Breaking The Bank
PBS Frontline Special
Ken Lewis, the CEO of Bank of America, is in trouble: a stock collapse; a
rocky merger; the worst fourth-quarter losses in at least 17 years; a
stockholder revolt; an urgent need to raise more capital despite a $45 billion
infusion from the federal government. And on top of that, he effectively has a
new boss: President Barack Obama.
In Breaking the Bank, FRONTLINE producer Michael Kirk (Inside the Meltdown, Bush's War) draws on a rare combination of high-profile interviews with key players Ken Lewis and former Merrill Lynch CEO John Thain to reveal the story of two banks at the heart of the financial crisis, their rocky merger, and the government's new role in taking over -- some call it "nationalizing" -- the American banking system.
It all began on that fateful weekend in September 2008 when the American economy was on the verge of melting down. Then-Secretary of the Treasury Henry Paulson, his former protégé John Thain, and Ken Lewis, one of the most powerful bankers in the country, secretly cut a deal to merge Bank of America and Merrill Lynch.
The merger of the nation's largest bank and Merrill Lynch was supposed to help save the American financial system by preventing the imminent Lehman Brothers bankruptcy from setting off a destructive chain reaction. But it became immediately clear that it had not worked. Within days, the entire global financial system was collapsing.
In Washington, Secretary Paulson was determined to spend billions of government dollars to prevent the American banking system from dragging the country into a depression. That October, Lewis, Thain and other top bank CEOs found themselves at an emergency meeting at the Treasury Department. Paulson told the group they had no choice but to accept $125 billion of capital from American taxpayers in order to save the financial system. Initially, Bank of America's CEO Lewis was supportive of the plan. "We are so intertwined with the U.S. that it's hard to separate what's good for the United States and what's good for Bank of America," Lewis tells FRONTLINE.
But some observers now say that Paulson's injection of public capital was the beginning of unprecedented government involvement in the nation's banking system, with consequences few understood.
"I think we nationalized the banks in the U.S. on that day," former International Monetary Fund chief economist Simon Johnson says. "The government got a lot of say in how they are run, a lot of constraints, a lot of responsibility. A lot of downside risk was taken on that day."
By December, Lewis was discovering what it meant to have the government as a partial owner. When fourth-quarter losses at Merrill grew to $15 billion, Lewis began to look for a way to get out of the deal. But in tense negotiations with government officials, Lewis was told he had no choice. If he did not go through with the merger, regulators threatened to change the bank's management.
"Ken Lewis blinked, the full force of the government is being brought upon him. The rules of the game have changed," Wall Street Journal reporter Dan Fitzpatrick says. "Ken Lewis is on top of the financial services world, but he's not in charge. The government holds all the cards at the end of the day."
FRONTLINE's Breaking the Bank tells the story of Lewis' struggle to survive in this new financial order, where public outrage and government edicts are now as important to banking as shareholders and deposits. With his bank on the brink, Lewis now finds himself the subject of a shareholder revolt, congressional indignation, presidential pressure and the increasingly conflicting demands of private investors and government officials.
"This is more than a story about just one man or one bank," says producer Michael Kirk. "This is the story of the most important change in the relationship between government and private business in a generation."
In Breaking the Bank, FRONTLINE producer Michael Kirk (Inside the Meltdown, Bush's War) draws on a rare combination of high-profile interviews with key players Ken Lewis and former Merrill Lynch CEO John Thain to reveal the story of two banks at the heart of the financial crisis, their rocky merger, and the government's new role in taking over -- some call it "nationalizing" -- the American banking system.
It all began on that fateful weekend in September 2008 when the American economy was on the verge of melting down. Then-Secretary of the Treasury Henry Paulson, his former protégé John Thain, and Ken Lewis, one of the most powerful bankers in the country, secretly cut a deal to merge Bank of America and Merrill Lynch.
The merger of the nation's largest bank and Merrill Lynch was supposed to help save the American financial system by preventing the imminent Lehman Brothers bankruptcy from setting off a destructive chain reaction. But it became immediately clear that it had not worked. Within days, the entire global financial system was collapsing.
In Washington, Secretary Paulson was determined to spend billions of government dollars to prevent the American banking system from dragging the country into a depression. That October, Lewis, Thain and other top bank CEOs found themselves at an emergency meeting at the Treasury Department. Paulson told the group they had no choice but to accept $125 billion of capital from American taxpayers in order to save the financial system. Initially, Bank of America's CEO Lewis was supportive of the plan. "We are so intertwined with the U.S. that it's hard to separate what's good for the United States and what's good for Bank of America," Lewis tells FRONTLINE.
