Quoting the Crisis01/10/2009
“ Lewis was also unlucky. In mid-December, he was shocked to learn that Merrill would post staggering losses for the fourth quarter. It’s almost certain that he didn’t want to walk from the deal at that point. But he was in a strong position to lower the price; the Merrill board would have had little choice but to agree to a multi-billion dollar reduction. But it would have taken over a month to recast the deal and hold new shareholder votes, and the Fed and Treasury were terrified that Merrill couldn’t get the short-term funding during that period to survive. So the Treasury effectively forced Lewis to close the deal at an excessive price. „
Shawn Tully in Behind Ken Lewis’s departure: The Merrill Lynch deal - Oct. 1, 2009
Quote posted at 22:59
