Bank of America CEO Ken Lewis said in a recent interview with CNBC that he expects the U.S. economy to hit its lowest point towards the end of the year, with a gradual recovery beginning in 2010. Lewis also indicated that BofA was well-positioned financially and would likely not require further government support.
Lewis projected a strong BofA, saying that he regretted taking more Troubled Asset Relief Program (TARP) funds than his bank required, and saying that he was “anxious” to pay back the government. BofA took a total of $45 billion from TARP, including $20 billion to cover losses incurred when it acquired Merrill Lynch at the beginning of the year.
Lewis said in the interview that he believes the second half of 2009 will mark the bottom of the financial crisis. “We’re at a point where you’re seeing mixed signals…some housing sales a little better than you’d think, or some car sales not being quite as bad as you’d think,” said Lewis. “It signals that you’re getting close to the bottom.”
Lewis also defended the controversial acquisition of Merrill Lynch, a merger move that has drawn ire from shareholders who believe they were duped as to the financial strength of the acquired investment bank. Critics had previously seized on Lewis for BofA’s buying of Countrywide Financial earlier in 2008.
“[The acquisitions of Merrill Lynch and Countrywide] will prove to be two of the best acquisitions we’ve ever made if you’ll judge us over two or three years rather than two or three months,” said Lewis.