BAC looking bad today "BAC CDS almost at 350" http://twitter.com/#!/zerohedge/status/105649899940483072 http://www.bloomberg.com/news/2011-...y-got-1-2-trillion-in-fed-s-secret-loans.html "Bank of Americaâs bond-insurance prices last week surged to a rate of $342,040 a year for coverage on $10 million of debt, above where Lehman Brothers Holdings Inc. (LEHMQ)âs bond insurance was priced at the start of the week before the firm collapsed"
All this fear so the price of swaps go up. So if the government "restructure" will the bond holders force to take less interest? "NEW YORK â More trouble piled up for Bank of America Corp. on Monday, as American International Group Inc. sued it for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued." (snip) "AIG said Bank of America and two companies that were later gobbled up by the bank, Countrywide and Merrill Lynch, sold the insurance company $28 billion in securities backed by home mortgages between 2005 and 2007, at the height of the housing boom. It said it looked at more than 260,000 of the underlying mortgages, and found that the bank's "stated metrics" for 40 percent of the securities were false." (snip) "In June, Bank of America agreed to pay $8.5 billion to a group of investors for selling them poor-quality mortgage securities. AIG's suit is separate, but the company is raising questions about whether the settlement went far enough. On Friday, New York Attorney General Eric Schneiderman urged the judge to reject the settlement, calling it unfair." (snip) "In January the financial institution paid $2.6 billion to settle buyback claims on home loans sold to Fannie Mae and Freddie Mac. In April, the bank agreed to pay up to $1.6 billion to Assured Guaranty Ltd., an insurer that also pressed the bank to repurchase shoddy mortgages. In March the Federal Reserve did not allow Bank of America to increase its dividend, citing uncertainty about the depth of its mortgage problems. It was the only denial issued to the four largest U.S. banks. And it raised questions over whether the bank was strong enough to withstand another economic downturn. Christopher Whalen, managing director of Institutional Risk Analytics, believes the government will eventually have to step into restructure the company." "You're having this accumulation of claims ... and it's very clear they can't pay them," Whalen said. "At some point, the government has to acknowledge that this bank has far too many liabilities, and they don't have the capital and earnings to deal with it." http://www.msnbc.msn.com/id/44060932/ns/business/t/aig-sues-bank-america-b-over-mortgages/
250k+ jobs in jeopardy going into an election... Any thoughts on how they handle the bailout? Would have to be something outside of congress considering the political environment. Maybe Obama can give a good speech. Maybe QE-BAC style, just monetize their balance sheet. Maybe the NY fed can backstop a JPM take-under at .02 (not sure if those are jokes or not)
"You're having this accumulation of claims ... and it's very clear they can't pay them," Whalen said. "At some point, the government has to acknowledge that this bank has far too many liabilities, and they don't have the capital and earnings to deal with it" It's ok, gov doesn't have to acknowledge anything. Market will do it for them. And the market says....Anyone who is owed anything better hurry up and get what they can, if someone is actually willing to sell you insurance...lol.. take it. Look what they did GM to bondholders, and they actually had equipment that should have been sold... please, you're gonna get squat.
here is a chart of BAC CDS going back to late 2008 http://www.zerohedge.com/news/bank-america-cds-hits-escape-velocity http://www.zerohedge.com/sites/defa...1/08/Screen shot 2011-08-22 at 1.51.50 PM.png
Can it even make it to the weekend? Come on old girl, ignore the scramble in debt. The stock is still good right?... come on now, just a few days to go, don't everyone run at once, it'll be 8 next monday, come on... lol, she's a big one, but she's goin down. They ate the poison pill, and the guy selling it had a nice tan. Then they ate another one and it'll lynch um.
"The Debate: Will Bank of America Have to Sell Fresh Stock" http://blogs.wsj.com/deals/2011/08/...ave-to-sell-fresh-stock/?mod=google_news_blog snippet: "âOur traders and desk strategist think the reality is that the market is forcing BAC into a capital raise and the lower stock price goes, the worse it gets,â says Jefferiesâ Layla Peruzzi. "Sheâs not just whistling Dixie; she writes Bank of America might need to raise between $40 billion and $50 billion. Bank of America shares are getting slammed again today, and the stock price is half the level it was at the beginning of the year."
Bank of America: Could it Need $200 Billion in Capital? http://blogs.wsj.com/marketbeat/201...200-billion-in-capital/?mod=wsj_share_twitter Here's Why Bank Of America's Stock Is Collapsing Again http://www.businessinsider.com/bank-of-americas-stock-collapse-2011-8 "So, taking some back of the envelope numbers, it looks as though we could easily come up with, say, $100-$200 billion in write-offs and exposures to "clean up" Bank of America's balance sheet."
Wall Street Journal is official trash, garbage. For years they have done crap news away from market, but you have a massive bank getting ripped apart and front page is Kadaffi and his son. Nobody cares. Is this is CNN? Not only that, I'm sure everyone wants know about BAC, even Cnn crowd, so they click on a paper that covers the market and we have articles about a bunch of rebels. I'm sure they feel right at home, but where is our news? Marketwatch who I guess is suppose to take over for their failure of wsj is no better. Yes they cover markets but in such as way as they are full of crap. They leave snippets. You have a massive backstabbing environment. Ceo's leaving, under investigation, insider trading, backdating currency on pensions. Hell they were all over Gallion, where are they know. Yahoo, freakin yahoo was all over Moody's Senior VP admitting fraud. IS that it now? We got blogs or yahoo? I'm not taking anything away from Yahoo, great job, but where are the big papers? Hey don't worry BAC is scrambling for money. We here at the wsj have this for you to read Sleep Battle of Sexes * Video: Why Men And Women Sleep Differently Don't like that? Try our top story on Libyan rebels, or our secondary links on how nato is changing tactics. Check the back of the paper if you want to read about implosions in the financial system. Is there 1 reporter left to get the news on this bank?? 1....... get the scoop, you know, like how they used to? Bunch of limp wrist ipad children.