Monday, April 20, 2009

More lies... (despite Maria's aggressive questioning)

Is it just me or does Ken Lewis have "I'm about to loose my job" all over his face? Guess we'll find the truth out soon but he just seems like he's willing to say anything to come across as solvent and confident. Instead he winds up floundering there in the interview like a deer in headlights. And Maria, jeese, she sure laps up his lies like a good little puppy....

"Q: What about capital adequacy. Are you expecting to raise new capital?

Lewis: We are not expecting to need more capital. The issue of course - which was brought up today which is hurting all bank stocks - will some be required convert some of their preferred to common. We don't think we have an issue there. But that is now in the hands of the regulators, and we have not heard back from them at this point in time.

Q: What should we look for as far as the most important things to come out of the stress tests?

Lewis: I think it will be what requirements are there on what banks in terms of conversion of TARP preferred into TARP equity.

Q: You said you want to pay back the TARP money in 2009. Is that still on the table? Are you expecting to pay back that TARP that soon?

Lewis: Well, we would like to, and we would prefer to. But again that is now in the hands of the regulators and we will be in consultation with them as to what the best avenue will be in that regard."

From Calculated Risk.

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