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Bank Of America Scrambles To Defend Itself From Henry Blodget's Allegations It Is Massively Undercapitalized

Tyler Durden's picture


Early this morning, Henry Blodget penned a post titled "Here's Why Bank Of America's Stock Is Collapsing Again" in which he used Zero Hedge data among other, to determine that the capital shortfall for the bank is between $100 and $200 billion. It took BAC exactly 6 hours to retort. Below is the full statement.

2011-08-23 16:29:04.675 GMT


(The following is a reformatted version of a statement from Larry DiRita, a Bank of America spokesman. The statement was confirmed by the sender.)


Mr. Blodgett is making “exaggerated and unwarranted claims” which is what the SEC stated publicly when he was permanently banned from the securities industry in 2003.  The sovereign exposure is off by a factor of 10.  The commercial real estate figures are off by a factor of four.  The mortgage analysis was provided by a hedge fund that has acknowledged it will benefit if our stock price declines.  The recommendations on goodwill accounting would be prohibited by generally acceptable accounting practices.  Traditional bank valuation relies upon tangible book value per share, which excludes by definition 100 percent of goodwill and other intangibles.  As of June 30, our tangible book value per share was $12.65.

Oh ok, Bank of America, that explains it all. As for the mortgage analysis being provided by a hedge fund "that has acknowledged it will benefit if our stock price declines", co-authored by Zero Hedge, does that make it wrong? Last time we checked Muddy Waters made money on Sino Forest...


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Tue, 08/23/2011 - 12:37 | 1590684 hambone
hambone's picture

Stocks rock - Gold sucks...the market tells me so.

Tue, 08/23/2011 - 12:38 | 1590691 trav7777
trav7777's picture

well fuck, they stuffed CFC and MER inside BAC, wtf did they expect when these rats finally chewed their way to the light?

Tue, 08/23/2011 - 12:43 | 1590720 bankrupt JPM bu...
bankrupt JPM buy silver's picture

why is the XLF rallying if they are all going to zero?  Here comes the shit show....

Tue, 08/23/2011 - 13:02 | 1590823 spiral_eyes
spiral_eyes's picture

Here's what happens if QE3 doesn't happen... 

Tue, 08/23/2011 - 13:14 | 1590871 hambone
hambone's picture

Once this rally loses it's up trend out.  Could come back down and retest 1101 in short short order.

Tue, 08/23/2011 - 13:27 | 1590923 Fish Gone Bad
Fish Gone Bad's picture

Fuck Bank of America.

Tue, 08/23/2011 - 13:43 | 1591015 JW n FL
JW n FL's picture



Some of WikiLeaks' Bank of America Data Destroyed

Some internal Bank of America files obtained by WikiLeaks have been destroyed, according to a former close collaborator of Julian Assange, the whistleblowing website's founder.

In an email to Reuters, Daniel Domscheit-Berg, who last year was fired by Assange as WikiLeaks' co-spokesman, confirmed that he had destroyed "roundabout" 3,000 submissions WikiLeaks received related to Bank of America.

Tue, 08/23/2011 - 13:47 | 1591043 JW n FL
JW n FL's picture




U.S. Bank Earnings Up From A Year Ago

U.S. bank earnings continue to increase but the trend is mostly due to institutions setting aside less to guard against losses, a top regulator said on Tuesday.

The Federal Deposit Insurance Corp said that the industry earned $28.8 billion in the second quarter, a $7.9 billion increase from a year before.

Who said that the Debt Ceiling being raised was a bad thing? QE1 and QE2 worked really well!!

Tue, 08/23/2011 - 13:50 | 1591057 Careless Whisper
Careless Whisper's picture

oh please, the whole wiki / b of a story smells.  i'm thinkin' that they either had nothing to begin with or maybe they got a nice contribution to do the data dump... who knows.

Tue, 08/23/2011 - 13:50 | 1591058 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Yeah, saw that yesterday. I guess that tells us whose dick Mr Dumscheit sucks.

Tue, 08/23/2011 - 14:41 | 1591472 Buckaroo Banzai
Buckaroo Banzai's picture


Huh. Is that pronounced "dumb shitbird"?

Tue, 08/23/2011 - 14:15 | 1591288 IQ 145
IQ 145's picture

Please, let's have a little sensitivity here; I own 1000 shares at $7.37; and before long you will have an opportunity to bail me out at a nice profit. HA HA. Come one, taxpayers we're rooting for you. Wait a minute, I'm a tax payer; hmm. this is getting confusing.

Tue, 08/23/2011 - 17:01 | 1592176 AbandonShip
AbandonShip's picture

Yeah man, I'm confused too.  I hate BofA but I think I hate Blodget more.  What to do?

Tue, 08/23/2011 - 13:31 | 1590926 eureka
eureka's picture

How about re-testing 1050?

Is Dick Bove just a bonehead, or a liar/cheerleader?

Dick says BAC is smack with capital and "deposits pouring in" ... - WTF...?

If the latter is true, who's depositing? The Bernank or the sheeple?

