This page has been archived and commenting is disabled.

Got Bank Of America CDS? New York AG Says BAC's $8.5 Billion Settlement Is "Unfair and Misleading"; BAC Equity Offering Imminent

Tyler Durden's picture




 

When we last looked at the Bank of America joke of a "non-settlement" settlement for a paltry $8.5 billion when $424 billion in total misrepresented (530 in total) Countrywide mortgage trusts were at stake, we said, "we are confident that the legal process will prevail and that the presiding judge on this case, and if not him then certainly the New York District Attorney, will step up and demand a thorough reevaluation of the settlement process." We were, oddly enough, correct. According to a just released filing from the New York Attorney General Eric Schneiderman, Bank of America (and Bank of New York Mellon, one of the tri-party repo banks mind you), violated New York state law and "misled investors." In a knock out punch to Bank of America (and Brian Lin who was profiled here previously), the  bank allegedly violated the New York’s Martin Act and misled investors about its conduct tied to mortgage securitization as Bloomberg summarizes. Schneiderman said he has "potential claims" against Bank of America Corp. and its Countrywide Financial unit. As Zero Hedge alleged all along, "The proposed cash payment is far less than the massive losses investors have faced and will continue to face." What does that mean? Well, as the countersuit by the FHLB indicated (which we are certain will be the basis for the NY AG claims), the likely final settlement is probably going to be about $22 to $27.5 billion. Which also means that the bank's Tier 1  capital is about to be discounted by about 25% lower. Which, lastly, means that the stock is about to plunge due to a massive litigation reserve shortfall which will have to be plugged with, surprise, a new equity capital raise. Which brings us to our original question: got CDS (which closed around 200 bps today, roughly 25 bps wider - it is going much wider tomorrow, especially if the expected Sarkozy-Merkel-Zapatero meeting achieves absolutely nothing)? Cause this baby is going down... and it is probably about to be broken up into good BAC and bad bank, consisting almost entirely of all legacy Countrywide operations. Said otherwise, it could well be time for a CFC-BAC CDS pair trade.

From the suit:

The Attorney General of the State of New York Eric T. Schneiderman (the “Attorney General”) has statutory and common law authority to safeguard the welfare of New York investors and the integrity of the securities marketplace generally.

 

Pursuant to this authority, the Attorney General seeks to intervene in this proceeding to protect the marketplace and the interests of New York investors, the vast majority of whom otherwise are not present before the Court in this proceeding.

 

Moreover, the Attorney General has an interest in this proceeding because the proposed settlement may interfere with his ability to pursue claims against BNYM, Countrywide, BoA, or affiliated entities. 

 

The Attorney General therefore seeks an order pursuant to CPLR 401, 1012, and 1013 granting him permission to intervene as an adverse party in this proceeding to protect the interests of the People of the State of New York.”

Some more from Bloomberg with another quick summary of the facts:

“The allegations by the New York Attorney General are outrageous, baseless, unsupported by fact and law and we will fight them if necessary in court,” Ron Gruendl, a BNY Mellon spokesman, said in an e-mail.

 

“We are confident that we have fulfilled in all respects our responsibilities as trustee,” Gruendl said. “The AG’s action is misguided and fails to comprehend the role of the trustee and the benefit the settlement would provide to investors.”

 

Bank of America and Countrywide separately face liability for “persistent illegality” in breaching contractual promises about the quality of loans, as well as failing to provide complete mortgage files, Schneiderman said in court papers.

 

Lawrence Grayson, a spokesman for Bank of America, declined to comment.

And for those who are completely unfamiliar with the situation here is the big picture gist from a recap by HuffPost:

New York Attorney General Eric Schneiderman asked a state judge to reject a proposed $8.5 billion settlement agreement over soured loans between Bank of America and a group of investors, claiming in court documents that a separate bank representing the investors committed fraud for failing to ensure that the mortgage securities were created in accordance with state law and for failing to act in the investors' best interest. Bank of New York Mellon, the trustee representing the investors, "knowingly, repeatedly, and consistently" misled investors into thinking that the mortgage bonds were created properly, Schneiderman said in court documents. BNY Mellon also put its own interests before those of the investors it's supposed to represent, he said.