But some observers now say that Paulson's injection of public capital was the beginning of unprecedented government involvement in the nation's banking system, with consequences few understood.
"I think we nationalized the banks in the U.S. on that day," former International Monetary Fund chief economist Simon Johnson says. "The government got a lot of say in how they are run, a lot of constraints, a lot of responsibility. A lot of downside risk was taken on that day."
By December, Lewis was discovering what it meant to have the government as a partial owner. When fourth-quarter losses at Merrill grew to $15 billion, Lewis began to look for a way to get out of the deal. But in tense negotiations with government officials, Lewis was told he had no choice. If he did not go through with the merger, regulators threatened to change the bank's management.
"Ken Lewis blinked, the full force of the government is being brought upon him. The rules of the game have changed," Wall Street Journal reporter Dan Fitzpatrick says. "Ken Lewis is on top of the financial services world, but he's not in charge. The government holds all the cards at the end of the day."
FRONTLINE's Breaking the Bank tells the story of Lewis' struggle to survive in this new financial order, where public outrage and government edicts are now as important to banking as shareholders and deposits. With his bank on the brink, Lewis now finds himself the subject of a shareholder revolt, congressional indignation, presidential pressure and the increasingly conflicting demands of private investors and government officials.
"This is more than a story about just one man or one bank," says producer Michael Kirk. "This is the story of the most important change in the relationship between government and private business in a generation."
Hi There, I'm Rick Miller from Comprehensive Photography. I'm very pleased to see almost
50,000 visits since my site was started on
January 29th 2009 (about 215 per day).
PLEASE CHECK OUT SOME GREAT PHOTOS, ARTISTIC NUDES, via link NUDE ART — MY BLOG AND SOME VERY NICE MOVIES!
While you visit and navigate through my site, next to the home tab, there is now a BUY menu item, that will link you to my gallery of pictures for sale — all High Resolution and top quality. So clicking on 'BUY' simply directs you to a new page to view and shop at your leisure; with the understanding that you are not committing yourself to a purchase. I've put some nice music on this new page as well, you can manage this in the upper right hand quadrant if you would rather have silence.
If you have been to Amazon.Com, or any other online store, the procedure for purchasing my work is equally as easy thanks to PayPal.
Some may remember posing for an "impromptu" photo opportunity during every family gathering. You stood there frozen, with cemented smiles as you wondered if Aunt Thelma would ever take the photograph. Cheese...... then Bam! You were blinded by the bright flash bulb. Auntie had the right idea. She wanted to memorialize every event. It didn't matter if the developed film never made it out of the card board envelopes. What was important is that she enjoyed taking photos.
Amateur photographers everywhere are still snapping pictures as a favorite pastime. Photography is a good means to chronicle someone's life. A picture tells a thousand words, so what an excellent way to document special moments, highlights and milestones.
Over time, our memory isn't as iron-clad as it once was. With photographs you can still recall the special moment even when the memory fades. Photography is good for your well being. Reflect on all the studies that talk about how beneficial laughter is to your health. Now consider your emotions when you see photos of a new baby, or a wedding, or any of the other adorable photos that are found in email in-boxes on a daily basis. They make you happy! Photos elicit positive emotions. Think about the people who were in south Texas during the winter of 2004. I'm sure they were happy to be down there when they had snow for the first time in over 100 years. There were people outside taking pictures at midnight; what an opportunity!
Have you ever seen deer on the side of the road? Not too many bucks will stop long enough to be photographed. If you're fortunate enough to see sitting deer, you better hope to have a camera with you; as they likely won't be sitting there waiting for you the next time you drive by.
While some people still prefer film cameras, digital cameras now come in any size or budget. For the novice photographer who merely enjoys taking photographs as a way to relax or capture those one of a kind moments, suitable digital cameras are available for under $100. Some people are still using 1.3 mega pixel digital cameras. By today's standard, that is considered a dinosaur. However it would still work if the photographer just wanted to take an occasional photo to list items for sale on eBay. Today many amateur photographers are using digital cameras with 4-6 mega pixels. As a rule of thumb, the higher the mega pixel, the higher the price tag. Notwithstanding, higher mega pixel cameras also come with more bells and whistles and have a higher resolution. Most all digital cameras also have a timer and ability to make very small movie clips. Many also have zoom lens features.
With digital photography it is fun to play around with new technology. Create a screen saver of your best photo with Image Box from CoolUtils. If you came back from Hawaii and have lots of great photos that you want not to just show to your friends but amaze them - make an astonishing slideshow. Imagine all pictures will be shown one by one with different effects, accompanied by music and your comments. With ImageBox every photo stops being a snapshot but becomes a living part of the presentation. Your friends will be amazed! Don't think about how difficult it is – you will create your first slideshow in 6 minutes. There are software programs that allow you to make digital images look better than real life by removing unwanted blemishes, moles, or wrinkles. Experiment with the software to add or remove people or objects from the photo. New technology provides the ability to alter a photograph so that it looks like an oil painting, pencil sketch, negative, sepia, black and white, charcoal drawing and a plethora of other options.