Tue, 08/23/2011 - 13:51 | 1591071 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Dick is mostly a bonehead, which makes the lying/cheerleading easier, since you don't have those pangs of conscience bugging you while the camera's on. The only "deposits" at BofA would be the steaming turds left by the front door of newly ex-customers.

Tue, 08/23/2011 - 13:27 | 1590925 Stax Edwards
Stax Edwards's picture

He s e, we get it, you have a blog that no one cares about, so you cite it in the first few comments on every single post.  We get it.  If you have not built up a following by now its not gonna happen by repeating yourself ad-naseusm.  Can you give it a rest or do like the rest of the advertisers and buy some click thru ad space?

Tue, 08/23/2011 - 14:46 | 1591508 CompassionateFascist
CompassionateFascist's picture

That S&P graph for the past month. Let's call it the "beached whale" curve. Like our entire economy.

Tue, 08/23/2011 - 12:45 | 1590724 TruthInSunshine
TruthInSunshine's picture




08-23 12:28: 24/7 Wall St Writes: JP Morgan may take over Bank of America




MORE TAXPAYER RAPINGS (minimum 100 Billion). AIG Part Deux!!!



Tue, 08/23/2011 - 12:56 | 1590794 j0nx
j0nx's picture

Good so now I know who I will be paying 10c on the dollar to for my BOA credit card debt. I already told Chase to fuck off in the worst possible way 10 years ago after I paid them off and have no trouble doing it again this decade.

Tue, 08/23/2011 - 13:10 | 1590860 TooBearish
TooBearish's picture

Tyler gunna bitch slap u then lecture u on links to hack web sites like this one

Tue, 08/23/2011 - 13:22 | 1590902 TruthInSunshine
TruthInSunshine's picture

Hi Sock Pupper version 3.0

Have fun trolling while it lasts for you.

Tue, 08/23/2011 - 13:56 | 1591052 Byte Me
Byte Me's picture

Do come back often when your command of the English language reaches 7th grade level.

'Til then -- fuck off...

Tue, 08/23/2011 - 13:30 | 1590936 glenlloyd
glenlloyd's picture

out come the really horrible ideas, like lets' have JPM takeover a failing BAC.....would be even more TBTF.

OTOH...BAC might just be enough poison to kill the new host....just maybe?

Tue, 08/23/2011 - 13:37 | 1590972 doggings
doggings's picture

08-23 12:28: 24/7 Wall St Writes: JP Morgan may take over Bank of America


MORE TAXPAYER RAPINGS (minimum 100 Billion). AIG Part Deux!!!



anybody who has been keeping up with the SilverGoldSilver bears would know this already.  SGS basically announced was coming this via teddy bears 2 weeks ago.

Tue, 08/23/2011 - 13:48 | 1591024 eureka
eureka's picture

I told a friend two weeks ago. Intuition has no filters. Isn't it an obvious repeat of 08/09? WFC will probably get C.  Consolidation Bitchez - bigger too big to fail bankster capital collectives courtecy of the elite.

Will the sheeple react? Will the Tea Party? Will zerohedge readers stop reading and start blowing up banks?

Tue, 08/23/2011 - 20:08 | 1592752 Kali
Kali's picture

Maybe that's what Uncle Warren was talking to lil Barry about.  : )

Tue, 08/23/2011 - 12:45 | 1590715 Popo
Popo's picture


OMG.  That's **ALL** BAC had up their sleeve?   An ad hominem attack?

Hehehe.... Short this pig to fucking ZERO.   I can think of no greater admission of absolute terror on BAC's part.   They had **NOTHING** to fire back with.

Honestly, that was one junior-varsity display of public relations skill if I've ever seen one.    Target all weapons and fire at will.     

Dive Dive Dive!    AROOOOOGA!


Tue, 08/23/2011 - 13:17 | 1590885 Crack-up Boom
Crack-up Boom's picture

Seriously!  When you have to resort to logical fallacies, you're out of bullets.  Somebody just put BOA out of its (our) misery!

Tue, 08/23/2011 - 13:58 | 1591114 Careless Whisper
Careless Whisper's picture

every time i read another story about b of a i feel like i'm watching the hudsucker project


Tue, 08/23/2011 - 20:05 | 1592743 Tunga
Tunga's picture

... and we're gonna call it the "Edsel"! Whadda you think?

Tue, 08/23/2011 - 12:46 | 1590731 slaughterer
slaughterer's picture

Branch Hill Capital/ZH/HenryBlodget -vs- BAC

1: 0 (for not providing exact figures, but just stating "factor of..." over and over, smearing Henry, and not mentioning Tyler...)

Tue, 08/23/2011 - 14:54 | 1591553 CompassionateFascist
CompassionateFascist's picture

Henry's a pig; an avid, mischievious little kid who never grew up. He thinks Trig is Sarah's brat, not the daughter's. Absurd. OrIzzit?

