B of A gets a second bailout

[MomentsofSanity]

It's a bit of a back-door bailout but Fannie Mae bought $500 million in servicing rights which were causing BOA problems. And these are lousy rights. Lots of foreclosure and modifications given their 13% delinquency rates. Fannie Mae asked for another $5.1 Billion bailout for themselves last week.....

The good times keep rolling.

http://finance.fortune.cnn.com/2011/08/10/bank-of-americas-back-door-tarp/?iid=HP_LN

 

[her209]

"Job creators" can't be touched.

 

[sm625]

Why people stand for this I have no idea. This is just open outright theft, but I guess its just a sign of the times, in the same way a worthless consumer trinket and bobble company is now the biggest in the world. It will not end well and I bet that 10 years from now people are going to be scratching their heads wondering why they let this crap go on.

 

[piasabird]

After all they have done such a good job with Country Companies.

 

[Jhhnn]

It's a bit of a back-door bailout but Fannie Mae bought $500 million in servicing rights which were causing BOA problems. And these are lousy rights. Lots of foreclosure and modifications given their 13% delinquency rates. Fannie Mae asked for another $5.1 Billion bailout for themselves last week.....

The good times keep rolling.

http://finance.fortune.cnn.com/2011/08/10/bank-of-americas-back-door-tarp/?iid=HP_LN

The FDIC should have rolled in on BofA, liquidated the bastards... except they don't really have the manpower or resources... BofA is literally too big for them to choke down.

Smaller Govt FTW, huh?

 

[sm625]

They own the FDIC. But even if they didnt it is all legalized accounting fraud. They hold assets on their books that arent worth jack. After all, what is the value of a thousand mortgages on houses where the copper wiring and AC units have been stripped? And even worse... the HELOC 2nds on underwater firsts? lol. The FDIC cannot do anything about it because their balance sheet is perfectly fine according to the letter of the law.

 

[sunzt]

Why people stand for this I have no idea. This is just open outright theft, but I guess its just a sign of the times, in the same way a worthless consumer trinket and bobble company is now the biggest in the world. It will not end well and I bet that 10 years from now people are going to be scratching their heads wondering why they let this crap go on.

... so what you gonna do about it, chump? vote? hahaha

 

[Darwin333]

The FDIC should have rolled in on BofA, liquidated the bastards... except they don't really have the manpower or resources... BofA is literally too big for them to choke down.

Smaller Govt FTW, huh?

It is now that we have blown our wad and then allowed them to get even bigger.

 

[Darwin333]

They own the FDIC. But even if they didnt it is all legalized accounting fraud. They hold assets on their books that arent worth jack. After all, what is the value of a thousand mortgages on houses where the copper wiring and AC units have been stripped? And even worse... the HELOC 2nds on underwater firsts? lol. The FDIC cannot do anything about it because their balance sheet is perfectly fine according to the letter of the law.

This.

They are already effectively bankrupt and they have been for a while.

 

[MotF Bane]

Too big to fail!

Thanks government for fucking us all again.

 

[BoomerD]

http://money.cnn.com/2011/08/08/news/companies/bofa_aig/

NEW YORK (CNNMoney) -- Bank of America shares plunged 20% Monday, fueled in part by a steep sell-off in the broader market and news that insurer American International Group is suing it for billions of dollars over alleged mortgage securities fraud.

Bank of America , the nation's largest bank, tumbled more than 20% while shares of AIG fell 10% on Monday. Bank of America has already lost nearly 49% of its value this year, while AIG has tumbled more than 59%.

Richard Staite, analyst with Atlantic Equities, said there were two main catalysts for Monday's selloff in Bank of America's stock.

First, the slump in Bank of America's stock is being triggered by more than just the AIG news. It's part of a broader market selloff that took other banking stocks down with it.

Citigroup shares fell 15.7%, JP Morgan Chase slumped almost 8.7%, Wells Fargo fell 9% while shares of Regions Financial tumbled 13.5%.

Second, investors are losing confidence in Bank of America, he said.

"Management has tried to reassure investors over the course of the last six months that they are getting on top of the mortgage problem but investors are very skeptical," he said, adding that there's really nothing that Bank of America can do to stop its stock price from falling.

