Posted on 11/07/2010 11:49:33 AM PST by Frantzie
William Black ratchets his campaign for putting an allegely insolvent Bank of America into conservatorship by several notches, following up on Jonathan Weil's argument presented a few days ago that there is massive "book cooking" by Moynahan's henchmen, and that it is about time that BofA truly opens it books for all to evaluate just how undercapitalized the mega bank truly is.
Let's Set the Record Straight on Bank of America: Open the Books!, by William Black and L. Randall Wray, as published in the Huffington Post (part 1 and 2)
While we welcome Bank of America's response to our two-part essay, "Foreclose on the Foreclosure Fraudsters," it does not actually respond to any of the facts or analytical points we made. Indeed, it does not engage the issues we raised. Bank of America's response contains some useful data on foreclosures that supports points we have made in prior articles, but overwhelmingly it is a plea for sympathy; Bank of America says it is beset by deadbeat borrowers and it is distressed that it is criticized when it forecloses on their homes. Bank of America portrays itself as the victim of an ungrateful public.
(Excerpt) Read more at zerohedge.com ...
"First, Bank of America admits to a 14 percent delinquency rate on its mortgages. That percentage is roughly seven times greater than the normal delinquency rate for prime loans. It is roughly three times the traditional rule of thumb for a fatal delinquency rate (5 percent) for a home lender."
BofA had a delinquency rate 3X greater than others?!!
Anything to do with their lending money and bending over backwards to loan to illegal aliens?
The results may be a bit scary— and some Dem contributions, too!
After reading this, I think it makes sense to pull money out of BOA.
I had a lady call me from BofA about 18 months ago trying to get business. I tried to be polite but I told her I NEVER would do business with them. She was stunned and asked why.
I said their illegal alien policies and essentially because they are a scum bank.
Has the law changed? Conservatorships used to be limited to S&Ls and Savings Banks. BofA is a real bank. I'll have to look next week to see if something has changed with the abolition of the OTS.
In their defense, they were highly concentrated in the Inland Empire, Arizona and Vegas which all had a collapse in housing prices.
Are the delinquencies the same as other lenders for THOSE areas?
The answer is yes.
I really don’t understand all this finance stuff, but I have been trying, so take this with a grain of salt.
But, from what I have been reading, JP Morgan is totally exposed, still, on derivatives, and any ‘hedge’ they have is likely to be held in the other top tier, (5 total, i guess) banks. So if one of THOSE goes under, or really even totters, so does JPM and then likely the rest.
I don’t think most of Wall Street is anything close to being solvent, altho, I don’t have facts and figures to prove it, just an educated guess, given their business model and the corruption of capitalism that has occurred over the past 30 years.
WTF!? Then do not over lend in one sh*thole area like Inland Empire, Vegas, McCain’s AZ. Too many loans in a few areas is stupid. Do you work for B of A or Merrill? Scummy companies.
How about the Fed opening their books. It has shafted more people than the Bank of America.
Nobody really understands what is going on except the public is getting screwed.
You are probably on the mark there. Another weird thing - JP Morgan and HSBC were served with a class action lawsuit last week by people who say they are manipulating silver prices to keep them lower.
Some have said if silver reaches normal levels that HSBC will be insolvent. What is weird is the day the lawsuit was filed - silver skyrocketed (11-4-2010). It was the day of the big rally when QE2 was launched.
Why do two major global banks have a major short position trying to keep silver prices down? Does it have to do with JP Morgan and HSBC potentially becoming insolvent if silver and gold skyrocket more?
I think they already are insolvent.
You miss the point.
The banks KNEW that there was a big bubble in CA, AZ, NV. Then they went in and made 5% down loans. The bubble bursts and they get a taxpayer bailout. The borrowers lost quite a bit (I don’t care about speculators, but I do care about regular citizens).
THAT is the real issue, not that the sand states had higher default rates.
I totally agree. It seems like the only person with the guts to open the books is Ron Paul. A lot of people on FR do not like him. I do not agree with some of his more libertarian idea like open borders etc but he is smart and will ask hard questions.
I think illegals would leave if they did not get ENDLESS benefits.
Good point, I am going to check into that. I am starting to get interested in silver.
You may want to wait for some pull back if you are investing. The price recently has gone parabolic. “It ain’t” cheap now.
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