Bank Of America To Repay TARP, Greg Curl Allegedly New CEO

Tyler Durden's picture

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Icarus's picture

2 words.  Golden parachute.

Unscarred's picture

2 more words.  Golden shower.

phaesed's picture

HOLY SHIT! Listen to Dan DiMicco on Fast Money!

 

He is laying down the TRUTH! What's even funnier is that Melissa Lee thought she was offscreen while she silently lipped "He's on too long! CUT HIM OFF"

phaesed's picture

He basically tore into any upgrade of the steel sector issued by Goldman where he said "Well, I won't comment on what any particular analyst says up there, sometimes it makes sense, sometimes it doesn't". He then tore into the fact that there was no actual stimulus out there, demand is up overseas, but they have trade barriers which makes it hard to actually export anything, but in Europe, America... there's nothing.

 

http://www.cnbc.com/id/15840232?video=1348684111&play=1

Look at 6:00 to watch the bitchiness.

Cursive's picture

Thanks, phaesed.  I guess actual adult talk is not good TV for MeLe.  Next time, the adults should ask her to leave the room before they start.

Divided States of America's picture

Repaying TARP means selling out of overpriced stocks and having no more taxpayer money to play with.

omi's picture

Since taxpayer is broke, there's no such thing as taxpayer money. It's just an imaginary concept.

Anonymous's picture

All imaginary. Confidence building 101. No money was ever transferred. Even our soon to be ex-Chairman Ben said during the Congressional Inquisition it was holding reserves for the bank... The Congressional Inquisition, part of the exercise.

The losses will be transferred to the stockholders, customers of the bank, and the IRS will get much less revenue.

Cursive's picture

It's definitely a topping sign.  There is a blinking sell sign over this market.  Pigs get fat and hogs get slaughtered.

Anonymous's picture

Have to do it...no one will take the CEO job with the Pay Czar's directive of paying everyone less than Robert Gibbs.

deadhead's picture

it was down but momos just goosed it up.

 

1. dilute common stock.

2. tell everybody this is a great thing.

3. continue fraudulent fasb 157

4. ssshhhhh....don't tell them about q1 intro of off balance sheet 166,167

 

Rainman's picture

Funny, DH. Methinx #4 would fukk up the payback party real good. But that's next year's problem. Kenny will be in a sunny place by then.   

deadhead's picture

in a logical world that used real accounting, I would agree with you rainman.

however, my conclusion is this:

1. Fed, Treasury, FDIC, OTC, OCC etc have all decided that the rule of law means little ergo "prompt and corrective" actions towards failed institutions is last on the list.

2. The FDIC has closed the comment period for input on capital requirement matters that are affected by this action.  I don't know when they will release their decision (probably on Thurs December 24th at 9:00 p.m. Eastern, or later).

3. The decision will certainly be to ease in increased capital over a period of X years...... X will probably be 3 or 4 centuries.

4. None of the capital increases necessary in a sane world would matter anyways as the FASB 157 mark to "model" numbers can be adjusted and they will probably find a way to value this incoming tsunami of shit stained toilet paper at one hundred cents on the dollar.

5. In addition to having been on the goldman CONviction buy list for quite some time, BAC has been reiterated twice (that I know of), the most recent being earlier this week, Monday I think.

6. Every phucking bank and brokerage shop will be asked by the Fed to create a new sell side analyst category called "you must buy this bank stock or you will immediately contract terminal cancer and all of your loved ones will die as well" and BAC will be the first bank rated as such.  Naturally, WFC will follow in about 2 hrs and then we will get to some of our finer regional banking institutions. 

Cursive's picture

@DH

Line of the year!

"it was down but momos just goosed it up."

Put that in the time capsule.

SDRII's picture

"common equivilant" sounds a lot like the bankrupt UK "innovation" of hybrid convertable trigger notes. the UK has beocme the toxic testing ground for everything Fed. sad commentary on state of things

deadhead's picture

got bac up right now 3.77%

 

Anonymous's picture

On track to reach $32 next year?

bugs_'s picture

They might need the $45B for Sheila.

