BofA's Ken Lewis: Merrill deal will pay off in time

By Christina Rexrode - McClatchy Newspapers

CHARLOTTE -- In one of his last speeches as chief executive of Bank of America, Ken Lewis defended his time in the top office, saying history will show that his actions as CEO were profitable in the long run.

“It is easy to let the short-term difficulties obscure one's long-term views,” said Lewis, who is stepping down at the end of this year after criticism of his Merrill Lynch purchase. “I have always thought that a CEO's job is not only to navigate what shoals immediately stand in the way but also to steadfastly maintain a long-term vision for the enterprise.”

Lewis, speaking to analysts and investors in New York, said he believes his actions “have been true to this principle.” He said later that the savings from the Merrill deal are ahead of schedule.

“I am confident history will show that our actions in operating and building Bank of America positioned our company for future success,” he said. “As I look ahead, I see no reason that Bank of America will not be among the handful of the most important and most successful financial services companies in the world.”

Lewis, the CEO since 2001, nursed Charlotte-based Bank of America into the country's biggest bank, gaining a reputation as a smart and efficient manager. But the past year has been rocky, as he faces shareholder anger and regulatory investigations for his purchase of Merrill, the once-legendary investment firm.

The government's grip on the bank has grown tight, extending even to the day-to-day operations, as the bank continues to hold $45 billion in federal loans. He announced in September that he would step down at the end of the year, and the bank's board is searching for a replacement.

Lewis did not take questions at the end of his half-hour presentation, with his presenter citing “other commitments.” His remarks about his own tenure came at the end of the presentation; for most of the speech, he stuck to familiar topics such as the bank's diverse business mix.

He praised Bank of America's “supermarket” strategy, and encompassing investment banking.