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BAC Breaks 4 Handle, Drags Entire Market Down

Tyler Durden's picture




 

As definitive evidence just how fucked up this entire market is, here is what happens to the ES the second the infinite BAC Bid at $5.00 finally gets taken out. This is the ESH2. That's right - the entire market moved tens billions in market cap because the Plunge Protection Team just failed at protecting the "precious" $5.00 level.

Goodbye $5.00 BAC, we hardly knew ye:

Those in pain:

 

Goodbye:

h/t Hedgeless Horseman

 

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Mon, 12/19/2011 - 16:16 | 1995262 San Diego Gold Bug
San Diego Gold Bug's picture

Take your money out now if you are still dunb enough to have an account at B of A!!  MFG2??

Mon, 12/19/2011 - 16:16 | 1995266 I am a Man I am...
I am a Man I am Forty's picture

Love it when ZH drops the F-bomb - Fuck yeh!

Mon, 12/19/2011 - 16:16 | 1995269 VanCity
VanCity's picture

God bless (Bank of) America

Mon, 12/19/2011 - 16:17 | 1995272 Lotus
Lotus's picture

the "plunge protection team"can now rest

Mon, 12/19/2011 - 16:51 | 1995454 Goldilocks
Goldilocks's picture

I doubt it...

"no rest for the wicked"

Mon, 12/19/2011 - 21:40 | 1996223 WmMcK
WmMcK's picture

Until we close our eyes for good.

Mon, 12/19/2011 - 16:18 | 1995281 The Axe
The Axe's picture

They will try like hell to close it at 5   

Mon, 12/19/2011 - 16:33 | 1995282 SloMoe
SloMoe's picture

You know Moynihan's gotta be on the phone (tweeting?) Timmy and The Bernank like a SOB right now...

Mon, 12/19/2011 - 16:18 | 1995283 mrdenis
mrdenis's picture

anybody hear from uncle Warren yet ?

Mon, 12/19/2011 - 16:19 | 1995286 Barometer
Barometer's picture

Smash them !!

Mon, 12/19/2011 - 16:19 | 1995288 Comay Mierda
Comay Mierda's picture

BAC customers - you better keep an eye on your "segregated" accounts

Mon, 12/19/2011 - 17:01 | 1995496 GeneMarchbanks
GeneMarchbanks's picture

You mean the ones backstopping 57 trillion of hyper-hypothecated bets by trading savants at BoA?

Mon, 12/19/2011 - 17:12 | 1995537 NotApplicable
NotApplicable's picture

I've got a dead IRA over there with some CEF shares that I'm sure they're rehypotheticating at this very moment.

Mon, 12/19/2011 - 16:20 | 1995293 a growing concern
a growing concern's picture

I really like journalism that uses real language like "fucked up" and not just nice politically correct words. Thank you, ZeroHedge for being the only source of sanity in this crazy time.

Mon, 12/19/2011 - 20:33 | 1996105 Robert-Paulson
Robert-Paulson's picture

You can say that again

Mon, 12/19/2011 - 20:33 | 1996106 Robert-Paulson
Robert-Paulson's picture

You can say that again

Mon, 12/19/2011 - 16:20 | 1995294 OuaisBla
OuaisBla's picture

PPT team need some BAC UP.

Mon, 12/19/2011 - 16:20 | 1995295 Misean
Misean's picture

Reuters to report a Middle Eastern Govy fund to buy oodles of Skank of A stock in 5...4...3...

Mon, 12/19/2011 - 16:20 | 1995298 DogRockets
DogRockets's picture

What was that? I'm having trouble seeing my screen around my raging erection!

Mon, 12/19/2011 - 16:21 | 1995301 nwskii
nwskii's picture

Dont worry, 10:1 Reverse split should bring it back above 40 

Mon, 12/19/2011 - 16:36 | 1995315 ebworthen
ebworthen's picture

BOA Below $4.00 cues $3 Trillion of QE3.

Mon, 12/19/2011 - 16:23 | 1995319 AccreditedEYE
AccreditedEYE's picture

Gotta love all the "liquidity"... Nobody is gonna learn a thing till they blow the whole market up. (and we're getting to that moment quickly)

Mon, 12/19/2011 - 16:25 | 1995330 lizzy36
lizzy36's picture

Hanuukah Fairy is definitely not kind to Bruce Berkowitz this year.