 

BNY Mellon, the 11th-largest U.S. bank by assets and one of the nation's largest trustees, stands accused of "repeated fraud and illegality," according to court filings, which alleges that the abuses "were repeated literally hundreds of times." 

 

...

 

In short, Countrywide Financial, the lender purchased by BofA in 2008, failed to properly assemble loan documents needed for the creation of mortgage securities, and BNY Mellon effectively looked the other way, which "apparently triggered widespread fraud," Schneiderman said in court documents. BNY Mellon should have known the mortgage securities were improperly created because the evidence was "abundant," Schneiderman asserted, citing the bank's own documents, news coverage of "foreclosure fraud" and foreclosure actions brought on the bank's behalf.

 

It also opens up new worries for BofA, the nation's largest handler of home loans, as the company could be faced with the prospect of having New York's top legal officer determining that untold billions of dollars' worth of mortgages turned into securities by Countrywide, the nation's largest mortgage company when purchased by Bank of America during the credit crisis, aren't really securities at all due to failures in the security-creating process.

 

In court documents, Schneiderman is demanding that his agency be allowed to further examine loan documents to ensure the securities were properly created. New York's top law enforcement officer is using the Martin Act, a powerful state law that gives prosecutors broad powers to investigate fraud.

Long story short: Bank of America is now totally skewered (as in can you spell U-N-D-E-R-R-E-S-E-R-V-E-D), as this process throws the entire existing settlement, which most certainly was cobbled together with the assistance of the purported legal adversaries so that the American financial system was not scuttled when BAC has to file for bankruptcy, out of the window.

Now that a politically upstart AG is in the pic, and now that he has raised some serious rucus, we expect, as noted above, that the final settlement ask will increase by about $15-20 billion, and in the process sent the company's CDS soaring as the fear of counterparty risk suddenly rears its ugly head in a self-fulfilling prophecy along the same lines as took down Lehman Brothers.

Prepare for a Bank of America public offering. And for our Paulson & Co. LP readers: pray that the billionaire sold his remaining shares in this toxic dump of a bank on which he once upon a time had a $30 price target.

Full filing:

NY AG Involvement in BAC $8.5bn Settlement

h/t Manal Mehta

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 08/05/2011 - 00:07 | 1525651 tom a taxpayer
tom a taxpayer's picture

Does settlement money buy get-out-of-jail cards for these criminal fraudsters?

Fri, 08/05/2011 - 01:14 | 1525772 Fish Gone Bad
Fish Gone Bad's picture

Does anyone remember when Reggie Middleton said that Bank of America ate a tape worm?  Reggie might have understated the infection.  Perhaps it was a chest burster (http://www.youtube.com/watch?v=uuapyExYJBI)

Fri, 08/05/2011 - 00:07 | 1525654 WonderDawg
WonderDawg's picture

Liquidation, bitchez!

Fri, 08/05/2011 - 00:06 | 1525658 HarryWanqer
HarryWanqer's picture

<<< I am buying BAC tomorrow.

<<< I am buying BAC tomorrow on margin.

Fri, 08/05/2011 - 00:06 | 1525659 AUD
AUD's picture

So Bank of New York Mellon has violated state law & misled investors, yet investors are so desperate to give Bank of New York Mellon their money the bank is about to start charging them to take it?

That's fucked up.

Fri, 08/05/2011 - 07:29 | 1526124 sunnydays
sunnydays's picture

My thoughts exactly.  They are the same ones wanting to now charge people for having cash in their bank.  How completely outrageous.  If I had lots of money in an account there and was being charged for having cash, I would be getting all my money out, because something is totally screwed up.  I would hope those with the millions there are smart enough to get it out and go elsewhere where you aren't penalized for actually having money.

