So let us get this straight. Bank of America stock strategist Rich Bernstein says the Federal government’s bank rescue plan won’t work and that Washington should let the failing ones…well….fail.
That may cause some teeth-gnashing by his boss, Ken Lewis. As Bernstein’s note hit the wires, his corporate master was testifying about his own Girl Scout cookie sales and work with Mother Teresa (at least that’s how our new hero, Rep. Michael Capuano parsed it). Bernstein said the government should increase deposit insurance, seize assets, shut “large” banks and encourage takeovers.
His note also said:
“The history of bubbles clearly shows that the significant consolidation of the financial sector is inevitable. The latest Treasury program is simply another attempt to stymie the consolidation process.”