Screwball's picture

Gasbagarino told the desk they didn't want to put up with Barney Fwank every five minutes.  Bullshit, Charlie.  Barney might be a crank when we see him, but he sure as hell doesn't tell the banks what to do.  Quite the other way around.  And we all know what Barney does behind closed doors.  Charlie, ya dumb ass.

Rainman's picture

BAC ain't paying back nobody nuthin' til the securities offering is complete.

Hmmm......you could drive a bus through that timing loophole.

Meanwhile, this news will be a big help for Kenny as his legal issues loom large.

deadhead's picture

I would venture a guess that Judge Rakoff would disagree with you last sentence.

deadhead's picture

momos dropping her back down, now up 3%.

best line from the BAC press release is saved for last:

Repurchase of TARP preferred stock is expected to reduce income available to common shareholders in the fourth quarter by $4.1 billion, as the book value of the preferred is less than the amount paid.

Cursive's picture

Am I reading this to say that the $45B "invested" is only worth $4.1B now?  Is that right?

evanesce's picture

I cannot imagine a better cover story for Goldman's pending bonuses. If BAC can repay TARP, then all is well in the US financial sector; ergo, GS is simply rewarding its excellent employees for jobs well done. The party continues. (And, of course those assets that were so troubled they needed to be off-loaded have magically healed themselves and won't be a problem anymore. Sigh.)

 

Tyler, any info on who's underwriting the secondary?

lizzy36's picture

paulson participating in the securities offering (pref deal)?

deadhead's picture

down to plus 1.6% then just bounced up to plus 2.%

what a deal...get 'em while they're hot!

Rollerball's picture

They'd better hire some IT pros.  I have it on good information that BOA was systemically down area-wide in Jacksonville, FL today.  Wouldn't bank.

sysin3's picture

hell, that's only1/8 dilution.

BAC gonna be $25 tomorrow.

All you morons who can actually do math will be confused, disappointed and nonplussed.

It's the new math, don't ya know.

Dixie Normous's picture

Wouldn't it be funny if this caused a huge rally in the dollar and sell off in stocks.

Anonymous's picture

bac 3.00 to 19.00, dump stock on joe public to repay 45billion in tarp funds

fasb 166/167 jan 1 2010

joe public gets roasted.

bac back to 3.00

chindit13's picture

When the primary motivation for paying back $45 billion in TARP funds---in a bank holding 11% of total US bank system deposits, and which will require additional dilution in what is already a heavily diluted stock---is so that you can "legally" afford to hire a new CEO possessed of more knowledge and gravitas than a teller at a strip mall branch, you can rest assured the best interests of the economy and the shareholders are foremost in the minds of management.

Why not just get it over with and name John Paulson with the proviso he can keep his current day job?

Anonymous's picture

conclusion is always same...

...so render society poorer on the whole...

for us, it will become a genuine tragedy...

Hondo's picture

What has the dilution been in this stock..........

Anonymous's picture

We need a professional analysis of this announcement.Is't the bank effectively helping itself to depositors money by loaning itself $26 bil(and change) from "excess reserve"?. And if they had a m2m accounting,wouldn't that excess reserve be underneath what is requred from them to keep in the first place?. So in essence,arn't they are stealing customer's deposits,hoping that they won't have to face a situation where they are forced to come up with those deposits for now?.

Anonymous's picture

How much money dit BoA made with the 911 crash?

How much will it make with this one?

A most see video: the ring of power!

Jus7tme's picture

Someone please explain the following:

Durden says:

>>And even as the firm is set to payout humongous bonuses ala Goldman, the firm will not touch its $44.5 billion in TLGP backed issues.

BofA Press release says:

>>Opting out of the Temporary Liquidity Guarantee Program (TLGP) in September.

Now, I do not what the definition of the word "touch" is, but it sounds like BofA is claiming they paid TLGP back, and Durden says they did NOT.

Who is is correct, and does TARP not stipulate that TARP must be the *last* loan paid back among all the public loans made to the banks? (the latter question you may consider to be a rhetorical one).

What happened to the Sheila Bair proposal that banks could not pay out bonuses until they  had stopped utilizing FDIC-backed loan guarantees?