Cityfile: New York's Most Notable and Influential

Corzine's Next Move | Jon Corzine was unseated as New Jersey's governor yesterday. Meanwhile, Bank of America is desperately seeking a new CEO and just yesterday announced it would be fine with having its next chief based in the New York area, instead of at BofA HQ in Charlotte. Is it possible that Jon Corzine could decide to return to his Wall Street roots and take over the troubled bank? Stranger things have happened, clearly. [Dealbreaker]

Bank of America Loses (And Gains!) | It's not all bad news for Bank of America today. Sure, the financial giant announced a $1 billion loss for the third quarter following heavy losses in its mortgage and credit card divisions. But it made some of it back within hours. Property records filed with the city today indicate the bank sold off its corporate apartment in the Time Warner Center for $7.2 million, and it purchased the place for $6.35 million three years ago. So if you're a Bank of America shareholder and it makes you feel any better, feel free to adjust the loss downward to 999,150,000. [NYT, NYO]

Ken Lewis Comes Up Empty | Ken Lewis, the outgoing CEO of Bank of America, won't be collecting a salary or bonus for 2009, according to the Wall Street Journal. Why? Because the Treasury Department's pay czar, Ken Feinberg, demanded it and the bank conceded rather than put up a fight. Don't shed any tears for Lewis: His retirement package is still worth between $69.3 million and $120 million. But there's reason to believe Citigroup chief executive Vikram Pandit is quaking in his Ferragamo loafers this evening:More

Former Merrill Lynch CEO John Thain is no friend of Ken Lewis, the outgoing chief executive of Bank of America. Thain worked with Lewis last year to engineer the merger of Merrill and BofA, but was kicked to the curb shortly after the deal was complete and almost instantly turned into the fall guy for the messy merger, at least in the version of events that Lewis recounted to analysts, reporters, and government officials. More

Don't Weep For Ken Lewis | Outgoing Bank of America CEO Ken Lewis has $53 million in pension benefits waiting for him when he leaves. [Fortune]

Yesterday afternoon, Bank of America CEO Ken Lewis announced that he plans to "retire" at the end of the year. And despite the fact he's facing ongoing probes by Congress, the SEC, and the attorneys general in New York and Connecticut over BofA's acquisition of Merrill Lynch, he's spent months dealing with withering criticism by Wall Street analysts and shareholders, and he's leaving the bank without a successor in place, Lewis is still maintaining that he—and he alone, without any pressure on him whatsoever!—arrived at the decision to retire. Per the farewell letter he sent out yesterday:

Some will suggest that I am leaving under pressure or because of questions regarding the Merrill deal. I will simply say that this was my decision, and mine alone. Most important to me is this: I will leave knowing that almost anywhere I go in this country, I'll be able to walk into a Bank of America banking center and receive a warm greeting.

Well, that's encouraging, isn't it? At the end of the day, Lewis can take comfort in the fact that if he steps foot into a Bank of America branch somewhere, the tellers will probably not pelt him with quarters. Sounds like he'll be leaving with his reputation intact, after all! 

Ken Lewis' Farewell Letter [WSJ]
Bank of America Chief to Depart at Year's End [NYT]

Ken Lewis Makes His Exit | Stan O'Neal, Dick Fuld and Jimmy Cayne will have a new golfing buddy in a few months: Ken Lewis, the embattled CEO of Bank of America, just announced that he plans to "retire" at the end of 2009. [NYT]

Biggest Lawsuit Ever | Many people are pissed off at bankers in the wake of the financial crisis. Dalton Chiscolm is angrier than most. He's filed a lawsuit against Bank of America for "$1,784 billion trillion," damages he says he deserves because BofA didn't deposit a couple of checks into his checking account. (As for how much "$1,784 billion trillion" actually is, it's approximately 9 trillion times more than Bank of America is worth.) The good news: The judge assigned to the case is Denny Chin who presided over Bernie Madoff's $65 billion Ponzi scheme case, so he's used to big numbers. [Daily Finance, Dealbreaker]

Nemazee's Scheme Now in the Nine Figures | Hassan Nemazee, the banker and Democratic mega-fundraiser who was indicted last month for allegedly using forged documents to obtain a $74 million loan from Citibank—and who is currently under house arrest at his Park Avenue apartment—is facing new charges. He's been indicted for bank fraud and "aggravated identity theft" as part of what prosecutors describe as a $292 million Ponzi scheme that involves Bank of America and HSBC, too. Also, in case you've been mispronouncing his name all this time, the AP points out it's hah-SAHN' nah-MAH'-zee. Please make a note of it. [AP, Reuters]

