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Bank Of America CDS Hits Escape Velocity
We take this moment from your busy schedules to update you that the CDS of Bank of America has reached escape velocity and has now entered suborbital traffic. At 370 bps, which is where the CDS is trading as of this moment, it is only 30 away from the 400 it hit in March of 2009 when the world had to be bailed out by the Fed: a ploy which this time will not work since every central bank has already doubled down to the hilt. In other news, expect bashing of evil bloggers who indicate BofA default risk spikes to commence momentarily as obviously it is only they who are to blame for BAC's upcoming bailout.
(red dot is where we are now)
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Is this called "Mark-to-Market"
Finally GLD beats out BAC from the March '09 lows
My operatives are telling me that a machine led 3:30pm ball busting selloff is in the works.
My sources are always dead fucking nuts right.
Uh, do I need to start worrying about my safety deposit box at my local BAC?
Haha, "safety" deposit box.
Is that a fucking oxymoron?
If you have anything of value in it, I would suggest getting it out. If there is a bank holiday, you'll have no access.
Not if you empty it.
Why people would hold valuable things in a box in a BANK is beyond me. Titles maybe. Birth certificates, etc.
PMs need to be closer than a locked bank when you dont have all the keys.
Plenty of places to hide PMs in a house. As long as you can keep quiet about having them, you are fine.
pods
NO, don't listen to the tin foils, that is a safe place to store your valuables. Even if SHTF over there they will open on time monday morning with the same office crew. Just a new name. Seriously, don't think to deep about this it is not the 11th hour or anything. Not being sarcastic.
Ah, Escape Velocity.
We should all be that lucky.
Given BAC's recent track record with acquisitions (Countrywide, Merrill) maybe it would be appropriate to just have them acquire the Fed and then see how long they last. They’ve already got the name and reputation. What more can you ask for?
Ken Lewis where are you ?
It's those damned Tea Partiers...
Breaking News: Dick Fuld to Takeover BOA for His Crisis Management Skills.
I don't understand why BofA won't sell off Countrywide.
August 11, 2011, 11:36 am
For Bank of America, Countrywide Bankruptcy Is Still an Option By STEVEN M. DAVIDOFF NYTThe real issue around Bank of America is not whether it survives, but whether it sacrifices Countrywide to save itself. More specifically, will Bank of America put Countrywide into bankruptcy? And will this stem the bleeding?
The Countrywide acquisition will go down in history as a deal from hell. It has already cost Bank of America tens of billions of dollars in litigation settlements, let alone losses resulting in a $20.6 billion charge to earnings in the second quarter. Bank of America has already announced that it expects another $5 billion charge for earnings, and American International Group said this week that it would sue Bank of America for $10 billion, mostly for loans issued by Countrywide. It appears that $5 billion is the floor.
Countrywide? Hell the Merrill purchase was a waste of money. If you rember correctly they paid a big premium for Merrill. Had it not been for that Merrill would have went down. Merrill had billions in that shit paper too. Besides anything tat BAC tries to sell the vultures will try to steal. They smell blood in the water.
Who would buy it? Seriously. Most of their "assets" are worthless.
Clarksez BAC will dump cuntrywide into BK on Labor Day w/e while everybody is BBQing and looking forward to football.
The next round of excitement will be when CPA firms finally fore banks to start reducing unrealistic values of their real estate loans.
why bail out BAC when you can just "strip" and "sanitize it" it under dodd-frank and serve the leftoverz to the morgue as "new accounts"? hey, if people lose money on this b.s. at this point, they sure can't blame the FED, can they? did anyone notice the "insider" liquidations under the QEz and the (how cld they be related?) prices of gold and silver since then? anybody? you, bubbles?
omg!!! did someone hyonotiZe you and cause you to salivate whenever the idea that "this is just like 2008" comes up, causing you to believe you "know what's going to happen in 2011" so now you can make a rilly "smart" trade????
When will the CDS price basically lock them out of the market?
if we extrapolate the CDS "data" under tyler's steady guidance, lQQkz like friday at the latest...8.26.11...tee hee...which also may be an important "date" for the EU, but i am such a BiCh 0'the Bong, right now, i can't remember exactly why for the for'n oinkerests involved...something to do with a "re-fi"?
can you?
Where the fuck are Mazillo and Lewis? Those punk-ass bitches need to be brought to trial, drawn and quartered.
Central bank cost average BITCHEZ!!!
Let them go to Mozillo for their next bailout.
#Winning
http://www.youtube.com/watch?v=UrS4ouzgmJQ
Huge underpreformer in equity, cash, and CDS for 2011.
Bac was given the poison pill via cfc. They were sacraficed by the Frbny and then chair TimmyG.
What does this mean for everyday folks who have a regular old checking account with BAC? The CDS seems to be tied to mortgages, the value of the bank's stock has plummeted, etc, Would someone plese enlighten me so I can look out for my father-in-law's financial interests because he has Alzheimers, he's a great guy and my wife and I would do anything we could to help him out.
BAC CDS closed at 380.6 within a RCH of their 2009 record, timberrrr
GS claosed at 255 after news that Blankfein hired a crim lawyer
Credit- default swaps on Goldman Sachs jumped 40 basis points to 255.4 basis points
As bank stocks took another nosedive Monday, led by Bank of America Corp. (BAC), the cost of insuring U.S. bank bonds against a default soared.
Derivatives used to protect against a Bank of America default were quoted mid-afternoon at 370 basis points, equivalent to $370,000 a year to insure the bank's bonds over five years, according to data provider Markit. That's a 9.8% jump from Friday's closing levels.
Investor confidence in financial companies remained dampened amid uncertainty about economic stimulus, mortgage litigation and fears of contagion stemming from Europe's debt crisis.
Legal woes surrounding soured mortgage deals and concerns by some that the bank may need to raise capital by issuing shares are "the reasons that investors are more anxious with Bank of America and help explain its underperformance," said Otis Casey, credit analyst at Markit in New York.
BofA stock was down 6.2% Monday to $6.53.
Credit derivatives protecting against a J.P. Morgan Chase & Co. (JPM) default rose 4% to a cost of $130,000 a year, on par with default swaps protecting Wells Fargo & Co. (WFC) bonds at $132,000. Credit default swaps on Citigroup rose 8.4% to $232,000 a year, CDS on Goldman Sachs were up 2.3% to $220,000, and CDS onMorgan Stanley were up 2.4% to $298,000.
Read more: http://www.foxbusiness.com/industries/2011/08/22/cost-to-insure-us-bank-debt-jumps-led-by-bofa/#ixzz1VnX0k1b2
I just got off chat with Interactive Brokers. IB is saying that they do not quote CDS', so I'm kind of bummed out.
if you do deals through IB you WAAAAAAAAAAAAAAY dont have the balance sheet to write any CDS bro
That sucks, I have been getting a lot of ovetime cahnging out their air conditioners for the green B.S.
Resolution Authority