Then this link led to inappropriate behaviour

At the age of sixty-two, Kenneth d. Lewis pilot one of the first banking giants in the world and especially the first lender in the United States. This group specialized in retail banking has turned into a heavy weight of the Universal Bank (Investment Bank, specialized financial services, management...) in a decade only. This molting is made to shots of acquisitions, under the leadership of Hugh McColl, former Chief Executive remained very influential to the Board of Directors, and then Ken Lewis, the dauphin and successor, who made his career in the group.

Entered as credit analyst at the North Carolina National Bank (NCNB), the Bank of the mills and tobacco growers the core of Bank of America which also always head in Charlotte there grimpé all levels before to carve out a reputation for Integrator outstanding manager who knows success the bank mergers.

Everything seemed to succeed to the repurchase of the Investment Bank Merrill Lynch, in a few days for $ 50 billion, at the height of the crisis on Wall Street last September with curl. Bank of America then caracolait at the top of the stock market capitalization banking U.S., having displaced Citigroup.

Abyssal loss of Merrill Lynch did demoted behind JP Morgan and Wells Fargo. Ken Lewis has not renegotiated the terms of this transaction, carried out under the watchful eye of the Fed and Treasury invested $ 45 billion in the group. Prestige of a great banker took a hit, also started by bonuses paid to employees of Merrill Lynch.

End of April, the pressure of disgruntled shareholders forced him to relinquish the Presidency of the Board of Directors and strength tests by the Treasury were detected in Bank of America the greatest need for recapitalisation of all large US banks: $ 33.9 billion. Ken Lewis is now fighting to repay the taxpayer more quickly and find its room for manoeuvre, particularly with regard to remuneration.

Bank of America is the first lender in the US economy. Do you think that the worst of the crisis is over

Yes. We see signs of stabilization in multiple markets. Not all indicators are homogeneous, but it seems that we now touch the bottom of the crisis. I think that growth is expected to reappear at the end. But do not expect the return of strong growth before the year 2011.

How is the market for credit cards

We do not yet of positive signs. And it's normal: the rise of unemployment pushed the rate of default. This will be the case as long as the employment figures does not recover in my view not before the first quarter of 2010.

Is there a risk that the United States lose their AAA financial note, the best possible

For two years, it happens so much that seemed incredible before that one cannot swear nothing. This is, I think not that this is likely: look at the size and diversity of the economy, not I see not the United States lose their triple-A. And then all the States have increased their debt in the recent period to revive the economy.

Several institutions have demonstrated a willingness to repay quickly own funds provided by the State. Is this the case of Bank of America

Everyone would like to do so. But this requires two conditions: show its ability to raise own funds what we are about to do and to issue debt not guaranteed what we have already done. The Government also wants to ensure that economic conditions have sustainably improved. That it is not a temporary rally, as was the case in the second quarter of 2008. In my view, these conditions should be met in the coming months. Bank of America will be in a position to do so. When exactly This will depend on the State of the economy. In any event, we will strive to do so more quickly.

What benefits do you expect to remove

First, it is a good business decision. We have more to pay interest which are very high, around 8 after tax. The taxpayer assistance is not free money! Then we can again normally pay for executives of the Bank and those who generate turnover. Finally, this will enable us to respond to a request of investors who believe that our action is will much better once we will have repaid public funds and that we will be free from government interference or the Congress. Insofar as some of our competitors, including investment banks, will repay the aid, it is essential for us to do so also.

What would be your first decision after having paid the Treasury

It would review our compensation system and restore the bonus. But beware, it would be not to go back. What need is prevent abuses while accepting good link pay and performance. We work on this subject to be prepared the day where we will be more held by the public supervision.

In what sense do you want to see evolve market bankers pay including

The current system is inherited from the idea of partnership, in which each receives remuneration on the basis of the income it generates. Then this link led to inappropriate behaviour. It must now increase the share of fixed salary, put in place systems of deferred payment and "claw back", allowing the Bank to pay only the sustainable performance.

In the end will what change the crisis cause on the banking system

It is already translated by a movement of consolidation of the sector in the United States, who was already pregnant before the crisis. A few large global banks have emerged. I think that a movement of comparable concentration will also draw in the European Bank. Even if this development is complicated by the fact that Europe decomposes in country and not Federated States. Then, it is clear that there is more demand for more sophisticated financial products. And it should last, finance will be décomplexifier if it can be said. It will have to adapt our cost base on a level of profitability will be lower. This will necessarily have an impact on our compensation policy.

The Universal Bank model there still a sense

Absolutely. The diversity of the personal, trades and the geographies in a universal bank is a huge asset. This allows to reduce our cost of credit. This model is sometimes difficult to manage, but his interest comes from this human and geographical diversity. This can be seen in our first quarter results. Merrill Lynch truly positively contributed to the results of the first quarter (read above). And Merrill goes well even in the management of heritage, the commissions are under pressure, but capital inflows are good.

I note also that the three major American universal banks were collected in the first quarter 2009 commissions higher than those of Goldman Sachs and Morgan Stanley in the area of the business bank, by relying on their balance sheets and their teams. For market activities, the situation is different. Morgan Stanley and Goldman Sachs will remain powerful actors in the banking sector us, but more specialized.

The general opinion, bankers are regarded as the key players in this crisis. Do you agree

Many actors of the financial system are to blame for what happened. And I am not sure do not forget if I lists! Interest rates remained too low too long. This has led investors to seek more risk to get performance. In this context, real estate lenders were irresponsible behaviour distributing populations that could not reasonably repay loans and investment banks resold those loans aggregated to many investors.

Have regulators not bankrupt

Real estate lenders were outside the scope of the regulation and regulators have not monitored the investment banks who developed their securitisation activities. One thing is sure, the crisis has shown us that, if the question of the own funds was important, that of liquidity was essential. Whether it Countrywide and IndyMac, if these two institutions have collapsed it is primarily for liquidity issues. The difficulties of Bear Stearns, Lehman Brothers and Wachovia therefrom also.

You are a major donor in the social field and philanthropy. How will evolve this commitment

Of course, if the recession to continue several years, should reflect on resize things. But, for the moment, we are committed to the tune of $ 200 million per year and we keep this objective. Much has been said of investment bankers, but it should be noted how retail bankers are involved in the daily life of local communities in the United States.