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Goodbye Bank Of America Settlement

Tyler Durden's picture




 

Oops:

  • FDIC OBJECTS TO BANK OF AMERICA MORTGAGE-BOND ACCORD
  • THE REASON FOR THE OBJECTION IS THAT THE FDIC DOES NOT HAVE ENOUGH INFORMATION TO EVALUATE THE SETTLEMENT

Time to sell the other half of that China Constricution Bank stake... And Merrill... and Countrywide (goodluck), and pretty much anything else that is not nailed down. But don't worry: it's a liquidity, not a capital issue, or something. In other news, the Buffett "Eureka alert" is on BathCon 1.

Full FDIC objection attached:

 

 

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Mon, 08/29/2011 - 17:12 | 1612974 PRO.223
PRO.223's picture

Some actual good news today.

Mon, 08/29/2011 - 17:26 | 1613055 Fish Gone Bad
Fish Gone Bad's picture

Fuck Bank of America.

Mon, 08/29/2011 - 17:30 | 1613081 spiral_eyes
Mon, 08/29/2011 - 23:55 | 1613910 radish juice
radish juice's picture

Why not FAQ them first then if that does not work ....

Mon, 08/29/2011 - 18:02 | 1613192 malikai
malikai's picture

Does this mean BAC is finished and Buffett is going to take a bath(lol)? Or does this mean Buffett will get paid in the fire sale? He couldn't have taken the deal without some solid guarantee from the man.

Also, what happens when the FDIC does "have enough information" to "evaluate" the settlement?

Mon, 08/29/2011 - 18:36 | 1613297 macholatte
macholatte's picture

This is nothing but a stall, contrived or planned is irrelevant. What they need is time and they are getting it.

Mon, 08/29/2011 - 19:19 | 1613372 disabledvet
disabledvet's picture

No. It means his 25 billion CDS position thru Swiss Re will soar more.

Mon, 08/29/2011 - 19:23 | 1613387 malikai
malikai's picture

Yea, I'd be happy with a 5 fold return on failure. I still don't buy BAC failing. I could buy the attempts to rescue BAC bringing the whole ship down, however.

Mon, 08/29/2011 - 18:01 | 1613213 ToNYC
ToNYC's picture

 

I heard breathlessly reported today on CNBeCzd that BAC was strong because it had $1 Trillion in deposits. Demand deposits are instant hot, totally unsticky liabilities with FDIC guarantees on withdrawal protocols.

How can the structurally leveraged create fractional credit in the face secular trend of de-levering in a developing deflation?

Mon, 08/29/2011 - 20:01 | 1613466 Tunga
Tunga's picture

Saw that too TonNYC but perhaps you misunderstood the transitory nature of the tradeoff between a reality based perception and the factually fantasized forward facing flop fairly floundering for all to see? More at knee jerk. Per Wikigooglia: That which is not unknown shall be the embraced unless not. Or OPD. (Ontario Police Department)

Mon, 08/29/2011 - 19:20 | 1613374 Infinite QE
Infinite QE's picture

Somebody tossed a hair dryer into Warren's bathtub

Mon, 08/29/2011 - 17:13 | 1612975 MarketTruth
MarketTruth's picture

Fuck 'em! BAC should be worth a grand total of $0 once they have to go to proper accounting like virtually all other businesses.

Mon, 08/29/2011 - 17:20 | 1613024 Pool Shark
Pool Shark's picture

0$?

I should think their net worth would be a rather large negative number...

Mon, 08/29/2011 - 17:27 | 1613061 LongBalls
LongBalls's picture

I can't stand BAC. But I have grown to stop under estimating the will of the elite to keep these banks propped up. When you have endless supplies of worthless paper they will continue to pull a rabbits out of the hat. 

Mon, 08/29/2011 - 17:57 | 1613193 max2205
max2205's picture

Unlike lions, the FDIC doesn't eat their young (anymore)

I think they will ask for easier terms

Mon, 08/29/2011 - 19:18 | 1613368 Dick Fitz
Dick Fitz's picture

MarketTruth- what does your avatar character mean in English?

BofA will be dead, or bailed out, by XMas. Neither scenario will be positive- death would rock the markets 10x more than Lehman, and bailout would be the final nail in the coffin the Bernank sleeps in at night.

Mon, 08/29/2011 - 21:30 | 1613666 UGrev
UGrev's picture

It means "Veritas".

Mon, 08/29/2011 - 17:12 | 1612977 tekhneek
tekhneek's picture

November puts, bitchez.

