Mash His Cute Little Nose
We're Looking For a Little Yellow
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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 ...
Ya think?
I remember when NationsBank merged with BankAmerica in 1998. Stories in the San Francisco Chronicle at the time said that the CEO of Bank of America was duped by the CEO of NationsBank into accepting a merger on terms that NationsBank later reneged on.
BofA lawsuit charges merger plot-Stockholder says top execs withheld crucial data
Charging that deception by top officers concealed the true nature of the NationsBank-BankAmerica merger, a San Mateo BofA stockholder has sued to recover the millions that it allegedly cost him and other investors.Gregory Baker, a dentist who owned 100 shares of BofA stock before the Sept. 30 merger, is seeking class-action status for the lawsuit, which was filed in San Francisco County Superior Court last week.
Baker contends that the banks' officers colluded in a scheme to conceal the true nature of the merger. It was not, as they insisted at the time, one of equals. Rather, alleges Barker, NationsBank was taking over BofA.
Baker alleges that the proxy statement mailed to shareholders Aug. 12, 1998, was intentionally false and misleading, contained serious misrepresentations and omitted critical material that could have changed the merger vote.
-PJ
I like how karma has played out with BOA....lovely stuff.
Obama’s fault?
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.
///
very true!!! ...but we’ll end up paying for it.
just as the Government should NOT be giving thousands of dollars each year in taxpayer benefits
to people who came here ILLEGALLY!
They just bought my mortgage refi, does that mean I don’t have to pay it back???
It is now 1:32 EDT and you are correct.
One of the key charges in the AIG lawsuit is that almost 20% of the mortgages in question were "underwater" at the time of origination. IOW, the bank loans exceeded the values of the mortgaged properties.
Hiding this information from an insurer is fraud, pure and simple.
Writing CDS's on underwater mortgages is not a practice which most insurers would countenance.
I hate Bank of America. Once had their card. Lousy customer service and a crappy attitude. I loved cutting that one up and have bad mouthed them ever since. They deserve the hell they get.
1:45 EDT. The market is down over 400 points. No Obama. Can’t they get this guy off the putting green?
Whatever happens in the U.S., happens in Canada. Walk down main street in any major city in Canada...nothing but American owned stores: Sears, Wal-Mart, Target, BestBuy, etc. If we go down, THEY go down. They dont have near enough businessmen/entrepreneurs to leverage themselves against the tide.
What a crappy song. The lyrics didn’t even rhyme and the melody sucked.
Absolutely. Obama and his administration strong-armed the Bank of America into that Merrill Lynch deal threatening to shut them down if they didn't do it.
The president of BoA, Ken Lewis, was called to testify under oath and told the story. Obama was livid. He unleashed the SEIU on the stockholder's meeting and played other dirty tricks
You just knew that it was only a matter of time for Obama to finally destroy that bank.
You may hate Bank of America but if you gloat over its demise you'll be celebrating Obama's win over the bank and over capitalism.
Seriously, 70% of Canada's exports go to the US. A lot of those exports are in the energy sector and the US demand for energy is fairly constant. Manufactured goods is another story. Ontario builds more cars and trucks than Michigan (don't tell anybody) and most of that production is exported to the US. When demand falls for those goods, or if the Canadian dollar goes way up (and conversely the US dollar goes way down), it is a definite problem.
I am not being smug or nationalistic. A recession/depression in the US is bad for Canada, there is no doubt. But I don't think things will get as bad here. We have energy and food. We have not had a major bank failure since 1923 and the banking sector is one of the strongest in the world. Canada's national debt is 35% of GDP (US is approaching 100%) and the government is on track to balance the budget in two years.
Your president is a marxist community organizer by training and profession. The Prime Minister of Canada is a conservative economist. I rest my case.
Sadly, many FReepers throw around AIG in much the same manner the left did Haliburton.
At post # 365 on the “live” thread, I left the house for the Post Office. Walked to the garage, pulled out the truck, drove to the PO (about 3 mi and two red lights), posted a letter, drove back, parked the truck and walked back to the house and he STILL had not started!
Let ‘em die, we’ll be fine without them.
Slowly dying would be fine. But a big failure now would not be good and throw off big ripples.
We need some stability now.
Sanity and balanced comment is getting harder and harder to find on these boards.
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