He must have been very naughty.

92m shares average price of $15 per. does one triple down now?

Mon, 12/19/2011 - 17:24 | 1995582 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I hope so; that'll show 'em.

Mon, 12/19/2011 - 16:26 | 1995333 Odin
Odin's picture

Just read a headline "Eurozone countries to boost IMF resources"....

HAH!... Can you believe they are still trying to ramp?!?

Mon, 12/19/2011 - 16:26 | 1995334 Jlmadyson
Jlmadyson's picture

Buffet bet underwater 1.5 billion at least.

Mon, 12/19/2011 - 16:35 | 1995383 Falcon15
Falcon15's picture

Buffet holds preferred, not common shares. In the event of liquidation and he gets paid a fixed dividend (paid before common stockholders). If you hold common stock, good luck to you. The Bathtub Prophet is not taking a bath on this one, at least not one as bad as a common stockholder will. He will write off the loss (if any) to offset any gains for 2011, and it is a wash.

Mon, 12/19/2011 - 16:39 | 1995400 Everybodys All ...
Everybodys All American's picture

It's preferred and it's also underwater. Their is a caveat of a forced secondary as it breaches $5 appparently though. Who said Buffet is not for the common man. <sarcoff>

Mon, 12/19/2011 - 16:27 | 1995340 Hedgetard55
Hedgetard55's picture

What, a 3 PM waterfall in TBTFs, and no 3 PM juice? Ben, help! Robo! Waaah...

Mon, 12/19/2011 - 16:27 | 1995341 no life
no life's picture

Nobody saw this coming!

Mon, 12/19/2011 - 16:28 | 1995344 MountainMan
MountainMan's picture

Sink, you fucker!

Mon, 12/19/2011 - 16:28 | 1995345 The Swedish Chef
The Swedish Chef's picture

I say BTFD. No way TPTB will let this go on for long. 

Mon, 12/19/2011 - 16:42 | 1995413 The Swedish Chef
The Swedish Chef's picture

Junk on all you want, you´re just shooting the messenger. And you know perfectly well BoA is trading at $5 before the end of the week, perhaps even before the session is over...

Mon, 12/19/2011 - 17:16 | 1995546 walküre
walküre's picture

Too many balls. Time to load up on GS puts.

Mon, 12/19/2011 - 17:21 | 1995569 SAT 800
SAT 800's picture

You're correct, of course; but this is hardly a bastion of logic; or the home address of actual skilled stock market investors. Just ignore the peanut gallery.

Mon, 12/19/2011 - 17:23 | 1995580 tmosley
tmosley's picture

Uh-huh, perhaps you should seek the great wisdom of the Yahoo Finance forums, then?

Tue, 12/20/2011 - 10:52 | 1997461 The Swedish Chef
The Swedish Chef's picture

And BAC is trading at...$5,12. What a fucking surprise. Now, go fuck yourselves, tradetards.

Mon, 12/19/2011 - 16:29 | 1995355 TideFighter
TideFighter's picture

Proceed to ramp in 3,2,1....

Mon, 12/19/2011 - 16:31 | 1995363 NoMoreDebt
NoMoreDebt's picture

Good news is the ATM Debit Card fees are back at $4.95.... wait 4.94.. oops 4.96, just to be fair

Mon, 12/19/2011 - 16:31 | 1995367 Roland99
Roland99's picture

I think Buffet's heading to Margaritaville for the holidays.

 

Mon, 12/19/2011 - 16:33 | 1995374 Kreditanstalt
Kreditanstalt's picture

So some silly bank going below some certain $ point is enough to send my already ludicrously unloved (but highly profitable!) Kinross Gold down even more...?

There are INVESTORS and there are SPECULATORS...then there are MACHINES and GAME-PLAYERS and CROOKS and TWITS-AND-IDIOTS...

Mon, 12/19/2011 - 16:43 | 1995422 monmick
monmick's picture

Gotta agree Kinross does look attractive here...