Tue, 08/23/2011 - 13:24 | 1590912 Smiddywesson
Smiddywesson's picture

Oh, I wouldn't be so hasty troll.  Two weeks ago,1858 was a real good price.  Two weeks from now, 2085 will suit me fine.  If it keeps going up, I don't mind giving up profits.  Apparently you don't mind either, because you game back all the profits since 2000,

Tue, 08/23/2011 - 12:38 | 1590690 John McCloy
John McCloy's picture

  We know dilution is coming and that is unavoidable. Time to issue more shares Brian.

Tue, 08/23/2011 - 12:41 | 1590706 DefiantSurf
DefiantSurf's picture

who would buy the dilution?

Tue, 08/23/2011 - 12:55 | 1590782 Pladizow
Pladizow's picture

Uncle Sam, i.e., those who have always, and will always get fucked - the US tax payer.

Tue, 08/23/2011 - 12:47 | 1590749 slaughterer
slaughterer's picture

I think another 50 billion shares priced at $2 would suffice for 1 or 2 years more.  Could always R/S 10:1 to make it look respectable later.  

Tue, 08/23/2011 - 20:34 | 1592802 unununium
unununium's picture

Haaaaa that's only 150 shares for every man woman and child in the USA.  Nationalization, bitchez.

Tue, 08/23/2011 - 12:40 | 1590693 Boilermaker
Boilermaker's picture

Depends what you mean by massively?  If by it you mean gi-normously on a biblical scale...then, yes.  If you mean just the normal massively, then no.

Tue, 08/23/2011 - 12:39 | 1590694 mberry8870
mberry8870's picture

Me thinks he doth protest too much!

Tue, 08/23/2011 - 12:39 | 1590697 Two Towers AU AG
Two Towers AU AG's picture

How much time does it take to get the money out of a failed bank.. considering my deposit are lower than the 250000 USD insured amount....

Tue, 08/23/2011 - 12:44 | 1590723 New_Meat
New_Meat's picture

I'll get back to you on that.

Tue, 08/23/2011 - 13:21 | 1590895 scatterbrains
scatterbrains's picture

lol I luv ZH!!

Tue, 08/23/2011 - 13:11 | 1590864 HelluvaEngineer
HelluvaEngineer's picture

It depends on if the roads are passable

Tue, 08/23/2011 - 13:41 | 1591004 optionsoptions
optionsoptions's picture

If your deposits are under $250,000 then you won't even notice the bank failed. It will take a second at the same branch you always go to but with a different name.


ps. These deposits held at BAC are actually their liability. They are swimming in deposits that they can't/won't loan out so this would be helping their Capital Ratios.

Tue, 08/23/2011 - 12:39 | 1590698 oogs66
oogs66's picture

wasn't it a hedge fund that said over and over that lehman was a house of cards and would collapse?  thing he was right and now owns the mets

Tue, 08/23/2011 - 13:01 | 1590825 zenbones
zenbones's picture

But he owns the Mets and is now wrong.

Tue, 08/23/2011 - 12:40 | 1590699 reader2010
reader2010's picture

Bank of America will NOT be allowed to fail, and will be bailed out at the global taxpayers' expenses. 

Tue, 08/23/2011 - 12:44 | 1590726 CClarity
CClarity's picture

Au contraire!  The depositors will be covered by FDIC and if need be taxpayers.  Banking services will persist at BofA, but stockholders, preferred and otherwise, will NOT be bailed this time.  Bond holders in some jeopardy too, but less as the banking entity will live on.  Small percentage that it will actually be nationalized if European authorities go that route.  

Tue, 08/23/2011 - 12:52 | 1590766 Johnny Yuma
Johnny Yuma's picture

Uh... Sorry, the FDIC does not have the funds to cover BofA's deposits. If taxpayers cover this, there will be massive consequences. What will most likely happen is BofA will be dismantled with another big bank buying up the "good assets" while the rest are, dare I say, guaranteed by the Fed or Treasury and sold in smaller tranches to investors. Should this come to fruition, BofA will be dead and gone. 

Tue, 08/23/2011 - 12:58 | 1590807 Lucius Corneliu...
Lucius Cornelius Sulla's picture

The USG will sell bonds to fund the FDIC. 

Tue, 08/23/2011 - 13:37 | 1590976 BlackholeDivestment
BlackholeDivestment's picture

...that was sooo funny. Thanks for that.

aaah, what a sick world.

Tue, 08/23/2011 - 20:35 | 1592804 unununium
unununium's picture

Sheesh.  DO I have to draw you guys a picture?  What do you think QE3 will be for?

Tue, 08/23/2011 - 13:00 | 1590822 lolmao500
lolmao500's picture

LOL at the FDIC. Unless congress passes some kind of emergency 1 trillion $ additional fund for the FDIC, they won't have enough money... and even 1 trillion might not be enough.

Tue, 08/23/2011 - 13:03 | 1590830 CClarity
CClarity's picture

BofA does not have $1Trillion in deposits.