Fri, 08/05/2011 - 00:09 | 1525660 Korg
Korg's picture

My seriously underwater mortgage is from BOA. Should I even pay it anymore? it might take years before they foreclose, right??

Fri, 08/05/2011 - 00:12 | 1525680 FEDbuster
FEDbuster's picture

Depends on where you live.  Some states like TX are quick, others like NY take years.  If you can rent for less, and you are not in a state that allows them to come after you for a deficiency, then squat for awhile and save some money for your move. 

Fri, 08/05/2011 - 00:18 | 1525697 Korg
Korg's picture

California

Fri, 08/05/2011 - 00:42 | 1525728 iDealMeat
iDealMeat's picture

Squat for a year..  Use the money for PMs.. Then move out of CA, its going to crash too..

Fri, 08/05/2011 - 01:05 | 1525760 DeadFred
DeadFred's picture

I'm sure that crash and burn will be sooner than a year.

Fri, 08/05/2011 - 01:19 | 1525779 CrashisOptimistic
CrashisOptimistic's picture

It damn sure will.

Someone in California flat out lied about that unexpected tax revenue that let them manufacture a budget rationale so they could restart their paychecks.

Because.

GDP GROWTH IN THE TIMEFRAME THEY CLAIM TO HAVE GOTTEN EXTRA REVENUE REVISED TO 0.4%.  It's all BS. 

Someone needs to start a criminal investigation into that extra revenue claim.

Fri, 08/05/2011 - 00:56 | 1525753 Cathartes Aura
Cathartes Aura's picture

I realise you're most likely looking for "financial" advise, but for what it's worth -

do you have at least 6 months food for yourself/family?

do you know where you'll get water from if, say, an earthquake causes water mains to break?  and do you have a water filter, something like a Berkey?

if you use any pharma - do you have reserves sorted out?

I'd do my "disaster prep" first, buy PM now with any "mortgage" money - getting behind on payments at this stage isn't a big deal, compared to getting caught out - folk shouldn't be complacent about the situation right now, and the last quarter of this year - september & november particularly - might hold a true "black swan" - as in, something no one could anticipate.

they're moving a lot of military toys by rail into Kali right now, just saying.

http://theintelhub.com/2011/08/02/multiple-military-train-convoys-filmed...

might be nothing - but given a choice between feeding BoA & yourself/family, I'll guess your choice. . .

Fri, 08/05/2011 - 01:34 | 1525799 Fish Gone Bad
Fish Gone Bad's picture

Honestly.  What are you actually going to do?  For arguments sake, I will admit that you are absolutely correct and that the military is about to take over the United States.  Pretty much every person in the USA (95%+) is probably an untrained and unarmed civilian.  That would make a military coup very very easy.  Perhaps as easy as Napolean conquering Spain.  Anyone insane enough to scream at someone aiming a gun at them can end up with bullet therapy.  Take a look at Egypt now.  What a f'king mess.

Fri, 08/05/2011 - 02:38 | 1525863 Cathartes Aura
Cathartes Aura's picture

Honestly, what am I personally going to do?

I thought a lot about this months ago, and decided to stay nimble, have a couple of out-of-country escape hatches, but meanwhile, continue working with friends getting local food and "prep" together the best we can - this isn't too much different to how I normally go about "life" to be honest, just added stores & specifics rather than more leisurely plans.

I measure events somewhat differently than others, and pay attention to even random stuffs, and I know many scenarios don't pan out - but it really doesn't hurt to be at least somewhat prepared - the poster who lives in CA should give thought to earthquakes, if only because they're more likely there, etc.

Beyond that? get right with yourself, and admit some things are beyond your grasp, let it flow. Me? I listen to great music and try to surrender the illusion of control.

http://www.youtube.com/watch?v=dro17meH8Z4

Bill Callahan "Free's" - 3min of bliss

Fri, 08/05/2011 - 01:40 | 1525805 HungrySeagull
HungrySeagull's picture

CHRIST!!!!

