BAC to give unlimited guarantee on bank deposits

Discussion in 'Wall St. News' started by Fishaman, Feb 3, 2009.

  1. Fishaman


    Rumor has it that Bank of America will announce on February 6, an unlimited deposit guarantee, raising it from the current level of $250,000.

    Consider the short and long term implications for the BAC stock price and status of the institution if this happens.
  2. How is BAC in a position to offer a "guarantee" on anything?
  3. Their sugar daddy is the federal reserve; people that don't owe you any duties, but whom you pay, in more ways than one.
  4. That would require the Fed to play favorites with BAC - which would seem to raise more questions than it answers.
  5. Hail Mary pass with 1:30 to go in the 4th. Too bad they're down by 35.

    Who's going to back this guarantee? Anyone other than US Gov't is useless and even they aren't anyone you can depend on anymore.
  6. That is hilarious. If BAC fails, they won't be able cover more than the FDIC minimum. Their capital reserves are non-existent as it is.

    Kind of like the $19.99 stuff you see on television being offered with a "lifetime guarantee" while the fly-by-night operation that sells it closes up shop a month later.

    BAC is on the fast track to insolvency as it is. I don't know how, or on who's authority, they would be able to offer such a "guarantee". It sounds like something the US Attorney should go after them for. Or at least the FTC.