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Ken Lewis Script

Ken Lewis Script

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Published by zerohedge

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Published by: zerohedge on Jun 05, 2012
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06/10/2012

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EXHIBIT 29
 
From:
Roth, Eric
M.
Sent:
Fliday, December 19, 2008
11
:53 AM
To:
Herlihy, Edward D.; Hein, Peter
C.;
Demma, Nicholas G.; Guest, Matthew M.; Kim, Richard
K.
Subject:
Further revised sclipt --PRIVILEGED AND CONFIDENTIAL
Attachments:
1329657_2.DOC
1329657
_2.DOC
(46
KB)
New version with Peter's commenls; plincipal change is to soften the punch line to stop short
of
sayingwon't go through with it.Obviously, this part turns
on
what the ultimate goal is: renegotiation or walk away. Alsoclarified that not all TARP money is irrelevant
to
tangible common equity (warrants do) and put paragraph
re
pre-merger
statements regarding
Q4
and
2009
in
brackets (not sure exactly what was said and
MAC
argument does
not
turn
onit
anyway. Could delele that paragraph entirely.)
Confidential Treatment Requested by Bank
of
America Corporation Confidentiallnformation Produced Pursuant to 10/14/09Disclosure
&
Protective Order
iJ
EXHIBIT
i
3?7
~
3
/J.,/,
J
ib
BAC-502-WLRK 00002131
 
PRIVILEGED AND CONFIDENTIAL
--DRAFT
SCRIPT FOR KEN LEWIS PHONE CALL TO JOHN THAIN
John, I am calling
to
express my grave concerns regarding
MER's
recent financial results.As you know,
MER's
financial performance has substantially deteriorated over the last fewweeks.[When
we
signed the Merger Agreement back on September
15,
you told us that, having aggressively addressed the company's CDO problems earlier this year, your expectation for the fourthquarter
of
2008 was that
MER
would earn
$_
billion after tax and that
it
would earn
$_
billion after tax in 2009 ]But in recent weeks, it has become apparent that
MER
is going to suffer massive losses this quarter.Back
in
mid-November, you told
us
that you expected the company to lose about $5.3
billon
after tax in Q4.On the afternoon
of
December 3, your team advised us that you expected the Q4 loss to come inat $7
billion
after tax,
and
when
the
BAC team reviewed the numbers with the
MER
team thatnight, the projected loss was raised to nearly $9
billion
after tax.Then, on December 12, your team advised us that you expected the Q4 loss would
be
closer to
$12.5 billion
after tax, which reflected, among other factors, huge new write-downs on your exposures to both mono line insurers and derivative product companies.When Neil Cotty met with you and Nelson
on
December
16,
you confirmed these numbers to us.You also told us that, while most
of
the new-found losses were attributable
to
recent disruptions in the credit markets, the effect on
MER's
financial condition and results
of
operations will not be limited to Q4, but will continue to be felt through
ne'-'1
year and into2010.You advised us that you
now
expect that
MER
will not return to the levels
of
profitabilityyou expected pre-deal until 2010.
1n
the last few days,
MER's
financial position has continued to deteriorate.
We
are now beingtold [UPDATE
WITH
LATEST Q4 LOSS PROJECTION
IN
LIGHT OF LYONDELL,GOOD\VILL AND WHATEVER ELSE.]The severe impact
of
hese losses on
MER's
financial condition going forward -and the financial condition
of
he combined company in the event
the
merger
closed--
cannot
be
overstated.
Confidential Treatment Requested by Bank
of
America Corporation Confidential Information Produced Pursuant to 10/14/09Disclosure & Protective OrderBAC-502-WLRK 00002132

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