Mon, 12/19/2011 - 17:29 | 1995606 SAT 800
SAT 800's picture

Everything looks cheap here; ABB; F; GE; almost anything would be better than a mining stock. ABB is probably the best stock to hold for the next 10months; remembering that the criteria is risk/reward. The risk is practically non-existant; there's a good dividend and if you use 2-1 margin to buy it it will be a nice profit at $24.50.

Mon, 12/19/2011 - 17:25 | 1995589 SAT 800
SAT 800's picture

You're wrong, there are no investors. There was never any reason for you to own a mining stock; the standard story that they exhibit reliable beta relative to the underlying metal is simply false. Read library books about markets. It's not the markets fault that you did something foolish that you could of learned was not desirable. So, now that you know better, be alert for a chance to unload your mining stock.

Mon, 12/19/2011 - 17:45 | 1995673 Kreditanstalt
Kreditanstalt's picture

We're not finished yet.  Wait a few months till gold takes off again and THEN we'll see.

I've never understood dividend-chasers or beta-chasers or lovers of consumer-dependent stocks.

Mon, 12/19/2011 - 16:34 | 1995380 walcott
walcott's picture

nice $5. 

Mon, 12/19/2011 - 16:34 | 1995382 Tsar Pointless
Tsar Pointless's picture

"They" saved BAC in late November, just as it was about to plunge to the depths that lie below $5/share.

Now, here in December, it does exactly that. What will "they" do this time?

I say "they" let BAC go this time. After all, "everybody" expects "them" to "save" it.

What better way for "them" to fleece "everybody"?

Merry Fucking Christmas, bitchez!

Mon, 12/19/2011 - 17:05 | 1995512 justanothernerd
justanothernerd's picture

I say buy calls and puts -- it's going somewhere!

Mon, 12/19/2011 - 16:35 | 1995385 aerial view
aerial view's picture

BANK-rupting OF AMERICA at $4.93: tell all your friends to close their accounts until it goes to 0 and join the bank bashing holiday party!

Mon, 12/19/2011 - 16:35 | 1995388 jay28elle
jay28elle's picture

If I've said it once, I've said it a gazillion times... BAC has no bid'ness being in bid'ness.    I hope this puppy drops all the way down to sub 2.5, but I know the crooks in the fins and hedges will be buying this shit up soon nuff.  Sub 5 likely will not be for long.

Mon, 12/19/2011 - 16:36 | 1995390 pauhana
pauhana's picture

Kyle Bass said today was the day that we witness the beginning of the end.  Alleluia!

Mon, 12/19/2011 - 16:36 | 1995391 stant
stant's picture

that top chart looks like a dying squid

Mon, 12/19/2011 - 16:38 | 1995394 flattrader
flattrader's picture

OWS and other groups need to step-up the pressure.

Bad PR using forclosed families right before X-MAS is a BAC nightmare...and another round of depositor withdrawls.

Mon, 12/19/2011 - 16:39 | 1995395 Waterfallsparkles
Waterfallsparkles's picture

I would bet they will use tech stocks to pull the Market back up.

Watch Aapl, goog and Amzn.

Mon, 12/19/2011 - 16:40 | 1995399 unununium
unununium's picture

When does this thing go no-bid because the PPT owns it all already?

Oh never mind, at that point they can make the market do whatever they want as they buy and sell it to themselves all day.

Mon, 12/19/2011 - 16:40 | 1995406 Misean
Misean's picture

Soon the rush for the few lifeboats will begin as the realization that the deck chairs will rearrainge themselves dawns...

Mon, 12/19/2011 - 16:42 | 1995416 Snakeeyes
Snakeeyes's picture

Housing is not recovering in a way that helps banks or the GSEs. Even worse, LOOK AT THE CHART OF FEDERAL DEBT AND GSE DEBT! What were these people thinking?

http://confoundedinterest.wordpress.com/2011/12/16/housing-starts-and-home-sales-sneak-peak-for-next-week/

 

 

Mon, 12/19/2011 - 16:46 | 1995424 HardlyZero
HardlyZero's picture

Is this going to affect the BAC bonuses ;-0  And dividends ?  and vacation getaways ?  and corporate benefits ?

When does the Pope (yes, that pope) walk into the room and lay down the law ?

