Bank Of America Continues Firesales To Shore Up Liquidity, Sells Canadian Credit Card Business To TD Group

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.'s picture

"You sell the good, you keep the take them both and there you have the BAC's of Life".....

Thomas's picture

Pull out the flowers and leave the weeds; you end up with a weed garden. That, however, is their goal. They are setting up Monsanto to make a fortune on Roundup.'s picture

All BAC has to do if they really wanted to drive the stock price up is declare they are going to liquidate all the Real Estate they are holding in the next 90 days....the stock would double or triple in value immediately....selling good business arms....not so much....

sitenine's picture

With mark to unicorn, that only works if you can sell to unicorn.
Last I checked, unicorns aren't buying...

Gmpx's picture

Canadian payment system is the worst I have seen. You cannot transfer money from your bank account to your grandma's bank account if it is in different bank. In Australia it is free.

Flakmeister's picture

Looks like BofA is to become the "bad bank" where all the toxic shit will settle to the bottom...


ZeroPower's picture

They became the bad bank with countrywide mortgage feces, and then meryll's CDO feces. So now, theyre just one big dump. They also have zero respect around the community, which is funny because they specifically acquired Merylls just to be able to say they are a 1st class bulge i-bank. Anyone whos worked there always come back witih the same story - the BAC old timers think they are the shit when they really arent and never were, and the merylls think they still are the shit despite having the unfortunate BAC logo attached to them now.

Nothing good going fwd for BAC.

Captain Benny's picture

Hate to break it to you, but BAC was never a good bank to begin with.  They've been a bad bank long before their name was Bank of America.

Flakmeister's picture

I recall the day BoA bought CW.... I was the only one in the office full of MBS, CDO, ABS types that said this was a bad deal and that BoA just had a big bite of a shit sandwich... I was informed that I did not understand the mortgage servicing business to which I replied that they did not understand solvency....

People used to look at me like I was from Mars when I discussed gold or showed them "real money", i.e. Franklin halves picked up for ~$5 each.... 

Votewithabullet's picture

There must have been some brainiacs in that office. CW stock was in free fall in the days leading up to that sale. Lewis said he tried to get out of the Merrill sale aber .gov had other plans. That CW sale was the fucked uped strangest thing I've ever seen. Has to be other forces at work behind that shit. 

Flakmeister's picture

Yeah, a bunch of braniacs. I lost all respect for MBAs and other financial wizards during my sojurn there. Some of these guys were very sharp while being blind to underlying fundamentals. I guess the big bonus cheques were the source of the cog. diss. I was the relative newbie, telling guys make high 6 and 7 figures that it was a shitshow... Hell, what did I know, they only hired me to model MBS and CDOs....

ZeroPower's picture

Yes, there were. BAC had many off b/s items tied into cuntrywide. Taking over CW meant these massive losses could, at least temporarily, not be shown to the market. When a firm fails, all its books are open. When a firm is taken over, only the party taking it over (well, all keen to take over do but regardless..) has a real look as per the DD required. In this case, surely the DD came back telling Lewis the firm had negative tangible value after taken into consideration all liabilities. But BAC couldnt let CW fail because it was the equivalent of AIG for GS.. i.e. the firm surviving would take too big of a hit from counterparty risk that they had to step in and save the firm (BACs case) whereas GS had the taxpayers happy enough to save AIG themselves.

The market is finally coming to grips i believe with BAC being the turd that it is.

Flakmeister's picture

Yes, BofA had huge exposure to CW... best to sweep it under the table. I imagine the game Lewis was playing was that if CW went too low, there was no guarentee that he could still buy it. Called it the "Dead Body Premium"

