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FBN's Charlie Gasparino says sources inside Bank of America say CEO Brian Moynihan is out if the firm has to raise capital.
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Last time.
We had a player running a major bank -- -- chuck prince running Citigroup well He was booted during the financial crisis.
Is the ghost of chuck prince -- BankAmerica CEO also a lawyer on the -- guest -- can answer that question -- Clearly brought bright morning Andy it doesn't have the confidence of investors and you know several this is and these are pretty major president told the -- -- -- -- today.
That you know one of the issues with -- hand and you know they'd be -- he's a businessman these of people would NBA's generally they've run stuff.
They they discount Brian morning -- ability to run the place because He is a lawyer and it'll take a lawyer.
Has the ability to build this franchise back from where it is right now we should point out that it has incredible legal problems you take a lawyer would be good at that.
What they see it beyond that can Bank of America repair itself repair its reputation.
And build out from where it is right now and you know -- so far.
The the consensus from what I understand is -- so here's what's going on right now Bank of America -- -- bright morning clearly knows he's losing.
Investor confidence they put out a memo today primal and ended basically explaining -- -- -- strategy stating.
Back to firm is financially strong there's lots of talk among investors about the need to raise additional capital.
Because they have all these multi gazillion dollar liabilities including.
The fact that countrywide on the road all those bad mortgages -- in bonds held by investors investors may put them back.
We're -- pursue but bank part of put him back we know AIG is one of those investors right now.
-- -- -- amid a massive lawsuit so that's where He is right now He puts out this this.
This memo.
I -- the stock is up marginally today I think it's up on some short covering I don't think it's up on renewed confidence tomorrow is a big day.
As you know -- morning and is going to be giving them something kind of a bit bizarre one -- one.
Teleconference.
Or or or interview with Bruce Berkowitz is a major hedge -- -- a major owner of Bank of America shares.
And he's gonna be fielding questions I have never seen this from the CEO of a major firm.
And -- -- I think he's on the dice a little bit with this if He doesn't answer these questions well.
You know.
I part of the initial criticism -- -- -- and when he's appointed some people are surprised even got the job because He just.
Didn't seem all that media savvy right and not and not eat you know here's -- thing he's a very smart guy I know that.
He's a little obtuse I mean it just some people are good in front of crowds.
You know Dave Komansky ran Merrill Lynch is a broker was very good had been you know conspiring to troops Jo grant over the guy that used to run -- the Paine Webber brokerage -- and and one of the instrumental parties and in big selling PaineWebber -- you know huge price -- -- he's -- -- be on our -- later on today.
Great with brokers greed is a great public per presence John Mack at Morgan Stanley great public presence.
You would not put that in you would not put more bright morning and in that in that in that class and here's a problem when you don't have that persona.
When times get tough I will tell you that hurts one of the things Morgan Stanley was on the balls of its you know the but it was.
It was that you it was in deep you know what.
Back in 2008.
One of the things that say that I think is help restore confidence was John Mack get up there and make in the case somewhat of companies goes by so do you think.
By morning it's gonna have to make that people don't think He is I will say this he's saying explicitly they're not gonna have to raise capital.
If they do in the future have to raise capital but then he's deftly got that the second -- we should also point out the on a big stake in China construction bank.
I think it for a 3% stake in this thing.
They could they could sell that we understand is that they're looking at all our -- alternatives to -- to make money including raise money including a sale of that of their stake or partial -- interesting story -- how to pull Charlie thank you.