After MF Global and now BAC...what else could go wrong and require serious divine intervention and SHTF kickass ?

Mon, 12/19/2011 - 16:46 | 1995434 stant
stant's picture

as i looked up bac current price a comercial about bac customer loyalty came on . i laughed so hard

Mon, 12/19/2011 - 16:50 | 1995448 Alex Kintner
Alex Kintner's picture

Allahu Akbar! Olly Olly Oxen Free! Bankrupt America Runneth Over!

Mon, 12/19/2011 - 16:51 | 1995456 SAT 800
SAT 800's picture

Only thing I can say is Whoops!  Somebody dropped the soap.

Mon, 12/19/2011 - 16:52 | 1995459 AldoHux_IV
AldoHux_IV's picture

Now it's up to the PWG to save the PPT as Chanos will come out and state he's short BAC-- afterall in a centrally planned world why not make money either way.

Mon, 12/19/2011 - 16:52 | 1995462 walküre
walküre's picture

Here's hoping my $1 bid will fill before EOY.

Mon, 12/19/2011 - 16:53 | 1995464 HarryM
HarryM's picture

Waiting for that push up at just before the close

Mon, 12/19/2011 - 16:54 | 1995468 monopoly
monopoly's picture

Absolute carnage out there and the DOW is down...1%. And you know they will do everything to close BAC above 5. 

Mon, 12/19/2011 - 16:55 | 1995476 Falcon15
Falcon15's picture

They keep trying to break the 4.97 level and get pushed back down...

Mon, 12/19/2011 - 16:55 | 1995477 DB Cooper
DB Cooper's picture

Only 2 positive Dow stocks are merck and pfizer - apparently banksters are going to need a lot of sedatives.

Mon, 12/19/2011 - 16:56 | 1995483 gwar5
gwar5's picture

Seems to me somebody bought a large a hedge that BAC would break $5 on the downside.  It's his birthday.... it's his birthday...

 

Mon, 12/19/2011 - 16:58 | 1995486 Jlmadyson
Jlmadyson's picture

Take out the Bernake put and DJIA would be like 10k.

Mon, 12/19/2011 - 16:59 | 1995487 Widowmaker
Widowmaker's picture

The market is a fragile dominatrix.

Grab your choke ball and anal beads.

Mon, 12/19/2011 - 16:59 | 1995488 NumberNone
NumberNone's picture

Dear BAC,

We would love to work with you to resolve your stock price delimma but it is not our policy to assist in these sort of matters.  You now have 30 days to evacuate your corporate offices or you will be forcibly removed by the local sheriff's department.  Once removed we will do absolutely nothing with your property and as a consequence negatively impact all the other corporate shitbags around you. As a result of this abandonment on our part we will not only drag down the value of the other corporations around you, we hope to also negatively impact the state and local governments that will be forced to tear down your soon to be delapidated office space exasperating an already dire local government financial situation. 

We honestly want to help you but if we help you then CitiGroup, Wells Fargo and other douche bags banks would expect their handout also...and we can't have that can we?  Don't think of the sub-$5 stock price and ejection as a negative but an opportunity to start a new life or business.

Signed - Fucking Karma

 

 

Mon, 12/19/2011 - 17:02 | 1995500 ebworthen
ebworthen's picture

I'd bet anything the FED is shadow buying BAC to keep the $5.00 line; probably through J.P. Morgue.

Mon, 12/19/2011 - 17:05 | 1995510 JLee2027
JLee2027's picture

LOL. $5 per share at 4:04.

 

Of course!

Mon, 12/19/2011 - 17:06 | 1995514 wretch
wretch's picture

What a fucking joke.

Why am I not laughing?

Mon, 12/19/2011 - 17:25 | 1995535 ebworthen
ebworthen's picture

 

 

FED used Merrill Lynch desks to keep it at $5.00.

Ben:  "It doesn't matter how much, you have an unlimited line of credit to buy whatever it takes to close BAC at $5.00 or higher."

He then opened up the FED bottomless pit swap line of credit of 1' and 0's with the keystroke "Ctrl + $"

Mon, 12/19/2011 - 17:05 | 1995513 stocktivity
stocktivity's picture

There you go....4:03 and they were able to jack it up to $5.

