Don Mecoy
Business Writer

Here’s some outrage we can believe in

Kenneth Lewis, Bank of America chairman, CEO and president.

This, I think, is exactly the kind of action that many Americans have been asking for as the government spends ever-more of our tax dollars to prop up flailing U.S. corporations. It may be a cheap political stunt, but it reflects the anger that is simmering among taxpayers.

This letter to Kenneth D. Lewis, chairman, chief executive officer and president of Bank of America Corp is signed by New York Attorney Gen. Andrew Cuomo and Barney Frank, chairman of the U.S. House Financial Services Committee:

Dear Mr. Lewis:

We write to demand on behalf of taxpayers that Bank of America immediately disclose individual bonus data for all individuals at Merrill Lynch and Bank of America who received 2008 bonus awards of $1 million or more.

We believe that as a matter of transparency and disclosure, taxpayers have a right to know where their tax dollars go once received by TARP recipients. Accordingly, all TARP recipient institutions should disclose individualized executive bonus information to taxpayers.

As you know, late last year Merrill Lynch moved up its planned date to allocate bonuses and then richly rewarded many of its executives. Merill Lynch did this knowing full well that they were going to suffer huge losses for the fourth quarter and the year. At the time of the bonus awards, Merrill was in the process of being acquired by Bank of America, a TARP recipient. Moreover, Merrill Lynch also knew at the time that they had received a credit line of billions of dollars in TARP funds.

As a result of Merrill’s huge losses, taxpayers were forced to help Bank of America acquire Merrill by providing billions of additional TARP funds as well as insurance against losses from Merrill’s toxic portfolio. In short, the combined Bank of America-Merrill Lynch entity received $45 billion in taxpayer funds as well as $188 milllion in taxpayer-funded insurance.

Despite this massive infusion of taxpayer money, Merrill Lynch paid out bonuses totaling approximately $3.6 billion and Bank of America distributed a pool of more than $3.3 billion.

Taxpayers who are footing the bill obviously demand accountability and want to know who received these funds and why.

Our mutual goal is to stabilize and enhance our country’s financial institutions and system. The taxpayers of this country have given mightily to that cause. They deserve to know where their money is going and how it is being spent. Furthermore, we all agree that trust and confidence in our financial system must be restored. Transparency and disclosure are the building blocks of that trust and confidence.

Your refusal to reveal compensation information fuels distrust and cynicism at a most sensitive time.

Very truly yours,

Andrew Cuomo

Attorney General of State of New York

Barney Frank

Chairman, House Financial Service Committee, U.S. House of Representatives

cc: Bank of America Board of Directors

Don Mecoy
Business Writer

Business travel group dislikes TARP restrictions

The Association of Corporate Travel Executives has urged lawmakers to reconsider measures in the Troubled Asset Relief Program that ban companies’ use of those funds for transportation, accommodations or the use of corporate aircraft.  

“Business travel is going to play a major role in the reconstruction of the national and global economy,” said (ACTE Executive Director Susan) Gurley. “Executives on all levels routinely travel for business. Business travel is the ultimate form of communication for building relationships between buyers and suppliers, for closing deals, and for expanding new business. The staggering majority of business travel represents a legitimate investment in time, money and manpower resources. It is exactly the sort of thing that TARP resources were created to help sustain during this period of economic trial.”

This smacks of tilting at windmills for the corporate travel group, which should recognize that Congress is not going to sign off on any program that could be perceived as wasteful of taxpayer dollars.

Don Mecoy
Business Writer

Gov. Brad Henry on Pickens Plan

A few days ago, Oklahoma City Mayor Mick Cornett talked to someone from the Pickens Plan Web site about the city’s view of the plan to develop a comprehensive national energy plan. Today, Gov. Brad Henry weighs in.

We are in the process of encouraging, facilitating and incentivising the development of the all-important transmission lines—the grid —to get power from the remote areas of the state into the urban areas that use the power. This is one of the many places where Oklahoma is really exactly in line with the Pickens Plan. 

Henry also touts the Oklahoma Bioenergy Center.

(By the way, Gov. Henry, you might want to update that photo gallery on your Web site. Looks like the latest photos, which are of your wife, are at least two years old.)

Don Mecoy
Business Writer

GM urging customers to lobby for federal funds

A colleague recently received an email from Troy Clarke, president of General Motors North America, seeking help with efforts to land federal dollars for the troubled automaker. It’s an interesting way to make your case, through customers. Clarke earlier urged GM employees to help out. 

U.S. automakers need all the help they can get. Here’s the email:

You made the right choice when you put your confidence in General Motors, and we appreciate your past support. I want to assure you that we are making our best vehicles ever, and we have exciting plans for the future. But we need your help now. Simply put, we need you to join us to let Congress know that a bridge loan to help U.S. automakers also helps strengthen the U.S. economy and preserve millions of American jobs.

