Kenneth Lewis Pleads for Facts to Guide Debate on Economic Crisis

Taking to the Opinion section of the Wall Street Journal this morning, Kenneth Lewis calls for clear facts and undistorted information to guide debate on the path to recovery. His op-ed argues that the crisis is increasing fueled by misinformation that stifles options and confidence to recover our economy.

"The story of our economic crisis mirrors every great market bubble in history. Clearly, banks were key participants, but they were not alone. Mortgage lenders, borrowers, regulators, policy makers, appraisers, rating agencies, investors and investment bankers all played a role in pushing economic excesses forward," explains Lewis. His opening paragraph attempts to broaden the conversation beyond banks, potentially deflecting some of the light that has been shown in his backyard recently.

Amid recent discussion of nationalization of US banks, rumors generally focused on Citigroup and Lewis' own Bank of America, Lewis asks the key question: "And what role should government play in this?"

His answer is not conclusive of a solution, but rather a plea to consider government intervention as a reasonable path. "Our industry must continue to work in partnership with the government to solve our toughest problems," reiterated Lewis.

He goes on to explain the value and effectiveness of government programs like Troubled Asset Relief Program (TARP), Term Asset-Backed Securities Loan Facility (TALF), and Obama's recent mortgage plan. Explaining these government assistance programs continue to help stabilize financial institutions, return liquidity to the credit markets, and help homeowners and housing markets.

Lewis does not leave all of the resolution to banks and government--laying some of the responsibility and pain to the consumer: "One of our greatest challenges is balancing the need to extend credit with the need of households to pay down excessive debt." Lewis highlights the corrosive formula of "an economy that became too dependent on debt-driven consumption to create growth."

The op-ed makes a key point that recovery only gets real traction when we start looking forward. However, I am not sure most taxpayers are going to remain a bit skeptical of solutions endorsed by the banking industry.