Mon, 12/19/2011 - 17:09 | 1995521 AC_Doctor
AC_Doctor's picture

Cuntzz in action.  PPTeam and Uncle Bennie throwing in to keep this sham going.

Mon, 12/19/2011 - 17:08 | 1995523 Amish Hacker
Amish Hacker's picture

Seven hundred million shares? Say it ain't so, Uncle Warren!

Mon, 12/19/2011 - 17:20 | 1995560 slewie the pi-rat
slewie the pi-rat's picture

will uncle warren want a new train next year?

stat tooned!

Mon, 12/19/2011 - 17:08 | 1995525 swani
swani's picture

Buffet has preferred shares in BAC, the only people that will be screwed are the tax payers. The FDIC is already on the hook for the depositors and the trustee will make sure the right people are taken care of. We all know how it works.   

Mon, 12/19/2011 - 17:09 | 1995526 Bazinga
Bazinga's picture

Also glad to see Warren lose a few schekels...

Mon, 12/19/2011 - 17:11 | 1995530 Jlmadyson
Jlmadyson's picture

All the red lights flashing just like 08. Swap lines, secret bailouts, bank failures, penny bank stocks, et al. If they are able to hold the system up even 12 more months it will be a miracle.

That red light ain't rudolph this Christmas.

Mon, 12/19/2011 - 17:21 | 1995567 AC_Doctor
AC_Doctor's picture

No shit,  the govt. is scamming and pickling the numbers of how deep in the hole we are.  No fukin way they keep this cam going long enoght to get O'Bam-Bam relected.  Hope you'all have cash on hand, PM's, food, water and bang sticks or you can just join the pillaging Zombie crowds...

Mon, 12/19/2011 - 17:16 | 1995549 AC_Doctor
AC_Doctor's picture

50 Trillion in derivitives.  Nobody is getting shit from this forkin Ponzi when the scam finally falls apart.

Mon, 12/19/2011 - 17:22 | 1995554 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

BAC should reverse-split like C; it worked for them.

BAC's true worth, by Smashing Pumpkins

Zero-

My reflection, dirty mirror

There's no connection, to myself

I'm your lover, I'm your zero

I'm the face in your dreams of glass

Mon, 12/19/2011 - 17:18 | 1995558 walküre
walküre's picture

The battle for the penny.

Tug of war between $5 and $4.99 in after hours is one hell of a show!

That one penny makes all the difference in the days and weeks ahead.

Mon, 12/19/2011 - 17:21 | 1995570 KCMLO
KCMLO's picture

I was thinking the same thing, looking pretty impressive so far!  Holding at 5 flat right now... we'll see...

Mon, 12/19/2011 - 17:20 | 1995561 toothpicker
toothpicker's picture

Plunge Protection Team : the plunge was safely protected all the way down. Nice work boyz! :)))

Mon, 12/19/2011 - 17:21 | 1995563 frieswiththat
frieswiththat's picture

Move those fuckers to otcbb, soo we can beat the stuffings out of them for good! btw..funny how the common price is the same as those proposed debit fees.........Karma BITCHES!!!! HAHAHAHAHAHAH

Mon, 12/19/2011 - 17:23 | 1995575 AC_Doctor
AC_Doctor's picture

PINK SHEETS Uncle Warren you dumbass...

Mon, 12/19/2011 - 17:21 | 1995565 frieswiththat
frieswiththat's picture

Move those fuckers to otcbb, soo we can beat the stuffings out of them for good! btw..funny how the common price is the same as those proposed debit fees.........Karma BITCHES!!!! HAHAHAHAHAHAH

Mon, 12/19/2011 - 17:21 | 1995566 Jlmadyson
Jlmadyson's picture

Yup NY fed going to have to step it up. 4.99 at 4:18.

Mon, 12/19/2011 - 17:22 | 1995571 fonzanoon
fonzanoon's picture

Anyone else out there own skf? If so are you also suprised it is 66 bucks and not 150? Bunch of crap....

Mon, 12/19/2011 - 17:23 | 1995573 jmc8888
jmc8888's picture

...and as for tomorrow, besides what ZH has astutely forwarned about watching washington this evening, we now have the VP of Iraq arrested. 

