Posted on 08/08/2011 9:12:14 AM PDT by Nobel_1
With Bank of America investors finally realizing it is game over for the company as a going concern, at this point there are just two options for Brian Moynihan:
- the spin off of CFC as a bad bank, backstopped by the Fed, or
- Chapter 11, which for a bank is essentially liquidation (and with CDS trading up 50 bps to 260 a bankruptcy seems increasingly inevitable).
It also means that another TARP is on the way. And once America realizes that another several trillion have to be put into its insolvent banking sector, it will get quite violent. The biggest irony: it is AIG which takes down the financial system for the second time after its lawsuit against BAC filed last night kills Bank of America.
(Excerpt) Read more at zerohedge.com ...
I do continue to make payments on it, and I am not behind.
It was 2008 when AIG almost detonated. Ergo, it was Obama's illustrious predecessor, George Dubya Bush who rescued AIG.
Much of that money has now been repaid by AIG which has managed to unwind many of its derivatives and sell off some of its profitable operations.
I can't imagine why AIG would go after BoA. I mean BoA only bought mega CDS on a bunch of crap mortgages while telling AIG that they were rock solid. Fraud is no big deal, is it?
Too many people get their info from sound bites.
BoA chose to give credit cards to illegals. BoA bought Countrywide. BoA gave loans to people who shouldn't have done so. BoA gave loans to corporations who shouldn't have gotten them.
They reap what they sow.
marshmallow ... sounds soft ... perhaps from a liberal chat room?
AIG intent listed in detail ... read at http://www.docstoc.com/docs/88884809/AIG-versus-BAC-8-8-2011
See CitiGroup breaking news at http://www.zerohedge.com/news/bank-america-just-start-paulsons-problems-behold-citigroup
Good point. Moving money outside the USA is probably the best bet.
Mo way there is another TARP....
I don't like where this is going.
I closed my B of A account years ago when I recognized their corruption. Since TARP, I no longer accept checks drawn on B of A. They are (like GM/Chrysler) under a permanent boycott. I will celebrate when this sleazy company dies a well-deserved death. If DC bails it out, anyone who votes for the bailout is also under a permanent boycott and will never get my vote or support. They’ve had a chance to rethink the Bailout/TARP, and anyone who supports that stupidity a second time does not belong in office.
RE: AIG and BOA Tarp 1 details
ah, finally the homework is done ...
Oct 2008 - “The CBO found that through December 31, 2008, transactions under the TARP totaled $247 billion. According to the CBO’s report, the Treasury had purchased $178 billion in shares of preferred stock and warrants from 214 U.S. financial institutions through its Capital Purchase Program (CPP). This included the purchase of $40 billion of preferred stock in AIG, $25 billion of preferred stock in Citigroup, and $15 billion of preferred stock in Bank of America.”
Jan 2009 - CitiGroup 2nd tranche of $20 billion; BOA 2nd tranche of $20 billion (Zero’s watch)
http://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program
Not a chance. They will sell it to another bank (if you are current) or a collection agency (if you are not).
They may try to impose new terms and conditions less favorable to you and send you a notice. You have a very short time (30 days or less) to object to it in writing. Your opt-out notice should be returned to their designated address by certified mail within the designated time.
I would urge anyone who has a Bank of America credit card to get rid of it as soon as possible. There are far better alternatives out there offered by reputable institutions.
Let not your heart be troubled.
Zer0 is scheduled to speak at the top of the hour (1:20 or so CPT) and he will lead us from the darkness into the light.
Great, thanks for the uplift. BTW most Canadians would not know what CPT is.
By who? The author of the article?
This is journalism?
MAIL CALL!!
What is wrong with you people? Our president inherited a bad economy from the prior president. He was handed a bad hand of cards. Look at it like this...how much worse it would have been if President Obama had not acted with decisiveness with the TARP and the stimulus programs. He saw his vision clearly and acted with intentionality. Now, having been elected, and having told the electorate exactly what he intended to do, is positioning this country to go exactly where he told us he would take us. He is a man of his word. Now, today at about 1 PM today he will remind us of the history of the past 3years and how he will continue on course. We should be grateful for his stewardship of this country.
*
Uhhhmmm....didn’t you leave out the /s switch somewhere?
I hope you get a bite. LOL
That was still under Bush
US gives Bank of America 20 billion dollars in capital injection[16 Jan]
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