX 2005 Posts: 1,268	Re: Bank of America CEO: 'The Big 3 is one too many' When you look at business models the most important this is to make money next quarter, everthing else can go to hell. In the meantime you can sue your parents for negligence too.

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