Of course it's speculation that might not mean anything....but...when the highest ranking SUNNI leader gets arrested in SHI'ITE-land (not to be confused with BAC which is shitland), right after our troops leave, one probably should not be bullish on sectarian peace in Iraq. 

Just another thing for the markets to digest along with the UN-Jong.  Will he fizzle as the UN-leader?  Or become another red spot on the ground? One should be sure to be 7 Sigma-UP on the news.

Glass-Steagall

Mon, 12/19/2011 - 17:24 | 1995584 Seasmoke
Seasmoke's picture

where is Ken Screwus ???

Mon, 12/19/2011 - 17:26 | 1995594 PulauHantu29
PulauHantu29's picture

'Axis of Ponzi' breaking down. Oh my!

Mon, 12/19/2011 - 17:28 | 1995597 Seasmoke
Seasmoke's picture

a penny , between $4.99 and $5.00 , for your thoughts Brian

Mon, 12/19/2011 - 17:32 | 1995598 ebworthen
ebworthen's picture

 

 

Bernank hurting fingers at keyboard - 3:55 p.m. EST - BAC screen via Merrill Lynch backbone connection:

Ctrl + $

Ctrl + $

Ctrl + $

Ctrl + $

Ctrl + $

Ctrl + $

...

Mon, 12/19/2011 - 17:28 | 1995602 TheGardener
TheGardener's picture

Back in the old days , you couldn't short below 5 bucks.
These days, with fairy tale leverage, freeze as in short
squeeze , it is no longer quotable in degrees fahrenheit
what time-to-death you 'll be betting on.

Mon, 12/19/2011 - 17:29 | 1995603 Chicago bear
Chicago bear's picture

Fidelity is not in the list. Note they got out and stayed away from the madness. Very interesting. Fidelity owns nearly all the stocks in the market and often are listed near the top of companies. Johnson family didn't play this time. 

Mon, 12/19/2011 - 17:31 | 1995612 Mark123
Mark123's picture

gotta love the spin doctors....this quote is classic attempt to pin weak markets on something other than the collapse of the financial ponzi:

 

"suggesting investors were calm after the shock of the Korean news wore off"

Mon, 12/19/2011 - 17:32 | 1995621 Hicham
Hicham's picture

So what happens to an ETF's price if a stock it shorts does a reverse split?

Mon, 12/19/2011 - 19:04 | 1995883 Matt
Matt's picture

well, if you held 1000 shares and there is a 20:1 reverse split, you now have 50 of the new shares. I assume if you short 1000 shares and there is a 20:1 reverse split, you would now be short 50 of the new shares.

The reverse split itself shouldnt directly have an impact. however, after the reverse split, the stock will probably drop a bit, so the ETF should increase in value. What SHOULD happen, and what will actually happen, may not be the same thing, especially these days.

Mon, 12/19/2011 - 17:33 | 1995624 YesWeKahn
YesWeKahn's picture

How does Paulson do? Hasn't he sold?

Mon, 12/19/2011 - 17:33 | 1995625 YesWeKahn
YesWeKahn's picture

How does Paulson do? Hasn't he sold?

Mon, 12/19/2011 - 17:35 | 1995641 SmoothCoolSmoke
SmoothCoolSmoke's picture

Calling Dick(head) Bove!   Mr. Bove!

Mon, 12/19/2011 - 17:40 | 1995654 KCMLO
KCMLO's picture

I hope Nanex keeps an eye on that one tonight.  Even in my snail-pace stock chart it just smashed to $5.20 then disappeared... looks like they're pulling out all the stops...

Mon, 12/19/2011 - 17:41 | 1995659 Jlmadyson
Jlmadyson's picture

And while we're all not paying attention the forex guys are partying with the euro back at a 1.29 handle.

Mon, 12/19/2011 - 17:54 | 1995698 loftgroovv
loftgroovv's picture

BAC seems to be taking it in the rear.

Much longer before it falls over?

Mon, 12/19/2011 - 17:58 | 1995713 Prairie Fire
Prairie Fire's picture

Did you see that huge spike up? It's back at 5.

Obviously this represents millions of investors around the world seeing a once in a lifetime buying opportunity.

