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For Bank Of America, Crime Is Now An Ordinary Course Of Business
Once upon a time banks made money in one of two ways: either by borrowing short and lending long, a/k/a the conventional banking way, or through investment banking, which includes advisory, underwriting and trading with the backstop of billions in deposits, aka the proto-hedge fund way.
Then things changed.
For a profoundly philosophical, if comically metaphysical essay, that uses several thousand excess words and footnotes to come to the miraculous conclusion that bank accounting is, get this, fickle, the following Bloomberg take should be an amusing way to kill a few extra hours. Philosophical ramblings aside, it is, of course, very easy to determine if a bank made or lost money, and that does not even involve looking at the cash flow statement. One looks at the Non-GAAP bottom line and excludes the "excluded", or added back items.
As a reminder, the reason non-GAAP exists in the first place, is to goalseek an already meaningless number to just a cent or two above Wall Street consensus, so as to kickstart the buying of the stock by headline scanning algos. Because EPS may be meaningless but stock-tied compensation/incentive awards are quite meaningful, and lucrative, to executives.
Still, even when it comes to the wizardry of non-GAAP, for a number to be somewhat credible, it has to follow a few basic guidelines, namely that in order for an expense or charge to be "excluded" from the bottom line, it has to fall within the "one-time", "non-recurring" category. Add it back too many times and the magic falls apart as even the mutually-accepted fabulation by circle-jerking ostriches that is non-GAAP. promptly evaporates.
Which is why we ask: why do Wall Street "analysts" continue to add back Bank of America's legal and litigation charges and settlements from its bottom line when calculating its non-GAAP EPS?
As the chart below clearly show, any myth that Bank of America's legal fees are "one-time" or "non-recurring" is by now long dead and buried. In fact, in 2014 they have never been greater!
How does this nearly $30 billion in legal "addbacks" over the past three years compared to the so-called Net Income Bank of America generated over the same time period? Here is the answer:
In short: between Q4 2011 and Q3 2014 Bank of America produced "Net Income" of $15.9 billion. However, the amount of added back "one-time, non-recurring" legal expenses is a stunning $28.9 billion: two of every three dollars, non-GAAP as they may be, comes from Bank of America engaging in criminal activity... and that's just the stuff it got caught for.
So perhaps an even more relevant question than how long will the EPS "addback" bullshit continue, is how long will the regulators and enforcers allow Bank of America to exist as an organization for which two-thirds of its "ordinary course business" is, for lack of a better word, crime?
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.Gov makes BofA look like choirboys.
ALL banking is criminal.
Anybody else who created money out of thin-air would be charged with counterfeiting...
"So perhaps an even more relevant question than how long will the EPS "addback" bullshit continue, is how long will the regulators and enforcers allow Bank of America to exist as an organization for which two-thirds of its "ordinary course business" is, for lack of a better word, crime?"
BOA will continue to exist ad infintium as long as the "regulators" in charge of overseeing their nefarious activities are of - or in the pay of - the same criminal tribe and cabal.
As long as WE THE PEOPLE allow this criminality to continue (starting with the very issuance of our currency), NOTHING will change. Wake up, Plebs!
Free John Corzine!
Honorable J would be proud of the B of A!
LOL.
RICO
Really. this is not exactly news; they have the 'established pattern of criminal behavior".
Then WHY do they have a shingle hanging over the doors.
Allowing a criminal enterprise to continue speaks volumes (read turn to '11') about how crooked the regulators have become. Just because is called the Bank of AMERICA does not entitle it protection to continue to operate.
Laughing stock
Two words: For Ever.
We need sovereign money creation, with money created by an independent board under the Treasury and spent out by Congress in accordance with the Constitution. The central bank should only be the place where governments and banks deposit their money, and nothing more. We also need to put a stop to money multiplication - banks should not be permitted to lend out or put into financial instruments money that has been lent to their depositors.
Bank of America doesn't care if you make $100 per week or 10k per week, it will find a way to rip you off. Did you ever notice how Bank of America's mistakes are ALWAYS beneficial to the bank. I've never even heard of the bank make a depositor favorable mistake. NEVER! Fuckers are as big of crooks as JP Morgan.
How the Banksters calculate profit;
The amount we stole,
minus the piddy-ass fine we paid when we got caught,
equals our profit.
Not dissimilar to Big Pharma: Gross Profit - Damages paid to families of the deceased = Net Profit
.Gov is "of the banks, by the banks, for the banks", but your point is taken.
They are the biggest fraud out there .....Moynihan should be in jail for life.
I want to see BOA liquidated like Ebola.
These banksters are the biggest crooks to ever walk the planet.
ALL banking is criminal.
Anybody else creating money out of thin-air would be charged with counterfeiting...
So...negative income for BOA.
In other words, insolvent.
BTW - October 31st or Halloween will mark two 21 day periods since Thomas Eric Duncan flew into Dallas.
Aaaaaannnnnd still...No one goes to jail. Amazing.
Holder will take care of this, oh wait ...