Goldenhands57's picture

Yes.. it is a turd..but all you need to see is who were "friends of Angelo" to understand why CW was part and parcel of the 5 Bank Cartel we now have on our hands, and future hands too( that I mean the Tax Payer, which by default is what is left of the Middle class). CW had a VIP Loan group.. and a LOT of Jumbo's on the big side were made at prices and terms that simply could not be matched anywhere to key persons in D.C.  There is a reason BAC is tied in like this. For those of you looking to see BAC implode I would caution you to be very very careful. Citi was on the ropes...remember? Lehman fell.. Bear Sterns also.. Wa Mu.. October 2008 stuff; and what happens? Over the weekend Citi was handed the keys by Paulson to OUR Treasury!!!!  I was Short big time Citi in Puts that week before.... so I'm talking this from the pain side of things gentlemen, not theory!!! I got hammered hard by that one.  Our crooked ass shamful bloodsucking Government can and WILL do anything it can to defend the Status Quo. We all know Government Sachs IS the Treasury now, and BAC is the trashcan. So? Lissen.. I hate these fuckers more than you can imagine...and I will NOT sell my metals...not until they are all TOAST! NOT until I can buy sa median sized American home for 100 Silver Eagles. I pay taxes and all other obligations to them with the funny money they print, but the fact is I can and I will take advantage of how this is going to play out to gain physical metals anytime I can. I learned my lesson on Citi! BAC is not going to go down unless for whatever reason they piss off the other members of the Cartel. These fuckers are all tied in together in this...and QE3 by way of default of BAC is in the cards. Markets are prices determined by opinions of those involved UNTIL the time interventions happen. We're gonna get screwed again because BAC is kin to these evil fuckers.   

Flakmeister's picture

Not angry are you??? 

I got reamed being short 1000 COF when they changed the rules and the fucker jumped 20 pts.... 

Catullus's picture

Good move, BofA.  You know you're undercapitalized.  It's time to raise cash to pay back your creditors and depositors.

A Man without Qualities's picture

The cash will be used to pay legal settlements, there will be nothing for creditors or depositors.

fwchiro's picture

It's moves like this that make me wonder what the other hand is doing...

Cursive's picture

Which also means that as BAC retains the non-performing assets, it is forced to sell its cash-generating trophies.

BAC has non-performing assets?  I don't remember them disclosing a material amount of these non-performing assets.  And they would disclose them, right?

gwar5's picture

BAC is now subprime like they made the rest of us. Too bad. 

Nationalize them, break them up, sell them off, and hang their head on a pike at the entrance to the city as a warning to others.

Drag Racer's picture

where the turkey is done, you carve it up and eat the good meat. whats left is the carcass that gets tossed. sorry folks abut the pop up meter signaled the bird was done a while ago...

j0nx's picture

If your BAC debt gets sold to another company for pennies on the dollar then tell the new company you will pay them the same pennies on the dollar plus 3c for their trouble to pay it off. Why should they get 100c on the dollar for YOUR debt when they only paid a dime for it?? F that. If they say no then tell them they get DICK. That's my plan for when BAC folds.

rufusbird's picture

Problem with that is the Fed is going to promise the buyer (Goldman) to make them whole. Using Taxpayers dollars of course...

Seasmoke's picture

what will be the knockout punch.......lawsuits, Helocs, origination fraud, fraudclosure, robosigning, undercapitalization....... the problems are endless, but the knockout is coming

Eugend66's picture

Failing while ZIRP is guarateed for two more years ..... . HUGE smile !

bankruptcylawyer's picture

bank of america is experiencing a slow motion bank run like lehman and is being handled by the fed . the fed wants to delay the qe3 announcement as long as possible, which requires that they give bank of america the encouragment to start selling their crap to the business world before conditions arise in which no one will buy it, in turn, necessitating an announcement of qe3. the timing on qe3 is NOT as everyone on wall street's not going to be now. it's going to be after obama's re-election. 


yes folks......the plan is for the stock market to trudge along with dow above 9k until 2013. 

Pegasus Muse's picture

If that's the plan a second term for Barry Hussein O. is looking kinda weak.

azusgm's picture

It's an unwind outside of bankruptcy court.


Bye bye BAC.

unununium's picture

It's wiping the mud off your shoes outside the house of bankruptcy.  You still have to go inside and throw everything else into the washing machine.

runlevel's picture

tyler durden group? EH ? EH? aw :(

traditionalfunds's picture

Have we all been underestimating the value of the BofA patent portfolio?