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S&P Withdraws Bank of America Short-Term Counterparty Rating At Firm's Request
Just headlines for now. We are confident this firm-solicited action to eliminated BAC's counterparty credit rating is purely in the interest of shareholders and taxpayers, or both as the two tend to be equivalent, and purely for the benefit of transparency and openness. It most certainly has nothing to do with recent allegations that the bank has been fraudulently misrepresenting hundreds of billions of mortgages it sold to third parties.
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BAC is ratting on itself now?
Rotten-flesh zombie on failing life support, just being propped until the day after tomorrow, Dec 31, 2010, when FDIC insurance goes no-limit.
http://www.fdic.gov/deposit/deposits/changes.html
That no-limit FDIC insurance is only for non-interest-bearing accounts. To take advantage, one must open a special account. Most checking accounts are interest bearing.
Most are supposed to be interest-bearing, but they aren't bearing much these days.
I wonder how many people will see this new FDIC policy as favorable enough to move all of their money from their non-bearing interest-bearing accounts in to the non-interest-bearing ones.
Who would benefit from this transaction?
Let's see, who benefits... um, the $10M corporate payroll account holder who will avoid losing $9,750,000 when BAC fails?
This morning on Bloomberg radio, we suddenly hear the FDIC has created the "Office of Complex Financial Institutions."
Jason Cave is a senior advisor at the FDIC who is leading preparations for the FDIC’s expanded bank supervision powers.
Might as well watch this.
Still not backing off much.
When will the knives come out? Eventually some institution has got to start dumping. They wont be able to use the excuse, "we didn't see it coming."
watch your language son or i'll wash your mouth out with soap and make you clean your room!
It ( BAC ) backed down from $54 to $2.50, bounced to $13... BFD
http://www.youtube.com/watch?v=9TYezSrzUUs
'Not backing off much'...well thats 'Roboperspective' for ya!
About $54 to $3, then to $13....so the real question in where YOU bought in Robo? Oh Im sure the answer is $3, not $54.
Your Ben Bernanke arent you?
I give it BAC-- rating
Preemptive strike ahead of Wikileaks docs publishing?
alrighty then:
Zzz-
Obviously a case of pure altruism on BoA's part. Similar to the Feds removal of M3, B0A's attempt to prevent statistical sampling of its MBSs, Homeland Security's indefinite covert imprisonment of whomever they wish to incarcerate, etc, etc, and so on...
Get BAC, Get BAC, Get BAC to where you once belong...bankrupt.. even Loretta knows
Yeah, what was that headline YESTERDAY about Allstate suing BAC for losses?
Too bad the taxpayer will pay the lawyers and the judgements.
RobotTrader - nice chart, reminds me of the rope tension on a guillotine as the blade approaches the top.
Poor Marie...make sure that hair is off the neck...
BAC is being rude... right Erin, right?
Is this limited to the mortgage desk? Wouldn't losing it's counterparty rating effectively shut down BAC trading desk? How would that not adversly affect the spoos AND the 2s?
Not to spoil the party but...rrom S&P website:
Rationale On Dec. 29, 2010, Standard & Poor's Ratings Services withdrew its 'A-1' short-term counterparty credit rating on Banc of America Securities LLC at the company's request. Banc of America Securities LLC was merged into Merrill Lynch, Pierce, Fenner & Smith Inc. (unrated) on Nov. 1, 2010.
@rational
Lowered to what? Is there no rating?
the first domino teeters
If BofA collapses, what happens to the mortgages? I am not under the delusion that my loan would be wiped clean, but what organization out there would acquire it?
I have the sinking feeling that I'll be making out my 2011 payments to the federal government.
Ha ha, that's a funny one. What if BAC collapses!!! Oh you guys kill me. Gotta tell this one to Ben as soon as he gets out of the printing room.
Exactly. How ridiculous is it to actually believe these rock solid Wall St stalwarts such as Enron, Lehman Bros, Bear Stearns, could ever collapse? They must be insane.
That was then. This is now. BB is slow-witted, but he won't let it happen twice. Fuck the "dual mandate." The Fed has only one mandate now: Do whatever it takes to keep stocks moving higher. The apocalypse has been cancelled -- forever. The Harrys and Robos got it right: Nothing external can stop this perpetual-motion machine. Forget about fundamentals and due diligence. Just logon to Etrade, type your initials in the BUY box, and get on board. Unless your name is Frank Alan Zappa or Sy David Syms, you can't lose.
Remind me again of why ratings even matter in the financial world these days.
Ask Greece and Ireland..
Ratings are part of the inputs to complex derivatives and trading models, just like the continuingly inaccurate BS from the BLS, etc. Without these ratings they might have to make up their own numbers in order for their machines to work properly. Since the workings of the machinery are more important than the inputs that make them work, then defacto any numbers that work will do. But they have to be published by someone, so S&P is a publisher of rubbish which feeds the machines that really matter. Elsewise our systems might lock up tight as a drum break on an old, rotting Chevy.
Hey! that sounds like a plan!
Teflon baby. This is TBTF. Bet the stock goes up tomorrow?
It must be great to literally control all aspects of law and selectively disregard them at-will.
I assume the SEC will be all fucking over this like white on rice. Gotta protect the common shareholders.
Time for them to put a "going concern" qualification in their next quarterly report?
LMAO...oh, wait, are you serious? Uhhhh....Not likely, ever.
If it made you laugh, then... good.
I have to remember that we're all living in bizarroworld.
Wow, I would have expected it to drop 10% as soon as that headline crossed. Maybe it is the slow collapse. Like a dam with a bad crack.
Leaks a little...leaks a little...then WOOOSH!!!
(although all of the WS banks are down a little...)
This post is a waste of electrons
Welp . at least you seem self aware.
true, but the spin-a-thon of 'peak electron' has not yet begun so were still safe.
LOL and the stock drops .. a penny. Maybe if they file Chap 11 or 7 will we see a drop of more than a nickel.
Okay I posted once and nobody read it... THIS IS A NON-STORY THE WITHDRAWAL IS ON A UNIT OF BAC THAT WAS FOLDED INTO MERRILL AS PART OF THE MERGER. NOTHING TO DO WITH THE PARENT BANK, MORTGAGES OR THE GRASSY KNOLL!!!!
To be more specific: the unit they withdrew the rating on no longer exists. That is why they withdrew the rating.
Exactly, and yet this inaccurate and highly misleading post stands uncorrected...
This site majors in breathless hyperbole - but you knew that. Anything that on the surface can be construed to help the party line is a must post.
In Spain we have suffer the same case with
Caja de Ahorros del Mediterraneo and Bancaja(or Caja de Ahorros de Valencia)....
RATING AGENCIES MUST DISSAPEAR are all mafias.
In Spain we have suffered the same case with
Caja de Ahorros del Mediterraneo and Bancaja(or Caja de Ahorros de Valencia)....
RATING AGENCIES MUST DISSAPEAR are all mafias.
Other interesting thing has been when Bancaja said to S&P to please stop rating cos their CDS is being worst than Ukranian Sovereign:)
Spanish saving banks and banks = DEFAULT