Tipping Point component #4,537...
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 11/14/2010 9:27:06 AM PST by The Comedian
Bank of America Is in Deep Trouble, and There May Be Financial Disaster on the Horizon
Will Bank of America be the first Wall Street giant to once again point a gun to its own head, telling us it'll crash and burn and take down the financial system if we don’t pony up for another massive bailout?
When former Treasury Secretary Hank Paulson was handing out trillions to Wall Street, BofA collected $45 billion from the Troubled Asset Relief Program (TARP) to stabilize its balance sheet. It was spun as a success story -- a rebuke of those who urged the banks be put into receivership -- when the behemoth “paid back” the cash last December.
But the bank’s stock price has fallen by more than 40 percent since mid-April, and the value of its outstanding stock is currently at around half of what it should be based on its “book value” -- what the company says its holdings are worth.
...
Much of that toxic paper remains on their books -- somewhere. The assets are still impossible to price and now several Wall Street titans appear to be approaching a tipping point, poised to once again to extort a mountain of cash from our Treasury by claiming to be too big -- and interconnected -- to crash and burn as the principles of the free market would otherwise dictate.
(Excerpt) Read more at beforeitsnews.com ...
Tipping Point component #4,537...
If the truth were known, JPMorgan Chase is probably in a sinking canoe right beside BofA. JPMC bought the biggest bankind disaster in history, Washington Mutual, and there is no telling how many fantasy balance sheet entries they really have.
Same goes for Wells Fargo and their Wachovia “assets” along with nearly every major bank in the Country. Everyone who was “too beg to fail” 2 years ago is now even bigger.
I laugh every time I see someone suggest that the US readopt the gold standard, because I don’t think there’s enough gold in the world to underwrite what we have right now. We would need the planet to be hit with a solid gold asteroid to pay off this debt, but the asteroid would have to be so big it would wipe out all life down to bacteria...
Making me think I should take our money out of US Bank and go with a local bank instead. These National chains seem to be having a tough go of it between the market instability and government mandated stupidity.
Ruh Roh is right. Wonder what implications this might have for those of us whose mortgages ended up with BofA.
I’m glad I left BOA...
The FED is made up of these banks. The FED is in trouble. Soetoro, Dodd, and Fwank, and friends are just picking who gets into the leaking lifeboat. Invest in guillotines.
Me too. Did that right when they first announced that they’d change their policies to give home loans to illegals.
They have my house mortgage what is the worst that can happen?
Element 79, by Fred Hoyle (1967)
(Love the typos:
JPMC bought the biggest bankind disaster
“too beg to fail”)...
You have obviously never been in Boston or when I was a Kid “The Zone”. Eddie would have been giving up tops and bottoms at the “Arts Theater”.
What made me mad about BOA was there so called Online Bill Pay and their overdraft fees... So far Chase has been decent..
I’m not sure how accurate this information is now, but it seems like a year ago they were saying that of the big banks, US Bank was probably the safest.
I suppose you could use the Bankrate information
http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx
But I’m not sure how accurate that is, either.
This article is not very logical. Most of the mortgages and credit cards that are not going to be paid have not paid, and have already been booked as losses. These banks of very strong businesses, generating tens of billions of dollars a quarter, which can be used to offset these losses.
Articles like this never analyze the earnings statements and balance sheets of the banks they purport to discuss, and point to specific line items they contest. Maybe because that would require actual financial knowledge?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.