I don't know what to think... Guam seems to be very hard on NOTAMS this week.

Fri, 08/05/2011 - 02:35 | 1525857 itiswhat1tis
itiswhat1tis's picture

isnt it a far more real possibility that those trains of military toys are headed to NTC as they do anytime a unit goes through there?  the math and reality of peoples martial law, military takeovers just dont make sense.  but maybe thats just me, after seeing just how impossibly hard it is to take control of any populated area.

 

Fri, 12/09/2011 - 03:09 | 1962068 Tompooz
Tompooz's picture

on using the military: it may well be in anticipation of several Muni's no longer able to pay their police. The State may also have to fire half of the prison guards and release prisoners into the tender care of FEMA.

See the goarmy.com recruitment ad for camp guards , eh, "internment specialists".  Fresh National Guard recruits, a lot cheaper than state-pensioned prison guards.

Fri, 08/05/2011 - 02:06 | 1525833 NumNutt
NumNutt's picture

My undrwater loan is a previous Country wide loan that is now owned by bank of america. I stopped paying last month, how will this affect me? Property is in WV.

Fri, 08/05/2011 - 00:09 | 1525662 automato
automato's picture

I have some money. Not a lot of money but a little that I want to loan out so that I can help someone that needs it and maybe make a little for myself in the process. Believe it or not, that is the basis for our entire SYSTEM. When the system functions normally, I get a decent return say 3-5% per year and all is right with the World. When the system is corrupt, governments piss away my money on stupid projects just to piss away my money and pay off their friends and I get pissed! Now I am not so willing to loan out my money any more and I take it back. I put it away where YOU will never see it again until you offer me a MUCH, MUCH, HIGHER return say 10-15% or more per year like Gold and Silver or I just hide it until I feel it's safe to come out again. This may take a LONG, LONG, time. Hope we all make it.

 

Fri, 08/05/2011 - 00:10 | 1525664 FEDbuster
FEDbuster's picture

Statute of limitations count down clocks on every bankster's desk?

Hasten the Collapse, OBAMA 2012

Fri, 08/05/2011 - 00:12 | 1525673 AssFire
AssFire's picture

I don’t understand how you can be so hard on President Obama. Weren’t any of you here for the schooling of 2011? That year, thanks to professors Obama, Pelosi, Reid, Dodd, Frank, and Schumer, was the most explosive period of intellectual growth in my life. In that short year I came to understand some basic and fundamental truths of our new fundamentally changed America.

• Hard work is for suckers. Wait for someone else to produce something, find a way cast yourself as their victim, and then take what you want.

• Successful people are evil because they show others that innovation, risk taking, and hard work leads to success. The people MUST believe that the government is COMPLETELY in control of each person’s success.

• Only idiots think that living within a budget is possible or practical. Intelligent people know that the federal budget is just part of a highly sophisticated system that must be ratcheted up from time to time. Passing legislation to limit the debt is just a polite custom that soothes that silly part of the public that still hold onto quaint ideas about the value of promises.

• If you are white, you should be ashamed. If you are also a male, you should be doubly ashamed. If you are also a small business owner who has the audacity to believe that what you earn is yours, you should just nip off and hang yourself.

• Children have no business being exposed to the teachings of their parents. It takes too long for professional teachers in our fine public schools to undo all the indoctrination received at home. The endless drivel spouted by parents about compassion, honor, responsibility, courage, kindness, and most importantly individual achievement would certainly ruin our culture if it were not for the tireless efforts of our public school teachers and especially their unions.

• There are two kinds of Americans: Democrats and racists.

• Christians are bad.

• 9% unemployment is a very good thing because it could have been 90% unemployment. The stimulus kept the unemployment to an unbelievably low rate. We should all be very, very thankful.

