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Bank Of America Hilarious Denial #2
This is just hilarious: According to Bloomberg, Bank of America’s main hesitation was taking Warren Buffett’s money when bank had said it didn’t need capital, CNBC reports without saying where it obtained the information. It adds, the symbolic value of investment worth boost to confidence; "$5b not lot to raise" - also apparently "Terms better than public market." Here is our retort: Bank of America could have told Buffet: "No thank you" and leaked it. Instead it confirmed what Zero Hedge has been saying since October 2010 - that it is absolutely desperate for capital. Also, as to the saying that "terms were better than the public market" - why of course they are - the bank has absolutely no access to the public market. BAC IS LOCKED OUT! But at least we will soon see just how efficient Dodd-Frank's bank insolvency contingency is in real life. Because we have a feeling the brilliant legislation penned by Barney Frank and Countrywide's senator, may fall just a little short...
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bancorruptcy bitchez
Tyler, you don't expect a criminal to tell the truth, do you?
The shoe fits the BACrupt. White-collar-criminals.
bank of america not bankrupt?
in related news, steve jobs return to apple to accounce ipad3
http://azizonomics.com/2011/08/25/team-america-world-police/
This all just too funny.
Keep them squirming, Tyler.
Open your eyes!
Monday: Buffet talks to Obama.
Tuesday/Wednesday: B of A looks like collapse.
Thursday (early): Buffet announces $5 billion preferred stock deal with B of A.
Thursday: Immediately following Buffet announcement, the White House announces a plan to bail out distressed residential mortgages, of which B of A is loaded with! Jimmy gets to chow down at the tax table, compliments of Obama and whats left of the middle class. Oh, and don't forget, Buffet is hosting a $35k plate fund raiser for Obama in NY.
B of A gets a life line. Buffet gets free tax payer money. Obama rides to the "disteressed" home owners rescue. And the middle class gets presented the bill! Isn't that wonerdful? (sarc off)
http://truthingold.blogspot.com/
Ain't free market capitalism cool!
Closing in the red, bitches
I am praying to the stock market gods for that . . . .
X 2
BAC farce meet BAC reality.
Ouch, that's gonna leave a mark.
Warren just failed as a BAC fluffer.
http://en.wikipedia.org/wiki/Fluffer
There is no dilution like preferred dilution, especially at a discount to par.
Let's see.... Aw Shucks, Uncle Warren bought $5 billion of Goldman, "proving" the Giant Squid didn't need it.
1. $13 billion taxpayer money slipped to the Squid through AIG.
2. Cobbled together access to Fed funds in the tens of $billions for the Squid.
Yeah, sure... everything is peachy at BAC
BAC needs a whole lot more than 5 billion.
Maybe, but this should last them through the end of August . . .
Yeah a week... and then what? Obama bails them out?
welp, time to suck that last client payout out of bac and then close the account for good. lets see how long that 5b lasts.
Is the part where say to the dying man that he's going to be ok just before he fucking dies an agonizing death?
"You can hack it Cowboy."
pods
Alternatively, this is the part where the horrifically wounded BAC asks if it is going to die and Uncle Warren says, "not today."
If by dying man and aganozing death you mean Buffet when he realizes his left wing ideology of "everyone rich should pitch in MORE" translates into a $5 billion loss and it is his stroke, triggering a massive corinary followed by falling down the lobby escalator at BAC only to crack his head open and watch his own brain ooze out before him....
Then no...This isnt that part. Or is it?
When will the equity market wake up! It is 2008 all over again but worse.
BAC to the future (for about 20 minutes) then streight BAC to reality
All the headlines recently have been saying "this is nothing like 2008".
That's why this Sept/Oct will be exactly like 2008.
reverse reverse psychology! It's a mutha!
am actually loving the updates of ZH and Banzai on Twitter...hilarious...
that dickhead Roubini...still fighting ..no one listening to him anymore...