Mon, 08/29/2011 - 17:15 | 1613000 Id fight Gandhi
Id fight Gandhi's picture

No kidding, those big buyers last week on the 4s got a cornholing

Mon, 08/29/2011 - 17:39 | 1613130 Joeman34
Joeman34's picture

???, buyers of puts got 'cornholded' by this story.  Presumably BAC price will decline as a result which is positive for long put holders, or am I missing something in your comment....

Mon, 08/29/2011 - 18:12 | 1613226 Id fight Gandhi
Id fight Gandhi's picture

They bought 4 nov puts when BAC was nearing 6, it's mid 8s. Right now they're hurting, next week theyll be winning. Buying out of money options hurts which is why near or in the money with higher delta is a safer bet. Its easier to have ITM which perform more close to the point moves the stock. OTM is a big bet some big shit will happen.

4 nov puts have delta of -.04 so every full point the stock moves Down (based on this metric alone) the option will gain .04, which is at .11 right now, when news hit of big buys it was around .50/contract about a week ago.

Mon, 08/29/2011 - 19:49 | 1613437 Nate H
Nate H's picture

well, ceteris paribus I would much rather have bought the 4 puts than ATM puts with the stock moving from 6 to 8. Less upside but less downside.  "HIgher delta is a safer bet". Uh....WRONG.

Mon, 08/29/2011 - 20:31 | 1613533 Id fight Gandhi
Id fight Gandhi's picture

No not higher delta as a probability factor, higher delta as a better proxy trade. Why short shares of the stock when you get leverage and contained loss when you can buy the puts?

You would have lost 80% in that price move from 6-8. Nov 4 puts are a reasonable but very risky bet this will be trading under 4 in the next couple months. With ups and downs, youre better off trading in and out with ITM options.

Mon, 08/29/2011 - 17:16 | 1613003 Hugh G Rection
Hugh G Rection's picture

What's your strike?

Mon, 08/29/2011 - 17:28 | 1613070 Id fight Gandhi
Id fight Gandhi's picture

I'd rather stay NTM or ITM with 8 or 9 puts, buys less but better delta.

Mon, 08/29/2011 - 17:37 | 1613119 tekhneek
tekhneek's picture

4, 5 and 7 now.

Mon, 08/29/2011 - 17:50 | 1613171 sixdollarsix
sixdollarsix's picture

I followed the smart money into the Nov11 5,6,7 and this weeks $6 put... I am needless to say, a happy camper. And a Midfirst bank customer, which I might add: offers SUPER customer service and no fee's. lol

Oracle my ass...

Enjoy your DECLINE bitchezzz.

Mon, 08/29/2011 - 17:55 | 1612979 kengland
kengland's picture

LMAO!!!! Who needs a sitcom when you have this dumbass reality show!!!!

 

Even more silly are the number of stiff suited pro's like buffet out there who try to substantiate owning such a high quality name.

"Yes, yes, it's very undervalued. I went to Stanford and I know better than you morons out there. I have a few billion involved because, yes, the lack of mark to market capital that you lesser people see is irrelevant to my ivyleageness. "

Mon, 08/29/2011 - 18:19 | 1613266 James
James's picture

OT - Barrys illegal alien uncle has been arrested in Boston for DUI and immigration violations.

Mon, 08/29/2011 - 19:20 | 1613377 Rainman
Rainman's picture

...that'll get buried deeper than Jimmy Hoffa.

Mon, 08/29/2011 - 17:14 | 1612980 TruthInSunshine
TruthInSunshine's picture

It's all good.

2% to 6% up and down days, each day, are the new normal until it all breaks down.

The Bubbles&BananasBenBernank broke the markets.

 

p.s. - Gotta' LOVE the pattern of the timing as to how significant news is leaked (i.e. after 4 p.m. est, usually, but not always, on Fridays).

Mon, 08/29/2011 - 19:11 | 1613355 traditionalfunds
traditionalfunds's picture

The deadline for anyone to file objections is August 30. Impossible to do a Friday news dump in that scenario. FDIC isn't perfect but they continue their efforts to limit their own exposure.

Won't be surprised if additional objections arise in the next 24hrs.

 

 

Mon, 08/29/2011 - 17:13 | 1612982 Id fight Gandhi
Id fight Gandhi's picture

Maybe uncle buffet can cough up another 5 billion. Hey throw in a sexy nurse and a new jazzy scooter.

Can't take it w u

Mon, 08/29/2011 - 17:28 | 1613063 WestVillageIdiot
WestVillageIdiot's picture

What are the details on this?  The FDIC probably killed it because they thought it was too hard on BofA.  I don't see any details.  We all know how fucked up this is.  There is no way this will be amended to more closely represent justice.  By the time this is done The inJustice Department will probably be apologizing to BofA and Mozillo. 

