Book: Bank of America nearly taken over by Obama administration
During the darkest days of the financial meltdown, President Obama's administration may have come very close to taking over Charlotte-based Bank of America similar to the way it took control of General Motors and Chrysler.
In the upcoming book "Overhaul," former Obama "car czar" Steven Rattner writes that Obama's economic team considered a similar takeover at BofA (NYSE: BAC) and Citi. The book is being previewed by The Huffington Post.
An excerpt:
Rattner also claimed that Obama supporters and donors barraged the White House with calls, emails and memos to take stronger steps, including nationalizing the big banks, to deal with the financial crisis. He says that Obama's economic team "veered dangerously close to having the government take control of the two most troubled banks, Bank of America and Citigroup." Even Summers seemed fond of the idea — launching a project known as "USG as Shareholder."
Can you imagine the kind of reaction that might have received in Charlotte? Just more evidence of how dicey the situation had become in early 2009.
The book, due out in October, also gives an insider's take on other major players in the auto bailout, including a stubborn FDIC Chair Sheila Bair, Rahm Emanuel's micromanagement of Tim Geithner and JPMorgan Chase and its alleged unwillingness to take a haircut on Chrysler's debt.
Bank of America is the nation's largest bank by assets but ranks only fifth in Raleigh-Durham market share by deposits.
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