Did he really just say that??
It appears that Bank of America CEO Ken Lewis just proclaimed in the earnings conference call that the Countrywide and Merrill acquisitions "continue to be accretive". Accretive? Really, Ken?
Wow, that's quite a claim after BOA shares plunged from $40+ to a low of $2.53 in the wake of those moves. Comments like these perfectly expose the lunacy of federally condoned deceptive accounting practices that permit such statements to be made.
The mere fact that this guy remains at the helm is astonishing to me. Shame on shareholders for not ousting him!
I think Mr. Lewis needs to return to accounting 101. From Investopedia:
What Does Accretive Acquisition Mean?
An acquisition that will increase the acquiring company's earnings per share (EPS). These acquisitions tend to be favorable for the company's market price because the price paid by the acquiring firm is lower than the boost the new acquisition will provide to the acquiring company's EPS.
In that "price paid" part of the equation, I think he conveniently forgot to include all those billions of dollars worth of nonfunctioning loans and derivatives securities festering away in some dark corner of his balance sheets and/or heaped upon the unsuspecting American populace.
And still the financials rally ... which means people are swallowing this garbage.
This banking system remains a complete fraud, a ponzi scheme, and a financial parasite on the backs of the American people. Wake up!
I ask you, what exactly distinguishes these guys from Madoff?