Um, now might be a really good time to ask for your money if you have a BAC acct. Better beat the herd.
Suck it up Munger. LOL
Wonder if Buffet knows the feeling to hold sub-prime slime?
Au Natural.
wow ,, i guess 5 bln are not what it used to be anymore..
probably bought couple more days...
alx
I'd love to know if Warren took out a 0% no-recourse (naturally) loan from Uncle Ben to buy $5B worth of senior, preferred, and 6% dividend shares.
Bank of America has FOUR office towers in Pasadena (Corner of Lake and Colorado) that are all mostly empty. A few of these were taken over from Countrywide. Good luck finding tenants for those properties.
A few years before the financial crisis, I used to point out how all the major towers had bank names on them... and how it was pretty clear we are screwed at some point. I had no idea at that time the depth of those waters. Nonetheless, the writing was on the wall for all to see. Every skyline shouted out "who's your daddy, bitches."
I actually tell that to people. In every city the largest and most opulent buildings are invariably banks. That should tell you where all the money goes.
pods
Here in Rochester (NY) it's the KODAK building.
Not exactly a bank, but just as fucked and mostly empty.
There is talk about moving the local community college into the unused portions of the building. Still has a ( now unused) cafeteria to serve upwards of a thousand people at a time.
Feel sorry for Rochester, and Buffalo. Grew up in around Bingo. Empty IBM buildings galore in Endicott.
Genny Red Eyes I miss.
Whenever we head back to upstate it is sad how bad it has gotten. People in Bingo seem like they had the life sucked out of them. Which, when I hear about property taxes, etc, seemed pretty valid.
Still miss the smallmouth and muskie fishing though.
pods
Ha, grew up north of Syracuse, hard to imagine it used to be a nice place. Allied Chemical, Carrier, Crucible Steel, ... all gone.
Ya wanna make money in Las Vegas? BUY a casino!
I hope ZH has a contingency plan in place. Poking the 900 lb gorilla is at some point going to get some serious attention. Bravo ZH. Rock on. The truth is a bitch, isn't she?
++
Truth is the cleaner.
funny, Tom Brown had the exact same talking points (symbolic) on Bloomberg this AM
as BAC approaches Uncle Warren't strike price
"Uncle Warren't"...typo or pun? ;)
i smell blood in the water
and there are those who will mock, deride, laugh at, scorn and ridicule those of us who have said nyet to the paper parlor games in favor of the real mccoy - gold and silver.
hat tip to all brave souls who insist on playing the paper games. you've more guts than a skydiver.
I second that. However I am forced to play the paper game with my pension that i will have no access to for 20 years. Have is all in Au and Ag ETFs and PM mining stocks - I wonder if I will see any of it?
If BAC is really going down the toilet, this little footsy play from Warren is already gone...pfft...into the hole.
Look for the deficit ceiling to be reached and BAC to really fail in the fated month of October.
What do you bet Warren has his cocktail napkin with 'IOU 100+50 % --Tim and Ben' jammed into his jacket pocket at Jackson Hole even as we sit n spin about all of this....
Now is probably not a good time to own bank stocks. Owning shares of a gold/silver depository in a state such as Minnesota, Utah, Virginia, North Carolina, Idaho, etc., would be much better. (http://www.huffingtonpost.com/2011/05/22/utah-gold-standard-silver_n_865333.html)
Why take on counter party risk? Get physical.
http://www.youtube.com/watch?v=Yi_SWrXGTq4
Countdown with Keith Olbermann 08-19-2011 2 - S.E.C. No Evil, with Matt Taibbi
No Worries! The S.E.C. is watching Bank of America VERY CLOSELY!!
JW,
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817
http://www.rollingstone.com/politics/blogs/taibblog/document-shredding-why-secs-defense-wont-fly-20110819
My guess is blood pressure is up across the country.
<----------- Law Enforcement is a Fucking JOKE! in this Country!!