Tue, 08/23/2011 - 13:13 | 1590867 laomei
laomei's picture

14 Jun 2011 – Nationwide, JPMorgan ranks second in deposits with $996 billion, behind Bank of America's $1.02 trillion

You're all so fucked... all i can think of is your mom and a horse

Tue, 08/23/2011 - 13:15 | 1590875 Lax Accounting
Lax Accounting's picture

Straight out of their most recent 10Q:


Deposits: $1,038,408,000,000


So I guess you are right, they don't have $1 trilliong in deposits. They have MORE.

Tue, 08/23/2011 - 13:35 | 1590896 lolmao500
lolmao500's picture

Thanks much for these numbers.

Do you have the FDIC current balance? Thanks.

Found it... FDIC has $10 billion... Mwahahahhahaha

Tue, 08/23/2011 - 13:44 | 1591023 UGrev
UGrev's picture

I don't know if this is what you're looking for:

Tue, 08/23/2011 - 13:50 | 1591061 lolmao500
lolmao500's picture

Well from more recent...

The contingent loss reserve, which covers the costs of expected failures, fell from $13.8 billion to $10.3 billion during the quarter.

Tue, 08/23/2011 - 14:16 | 1591300 fishface
fishface's picture

Empty the pockets bitchez

Tue, 08/23/2011 - 14:05 | 1591183 NotApplicable
NotApplicable's picture

Here's their latest quarterly update. as of June they have $3.916B to cover $6.539T in deposits.

But, since it is a gov operation cash flow is meaningless, as it just goes in the red, until they squeeze the banks for higher fees to cover the next collapse.

Tue, 08/23/2011 - 15:45 | 1591743 Lucius Corneliu...
Lucius Cornelius Sulla's picture

The FDIC will protect depositors but I am sure that most of the losses will be taken by stockholders and bondholder haircuts.  I don't think Uncle Sam can afford to be nice anymore.  I seriously doubt that the public will stand for another TARP bailout.  That means that the FDIC will need a fraction of total deposits to hold them in temporary receivership.  But still, probably more than they have in reserves. 

Tue, 08/23/2011 - 18:44 | 1592492 Johnny Yuma
Johnny Yuma's picture

When events like this occur, people and institutions become very wary of the bank and start pulling their money out as fast as they can. I'd be curious to see what BofA's deposits trend has been since this has become a newsworthy issue. Same thing happened in 2008 and many of the troubled banks lost a lot of deposits out of fear of a bank failure. I think people will be quicker to react this time around as many did lose money in some of the smaller banks if they exceeded the FDIC limits. Pretty sure BofA is bleeding internally by now. 

Tue, 08/23/2011 - 13:23 | 1590906 centerline
centerline's picture

If BOA is allowed to fail, the whole game comes apart.  Too much counterparty exposure.  Too large a deposit base.  There will certainly be a "bailout."  But, it will likely be way more sinister this time in order to avoid public backlash.  Going to be interesting to see how they pull this off.  But, rest assured the only folks that will take it in the rear here are the taxpayers... again.  Same story again and again until the ponzi breaks.

Tue, 08/23/2011 - 14:21 | 1591334 IQ 145
IQ 145's picture

This is obvious; and it's one reason I bought some stock in it; but you don't want to state factual thesis here; it upsets the hive mind.

Tue, 08/23/2011 - 12:40 | 1590700 Astute Investor
Astute Investor's picture

How soon until Blodget mysteriously dies in a "swimming accident" in the Hamptons?

Tue, 08/23/2011 - 12:43 | 1590718 skohiu
skohiu's picture

More likely a heart attack

Tue, 08/23/2011 - 13:02 | 1590827 zenbones
zenbones's picture

Must avoid hot tubs.

Tue, 08/23/2011 - 14:07 | 1591220 NotApplicable
NotApplicable's picture

You're confusing a scape-goat with a trouble-maker. One is desired, while one is not.

Tue, 08/23/2011 - 12:40 | 1590702 RobotTrader
RobotTrader's picture



TPTB is attempting to "Nipple Bottom" paint BAC on the daily, and paint a massive bearish candle on gold.

Hey, whatever it takes to rotate the hot money out of gold and back into the XLF.

Never amazes me to see how rabid the bottom fishers are.

Tue, 08/23/2011 - 12:50 | 1590748 baby_BLYTHE
baby_BLYTHE's picture

the banks are totally insolvent and only exist on the pretense of printed FED money and accounting trickery.

the FED will throw themselves and the US currency onto a rusty nail before they let any "crash" occur- which is the entire predicate of the chaircreature's thesis: No bank will fail and everything will be exhusted to ensure that outcome- even if it means dropping dollar bills out of helicopters

Gold is trying to tell us something just as it has consistently for the past couple thousand years. Are you listening?

There is nothing "massively bearish" about the price action in gold today. Many, including myself, are breathing a sigh of relief that gold is consolidating some gains after a massive run-up. It is now the world's defacto reserve currency and is behaving in the complete opposite fashion then it did in 2008.

Those that continue to shrug off what gold is saying, deserve the cooking they are about to eat.