Mon, 08/29/2011 - 17:32 | 1613101 Id fight Gandhi
Id fight Gandhi's picture

Mozillo sure made off like a bandit, small fine, keeps most of his gains, now drops off the scene and retires. Beautiful. Bankers wet dream.

BAC is taking a shit deal from buffet and selling assets not hard to read between the lines.

Mon, 08/29/2011 - 18:07 | 1613234 ToNYC
ToNYC's picture

 

It's hard to believe the outcome unless you realize that he is free for reasons you may not know:

It's all Fun and Games

Until the Cops show up.

Mon, 08/29/2011 - 18:32 | 1613288 scatterbrains
scatterbrains's picture

I hope you know something and are right !!

Mon, 08/29/2011 - 18:35 | 1613295 A Man without Q...
A Man without Qualities's picture

He's free because either

i) He was up to his neck in it, but made sure he had a wide array of co-conspirators and enough dirt to drag a lot of other protected people down with him

or

ii) He spent so much time working on his tan that he really had no fucking clue what was going on and was another worthless US CEO, big on bullshit and small on details and they knew that the crimes were ones of detail, so it was very hard to pin anything on him.

Of course, it could be a bit of both, as it was with Ken Lay.

 

 

 

Mon, 08/29/2011 - 17:13 | 1612984 dwdollar
dwdollar's picture

Time for Warren to double down...  already...

Mon, 08/29/2011 - 17:13 | 1612987 IMA5U
IMA5U's picture

amazing how first there s a short squeeze

 

and then the bad news

 

we are all just puppets for The Administration and The Thief of Omaha

Mon, 08/29/2011 - 17:13 | 1612988 fuu
fuu's picture

We've always been at war with BAC.

Mon, 08/29/2011 - 17:30 | 1613079 WestVillageIdiot
WestVillageIdiot's picture

Let us reflect on this event during the Two Minute Hate today. 

Mon, 08/29/2011 - 23:51 | 1613906 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

+1984

Mon, 08/29/2011 - 17:14 | 1612989 Cdad
Cdad's picture

Buffett "bathtub alert" is on Defcon 1

Lol.  Good line.  However, Tyler, you and I both know that uncle Warren has zero capital at risk in this BAC share purchase.  You and I have capital at risk...tax payer capital.

Mark my words, this back door, hidden bailout will be revealed for what it is before long.

Mon, 08/29/2011 - 17:17 | 1613014 IMA5U
IMA5U's picture

I call B.S. on The Buffet Bath Tub Tale.

He was thinking of Becky Quick, not BAC.

Mon, 08/29/2011 - 17:31 | 1613093 WestVillageIdiot
WestVillageIdiot's picture

Like that crotchety old fark could still fire a torpedo.  If the Quickster's latest devil spawn is a product of Warrent's then you know a turkey baster was involved. 

Mon, 08/29/2011 - 17:47 | 1613160 Sequitur
Sequitur's picture

Lewlz.

Mon, 08/29/2011 - 17:52 | 1613176 Cdad
Cdad's picture

the Buffett "Eureka alert" is on BathCon 1

Chuckling....chuckling...an even better line.

Still, no less revealing about the utter LACK OF equity risk being taken by uncle Warren.  Joe the Plumber...oh yeah, he has some serious risk.  And probably, as others have surmised, to see his tax payer investment end in a capital loss due to a Wall Street Take UNDER of BAC before the year ends.

More fascism please.  I want some more, please. 

Mon, 08/29/2011 - 17:14 | 1612990 lolmao500
lolmao500's picture

Time to die now BAC!

Mon, 08/29/2011 - 17:32 | 1613100 WestVillageIdiot
WestVillageIdiot's picture

Tomorrow's headline will read, "Bank of America finds fifty billion dollars in the sofa cushions at 1 Bryant Park."

Mon, 08/29/2011 - 17:14 | 1612992 Mister Ponzi
Mister Ponzi's picture

BAC CDS bitchez

Mon, 08/29/2011 - 17:15 | 1612996 buzzsaw99
buzzsaw99's picture

buffett's bac investment is guaranteed by the usa taxpayer the same way his gs loan was. fascism, it's what's for supper.

Mon, 08/29/2011 - 17:33 | 1613104 WestVillageIdiot
WestVillageIdiot's picture

Buffett might not be the corn pone Hitler but he is at the least the corn pone Mussolini.

