Here's A Surprise

Bank of New York Mellon Corporation CEO Robert Kelly has reportedly declined an offer to become the next CEO of Bank of America when current CEO Ken Lewis retires. What a surprise! Imagine that! Two years ago, the CEO position at Bank of America was probably one of the most coveted in the industry. But now, who in their right mind would want the job? Since Bank of America was compelled to accept TARP funds it did not need, and then was strong-armed to complete a deal to purchase failing Merrill Lynch, it's stock price has plummeted as has it's reputation! Though analysts still believe in the strength of the institution, the board will be hard pressed to find a replacement for Lewis, who is expected to retire at years end.

Why? I could exhaust pages documenting how U.S. government regulation and policies meddling in the market makes this position undesirable. I could speak of how the close scrutiny of any actions by the banking industry's major players makes deal-making nearly impossible. But that is not my point.

The point is that Ken Lewis, who has built the strongest, most diversified financial institution in the nation, has been vilified by the government and the press. But the actions taken to punish Lewis have far greater implications. This is the first sign of what has been argued will be the negative consequences of government interference. The top talent in the banking industry, or any industry, will steer clear of any position in any institution beholden -whether by force or choice - to the Obama administration. The administration will keep pay from being competitive, keep decision makers under a microscope, and prevent them from making decisions that are good for the business because success and profit are considered evils by those in political power. This is how insidious socialism is. Those with political power will succeed in stifling competition in many ways. This is only the beginning.