• The American Experiment is a very bad idea because it naturally discriminates against people with deficits of knowledge, energy, courage, honor, and tenacity. These are the VERY people that geniuses like John Rawls say that society should advocate. The American Experiment may create an incredibly high quality of life for society at large, but people in the lower socio-economic rungs naturally feel envy - no human should ever feel bad about their station in life or their accomplishments. The American Experiment is brutal idea from a brutal time.

• Gay people make better parents. Marriage between and man and a women should be tolerated, even given the same rights as gay couples, but gay marriages should be the social norm because gay people are more loving and tolerant the un-gays.

• America has caused the world so much damage that we should just say we are sorry, tear up our completely outdated constitution, and beg the Muslim Brotherhood for guidance.

I can’t believe I was able to live with myself prior to 2011 – back then I was intellectually and morally bankrupt. But now I get it. Now, I am at peace. Now I can finally enjoy Bill Maher.

I really wish all of these unenlightened journalists would just lease a clue.

Fri, 08/05/2011 - 00:21 | 1525688 FEDbuster
FEDbuster's picture

Yes comrade, you just needed to be re-educated.

"We Are All Deadbeats Now", Newsweek cover story circa 2012

Fri, 08/05/2011 - 00:26 | 1525710 Bolweevil
Bolweevil's picture

Next up Law of Club and Fang.

Fri, 08/05/2011 - 00:26 | 1525712 pods
pods's picture

Jesus Hannity, do you ever sleep?

The Amerikan experiment was settled in the 1860s.  

I dont give a rat's ass if you love the empire, but just don't pretend that cause you called tails you are playin with a different coin.

Surprised that you didn't say "Sharia Law" or "Islamic Caliphate."  You came close with Muslim Brotherhood.  

From what you wrote above, you are still quite intellectually bankrupt.

pods

Fri, 08/05/2011 - 00:37 | 1525719 GoinFawr
GoinFawr's picture

Indeed, his pants are on fire; I doubt I would cross the street to piss them out.

Fri, 08/05/2011 - 01:23 | 1525784 CrashisOptimistic
CrashisOptimistic's picture

I don't care if you're left wing or right wing there, peaches.  Long posts don't get read.

Fri, 08/05/2011 - 01:42 | 1525801 scratch_and_sniff
scratch_and_sniff's picture

Lets play a little game Assfire, its called, "fill in the blanks".

For person x, _ _ _ _ _ _ _ is "a genuinely revolutionary, trans-class form of anti-liberal, and in the last analysis, anti-conservative nationalism" built on a complex range of theoretical and cultural influences. He distinguishes an inter-war period in which it manifested itself in elite-led but populist "armed party" politics opposing socialism and liberalism and promising radical politics to rescue the nation from decadence.

Person y sees _ _ _ _ _ _ _ as "a form of political behavior marked by obsessive preoccupation with community decline, humiliation, or victimhood and by compensatory cults of unity, energy, and purity, in which a mass-based party of committed nationalist militants, working in uneasy but effective collaboration with traditional elites, abandons democratic liberties and pursues with redemptive violence and without ethical or legal restraints goals of internal cleansing and external expansion."

 A number of _ _ _ _ _ _ movements described themselves as a "third force" outside of the traditional political spectrum.[45] Mussolini promoted ambiguity about _ _ _ _ _ positions in order to rally as many people to it as possible, saying _ _ _ _ _ _ can be "aristocrats or democrats, revolutionaries and reactionaries, proletarians and anti-proletarians, pacifists and anti-pacifists".[46] Mussolini claimed that Italian _ _ _ _ _ _ economic system of corporatism could be identified as either state capitalism or state socialism, which in either case involved "the bureaucratisation of the economic activities of the nation."[47] Mussolini described _ _ _ _ _ _ in any language he found useful.[46][48] Spanish Falangist leader José Antonio Primo de Rivera said: "basically the Right stands for the maintenance of an economic structure, albeit an unjust one, while the Left stands for the attempt to subvert that economic structure, even though the subversion thereof would entail the destruction of much that was worthwhile