Mon, 08/29/2011 - 18:00 | 1613209 gunsmoke011
gunsmoke011's picture

Exactly - Buffett would not have plucked down 5 Billion if there were no strings attached. Oh - I was just sitting in my bathtub and thought - you know what - I think I will go put 5 billion into BAC -- get my broker on the phone!! Bullshit -- he didn't get so rich by being ethical or stupid!

Mon, 08/29/2011 - 17:16 | 1613006 Nascent_Variable
Nascent_Variable's picture

schadenfreude - noun: pleasure derived by someone from another person's misfortune

Mon, 08/29/2011 - 17:17 | 1613013 Tyler Durden
Tyler Durden's picture

Correct: America's several hundred million taxpayers.

Mon, 08/29/2011 - 17:20 | 1613028 Ruffcut
Ruffcut's picture

Tyler, only a hundred taxpayers left.

Mon, 08/29/2011 - 23:54 | 1613909 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Now 99.

Mon, 08/29/2011 - 17:25 | 1613051 Nascent_Variable
Nascent_Variable's picture

Moynihan:  I would have gotten away with it, if it wasn't for those meddling internet bloggers and their planted stories

/scoobydoovillain

Mon, 08/29/2011 - 17:34 | 1613109 WestVillageIdiot
WestVillageIdiot's picture

I have fifty bucks that says this won't mean anything to BofA.  It will be spun as positive.  The NASDICK will be green tomorrow, led by burritos and hot pants. 

Mon, 08/29/2011 - 19:20 | 1613378 Jendrzejczyk
Jendrzejczyk's picture

One of the funniest comments in weeks. Thanks.

Mon, 08/29/2011 - 17:30 | 1613088 static
static's picture

is there a leak, imean link,  to that story?

Mon, 08/29/2011 - 17:33 | 1613103 static
static's picture

nevermind....it didn't load  at first.

Mon, 08/29/2011 - 17:38 | 1613125 WestVillageIdiot
WestVillageIdiot's picture

All it says is that FDIC objects because it doesn't have enough information.  What the hell is that?  This is a big nothing from what I can see.  I believe BofA will be eaten by the hyenas (JPM and GS) but this does not seem like the death blow. 

Mon, 08/29/2011 - 17:59 | 1613204 Tyler Durden
Tyler Durden's picture

Two key words: David Grais.

Mon, 08/29/2011 - 18:03 | 1613223 WestVillageIdiot
WestVillageIdiot's picture

Isn't he a singer? 

Mon, 08/29/2011 - 21:00 | 1613596 Miss Expectations
Miss Expectations's picture

Evidently, he's really Jean Luc Picard:

http://www.youtube.com/watch?v=cGF1NP-FrCU

 

Mon, 08/29/2011 - 18:26 | 1613274 janus
janus's picture

oh, yeah...grais is a badass.

balliol, bitchez!

Mon, 08/29/2011 - 19:20 | 1613375 malikai
malikai's picture

Out of curiosity, what is PIMCO's role in that deal? I see them mentioned as a trustee. What happens if the debtors organize? Does that mean they want $450 billion instead?

Mon, 08/29/2011 - 19:21 | 1613382 traditionalfunds
traditionalfunds's picture

David Grais '72 roomed with Alito for three years at Princeton. Experience with securitiztion & CDO's dates back to at least 2007 losing case to Countrywide. Smells $ and payback. Profitable move for him to add FDIC to his client list!

Mon, 08/29/2011 - 18:58 | 1613340 Libertarians fo...
Libertarians for Prosperity's picture

More like a political and/or economic version of Munchausen by proxy.

It occurs when politicians or the media or bloggers deliberately exaggerate or fabricate the condition of our economy for the sake of attention (clicks) or other subversive intents.   

 

Mon, 08/29/2011 - 19:29 | 1613392 Jendrzejczyk
Jendrzejczyk's picture

It is difficult to talk oneself into agreeing (present participle, BITCHEZ) with a cartoon Hitler.

Mon, 08/29/2011 - 22:04 | 1613734 Problem Is
Problem Is's picture

And I thought he was a yellow bowling ball...

There go all my Jesus Quintana jokes...

Mon, 08/29/2011 - 17:16 | 1613008 Ruffcut
Ruffcut's picture

Let me know when it is the bond denial of charges of fraud.

Other fiat bonds don't seem to matter much.

Mon, 08/29/2011 - 17:18 | 1613018 PulauHantu29
PulauHantu29's picture

"I'll gladly pay you Tuesday for a Hamburger today."

Mon, 08/29/2011 - 20:21 | 1613506 WonderDawg
WonderDawg's picture

That's Wimpy.