Obviously.

Mon, 12/19/2011 - 18:17 | 1995774 Stuck on Zero
Stuck on Zero's picture

New study just out.  This is a must-read:

http://arxiv.org/abs/1112.3095

Evidence of market manipulation in the financial crisis

 

Vedant Misra, Marco Lagi, Yaneer Bar-Yam We provide direct evidence of market manipulation at the beginning of the financial crisis in November 2007. The type of manipulation, a "bear raid," would have been prevented by a regulation that was repealed by the Securities and Exchange Commission in July 2007. The regulation, the uptick rule, was designed to prevent manipulation and promote stability and was in force from 1938 as a key part of the government response to the 1928 market crash and its aftermath. On November 1, 2007, Citigroup experienced an unusual increase in trading volume and decrease in price. Our analysis of financial industry data shows that this decline coincided with an anomalous increase in borrowed shares, the selling of which would be a large fraction of the total trading volume. The selling of borrowed shares cannot be explained by news events as there is no corresponding increase in selling by share owners. A similar number of shares were returned on a single day six days later. The magnitude and coincidence of borrowing and returning of shares is evidence of a concerted effort to drive down Citigroup's stock price and achieve a profit, i.e., a bear raid. Interpretations and analyses of financial markets should consider the possibility that the intentional actions of individual actors or coordinated groups can impact market behavior. Markets are not sufficiently transparent to reveal even major market manipulation events. Our results point to the need for regulations that prevent intentional actions that cause markets to deviate from equilibrium and contribute to crashes. Enforcement actions cannot reverse severe damage to the economic system. The current "alternative" uptick rule which is only in effect for stocks dropping by over 10% in a single day is insufficient. Prevention may be achieved through improved availability of market data and the original uptick rule or other transaction limitations.
Mon, 12/19/2011 - 18:19 | 1995779 Ted Baker
Ted Baker's picture

TIME TO SHUT THIS BANK DOWN....

Mon, 12/19/2011 - 18:19 | 1995780 El Gordo
El Gordo's picture

I'll trade you a share of BAC for a gallon of premium diesel.

Mon, 12/19/2011 - 18:30 | 1995816 walküre
walküre's picture

You are making too much sense.

Mon, 12/19/2011 - 19:24 | 1995941 IndicaTive
IndicaTive's picture

How 'bout a couple silver dimes?

Mon, 12/19/2011 - 18:35 | 1995829 devo
devo's picture

I feel like Buffet has become a shill...or maybe he always was one. Gotta have heros to keep a charade going, and he's looks the part to most people. Even Obama is using him for something (i.e. tax). Makes you wonder if Buffet even made his money on his own, or even has any money...if he just a manufactured figurehead created to bait Joe six pack? That's how skeptical I've become.

Mon, 12/19/2011 - 19:25 | 1995949 CustomersMan
CustomersMan's picture

 

RE: Buffett

 

Remember when he accumulated a huge position in Silver at somewhere near $5 / oz maybe 12 - 15 years ago?

 

It was very strange, he believed in the position and his reasons for taking it, and they still held true. He then got a visit from someone (maybe a team of them) connected to the US Gvt. and after the visit, he unloaded the position, at a profit but no where near what he had planned when he took it on.

 

I don't know what was said, but whatever it was had to be very convincing, or threatening.

 

Mon, 12/19/2011 - 19:47 | 1995992 devo
devo's picture

Any links to that story? I wonder if it was around the time the ETFs came out, and he knew they weren't backed.

I don't remember it. Buffet always talks down gold now, though. You know he owns a ton of it somewhere, too.

Mon, 12/19/2011 - 19:26 | 1995954 Nobody For President
Nobody For President's picture

It WAS interesting to watch the PTT at work today manfully holding that sucker up at 5.01-.02-03-01-00-01-02-01 for several hours.

Wonderfully clear record for any and all to see how the HFTs and hedge funds in general manipulate the market. Volume was a third higher, as well, and the load was *still* being shouldered to keep that baby above 5.

Felt sort of like a (small) victory for the real market to have it close at 4.99, though the games continue after hours, of course.

