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

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Tue, 08/23/2011 - 12:45 | 1590728 Flakmeister
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You want one hump or two with that? 

Tue, 08/23/2011 - 13:08 | 1590855 Crisismode
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And a camel toe.

Tue, 08/23/2011 - 12:45 | 1590716 bg1234
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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
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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
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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
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btw, if BAC is massively undervalued that means insiders won't sell squat. Right? Beuller? Beuller?

Tue, 08/23/2011 - 12:45 | 1590729 RobotTrader
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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
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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
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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
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It's all fun and games until somebody gets an eye put out . . .

Tue, 08/23/2011 - 12:54 | 1590779 Rylie
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then it's a sport

Tue, 08/23/2011 - 13:00 | 1590816 toady
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Tue, 08/23/2011 - 12:45 | 1590736 Crumbles
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Perhaps Irene will make a huge withdrawal from the Outer Banks over the weekend.


Tue, 08/23/2011 - 14:17 | 1591309 Shirley Wilfahrt
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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
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Its a MASSIVE RALLY!!!!  KD begs GOD to flood DC

Tue, 08/23/2011 - 12:47 | 1590743 Bohemian Clubber
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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
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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
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that Jamie Dimon is good

Tue, 08/23/2011 - 12:55 | 1590791 slaughterer
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JPM can't get BAC without violatng anti-trust laws.  

Tue, 08/23/2011 - 12:58 | 1590806 TruthInSunshine
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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
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Only if you're TBTF.

Otherwise, bend over and spread 'em!

Tue, 08/23/2011 - 13:10 | 1590858 zenbones
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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
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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
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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
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Robot isn't about "responding" to other people's posts.

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