Little known fact: Wimpy was actually Bernanke's grandfather. No, not married to his grandmother, he was the cool cat she was banging on the side, while constantly lending him money. It's all going to be revealed in the blockbuster tell-all book soon to be released, "The Popeye Chronicles".

Mon, 08/29/2011 - 22:08 | 1613741 Problem Is
Problem Is's picture

The Bernank's Grandfather:


"I shall have a hamburger... for which I will galdly print the money on Tuuueessday."

Mon, 08/29/2011 - 17:18 | 1613020 TruthInSunshine
TruthInSunshine's picture

Warren Buffet's next big idea will come at a time when he is taking a ginormous dump, rather than while in the bath tub.

He'll call Becky Quick, and while straining and groaning, tell her that he's decided to buy 5 billion worth of [insert whatever travesty of a ticker symbol here].

Mon, 08/29/2011 - 17:32 | 1613096 sheeple2012
sheeple2012's picture

then demand she give him a phone-blumkin in exchange for one more exclusive interview

Mon, 08/29/2011 - 17:39 | 1613131 WestVillageIdiot
WestVillageIdiot's picture

Why would he have to call her?  She will be the one on the receiving end of the Cleveland steamer. 

Mon, 08/29/2011 - 17:52 | 1613177 pods
pods's picture

Easy Sanchez, no need to get Dirty!

pods

Mon, 08/29/2011 - 23:59 | 1613914 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

BOOM!  LMAO!

Mon, 08/29/2011 - 17:44 | 1613146 TruthInSunshine
TruthInSunshine's picture

Everyone knows old grandfatherly Warren Buffett is likely to be one of the biggest perverts ever to walk the earth. Lord only knows what's he's done to a once virginal Becky Quick.

Mon, 08/29/2011 - 17:50 | 1613170 WestVillageIdiot
WestVillageIdiot's picture

Well, the Quickster walks like a duck, quacks like a duck and looks like a duck.  It only makes sense that she would................................

Mon, 08/29/2011 - 18:04 | 1613224 TruthInSunshine
TruthInSunshine's picture

As Amerikranski goes [down], so does Becky Quick.

 

Mon, 08/29/2011 - 19:23 | 1613385 Infinite QE
Infinite QE's picture

Small boys in Cosco containers.

Mon, 08/29/2011 - 18:07 | 1613237 Osmium
Osmium's picture

At his age, he might accidently take a ginormous dump in the tub.

Mon, 08/29/2011 - 21:07 | 1613619 Money 4 Nothing
Money 4 Nothing's picture

ESLR, Gone broke..

But my broker said......

The Bad Guy.

Mon, 08/29/2011 - 17:18 | 1613022 IMA5U
IMA5U's picture

it would be great if there was an uprising against the fraud known as buffet.

Mon, 08/29/2011 - 17:20 | 1613023 ArkansasAngie
ArkansasAngie's picture

Prehaps they are beginning to understand the difference between illiquid and insolvent.  There is a mightie big bag of oderiferious material out there.  No one wants to be the one holding this bag.  Time to point big fingers ... all the credit and all the blame. 

Whose sack of shat is it anyway.

Time to find out.

Mon, 08/29/2011 - 17:19 | 1613025 Gubbmint Cheese
Gubbmint Cheese's picture

BAC in black.. I hit the Sach.. its been so long I'm glad to be back..

 

 

Mon, 08/29/2011 - 17:44 | 1613151 SokPOTUS
SokPOTUS's picture

Excellent Ack-Dick reference. +8.39

Mon, 08/29/2011 - 17:20 | 1613031 Scalaris
Scalaris's picture

But.. but.. what about Warrne't loan? Did it at least buy them a few life-boats?

Mon, 08/29/2011 - 17:21 | 1613033 apberusdisvet
apberusdisvet's picture

The taxpayers will wind up eating all of the toxic assets of  this POS, with the Morgue getting the goodies.

Mon, 08/29/2011 - 17:24 | 1613048 lolmao500
lolmao500's picture

Yep... this is SURE to happen.

Mon, 08/29/2011 - 17:40 | 1613136 WestVillageIdiot
WestVillageIdiot's picture

I will third that one. 

Mon, 08/29/2011 - 17:22 | 1613038 adr
adr's picture

Everyone with a BofA loan or credit card should stop paying right now just to make sure this vampire goes down for sure.

It seems we the people only have a short time to act in order to take down those who put us here. If Obama promises the moon the sheeple will forget about 30% interest rates if they get a house for free.

