Ken Lewis, the CEO of Bank of America, is stepping down at the end of the year. Many of you, like Jeff from a boutique bank, were hoping Ken would embark on another acquisition spree and possibly buy your company at a significant premium, similar to what happened with Merrill Lynch.
Ken Lewis has been a significant figure, often viewed as one of America’s most ambitious corporate builders this century. His acquisition of Countrywide Financial and his daring $50 billion purchase of Merrill Lynch on a day when market futures were down 5% are legendary. Despite paying a hefty $25 billion more than perhaps he should have, Ken’s actions saved many jobs at Merrill Lynch, earning him hero status among the employees there.
It seems Ken’s aggressive growth strategy eventually led to some challenges. John Thain, the former CEO of Merrill Lynch, skillfully negotiated the sale of his company just before disclosing significant losses, which some may argue was a brilliant move, despite his infamous $1 million office renovation during the economic downturn.
If you’re looking for the next big mover in the banking world like Ken, keep an eye on leaders at major commercial banks. John Stumpf of Wells Fargo, who acquired Wachovia Bank for $13 billion, might be someone to watch. However, John tends to make more calculated decisions, so he might not offer the sky-high premiums you’re hoping for.
There’s no need to worry about finding potential buyers if your company is solid and has a strong brand within its niche. The corporate world is full of ambitious individuals eager to expand their empires.
We wish Ken the best in his future endeavors, maybe even a role at Citigroup, as he moves on from Bank of America. And for those of you like Jeff, planning to splurge on holiday gifts in anticipation of a big buyout, maybe keep the champagne on ice a bit longer. There will always be opportunities around, especially in the ever-dynamic banking sector.
