Posted on 09/05/2011 12:48:22 PM PDT by jimbo123
It is Bank of America’s (NYSE: BAC) turn to sell off 10%. Deutsche Bank dropped 8.9% in trading today. Royal Bank of Scotland fell 12.3%, and Societe Generale 8.6%. The reasons for the panic selling in Europe are not unlike the reasons Bank of America dropped to $6.01 three weeks ago, from a 52-week high of $15.31. The economy is weak and financial firms may take huge hits to their balance sheets.
(Excerpt) Read more at 247wallst.com ...
buffet might be able to use the tax loss.
He does not pay taxes!
“Will Obama and the Fed bail out Warren Buffett’s “investment” in Bank of America? Enquiring minds want to know”
Of course he will and buffett will also expect a 10% or better return on his “investment”..
The great thing about dropping 10% in a day is that a stock could do that for ten days in a row and never get to zero. I believe BAC stock has very strong support at zero. And it couldn’t happen to a nicer bunch.
All in the gameplan. Congress and CNBC need cover to call for the Fed to “do something”.
Look for QE III in a big way come 9/20.
I’m a firm believer in Boycotting. I think BAC is a perfect candidate for doing just that. Mr telepromter continues to curse big corporations with private planes, yachts, etc.. What the .... does he think Berkshire Hathaway is. Seven-Eleven???
I hope so; BAC down 10% is a good start. That company took TARP dollars, which was immoral, and they give the very worst service of any bank I have been to as a customer. I closed my account there after TARP and probably should have closed it sooner. I don’t even accept checks from Bank of America any more.
——Will Obama bail out Warren Buffett?——
Think outside the box......... Buffett might have had the final objective as controlling the bank.
I don’t know how much common he owns but it might be a lot. The common plus the new debt might = control
Probably. I hate Bank of America. The happiest day of my life was when I closed my account and switched to Navy Federal. B of A is nothing but bad service and high fees.
You know I am embarrassed to see some of the posts on this thread. Is this the Daily Kos? Or maybe the Huffington Post?
Are the communists coming over here to highjack our threads?
Are we all against Big Business, Big Banks, Big Pharma, Big Oil, etc? Guess I never realized how many dimwits post on Free Republic. You guys are no more conservative than Obama is.
Don’t forget that Buffett bought preferred stock. He can wait for his warrants to go profitable—he’s getting paid 6% anyway. In most companies, the preferred would be at risk if the company’s assets were suspect, but so far that has not been the case with the large banks. They have been recapitalized, with understandably bad effects for common share holders, but the preferred stock holders and the note/bondholders have been 100% protected. Warren must think (or have an inside perspective) that this will continue.
Well, if he has big losses, that is not surprising....
Not going to happen. Someone will buy the stock and prop it up. Mark my words. ;)
What did the banks do with the money? Here in Southern California the only difference I see is the old banks are all Chase now. It appears to me that they increased their holdings with the money we leant them.
Also, are you getting interest and principle payments deposited in your account for these loans? Of course not.
I beleive we are being fleeced by Government, and Global Banks and Companies. I think Sarah Plain may be refering to this when she says “crony capitalism”.
The CEO’s of these businesses sure came out a lot better than the average citizen.
I think the Gov. has a slush fund funded by TARP, etc. that they use to do what you say. Fiat Currency needs confidence, so they prop up the confidence.
Oh gee...a big “down” day coming for the markets. I guess that has NOTHING to do with the timing of 0bama’s new “give money to Wall Street” er Stimulus Plan that he’s about to announce.
Suckers.
This is no doubt to fire up the far left in anticipation of election '12. Nothing like class warfare to bring back Obama's disenchanted base.
It really seems like that sometimes when it comes to the subject of banks.
This is how Obama was able to win in '08 and Pelosi along with him...they and the media convinced many social conservatives that banks are evil. Many on FR often fall into this trap too.
Sort of obvious isn't it? Common stockholders get screwed.
Warren got a great deal. He has almost no risk, with a potentially huge upside. He probably scored some political favors too for helping BAC.
Re post 22: Agree 100%.
I don’t like them either, but if this happens, it will have far reaching effects.
Same here.. I closed my accounts at BOA... Way to many overdraft fees.
There are banks and there are banks. BofA puttered Billions away on social engineering BS. BofA is a dead bank borrowing and Wall Street knows it.
I agree.. But my fear is that BOA will somehow become the DeFacto bank of that we have to bank at. No questions asked. If they can tell us to buy health insurance they can tell us where to bank..
And the banks are lying about how much capital they have. With the blessing of the government of course.
It will. But, it has already had far reaching effects the way things stand. All these banks have profoundly negative equity, and while the Fed can try to sticksave them, all the money that has been thrown at them so far has pretty much evaporated. The US, and indeed, the industrialized world needs to decide whether the better part of a decade will be spent bailing out these entities against the bad bets they themselves both undertook and promulgated. Markets are everywhere forcing this fundamental fraud out into the open, and further moves by monetary authorities are, while applauded by the speculators (of whom I am one, at times) they do no good for the actual, real economy.
Fraud has become the industrialized world’s foremost economic model. Until this is washed away, I have serious doubts as to whether the economies of the world will be able to recover. Why? Because as long as the money center banks control the governments of the world and can induce them to pass legislation confiscating privately created wealth, either by excessive taxation or by excess regulation, we will have no new innovation nor general economic growth. Or it will all be offshored to China. It will not happen in the US.
We are where we are because lots of people claimed “oh, we can’t do that, it will lead to....tanks in the streets...or a major depression...or food riots...or the stock market falling 2000 points.
All those things will happen anyway. We need to eat our peas and take this pain, and it will be seriously painful, of that there can be no doubt.
Buffet has been obamma’s close bosom buddy lately, so no, Buffet will not lose any money. obamma will ensure that will not happen.
Anyone with half a brain is against bad business—like subprime lending. BoA embraced it. Heck, even with the collapse of the subprime lending fraud, BoA is still doing it. You have the wrong B, my friend. Big is not necessarily bad (except in the case of government). It is bad that’s bad.
His company owes a billion.....
It would be delightful to see BAC reorganized and watch Warren’s preferred stock be wiped out. I’d take a loss as well, but it would be worth it watching him take it on the chin and good for the country to see one of these “too big to fail” companies get chopped up.
Bingo!
True, but no elected official will do it.
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