Free Corzine
Fuck all banks fuck all governments . If you can fattom we actually dont need them at all! It could be all automated banking with deposits and withdrawals only , not investment banking!
We're in post-rule of law America. Now the DOJ is just another weapon to be used against those outside the party.
new normal, all ok, next one
the regulators and the enforcers are criminals also. it's a glorious orgy of government/bank crime. it is a cartel/syndicate. trillions of dollars of drug money laundered through these banks every year, and the govt gets its cut. make me wonder why they have to raise my taxes. what does the u.s govt do with all the drug money it gets????? ole north would be one to ask, no? his rat line had a cocaine nose job remember?
Anyone else like how SPX closed 3\4% down from that magical save...only to be down 3\4% now in AH. Shit is hitting the fan and the slam VIX isn't working. Guess K-Hen is going to have a long night in Chicago.
NFLX is coming out with a new prime time show tomorrow.
As I stated in another post, there is a major bank going down. By all rights, it should be Bank of America. Someone is calling them on their black pool derivative bets. How they hid it as long as they did is beyond me.
2008 is coming back.
Yes, I thought HSBC's laundering scam was also very 'fickle'. Crime is just the way banks roll, they charge you for fairytales, no brainer. Interesting to see a further dig into the earlier reported 'cost of doing business' for BofA though. Who's going to stop them? They won't stop themselves, the ruling class are all on the fucking gravytrain, it's only going to stop when the whole shebang comes crashing down. By then, the wee sleekit bastards will have made off into the night and pensioners will all be left bleeding from the arse, ebola or no.
Boys, boys....come now. Don't hate the PLAYA, hate the GAME!
Signed,
Brian T. Moynihan
(p.s. - My good friend Jamie is richer than you and so am I)
adding back fines and legal costs means it wasnt criminal act to begin with -
i think ALL crime should be decriminalized to create a level playing field
Pot is decriminalized why not everything related to Fraud, Murder, let it all hang out - one we have complete freedom of action and therefore chaos we may be better off
Wow, I did not know this!
Tylers bringing his "A" game tonight!
Who said "crime doesn't pay" ?
Every bank that uses fraudulent-reserve banking commits the crime of fraud every time they loan out their depositors deposits and continue to maintain that they haven't. They also commit the crime of currency counterfeiting as well.
All of their other crimes are incidental to these.
An American, not US subject.
"Save the people, guillotine a bankster, and the pols, crats, and funcs too."
More Texas Ebola: Amarillo hospital on 'lockdown', patient displaying possible symptoms of virus
http://wtfrly.com/2014/10/15/more-texas-ebola-amarillo-hospital-on-lockd...
FUD now in Amarillo.
"Vote neo-con or DIE!"
An American, not US subject.
"I don't know about Sasquatch, but I've seen FUD before. On 9/11 he was Muslim. In Iraq he was WMDs. At Sandy Hook he was multi-round magazines and assault rifles. In 2009 he was Swine Flu. In 2008 it was disguised as 'martial law' if no TARP."
you forgot mad cow disease.
all they need to do is move their headquarters to NY like Goldman and JP Morgan...then the fines are less
I'll Make you An Offer You Can't Refuse. B of A could at least double their gross and half their legal fees if they hire Michael Franzese as a consultant.
OK, so name on large international bank whose primary source of income IS NOT crime.
"Oh shit, The Bank of America is corrupt and bankrupt"?
It's fine that 600 of us know, but what if 6 million suddenly discovered this reality?
The banking mafia are literally a criminal mafia.
This will continue as long as the US Govt. is able to bleed a bank while calling for increased capital. Has anyone ever received a check from the settlements? It all goes to the pols favorite spending plan. Cumo is using it for road building.
BAC and JPM are paying fines for the activeties of Countrwide, which the USG begged them to buy.
Next time it will be 100% FDIC taking over the bank. Let the Justice Department squeeze blood from that incompetent turnip.
"two of every three dollars, non-GAAP as they may be, comes from Bank of America engaging in criminal activity... ."
Amazing. Now really think about this part: "and that's just the stuff it got caught for"
The most obnoxiously criminal empire in human history is taking kickbacks? Banks are a feature of the empire, not a bug.
But we do got us some bugs huh?
within my memory, you would hold your savings in your local bank where the banker knew you by name, and would get around 3 1/2% interest on your passbook savings account....When you needed a mortgage to buy your home, you went to this banker, who personally knew you and your family, and borrowed mortgage money at around 6%....
What happened???
dupe
Look at a Platnium customers bank statement. If they don't milk $10 per month in fees per accoutn, I'll kiss your ass.
Unreal!
PS: Mortgage defaults are back at 2008 levels. Chase, Wells and BAC are sucking methane gas right now
Clinton happened!
If you listen over the years to a parade of homeowners who've been screwed by the banksters, BoA being head of the line, and if you dig into case after case and keep discovering new and ingenius ways they broke the law, after a while it becomes crystal clear that these are not bankers at all, they're racketeers.