Greg Curl, currently the chief risk officer of the company, represents a strong candidate and many believe that he will be the interim chief executive officer after Ken Lewis steps back. The $45 billion have been received under the government’s TARP (Troubled Asset Recovery Program) and out of that amount, $25 billion have been forwarded to Bank of America back in October 2008. The remaining amount has been extended in January in order to help Bank of America acquire Merrill Lynch, a move a lot of analysts have considered a bad decision.
The first result of the repayment will be represented by the reduction of their Q4 net income by $4.1 billion but on the other hand, Bank of America will save $3.6 billion per year in dividend payments (dividends which would have been paid to the U.S. government). Investors have initially not had a great reaction, with its shares dropping by a maximum of 4% within hours but the situation rebounded and at this point, things may end up moving in the right direction.
My name is Maurice “Moe” Bedard. I am the founder of America’s #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.