Mon, 08/29/2011 - 17:29 | 1613060 Pool Shark
Pool Shark's picture

I'm doing the next best thing: a cash-in refi with another lender to drop my mortgage from jumbo to conforming.

While they'll get their principal back; BAC is probably losing their last AAA-rated prime borrower and $35,000.00 in mortgage interest per year.

Good luck finding some other sucker to borrow $700,000.00 over 30 years at 5.5% in this housing market...

Mon, 08/29/2011 - 17:46 | 1613156 SokPOTUS
SokPOTUS's picture

No.  First charge the BofA card up to the max buying physical silver, *then* stop paying.  A two-fer.

Mon, 08/29/2011 - 19:21 | 1613381 j0nx
j0nx's picture

Agreed. I used mine for supplies and then cashed in all my rewards points and received the check today. Going to cash it tomorrow just in case they fail in the next week or so. I'll pay whoever gets their CC business the same pennies on the dollar they got it for in the liquidation sale + 3% for their trouble. If they don't like that offer then they get DICK. I have no intention of paying 100c on the dollar to the new company when they sure as shit didn't pay more than 7c or so for it. Jubilee for all if BAC fails.

Mon, 08/29/2011 - 17:22 | 1613041 docj
docj's picture

Damn. The Crony Capitalist of Ohama should be taking an absolute beating on this news but it's my wallet that's feeling rather butt-sore right now.

Imagine that.

Old Uncle Warren loves him the smell of some fascism in the morning (and afternoon, and evening), don't he.

Mon, 08/29/2011 - 17:22 | 1613042 PaperBear
PaperBear's picture

A too big to fail is about to fail ?

I am laughing my ass off right now.

 

Mon, 08/29/2011 - 17:25 | 1613052 1835jackson
1835jackson's picture

My November put just looked a whole lot sexier. 

 

Mon, 08/29/2011 - 17:27 | 1613062 Piranhanoia
Piranhanoia's picture

It's not even on their site yet,  a link please!

Mon, 08/29/2011 - 17:28 | 1613068 LoneStarHog
LoneStarHog's picture

Somebody Torpedoed My Rubber Duckie - Warren "The Shill" Buffett

Mon, 08/29/2011 - 17:39 | 1613128 Agent P
Agent P's picture

"Bank'America you're the one.  You make bathtime lots of fun.  Bank'America I'm so in love with you..."

 

Mon, 08/29/2011 - 17:50 | 1613169 IMA5U
IMA5U's picture

"Becky Quick you're the one.  You make bathtime lots of fun.  Becky Quick I'm so in love with you..."

Mon, 08/29/2011 - 18:03 | 1613222 LoneStarHog
LoneStarHog's picture

Warren, why are you looking at Becky that way with that rubber on your duckie; thinking of a quickie, perhaps?

Mon, 08/29/2011 - 17:29 | 1613075 ArkansasAngie
ArkansasAngie's picture

Maybe some in Washington will figure out that they bet on the wrong horse when they went with Wall Street over voters

Since the FDIC does not have the money to bailout BOA it can't just eat the losses.

Break TBTF up.

 

Tue, 08/30/2011 - 02:20 | 1614036 azusgm
azusgm's picture

The president of the Richmond Fed agrees with you.

  or (could be titled)

"Why I Refuse to Bail Out BAC Ever Again" by Jeffrey Lacker

http://www.richmondfed.org/research/our_perspective/toobigtofail/index.cfm

Came out the same day as Uncle Warren's $5 billion stick save deal.

Wed, 08/31/2011 - 03:16 | 1618130 bid the soldier...
bid the soldiers shoot's picture

if they're really the powers that be, and we're the powers that aren't, how would we go about breaking them up?

Where is Harry Potter when you need him?

Mon, 08/29/2011 - 17:29 | 1613077 steve from virginia
steve from virginia's picture

 

All part of the scam: BAC is being dismantled right under everyone's noses.

Watch the taxpayers get stuck with Countrywide, Merrill and billion$ in defunct loans while Buffett walks away with the 'good parts'.

Absolutely outrageous!

Mon, 08/29/2011 - 18:01 | 1613215 PY-129-20
PY-129-20's picture

Greatest theft in American history. Benedict Arnold will look pale in comparison to these traitors.

Mon, 08/29/2011 - 21:56 | 1613716 Problem Is
Problem Is's picture

This bunch almost make Milken and Keating look honest...

Tue, 08/30/2011 - 02:21 | 1614038 Freddie
Freddie's picture

Bendict Arnold had been an American hero early in the Revolutionary War.  After switching sides and going back to England he supposedly regretted what he did until the day he died a broken man. 