<----------- Law Enforcement is NOT! controled by Government Lobby Whores and is doing a GREAT! Job!!
We have more F.B.I. / S.E.C. / add other three letter group of idiots who are bought and Paid for Lobby Whore Lacky's!!!
than there are members of the same groups investigating Wall Street!
we need a better Lobby for ZeroHedge!
ok.. Tyler lets pass the hat so that we can BRIBE.. Oops, I mean Lobby the S.E.C. to look the other way in any and everything we do here!
HEY! F.B.I.!! YOU! ARE!! A!!! FUCKING!!!! JOKE!!!!!
Vote with a Bullets!! Help take America back from the Lobby Whores who OWN Law Enforcement!!
James Workman
@JWnFL Palm Beach, FL / Spanish Cay
Corporations Own the Lobby!
The Lobby Owns the Government!
Law Enforcement works for the Duly Elected Lobby Whores!
We the People = Screwed!
https://twitter.com/#!/JWnFL
Uh Oh, black helicopters on the way to visit you and I don't think it's Ben dropping hundreds.
You remind me of Gary Sinese on top of the mast yelling, "you call this a storm?"
Anyway, I would guess that any whistle blower who contacted the SEC didn't shred their files. The original files are probably in vaults all over the country. Now, if there were only a reliable investigator who could re-investigate (William Black working privately perhaps?) Remember, the investigations never got past the initial stages and it's the copies of the info that the whistleblowers sent in that was shreaded. I believe that many cases can be re-assembled.
I want to watch BAC die a horrible death. Should be very entertaining watching the hilarious denials.
"Tis only a flesh wound."
hahahahaha. Someone got paid for that response.
I know some claim that LIBOR is bullshit, but you have to actually prove that. Otherwise seems like they gave Buffett 20x what they could have secured in the market. Yes, they're locked out. But that means LIBOR is illiquid at this rate.
And it does matter, everyone's corporate variable interest rate debt is based on it. Which means CC- TXU gets a better rate than BAC. Broken market indeed
LIBOR IS BULLSHIT when central banks are pushing the yield on the primary competitor to private bond and bond equivalents, to wit, sovereign bonds, artifically lower (through programs such as QE).
These are broken markets all around, and Bernanke is public enemy number 1 in breaking them.
LIBOR is artificial, because Bernanke (and now Trichet and the BOJ) have used monetary policy to hammer yields down far lower than where market forces would have set them.
I agree. But if LIBOR doesn't rise, then the banks are just decapitalizing themselves all over again. Twist has squeezed them of capital. It doesn't matter if the Fed executes Twist. They're still borrowing high and lending cheap.
BAC only up .43 cents as of right now. Bets on if it closes negative?
This should hasten the demise of those bastards at BAC and teach mr buffet a lesson as well, about (worthless) paper, (physical)gold, and (the ponzi)america! Don't choke on those preferred shares Berkshire bitchez!
And he sold his silver.
this kind of web-journalism is what makes ZH so great. you can't find this kind of contrarian fact finding in many other places. truly empowering, IMO.
Bravo TD.
700 million warrants. 7% of shares O/S. The CEO is desperate. He's got to go.
That 5 Billion is just to pay off the Nebraska AG....and for nothing else..
Go long America, bitchez!
s&p says BAC rating unaffected by buffet deal
Even the assclown pumpers on CNBC are calling the fraud out on this one. If Moynihan didn't need capital why didn't he tell Buffett he can buy on the NYSE. These two deserve each other Uncle Fraud and Junior Fraud
S&P no help to bac
S&P no help to bac
wrong page! my bad sorry!
no one respects Moynihan......this will just quicken BOA demise
+1 to ZH
status quo is sucking wind
isn't BAC really a conglomeration of failing banks from years past?