While it is possible to make a living as a photographer, the majority of camera users simply take photos because they enjoy it. It's true that time will not stand still. The taunting school aged children had it right when they responded to stares, "Take a picture why don't you – it'll last longer!" Now you do the same - stop reading and go take a picture... it'll last longer! REGISTER
Thank all of you so much for helping me to do something I love and enjoy. Please REGISTER and tell me what you think of the site.
While you visit and navigate through my site, next to the home tab, there is now a BUY menu item, that will link you to my gallery of pictures for sale — all High Resolution and top quality. So clicking on 'BUY' simply directs you to a new page to view and shop at your leisure; with the understanding that you are not committing yourself to a purchase. I've put some nice music on this new page as well, you can manage this in the upper right hand quadrant if you would rather have silence.
If you have been to Amazon.Com, or any other online store, the procedure for purchasing my work is equally as easy thanks to PayPal.
A NICE THOUGHT
Photos
Why do we take them?
By Mary Banas
Jan 22nd 2007
Some may remember posing for an "impromptu" photo opportunity during every family gathering. You stood there frozen, with cemented smiles as you wondered if Aunt Thelma would ever take the photograph. Cheese...... then Bam! You were blinded by the bright flash bulb. Auntie had the right idea. She wanted to memorialize every event. It didn't matter if the developed film never made it out of the card board envelopes. What was important is that she enjoyed taking photos.
Amateur photographers everywhere are still snapping pictures as a favorite pastime. Photography is a good means to chronicle someone's life. A picture tells a thousand words, so what an excellent way to document special moments, highlights and milestones.
Over time, our memory isn't as iron-clad as it once was. With photographs you can still recall the special moment even when the memory fades. Photography is good for your well being. Reflect on all the studies that talk about how beneficial laughter is to your health. Now consider your emotions when you see photos of a new baby, or a wedding, or any of the other adorable photos that are found in email in-boxes on a daily basis. They make you happy! Photos elicit positive emotions. Think about the people who were in south Texas during the winter of 2004. I'm sure they were happy to be down there when they had snow for the first time in over 100 years. There were people outside taking pictures at midnight; what an opportunity!
Have you ever seen deer on the side of the road? Not too many bucks will stop long enough to be photographed. If you're fortunate enough to see sitting deer, you better hope to have a camera with you; as they likely won't be sitting there waiting for you the next time you drive by.
While some people still prefer film cameras, digital cameras now come in any size or budget. For the novice photographer who merely enjoys taking photographs as a way to relax or capture those one of a kind moments, suitable digital cameras are available for under $100. Some people are still using 1.3 mega pixel digital cameras. By today's standard, that is considered a dinosaur. However it would still work if the photographer just wanted to take an occasional photo to list items for sale on eBay. Today many amateur photographers are using digital cameras with 4-6 mega pixels. As a rule of thumb, the higher the mega pixel, the higher the price tag. Notwithstanding, higher mega pixel cameras also come with more bells and whistles and have a higher resolution. Most all digital cameras also have a timer and ability to make very small movie clips. Many also have zoom lens features.
With digital photography it is fun to play around with new technology. Create a screen saver of your best photo with Image Box from CoolUtils. If you came back from Hawaii and have lots of great photos that you want not to just show to your friends but amaze them - make an astonishing slideshow. Imagine all pictures will be shown one by one with different effects, accompanied by music and your comments. With ImageBox every photo stops being a snapshot but becomes a living part of the presentation. Your friends will be amazed! Don't think about how difficult it is – you will create your first slideshow in 6 minutes. There are software programs that allow you to make digital images look better than real life by removing unwanted blemishes, moles, or wrinkles. Experiment with the software to add or remove people or objects from the photo. New technology provides the ability to alter a photograph so that it looks like an oil painting, pencil sketch, negative, sepia, black and white, charcoal drawing and a plethora of other options.
While it is possible to make a living as a photographer, the majority of camera users simply take photos because they enjoy it. It's true that time will not stand still. The taunting school aged children had it right when they responded to stares, "Take a picture why don't you – it'll last longer!" Now you do the same - stop reading and go take a picture... it'll last longer! REGISTER
Thank all of you so much for helping me to do something I love and enjoy. Please REGISTER and tell me what you think of the site.
Sincerely
Rick Miller