View Full Version : Bank of America Is in Deep Trouble, & There May Be Financial Disaster on the Horizon
15th November 2010, 02:49
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.
Read more: http://www.alternet.org/economy/148817/bank_of_america_is_in_deep_trouble,_and_there_may_ be_financial_disaster_on_the_horizon/
15th November 2010, 17:17
Very interesting. I think most of us 'thinking for ourself' folks knew the bailout wasn't the end of it. It will be interesting to watch. (It's always been hinted in conspiracy sites that the Vatican owns BofA)
Even though just about every economist agreed that the trouble began in 1999 when the Glass-Steagall Act was overturned, Congress dragged their feet to reinstate it - and I'm not sure they ever did. While reinstatement would be too late to change the current problem, it would keep it from reoccurring.
15th November 2010, 17:32
Let's throw them under the bus!
15th November 2010, 21:32
19th November 2010, 16:17
Ba ba ra Congress has NOT reenacted the Glass Steagall act. Why should they? Most are taking unregulated contributions from the financial sector.............personally enriching themselves while ensuring that Congress acts as a rubber stamp for the usual suspect's policies..................................when has an entrenched power bloc EVER voted against its own interests?
23rd November 2010, 14:11
I bought a new truck from the dealership. They said they could beat my financing, so I let them write it up. It was with BoA! I cringed.
Now when I get a statement it shows $0 due for the month. This is because I always pay two or three times the payment amount. They do not want me to pay it off and lose the interest. Never had a financing plan that did not require a monthly payment!
Countrywide Mortgage sold my mortgage to BoA. When I tried to refinance at 2% points lower with another company BoA was VERY weird about it. Hate BoA!
23rd November 2010, 15:16
From www.jsmineset.com. I like him...
Countrywide’s Mortgage Document Errors May Doom Bank of America
By ABIGAIL FIELD
Posted 1:30 PM 11/22/10
Testimony in a New Jersey foreclosure case decided last week may spell big trouble for Bank of America (BAC). If what one bank employee said on the stand proves to be accurate, paperwork problems it acquired when it purchased the failing mortgage provider Countrywide in 2008 could leave BofA on the hook for billions of dollars.
Linda DiMartini, a supervisor and operational team leader for the Litigation Management Department of BAC Home Loans Servicing, testified in the foreclosure case of John T. Kemp that it was "customary for Countrywide to maintain possession of the original note and related documents."
If that’s true, then Bank of America may discover that it has millions of loans on its books that it thought it had transferred to trusts that issued mortgage backed securities, because 96% of Countrywide loans were ostensibly securitized. As the Congressional Oversight Panel explained, that outcome alone could cause massive damage to a bank’s balance sheet. And as bad as that would be, it isn’t the only problem that could result from Countrywide hanging on to the notes.
If the mortgage-backed securities aren’t in fact "mortgage-backed," investors who bought them could be able to force BofA to buy the securities back. A significant number of buybacks could on its own destroy BofA’s balance sheet. Nor could BofA stave off either outcome retroactively by delivering those notes today. First, the contracts that created the trusts would typically forbid transferring the loans into the trusts now. Second, even if somehow that could happen, such a transfer would destroy the special tax status the mortgage backed securities enjoy and give the investors a different reason to put back the securities or sue over them.
23rd November 2010, 19:02
Kula! That makes perfect sense to me now. I also refinanced once with Countrywide, just prior to them selling to BoA. For some nefarious reason they REALLY wanted me to refi. They begged me for weeks, then finally offered to refi with zero cost, none. They simply lowered my interest rate by 1.5%. Don't fully understand, but know it was to their advantage in the sale.
14th December 2010, 20:34
Bank of America’s $1 Billion Toxic Asset Sale
Who wants to buy Bank of America’s toxic mess? CEO Brian Moynihan is hoping a lot of investors will.
The New York Post reported that Bank of America is selling at least $1 billion in mortgage assets that have caused much of its recent troubles.
The sale includes mostly includes loans and mortgage-servicing rights that the bank inherited when it made the questionable decision to buy Countrywide Financial in 2008.
Who the heck would want a block of mortgage assets that have already cost BofA more than $5 billion in write-offs? Well here’s where things might get interesting.
Remember when all those big institutional investors were pointing the finger at Bank of America for selling them bad mortgage securities? BlackRock, PIMCO, and The Federal Reserve were among a group of investors who were trying to force BofA to buy back what they said were mortgage loans that were wrongly characterized. In other words, they felt BofA duped them into buying loans that were unhealthier than they thought.
Forbes Story (http://blogs.forbes.com/halahtouryalai/2010/12/13/bank-of-americas-1-billion-toxic-asset-sale/?boxes=HomepageFAN)
14th December 2010, 20:36
I hope they don't get another bailout
14th December 2010, 20:46
naaaa what's a few Billions between friends...
if I pointed at your neighbors house and said you could buy it for $10K because it is a loan in default, but valued at $400K, and said not to worry the American tax payer will make up the $390K difference and the interest we'll make off the taxpayer will be more than 10K/year...
what do you have to lose?
In 5 years when the market turns around, you can sell it for $400K and we'll still keep collecting interest from the American taxpayer forever...
not too hard a decision now is it?
14th December 2010, 20:48
If i had the money I would just buy my house threw a seized house auction
14th December 2010, 20:58
My gut feeling is that the PTBs are not going to let any big bank fall (other than Lehman Brothers that was sacrificed for their greater cause). All these news are just part of the master plan towards NWO. Two scenarios in my mind: NWO as a fascist state after gradual cuts to freedoms and rights due to the crafted economic collapse, or NWO after a big catastrophe that depopulates the world, and all these news are just distractions.
These scenarios, of course, do not take into account whatever the white hats have in mind.
14th December 2010, 21:03
ahhh but you see 2008 wasn't just a banking crisis, it was carefully planned to destroy people's credit ratings so the banks can charge higher interest...
we give the banks 0 interest money to loan to these poor credit consumers...
but they've decided if you are under a 700 score, they don't want to give you a loan...
and send you off to someone that will charge you an insane interest rate for taking such a risk, they get their cut and sell your loan back to the banks for a discount.
now they are holding your loan at 15%, and investors are beating down the door to get a piece of your loan...
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