Tue, 08/23/2011 - 12:59 | 1590811 Confused
Confused's picture



I realize its become the thing to do to hate on Robot. But he did start that comment off with "TPTB" are TRYING to........


I don't think he was claiming that there was anything massively bearish about the price action of gold today.

Tue, 08/23/2011 - 13:44 | 1591018 sgorem
sgorem's picture

whew! for a minute there I thought Robo was serious and I'd have to sell my lone 5 gramer. Actually, any of you that think, believe in, trade in, suck in, anything that touches the likes of this Fraudulent Farce in Wall Street, OR the USSA government are in for a Big FUCKING Awakening. Good to see you gold and silver bashing trolls out today. not.

Tue, 08/23/2011 - 13:03 | 1590833 Lucius Corneliu...
Lucius Cornelius Sulla's picture

The FED is powerless.  They are getting pressure from all sides now. Internal and external.  The main concern of the Bernanke at this juncture is the survival of the institution.  Putting a bunch of crap mortgages on their balance sheet is completely out of the question.  Junk bonds (especially bank bonds) are going to take a beating along with gold.  Get ready for a melt-down!

Tue, 08/23/2011 - 13:07 | 1590853 baby_BLYTHE
baby_BLYTHE's picture

the problem with your premise is that he has already destroyed the FED. They already have sacrificed their credibility. Ben knows, and so does everyone else, he will be the last FED chairman.

Tue, 08/23/2011 - 13:40 | 1590984 Lucius Corneliu...
Lucius Cornelius Sulla's picture

QE2 sacrificed their credibility.  That is why I think QE3 is unlikely or reserved for desperate measures ... like the S&P breaking the '09 lows.  It won't work.  The house of cards is about to collapse.  The FED will be lucky to monetize T-bills.  Even that will cause a huge uproar among the Arabs, Japanese and Chinese.  Americans are fattened sheep being led to the slaughter house.  There won't be any resistance there...

Tue, 08/23/2011 - 13:53 | 1591048 baby_BLYTHE
baby_BLYTHE's picture

so you will really believe the FED will throw in the towel after they themselves even take credit for putting the brakes on "A Second Great Depression"? You think Ben will really let it all come crashing down after two and a half years stuffing this pig?

No one ever brings this up, but during his previous 60 Minutes interview Benocide said QE 3 was 'very possible', that interview was quite awhile ago too. I guarantee you they will try it (even if it doesn't work) QE 3 before they allow cascading defaults to occur.

You guys are the experts though. I could be dead wrong.

Tue, 08/23/2011 - 14:05 | 1591135 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Not an expert.  But I do think that the primary line of defense will be the T-bill and thus the ability of the USG to fund itself.  That means low, low rates for a long, long time.  That conclusion has drawn me to believe that junk bonds and even GSE paper will be sacrificed and the final line of defense (the ability of the USG to borrow) is likely to hold.  Does that mean there will be QE3?  Maybe.  But I bet it will be strictly comprised of T-bills.

Tue, 08/23/2011 - 20:37 | 1592810 unununium
unununium's picture

In the same interview he said he could raise rates in 15 minutes.  Now he says he won't for 2 years.

Tue, 08/23/2011 - 13:05 | 1590840 Winston Smith 2009
Winston Smith 2009's picture

"the FED will throw themselves and the US currency onto a rusty nail before they let any "crash" occur- which is the entire predicate of the chaircreature's thesis: No bank will fail and everything will be exhusted to ensure that outcome- even if it means dropping dollar bills out of helicopters"

Nope, that'll never happen because they know if they pull a Zimbabwe then _everyone_ loses and they'd have a violent revolution in short order as everyone but Bill Gates starves.  Eventually, the Ponzi prop-up games will end and large portions of the 25 TRILLION dollars of unsupportable debt in the US economy will default, causing massive DEFLATION.

Have a listen:

Tue, 08/23/2011 - 13:34 | 1590960 centerline
centerline's picture

The deflationary collapse is certainly plausibe.

I wanted to add something here though.  In the Zimbabwe scenerio, it would not be the FED that pulls the trigger on the helicopter drop.  It would be politicians - and the people themselves!  The stage has been set for this for some time now.  And the Fed alluded months ago that any further "easing" would be only if they lost thier independance.  Basically, as the system begins to slip into profound deflation, everyone will clamour for cash - and the politicians will provide exactly that at all costs.

Of course, the above is just another guess at what might happen with emphasis on redirecting the blame for a currency failure away from the central banking, debt-money scheme towards politicians and social decline.



Tue, 08/23/2011 - 12:50 | 1590762 Cleverbot
Cleverbot's picture

You see, you are smart. I still believe in you.

Tue, 08/23/2011 - 12:57 | 1590802 reader2010
reader2010's picture

The problem is some have eventually figured it out that the emperor has no cloth. The ultimate protection is cash flow?

Tue, 08/23/2011 - 13:14 | 1590869 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Hey Robo!