Mon, 12/19/2011 - 19:49 | 1996019 Genève Barbegazi
Genève Barbegazi's picture

Bernanke to thé defribulator!

Can to 8 inches down the road....

Mon, 12/19/2011 - 19:54 | 1996025 devo
devo's picture

Haven't you heard? It's no longer a can. It's a infinite tonne dumpster overflowing with human feces.

Mon, 12/19/2011 - 20:41 | 1996120 oogs66
oogs66's picture

Buffet owns preferred so he is better than Mormon in bankruptcy

Mon, 12/19/2011 - 21:08 | 1996169 devo
devo's picture

Now that BAC is under $5, they'll do a 10:1 reverse split like Citi did.

C is going right back down to 4. Hilarious.

Mon, 12/19/2011 - 21:49 | 1996245 bill1102inf
bill1102inf's picture

THAT would make a great short entry point

Mon, 12/19/2011 - 21:18 | 1996194 ejhickey
ejhickey's picture

I have made some investing mistakes but NOT buying BAC was one of my best decisions

Mon, 12/19/2011 - 21:51 | 1996249 LeverShort
LeverShort's picture

I love the smell of 4-handle in the morning.  Next up GM bitchez!

Mon, 12/19/2011 - 21:52 | 1996250 bill1102inf
bill1102inf's picture

Yes! The whole market down on BAC... well, at least you managed to call the 24 hour low to the minute!!!

Mon, 12/19/2011 - 22:24 | 1996311 ucsbcanuck
ucsbcanuck's picture

Can someone please explain to me: During the 2008 crisis BAC went down to below $3 a share, but it wasn't a problem then. Obviously BAC had other problems. However now it seems that it is a problem if it drops below $5. What's changed between now and then? 

Tyler?

Tue, 12/20/2011 - 01:11 | 1996759 corvettekenny
corvettekenny's picture

$43 trillion in derivatives shifted onto the balance sheet?  But don't worry, it all nets to $0 ;)

Tue, 12/20/2011 - 22:53 | 1999865 ucsbcanuck
ucsbcanuck's picture

OK, so at < $5 people will start paying attention to their problems? 

Wed, 12/21/2011 - 11:56 | 2001179 ucsbcanuck
ucsbcanuck's picture

http://dailyreckoning.com/how-central-banks-attempt-to-prop-up-the-economy/

"‘If BAC had fallen below $5, there could have been an avalanche of selling because some institutions cannot buy or hold a stock that is less than $5 per share. A cascading BAC could have generated an “Emperor has no clothes” moment for BAC. (Buffett would have been chagrined). So it was imperative that someone closed BAC above $5 on Tuesday and that some scheme had to be implemented to drive the price higher on Wednesday.’"

Mon, 12/19/2011 - 23:10 | 1996412 Bansters-in-my-...
Bansters-in-my- feces's picture

I seen Timmy Weasel  Geithners name and.......

resistance.. is.....futile.... feeling...is too .....s.tro..n.g.....

.......FUCK YOU.Timmy..Weasel Geithner......................................!!!!Whooo....That feels better.

Mon, 12/19/2011 - 23:29 | 1996455 El Gordo
El Gordo's picture

I bought a truck load of silver last week and then watched the price drop $2.00 fifteen minutes later.  I bought a gross of incandescent light bulbs last week and then watched the Congress decide not to enforce the incandescent light bulb sale at the first of the year.  I've been married several times, am a drunk, and no one in my family will talk to me.  

But I never bought any BAC, so I'm not always wrong. 

Mon, 12/19/2011 - 23:32 | 1996468 Bansters-in-my-...
Bansters-in-my- feces's picture

PPT failed BOA cause they were busy Bitch slap'n Gold.....
Fuck You's Benny and Timmy

Tue, 12/20/2011 - 01:08 | 1996754 corvettekenny
corvettekenny's picture

So, if this is the Santa Claus rally....  What happens in late Jan when BoA reveals how much of its $1 trillion of deposits jumped ship?  $3.99?  :)

Tue, 12/20/2011 - 06:30 | 1997007 Money 4 Nothing
Money 4 Nothing's picture

Congrats Robo, BAC at $5.06, nice job. What was your Bid? $5.05? Now get the Fuck out before 3:00! Good call.

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