The current villinous scum like Obam, Soros, Buffett, Dimon, The Bernank, GS scum et al have no conscience.

Mon, 08/29/2011 - 17:29 | 1613078 janus
janus's picture

looks like all big financials down big manana.

TD, if you decide to post spreads early (REAL early) tomorrow morning, please post today's along with them.

and on a TOTALLY unrelated sujbject, it seems i've forgotten to make my august donation to ZH.

back in a jiff

Mon, 08/29/2011 - 17:30 | 1613080 zerohandle
zerohandle's picture

wish they were down more in AH

Mon, 08/29/2011 - 17:30 | 1613082 rgd
rgd's picture

Bathtube bailout, bithez!

Mon, 08/29/2011 - 17:30 | 1613085 American Dreams
American Dreams's picture

BAC is not part of the club.  Over 1trl in deposits, this makes for one hell of a target by the club members.  They will go down or become a ward of the state with the parts and pieces be divided up among the oligarchy..

There be no shelter here, not even for BAC

AD

Mon, 08/29/2011 - 17:38 | 1613126 janus
janus's picture

verdad:

this is about cannibalization -- plain and simple.

a bank headquartered in north carolina...come on. 

buffett's gonna burn it to the ground, and then he's gonna perch atop that dung heap and crow like he's cock of the walk.

Mon, 08/29/2011 - 17:43 | 1613144 WestVillageIdiot
WestVillageIdiot's picture

BofA thinks that South Boulevard is the equivalent of Broad Street.  Stupid mistake. 

Mon, 08/29/2011 - 17:34 | 1613106 mynhair
mynhair's picture

Buy it on the dip.  Just a request for more info, like BQ's bra size.

Mon, 08/29/2011 - 17:44 | 1613147 WestVillageIdiot
WestVillageIdiot's picture

She is lactating now so that is misleading.  MCC would be something different. 

Mon, 08/29/2011 - 17:35 | 1613113 mfoste1
mfoste1's picture

tomorrow on cnbc....... warren buffet: " ive decided to look over BAC financials one more time just to be sure, and i have decided to invest another 3 bn due to the financial soundness of this great american company"

Mon, 08/29/2011 - 17:37 | 1613120 HyperLazy
HyperLazy's picture

Wow. One step closer to jump off my week long TNA bus ride and grab the FAZ train.

Interesting... *thoughtful contemplation*

Mon, 08/29/2011 - 17:38 | 1613123 digalert
digalert's picture

WhooHoo!

inch by inch, step by step...

Mon, 08/29/2011 - 17:38 | 1613124 Lotionboy
Lotionboy's picture

LOL...Hope Buffet is screwed!  

Mon, 08/29/2011 - 19:51 | 1613443 pettolicious
pettolicious's picture

Schadenfreude, bitchez.

Mon, 08/29/2011 - 17:38 | 1613127 The Deleuzian
The Deleuzian's picture

We've entered the "bizzaro world"

Mon, 08/29/2011 - 17:40 | 1613135 James T. Kirk
James T. Kirk's picture

So, if BofA goes down, how will the FDIC wiggle out of this one? What "healthy" financial institution is large enough to "merge" with with this monster, so the FDIC doesn't have to start coughing up the funds directly? Maybe the UN can declare that BofA is is some kind of nation state, so the IMF can be merged with it. BIMFO, anyone?

Mon, 08/29/2011 - 17:46 | 1613157 WestVillageIdiot
WestVillageIdiot's picture

The United States of America.  Oh, you wrote "healthy" financial institution.  Sorry. 

Mon, 08/29/2011 - 17:41 | 1613139 doomandbloom
doomandbloom's picture

bathtub, bitchez

Mon, 08/29/2011 - 17:55 | 1613179 SokPOTUS
SokPOTUS's picture

BQ & MCC both in the Bathtub at the same time, maybe?

Nah. 

Even *that* couldn't erase the horrid visual conjured up of the Buff in the Buff in the tub while talking to the Bam about the BAC.

What is seen cannot be unseen.

Thanks, Buff.

 

 

Mon, 08/29/2011 - 17:44 | 1613154 swmnguy
swmnguy's picture

The way BAC was diving over the table to pay a settlement in the $10 billion range was as clear an indicator as any that the deal stunk to high heaven, even for someone who didn't understand it.  Add a zero, or maybe two, and then you're talking.  But even $1 trillion wouldn't clean up the mess; it would just buy a smokescreen so we could all pretend BAC had anything worth having on the balance sheet.