I missed you during the time gold was skyrocketing and financials collapsing.  If only you could have run commentary then.

Tue, 08/23/2011 - 12:41 | 1590705 Hondo
Hondo's picture

Tell BAC to open their books and lets all take a deep dive.....they won't do that and the FED is culpable in hiding what is behind the door...........take her down unless they and all other banks come clean regardless of the FED's BS.

Tue, 08/23/2011 - 12:41 | 1590708 buzzsaw99
buzzsaw99's picture

So if they are wrong and or lying does anyone go to jail? Hell no! Lie away maggots!

Tue, 08/23/2011 - 13:49 | 1591053 bread n circuses
bread n circuses's picture

No one should go to jail for lying.  It's your fault if you believe them and/or don't do your own due diligence.  In an ideal scenario, they would lose credibility and no one would listen anymore. 

The real problem is that, because of the SEC and FDIC and laws and regulations and codes and legislators who hold meetings and hearings and a whole lot of "oversight" by the benevolent government who are the same people who are lying to you, a lot of people like yourself seem to think that people won't lie; after all, there are laws against that!!  So it creates a false sense of security and laziness.




Tue, 08/23/2011 - 14:57 | 1591567 damnitalready
damnitalready's picture


We should have done our due diligence, and it's our own fault when Paulson said there would be tanks in the street if TARP didn't pass.

Oh, you didn't get to do due diligence, or no one listened to you when you did, yet you're still on the hook?  Too bad, take it out of Paulson's credibility.

Tue, 08/23/2011 - 15:25 | 1591696 bread n circuses
bread n circuses's picture

If you're in the game and you're playing by someone else's rules that you don't like, you're still in the game.  You don't have to be.


Tue, 08/23/2011 - 12:41 | 1590709 Bam_Man
Bam_Man's picture

Is that the same Henry Blodget - the convicted criminal who was barred for life from ever working on Wall St. again?

Tue, 08/23/2011 - 12:45 | 1590732 NOTaREALmerican
NOTaREALmerican's picture

Isn't it implied that anybody working on Wall Street is a criminal.  


It's like the concrete joke:   There's two types of concrete (Banksters),  cracked concrete (criminal banksters) and concrete that's gonna crack (banksters that haven't been caught yet). 

Tue, 08/23/2011 - 12:46 | 1590737 Confused
Confused's picture

Yes. But does that make his article (which relies upon the data of others) less than true?


I for one think Blodget is a hack. But lets be honest. BAC is shit. Pure and simple.

Tue, 08/23/2011 - 12:47 | 1590745 JPM Hater001
JPM Hater001's picture

Being kicked off Wallstreet doesnt mean you lose the ability to make right calls about Wallstreeet.  Madoff was a crook but is oddly qualified to identify the US ponzi scheme...even from jail.

Tue, 08/23/2011 - 12:56 | 1590786 tawdzilla
tawdzilla's picture

Yes, the same Blodget who was thrown under the bus by his ex-employer Merrill Lynch, which is now owned by BAC.  Isn't karma a biotch?

Tue, 08/23/2011 - 13:07 | 1590849 zenbones
zenbones's picture

The truth is the truth no matter who says it.

Tue, 08/23/2011 - 13:07 | 1590850 zenbones
zenbones's picture

The truth is the truth no matter who says it.

Tue, 08/23/2011 - 13:33 | 1590939 BlackholeDivestment
BlackholeDivestment's picture

...nice, I like it. ...on par with The Truth is not a choice.

Tue, 08/23/2011 - 13:31 | 1590937 Central Wanker
Central Wanker's picture

Yep. He's one of the few unlucky ones who has been barred. The majority of the criminals are still working there.

Tue, 08/23/2011 - 12:42 | 1590712 economessed
economessed's picture

Bankster of America -- YOU'RE UNDERCAPITALIZED.  Your CAMEL ratios are horrific.  Your leadership, management, and accounting practices are unethical.  Please remit another press statement refuting my claims within 6 hours.  Love, economessed.

Tue, 08/23/2011 - 12:45 | 1590728 Flakmeister
Flakmeister's picture

You want one hump or two with that? 

Tue, 08/23/2011 - 13:08 | 1590855 Crisismode
Crisismode's picture

And a camel toe.

Tue, 08/23/2011 - 12:45 | 1590716 bg1234
bg1234's picture




Tue, 08/23/2011 - 12:43 | 1590717 dbach
dbach's picture

Funny they don't say which way they are off by factors of 10 and 4.

Tue, 08/23/2011 - 12:43 | 1590721 alexwest
alexwest's picture

or the mortgage analysis being provided by a hedge fund "that has acknowledged it will benefit if our stock price declines

cant believe idiots could write this way..

so let me get it straigt.. ANY ANALYSIS IS OKKKKKKKKKKK

did they mean that? arent they afraid of sec/lawsuits/etc?

fin world is compelety fucked and lost mind


Tue, 08/23/2011 - 12:50 | 1590757 squidward
squidward's picture

I can't believe that they would put this in because they are saying that a hedge fund has analysis so credible they are putting money behind it.   