There was more bad news for Bank of America. Credit default swaps (CDS) tied to its debt were at their highest level since May 2009.

Credit default swaps reflect the interest rates that Bank of America has to pay to borrow money. If they keep rising, Staite said it would exacerbate investor concerns about whether the company has enough liquidity to run its business.

Looks like "Too big to fail" are still struggling...at least on paper. Must be time for another huge bailout at taxpayer expense.

 

[Spikesoldier]

i guess obama gave up on his re-election and is simply going to do more backroom 'slam down the throats and looting' of americans that made him so unpopular.

the obama swiss bank account looks grand.

 

[PokerGuy]

What a mess. We need real leadership in this country, and all we can come up with is idiots and community organizers.

 

[gevorg]

Obama = Wall Street

 

[Thump553]

The FDIC should have rolled in on BofA, liquidated the bastards... except they don't really have the manpower or resources... BofA is literally too big for them to choke down.

Smaller Govt FTW, huh?

In all fairness to Bank of America, they were in fine shape before the two boneheaded acquisitions of Countrywide Mortgage and Merrill Lynch. Both acquitistions were done under heavy pressure from the feds (which does not excuse the idiocy of the CEO for saddling the company with those disasters).

 

[Macamus Prime]

Sounds about right.

The rich people drain and stress the government to the point where it is weakened and destroyed. They then take over and we are in a corporate ruled nation.

When you are useless, you are thrown out of the country. Useless people are, but not limited to, anyone who is:
- born with a disability
- sick (chronic sinus infections, broken leg, AIDs)
- unattractive
- genetically inferior
- asthetically inferior/undesirable

Enjoy your future America.

 

[Jhhnn]

In all fairness to Bank of America, they were in fine shape before the two boneheaded acquisitions of Countrywide Mortgage and Merrill Lynch. Both acquitistions were done under heavy pressure from the feds (which does not excuse the idiocy of the CEO for saddling the company with those disasters).

I was always under the impression that BofA was thick as thieves with Countrywide, and that a Countrywide bankruptcy would have left them exposed as complicit via Countrywide's records.

It was kinda like swallowing the evidence...

 

[lothar]

The FDIC should have rolled in on BofA, liquidated the bastards... except they don't really have the manpower or resources... BofA is literally too big for them to choke down.

Smaller Govt FTW, huh?

Sounds to me more like the regulators that approved of the merger with Countrywide should be fired.

The FDIC was the one that approved the transaction and so did the Federal Reserve...Sounds more like the FDIC and Federal Reserve should be liquidated since they don't know how to do their job.
Big govt FTW, right?

Sheila Bair, and Ben Bernanke all approved of the transaction.
Why aren't you calling for their heads?

 

[lothar]

I was always under the impression that BofA was thick as thieves with Countrywide, and that a Countrywide bankruptcy would have left them exposed as complicit via Countrywide's records.

It was kinda like swallowing the evidence...

No.
BAC wasted shareholder money buy buying Countrywide.
If they allowed both Countrywide and Merrill to go bankrupt, they could have bagged them both for free the same way JPMorgan bagged Bear Sterns for free.

BAC executives were idiots in wasting shareholder value by paying Countrywide $4 billion and because they didn't let the firm go bankrupt first instead, it also left them on the hook for billions of dollars.
If they had allowed Countrywide to go bankrupt, they wouldn't have been on the hook for anything, period.
What an idiotic move on their part.

 

[lothar]

In all fairness to Bank of America, they were in fine shape before the two boneheaded acquisitions of Countrywide Mortgage and Merrill Lynch. Both acquitistions were done under heavy pressure from the feds (which does not excuse the idiocy of the CEO for saddling the company with those disasters).

I'm surprised people don't know this.
There was a documentary on this. Watch it.
http://www.pbs.org/wgbh/pages/frontline/breakingthebank/
(see the source, it's not Faux news)

The government regulators are just as stupid as the banking executives for forcing the transactions through and approving the shotgun marriages even after BAC wanted out, they told them they can't invoke MAC(material adverse clause) or else half their board members would be replaced.

If you watch the documentary, you'd see why most of the other banking executives are morons besides Wells Fargo CEO John Stumpf.
He rejected bailouts from big government...Unfortunately, the regulators did not allow him to leave the room.