Target Rich

Would you want to run a big bank? It could be bad for your health.

The recent downturn has been brutal on bank chiefs. Pay and promotions have been politicized, and the government has shown a need to “get tough.”. Ken Lewis of Bank of America is an easy mark. He makes a $1.5 million in salary, and oversees billions in bonuses while taking $45 billion in government bailout money.

But banking has never been popular. When you can’t afford a Rolex watch, you don’t complain about how unfair it is that they won’t cut the price for you. But when the bank denies you a loan, it seems so unfair. And they still ask for your deposits!

So it came as a surprise that Lewis and his Board were reelected yesterday. Still, that doesn’t mean he’s home free. If the politicians get exercised, Ken Lewis may have to pay a visit to former GM chief Rick Wagoner. Because in an era of intervention, the air we breathe is political.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-04T18:27:49+00:00 April 30th, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
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