Blodget doesn't even have that type of skin in the game

Tue, 08/23/2011 - 12:56 | 1590796 toady
toady's picture

Afraid of the SEC? More like complicit with the SEC!

A class action though... That might be a good idea...

Tue, 08/23/2011 - 12:44 | 1590727 buzzsaw99
buzzsaw99's picture

btw, if BAC is massively undervalued that means insiders won't sell squat. Right? Beuller? Beuller?

Tue, 08/23/2011 - 12:45 | 1590729 RobotTrader
RobotTrader's picture



TLT barely moving.  People are still piling into bonds.

5-yr. still at 0.91%, which means if you want to earn $100,000/yr. "risk-free", then all you need to do is to pile $11,000,000 of fiatscos into 5-yr. AA-rated Uncle Gorilla notes.

Tue, 08/23/2011 - 12:49 | 1590755 Cleverbot
Cleverbot's picture

No, I don't think it would. Why don't you tell me more about the Anunnuki?

Tue, 08/23/2011 - 13:01 | 1590824 Pladizow
Pladizow's picture

They will return shortly for the gold they left behind for us to mine as slaves!

Tue, 08/23/2011 - 12:50 | 1590761 Bam_Man
Bam_Man's picture

There is still a lot of short covering going on. When it is finally over watch out. The spike in yields at the long end will be sudden and spectacular.

A lot of people followed Taleb's and Gross' advice to short UST's and have been buried.

Tue, 08/23/2011 - 12:45 | 1590733 Mongrel
Mongrel's picture

It's all fun and games until somebody gets an eye put out . . .

Tue, 08/23/2011 - 12:54 | 1590779 Rylie
Rylie's picture

then it's a sport

Tue, 08/23/2011 - 13:00 | 1590816 toady
toady's picture


Tue, 08/23/2011 - 12:45 | 1590736 Crumbles
Crumbles's picture

Perhaps Irene will make a huge withdrawal from the Outer Banks over the weekend.


Tue, 08/23/2011 - 14:17 | 1591309 Shirley Wilfahrt
Shirley Wilfahrt's picture

I'd happily pay a pound of silver to see Irene grind up the DC/NYC corridor into a pile of shit....Katrina stylee....



Tue, 08/23/2011 - 12:46 | 1590739 bill1102inf
bill1102inf's picture

Its a MASSIVE RALLY!!!!  KD begs GOD to flood DC

Tue, 08/23/2011 - 12:47 | 1590743 Bohemian Clubber
Bohemian Clubber's picture

Now that DSK is out, careful for your gold!

Tue, 08/23/2011 - 12:49 | 1590754 Darth Silver
Darth Silver's picture

SGS, your bears called this one.  way to go dude!

Tue, 08/23/2011 - 12:50 | 1590756 lizzy36
lizzy36's picture

Just an FYI on the Rumor Mill. Emphasis on RUMOR.

JPM to take over either BAC or CFC with assistance from the government.

New entity to get $100B pref investment from the Geithner/government.

Now i am going to blow my personal gasket.

Looks like Dodd/Frank isn't worth the paper it is written on. Shocked at that really shocked.

Tue, 08/23/2011 - 12:57 | 1590801 Seasmoke
Seasmoke's picture

that Jamie Dimon is good

Tue, 08/23/2011 - 12:55 | 1590791 slaughterer
slaughterer's picture

JPM can't get BAC without violatng anti-trust laws.  

Tue, 08/23/2011 - 12:58 | 1590806 TruthInSunshine
TruthInSunshine's picture



Laws are no longer relevant in Amerikranski.

Tue, 08/23/2011 - 13:22 | 1590898 smore
smore's picture

Yeah, not for a very long time.

"Let me issue and control a Nation's money and I care not who makes its laws"

Rothschild, 1838

Tue, 08/23/2011 - 13:31 | 1590940 NotApplicable
NotApplicable's picture

Only if you're TBTF.

Otherwise, bend over and spread 'em!

Tue, 08/23/2011 - 13:10 | 1590858 zenbones
zenbones's picture

Ask Sandy Weill what can be done.

Tue, 08/23/2011 - 13:19 | 1590892 --Freedom--
--Freedom--'s picture

The wsj article said they would have to sell assets later to come into compliance.
If this turns out to be true, what do people thing it will do to the financial sector stocks in general?

Tue, 08/23/2011 - 14:08 | 1591233 NotApplicable
NotApplicable's picture

There will be fewer of them.

Eventually, there will be but one, to rule them all.

Tue, 08/23/2011 - 13:06 | 1590848 oogs66
oogs66's picture

and the government will likely cap litigation the government will pay the people for the bankster fraud?  

Tue, 08/23/2011 - 15:09 | 1591620 CompassionateFascist
CompassionateFascist's picture

I heard that TBTF bailouts are MANDATORY under D-F. Whatever.