Because we have a feeling the brilliant legislation penned by Barney Frank and Countrywide's senator, may fall just a little short...
ok but that means more liquidations on the horizon; temporary gold plunge as more bullion supply comes from nowhere from HSBC vaults of GLD..?! correction might be a bit deeper..?!
(yes I know in the long term Au & Ag are the winners)
Spoils of war from Libya, they were sitting on tonage, but not now. Search it.
The Bad Guy...
BAC-PL (B of A preferred) pays a 7.5% div on a strike price based on $1k.
At the price Buffet paid he is making an almost 9% on investment.
Sine wave: amplitude and frequency of BAC denials is increasing.
Who takes over BAC this weekend when they might follow the path of WaMu and Lehmans.......who?
Love how they say Buffets "investment" hahahha
Warren Buffhead, that senile and decrepit old weapon of apocalyptic misconstruction needs to come up with another 180 billion to save BAC, and more to survive those billions in long derivative contracts,while betting on a recovery around the time of Lehman on nothing but hopium and Bullshit...
(BAC - crap) to hear the Oracle of Omaha please pull this chain twice !
(rhetorically) If Glass-Steagall is worth a bar of gold...what's Dodd-Frank worth? One BAC share.
Stay away from BAC. They have a country-wide stance.
From an MSNBC article:
Funny that a bank which doesn’t need capital would cut a deal on such short notice with an outside investor without consulting existing stock holders first; particularly since the deal gives Buffett a much sweeter position than what existing stock holders have.
Desperate much? Either that or just blatantly irresponsible.
Anyone who studies Berkshire’s history knows that it grew by essentially feeding on helpless corporations when they were down and dying. That has been Buffett’s business model from day one. It’s predatory capitalism at its finest. I’m not saying it’s right or wrong; just recognizing a vulture what it is.
All that's left to watch for are the bubbles...
I bet Buffet never spent a dime on BA. The Feds just needed a front man , with a giant ego, to give BA 5 billion. Buffet isn't stupid enough to actually spend 5 billion.
Living through a currency devaluation and how to cope
I was managing an American subsidiary of a successful large US Company in Mexico. It had been a financial turnaround for our team. Cash flow had accumulated in our bank in Mexico and corporate didn’t want the money repatriated to the US. Although we had already paid a 35% income tax to the Mexican government, we would have to pay an additional 30% exit tax to repatriate the money. In addition, we would have to pay high fees for the peso/dollar exchange, in order to make the transfer. The company wanted to expand our successful business and so we decided to keep the money in Mexican pesos to be used for further expansion.
One morning, as my wife and I were on a trip driving on the highway, we heard a national message from the President of Mexico in 1976, Luis Echevarria, one of the most corrupt presidents in Mexican history. “It is a lie that we are going to devalue the peso,” he said.
Read more
http://lonerangersilver.wordpress.com/2011/08/13/living-through-a-curren...
"But at least we will soon see just how efficient Dodd-Frank's bank insolvency contingency is in real life. Because we have a feeling the brilliant legislation penned by Barney Frank and Countrywide's senator, may fall just a little short..."
I began laughing at that first sentence until I read the second. Uh, yeah, I'm sure DF will fall REAL short by being just as underutilized as the Prompt Corrective Action LAW put in place after the S&L scam, the law they've been ignoring since 2008.
Wasn't Matt Simmons taking a bath, too?
(No disrespect to the Simmons family.)
Never give up. Never surrender. Stay defiant to the end. Ignore and deny the bloodshed on your doorstep. Continue to pretend you are in control. Sacrifice anyone and anything to continue the fantasy.
I’m speaking of Gadhafi of course. Wait, you did realize I was speaking of Gadhafi…didn’t you?
They are going bankrupt, you can believe that. Maybe Warrent Buffets 5 billion was money he could put in there to keep BAC going for just a little longer (with the money backstopped by the govt. of course) until they can get a good rescue plan together for the market.
Ok BofA just borrowed capital at 15% when discount window open at 0% or very close to that! Something is seriously wrong here....