Despite what you may be hearing, we are not asking Congress for a bailout but rather a loan that will be repaid.

The U.S. economy is at a crossroads due to the worldwide credit crisis, and all Americans are feeling the effects of the worst economic downturn in 75 years. Despite our successful efforts to restructure, reduce costs and enhance liquidity, U.S. auto sales rely on access to credit, which is all but frozen through traditional channels.

The consequences of the domestic auto industry collapsing would far exceed the $25 billion loan needed to bridge the current crisis. According to a recent study by the Center for Automotive Research:

• One in 10 American jobs depends on U.S. automakers • Nearly 3 million jobs are at immediate risk • U.S. personal income could be reduced by $150 billion • The tax revenue lost over 3 years would be more than $156 billionDiscussions are now underway in Washington, D.C., concerning loans to support U.S. carmakers. I am asking for your support in this vital effort by contacting your state representatives.Please take a few minutes to go to www.gmfactsandfiction.com, where we have made it easy for you to contact your U.S. senators and representatives. Just click on the “I’m a Concerned American” link under the “Mobilize Now” section, and enter your name and ZIP code to send a personalized e-mail stating your support for the U.S. automotive industry.

Let me assure you that General Motors has made dramatic improvements over the last 10 years. In fact, we are leading the industry with award-winning vehicles like the Chevrolet Malibu, Cadillac CTS, Buick Enclave, Pontiac G8, GMC Acadia, Chevy Tahoe Hybrid, Saturn AURA and more. We offer 18 models with an EPA estimated 30 MPG highway or better — more than Toyota or Honda. GM has 6 hybrids in market and 3 more by mid-2009. GM has closed the quality gap with the imports, and today we are putting our best quality vehicles on the road.

Please share this information with friends and family using the link on the site.

Thank you for helping keep our economy viable.

Sincerely,

Troy Clarke

Don Mecoy
Business Writer

Absentee ballots are in the mail

Exactly one month before the Nov. 4 election, absentee ballots arrived in our mailbox Saturday.

Holding mine, the General Election instantly is very real. All the names are right there on the ballot for me to mark my choices with a No. 2 pencil, stuff it all in the provided envelope, get it notarized, apply 76 cents postage, and mail it to the Oklahoma County Election Board to arrive before the 7 p.m. deadline on Election Day.

I won’t be standing in long lines at my polling place, which seems to move each time Edmond gets bigger, debating my choices until I sign the big book, receive a ballot and rush through it. I did that in a high school election. A cheerleader won by 1 vote, mine. I had intended to vote for another.

This time, I can carefully review the document, gather answers to remaining questions, and reach informed personal decisions. I heard somewhere, “this is the most important election of our life time.” Gerald Ford said it in his day. Ronald Reagan said it. Bill Clinton did too. And George W. Bush’s election in 2004 also was the “most important.”

You may have forgotten you won’t be making a direct choice between McCain/Palin and Obama/Biden. Remember, it’s the Electoral College and you’ll be voting collectively for the Electors, 7 Republicans or 7 Democrats. Some names you will recognize, but not all, unless you’re really into politics.

With all this time to think about it, I can’t see any reason not to take great care with each mark with that No. 2 pencil. Today’s economic climate demands that. For Corporation Commission, what positions do the candidates hold? For Congressional officers, do you know how they’ve voted on key issues?

Those already in office recorded votes on the $700 billion bailout. They may have voted one way Monday and the opposite on Friday, in an effort to help Oklahomans. That was the same day Oklahoman Business Writer Don Mecoy wrote: “Oklahoma’s largest pension and endowment funds could lose up to $73.4 million on investments related to failed investment banking firm Lehman Brothers, the state treasurer’s office said Friday.”

This may or may not be the most important election, but it’s a good idea to treat it as though your wallet might depend upon it.

Assistant Business Editor Nancy Darnell

With these glasses, she can see Russia from her house

Perhaps nothing says “Sarah Palin” — or is it “Tina Fey?” — more than her fashionable eyeglasses.  Now the distinctive eyewear introduced to the world by the GOP’s vice presidential candidate are on sale in Oklahoma City.  

 Associated Optometrists of Oklahoma sent out a news release Wednesday touting the glasses and claiming to be the first Oklahoma City area optometric practice to carry the Palin frames. 

  I can’t vouch for that claim, but I do  know that the designer frames,  designed by Japanese designer Kazuo Kawasaki, are not cheap.  While Associated Optometrists did not list the retail price of the famous frames, a recent story in USA Today said they start at a suggested retail price of $375  —  minus the lenses, of course.

 They were listed on one Web site Wednesday at a bargain-basement price of $335.   

 That’s still about $275 more than I paid for my stylish Buddy Holly retro frames. 

  Jim Stafford 

  Business Writer