Tue, 08/23/2011 - 12:52 | 1590768 bill1102inf
bill1102inf's picture

Rebels just stole a gold plated ak47 from the Q compound... wonder if he knows how much that thing is worth

Tue, 08/23/2011 - 12:53 | 1590773 Ben Probanke
Ben Probanke's picture

A Florida man was charged on Tuesday in connection with plans to set off a large stash of

fireworks on the National Mall in Washington, D.C., apparently to protest U.S. banking industry

policies, .


    Bond was set at $2 million, according to WTTG.


  National Park police said they arrested Neff, of Stuart, Fla., after they saw him in a red

Jeep Cherokee in a park in the Washington suburb of Bethesda, Md., after closing time Monday.

The Jeep contained fireworks and was fitted with a turret and multiple tubes from which the

explosives were to be deployed, police said.


  Neff told police he didn't want to hurt anyone, but wanted to draw public attention on the

busy National Mall. He said he wanted to send a message about the banking industry, police said.

Tue, 08/23/2011 - 14:22 | 1591340 Shirley Wilfahrt
Shirley Wilfahrt's picture

Pfffttt....fucking amateur....



Tue, 08/23/2011 - 12:54 | 1590774 Surly Bear
Surly Bear's picture

What is the CDS spread? That will tell me everything I need to know....

Tue, 08/23/2011 - 12:54 | 1590777 monopoly
monopoly's picture

Gold down and Robot is back.

Yeah, missed the old guy and his prophetic posts. Where were you the last 300 dollar ramp in gold? Oh well, nice to have you back Robot.

Tue, 08/23/2011 - 14:02 | 1591155 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Robot isn't about "responding" to other people's posts.

Tue, 08/23/2011 - 12:54 | 1590781 Seasmoke
Seasmoke's picture

just based on how they lied, stalled, bumbled and have no clue what they are doing with a simple modification (BOA can factor that by a few million) and the rest of us should fully understand why this bank is insolvent

Tue, 08/23/2011 - 12:55 | 1590783 hambone
hambone's picture


Tue, 08/23/2011 - 12:55 | 1590787 Sequitur
Sequitur's picture

Disgusting, more taxpayer money to backstop these reckless fuckers. When the fuck does this shit end.

Tue, 08/23/2011 - 13:29 | 1590932 j0nx
j0nx's picture

I could answer your question but you already know the answer to it just as the rest of us already know. It also amazes me how we never have any money for NASA or education or jobs programs or infrastructure upgrades but somehow we always seem to be able to find a few hundred billion laying around in the seat cushions to bail out the TBTFs...

Tue, 08/23/2011 - 12:57 | 1590789 pamriallc
pamriallc's picture

Guys like Henry are fun like the same guys (Cramer) on the other side.  At least Cramer tells you that he really is there to entertain you.  Blodget was incredible at puffery, and now that he has found mainstrem media, and is "expempt" from the SEC after being permanently banned...  he can be as blasphemous as he wants to be.

Truth be told, companies like Coca Cola have virtally ZERO tangible equity and yet still earn tons of cash.  That's the case with Bank of America as well.  Tangible equity is not necessarily all that it's cracked up to be if the firm in quesiton has tons of recurring cash flows.  24 months from now, the company will stil charge off $20+ billion a year in losses but the cash flows will be triple that number.

I suspect you iwll see the FED capitulate in RELAXING the current capital standards and claiming the beginning of a recovery and furthermore, the relaxing of capital ratiostandards in order to accelerate lending.

11% of the deposit base in America will not go to ZERO.  Sorry guys.  The system will not allow it.  Buy the TARP preferred and the Convertibles if you can't stomach the common equity.

Tue, 08/23/2011 - 12:59 | 1590809 carbonmutant
carbonmutant's picture


Tue, 08/23/2011 - 13:02 | 1590828 slaughterer
slaughterer's picture

You work in Charlotte?

Tue, 08/23/2011 - 13:45 | 1591032 Bam_Man
Bam_Man's picture

The reason banks need tangible equity is that in "bad times" their cash flow is woefully insufficient to cover write-offs and write-downs.

That is B of A's problem right now - in spades.

Tue, 08/23/2011 - 12:56 | 1590793 slackrabbit
slackrabbit's picture

Delivery boy: Hello I have a large delivery of new underwear and toilet paper for someone...ummm L Dirita, El Dorado, El Diarea?

Tue, 08/23/2011 - 12:56 | 1590798 TradingJoe
TradingJoe's picture

Well what can I say, if you are not shorting this "rally", suit yourself! All I see is fear and greed, fear and greed, no one, really, no one, is actually THINKING for a change!

Tue, 08/23/2011 - 13:06 | 1590845 Traianus Augustus
Traianus Augustus's picture

Be careful there Joe. Earlier rumor today was the that the US was going to implement their own ban on Financial stocks very soon.  This is sooo stupid it has got to be true!!!

Tue, 08/23/2011 - 13:14 | 1590870 TradingJoe
TradingJoe's picture

Traianus, on Friday I'll know weather my grandparents raised an idiot ora lucky fool :)))!

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