The Big Picture

« Nozzle Rage | Main | No Shorting. That's the Rule. »

Bank CEOs: I Said WHAT ?

Wednesday, July 30, 2008 | 03:11 PM

in Corporate Management | Credit | Derivatives

Via Portfolio, comes this list of great CEOs quotes:

1. John Thain, Merrill Lynch

"We're very confident that we have the capital base now that we need to go forward in 2008."
January 18, 2008.

"...Today I can say that we will not need additional funds. These problems are behind us. We will not return to the market."
March 8, 2008

"We have more capital than we need, so we can say to the market that we don't need more injections. We can confirm that we have tackled the problem."
March 16, 2008

2. Dick Fuld, Lehman Brothers

"Do we have some stuff on the books that would be tough to get rid of? Yes. Am I worried about it? No. If you have some repricing of these things will we lose some money? Yes. Is it going to kill us? Of course not."
Summer 2007
--Richard Fuld, Lehman Brothers C.E.O. (Financial Times).

4. Ken Thompson, Wachovia

"The mortgage market is going to be a great market in this country for a long time. We've got population growth. We've got people who are always going to want to live in homes that they own. It's going to be a great market."
--on CNBC May 15, 2006.

5. Martin Sullivan, AIG

"But because this business is carefully underwritten and structured with very high attachment points to the multiples of expected losses, we believe the probability that it will sustain an economic loss is close to zero."
-- speaking to investors on December 5, 2007

6. John Mack, Morgan Stanley
"Well, number one, I think this firm has the capacity to take a lot more risk than it has in the past. So from that aspect, we're really using our talent in a more productive way than we have had in the past. I am comfortable with the risk...I think we probably have one of the best overall risk managers in Tom Daula, who oversees all firm risk, and also Zoe growing up on the sales and trading side, mainly trading side risk management, it's a very strong combination. So I'm comfortable with it. Do we take a lot of risk? Yes."
--April 2007 shareholder meeting.

7. Ken Lewis, Bank of America
"We believe that in the current turmoil the stock market has been underestimating the value in Countrywide's operations and assets. This investment reflects our confidence in their business and recognizes the importance of the company in providing home financing across the country. We hope this investment will be a step toward a return to more normal liquidity in the mortgage markets."
--August 22, 2007 press release

The entire list -- and a lot more quotes -- are at Portfolio.com
>

Hat tip: Doug Kass

Source:
"I Said What?!"
Megan Barnett
Portfolio, Jul 30 2008
http://www.portfolio.com/news-markets/top-5/2008/07/30/Regrettable-Comments-by-Bank-CEOs?page=1