What I can't quite figure out is why the FDIC would object.  Obviously the fetid rottenness couldn't have bothered them.  Are they, as some have speculated, greasing the skids for the demise of BAC, with all the bad stuff sliding onto the public balance sheet, and all the good stuff all wrapped up with a ribbon for...mmm...I don't know...Warren Buffett?

Wouldn't put it past 'em.  Socialize the debt, privatize anything of value.

Mon, 08/29/2011 - 18:02 | 1613218 American Dreams
American Dreams's picture

FDIC = part of the machine.  It really is that simple, being former Mother Merrill I remember the days when they were looking to pick us up for a song and they were given the privilege only because they ate the Cuntrywide shit burger.  It was baggage off loaded with the knowledge that it would eventually sink the SS Charlotte.  Ken Lewis was incredibly naive, none of us could believe he swallowed Fleming's hook with so much as a wink.  

Know your enemy

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Mon, 08/29/2011 - 18:07 | 1613238 swmnguy
swmnguy's picture

Yeah, that fits the M.O.

Mon, 08/29/2011 - 17:45 | 1613155 myztix
myztix's picture

they just want more information.

Mon, 08/29/2011 - 17:47 | 1613163 WestVillageIdiot
WestVillageIdiot's picture

They require more info to determine that this settlement is grossly unfair to BofA.

Mon, 08/29/2011 - 17:48 | 1613159 IMA5U
IMA5U's picture

The irony of the class warfare we are going through is that guys like Buffet are in a class of their own and get sweet heart deals.

The rest of us who are considered the "upper class" by the populace are screwed by these deals.  

The end result of The Obama Administration will be to divide the gap between the rich and those working their butts off trying to be rich.

I guess we should try getting real jobs like being a scumbag machine politician so the populace embraces us. 

Or be a video game tester and move to Canada in hopes of free healthcare.

Mon, 08/29/2011 - 17:50 | 1613166 TruthInSunshine
TruthInSunshine's picture

Idiocracy Is REAL.

 

FDIC:       Weeze objek, yuze honors.

Judge:      Wize iz yuze objektikating?

FDIC:        So weeze can haz more informazashin.

Judge:       Okay.

W.Buffet:   I iz gonna buys more stoks.

 

p.s. - Here's what the new FRN will look like:  http://homepage.mac.com/dtrull/pix/idiotcash.jpg

 

Mon, 08/29/2011 - 17:55 | 1613186 Council of Econ...
Council of Economic Terrorists's picture

I contributed to the Fight Club today.  Pulled $3.5k out of my BoA account. 

Mon, 08/29/2011 - 17:56 | 1613187 virgilcaine
virgilcaine's picture

WB got screwed onj this one, along with his BIG railroad purchase as a BET on the "recovery",

'

.

Mon, 08/29/2011 - 18:29 | 1613281 American Dreams
American Dreams's picture

Buffet is in a no Screw zone, its where he lives.  BAC goes down, me, you and all of my fence posts make him whole much more than the Quicker ever could.

AD

Mon, 08/29/2011 - 18:33 | 1613291 LucyLulu
LucyLulu's picture

Buffett screwed?  You gotta be kidding.  You don't think he was offerred any guarantees on his money?

Right........  He didn't get rich by throwing away billions of dollars.

Mon, 08/29/2011 - 17:56 | 1613189 buzzsaw99
buzzsaw99's picture

Buffett = secured usurious lender

Calpers = hosed common shareholder

that's how the system works.

Mon, 08/29/2011 - 18:14 | 1613195 myztix
myztix's picture

so if FDIC says OKAY to the settlement after further review.. looks like BAC rallies?

otherwise formulating another settlement plan.. so we kick the can down a couple of more years...

 

looks like a win win.. unless the other situation occurs.. where if it gets rejected, it opens them to a lot of different types of onslaught.. that's probably the worst case...

Mon, 08/29/2011 - 18:12 | 1613205 Sequitur
Sequitur's picture

Tarp2 torpedo countdown - USS Geitner

"Lock breech door, torpedo tube 2!"

"Power, torpedo 2!"

"Flood torpedo tube 2!"

"Equalize pressure!"

"Open torpedo tube 2, muzzle door open!"

BAC targeted, arc of fire computed.

"FIRE! FIRE! FIRE!"

Tarp2 Torpedo launched. BAC corpse -- direct hit. Trillions in capital vaporized.

"Good work!"

Mon, 08/29/2011 - 18:14 | 1613249 TruthInSunshine
TruthInSunshine's picture

Warren Buffett decides to buy 14.279 billion worth of LULU while eating a Jello Pudding Pop tomorrow.

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