BofA's Bad Day in Court | So much for Bank of America's sweetheart settlement with the Securities and Exchange Commission. At a hearing yesterday, Judge Jed Rakoff declined to approve the deal that the bank struck with the SEC a few weeks ago, allowing it to pay a mere $33 million to settle charges that it had failed to disclose Merrill Lynch's plans to pay out billions of dollars in bonuses on the eve of their merger.More

BofA Gets Sued, Settles | That sure was quick. This morning, the SEC filed suit against Bank of America, accusing it of lying to investors when it announced that newly-acquired Merrill Lynch wouldn't pay out any year-end bonuses. (In fact, Bank of America had already signed off on $5.7 billion in Merrill payouts.) Now the bank has settled the charges—"without admitting or denying the allegations," of course—for a modest $33 million. [NYT]

• Just in case you've missed the excitement on TV, Ben Bernanke appeared on Capitol Hill today to testify about Bank of America's acquisition of Merrill Lynch. Lawmakers grilled him, Bernanke played defense: quality entertainment as usual! [NYT, WSJ]
• Financier Allen Stanford appeared in court today and pleaded not guilty to charges he swindled investors out of $7 billion. [WSJ]
• The job market hasn't improved: The number of Americans filing jobless claims rose last week to the highest level in more than a month. [CNN]
• Good news! AIG is reducing its debt with the Fed by $25 billion. [NYT]
• Andrew Cuomo is recusing himself from the investigation into the hedge fund that handed his finances and is now tied to Cuomo's kickback query. [BN]

• There's a shortage of banking industry CEOs—decent ones, at least—which explains why Vikram Pandit is still in charge at Citigroup and Ken Lewis is still running the show at Bank of America. "The best players won't risk their careers going to a troubled enterprise," explains one recruiting expert. [WSJ] 
• Andrew Cuomo has been investigating pension fund corruption for the past few months. Now his own ties to just such an entity are raising questions. [BN]
• Wanna invest in a hedge fund? You're in luck. A number of them are looking to diversify their investor bases and are now targeting the middle class. [NYP]
• Stocks rose this morning ahead of a report by the Fed this afternoon. [CNN]
• Good news for JPMorgan Chase: It's "the world's strongest bank." [DB]
• Good news for Barclays: Its name will grace a Brooklyn subway station. [NYT]
• Jeffry Picower was once considered one of Bernie Madoff's victims. Not so much any longer, now that it appears he withdrew as much as $5 billion from his various Madoff accounts between 1995 and 2008. [ProPublica]

Bonus Outrage Is Back! Or Not! | It's been a couple of months since we've had a juicy Wall Street bonus scandal. The Post is hoping to reignite the drama today by reporting that Bank of America—which was not one of the financial institutions that returned its bailout cash this week—is continuing to hand out big checks to senior execs. Bank of America insists it has no choice, and that if it doesn't hand out the money, people will flee the firm and work someplace else. You can decide for yourself who you want to feel most sorry for today: the American taxpayer, who's funding these payouts; BofA employees who need to be overcompensated to get them to work at Wall Street's equivalent of the Titantic; or the poor BofA public relations person who doesn't qualify for a big bonus but clearly has the crappiest job at the bank. [NYP]

• BlackRock has reached a deal to buy Barclays Global Investors for $13.5 billion, making BlackRock the world's largest money management firm. [WSJ]
• Lawmakers grilled Bank of America chief Ken Lewis in Capitol Hill yesterday, although he defended his decision to go ahead with the acquisition of Merrill Lynch and placed blame on Ben Bernanke and Hank Paulson. [NYT, WSJ]
• John Paulson's hedge fund, which made $3+ billion betting the housing market would collapse, is now scooping up lots of distressed debt. [BN]
• Goldman was an investment bank before becoming a commercial bank. Now that it's free from the bailout, it may go back to being an I-bank. [Reuters]
• US households lost $1.33 trillion of wealth in the first 3 months of '09. [DB]
• Foreclosures fell during May, not that things have improved much. [CNN]