Tuesday, October 7, 2008

Truth or fiction at Bank of America

Ken Lewis said that bank of American is making all the loans they can with any qualified applicants. Funny that just last week they cut off McDonald's franchisees who were looking to upgrade or remodel their stores. I guess having a proven, cash flowing, successful business that continues to thrive in this tough economy does not meet their standards. Ken Lewis seems to not know what really is going on at B of A. They are hoarding cash just like everyone else but he is trying to spin things so they can be seen as the good guys but they are holding the government and tax payers hostage because they have so much cash in the form of deposits. I am guessing but it seems like Lewis has been holding his hand very tight to his vest and now coming out to cut dividend may be a sign that they are a little more exposed then previously reported.

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