The military ruin of German and Italian _ _ _ _ _ _ in WWII convinced most people that _ _ _ _ _ had been destroyed for good and was so utterlydiscredited that it could never again entice any followers.  Events since then, particularly the emergence of new _ _ _ _ _ _ groups and tendencies in almost every capitalist country,have dispelled suchwishful thinking.  The illusion that WWII was fought to make the worldsafe from _ _ _ _ _ _ has gone the way of the earlier illusion that WWI wasfought to make the world safe for democracy.  The germ of _ _ _ _ _ _ is endemic in capitalism; a crisis can raise it to epidemic proportions unless drastic countermeasures are applied.

you got it yet...here s a clue it begins with f, and ends in ism.

Fri, 08/05/2011 - 14:00 | 1527676 GoinFawr
GoinFawr's picture

Ass of fire and his extremely extremist loony friends are confused: you didn't leave enough spaces for 'feminism'.

Fri, 08/05/2011 - 03:20 | 1525896 OldPhart
OldPhart's picture

Assfire, I learned my lessons, too.

Fri, 08/05/2011 - 00:14 | 1525677 MobBarley
MobBarley's picture

Countrywide was run by AngloSaxon mafia aka CIA.

They stuffed BAC with it to get rid of the body.

BAC is run by Italian mobsters, poor slobs

that always get fucked by Aryan types.

They always said a BAC implosion would coincide with the great financial meltdown.

Chicken or egg doesn't matter. martial law is martial law.

 

Fri, 08/05/2011 - 00:18 | 1525687 Drag Racer
Drag Racer's picture

Schneiderman should stay away from hot tubs for a while...

Fri, 08/05/2011 - 01:11 | 1525771 DeadFred
DeadFred's picture

And hotel maids.

Fri, 08/05/2011 - 00:16 | 1525692 Karl Tashjian
Karl Tashjian's picture

'BNY Mellon also put its own interests before those of the investors it's supposed to represent'

 

Putting their own interests before their clients?! Preposterous! It's not like they're charging 13 bps to hold clients' 50 mil or anything like that...

 

Oh wait.

Fri, 08/05/2011 - 00:22 | 1525703 Careless Whisper
Careless Whisper's picture

Cali going after Citi.

California False Claims Act makes it a C.R.I.M.E. to defraud the State (as in State Pensions)

http://www.latimes.com/business/realestate/la-fi-mortgage-subpoenas-2011...

 

Fri, 08/05/2011 - 00:47 | 1525740 azusgm
azusgm's picture

Excellent. Sounds like Tom Miller couldn't convince all of the state attorneys general that the putrid stench wafting off the AAA-rated RMBS was actually a refreshing fragrance. The banks may end up with something other than a light slap on the wrist accompanied by an apology for the inconvenience.

Prosecute those crooks already! Dismantle the corrupt bank organizations then roll out the welcome mats at the penitentiaries for the TBTF bank bosses and the legions of their willing minions.

Fri, 08/05/2011 - 00:25 | 1525708 Seasmoke
Seasmoke's picture

sounds like great news for my unpaid HELOC from BOA......shout out to Ken Lewis !

Fri, 08/05/2011 - 00:25 | 1525709 unununium
unununium's picture

First they'll try a death spiral convertible.  Like the one brilliant Ken Lewis bought into Countrywide with in August, 2007. 

Wonder what price they'll find suckers at.

Fri, 08/05/2011 - 00:33 | 1525715 Cdad
Cdad's picture

Nibble when it gets to 99 cents...but go slowly.

Fri, 08/05/2011 - 01:21 | 1525782 DeadFred
DeadFred's picture

I was going to comment on how low Citi got in March '09 when it suddenly occured to me the cosmic purpose behind this. The algos lost their favorite plaything when C did the reverse split and now now they will be able to play with BAC with a trillion trades per day at $2. Market volume returns and all will be right with the world! I'm so glad (and it's been a long day). Goodnight

Fri, 08/05/2011 - 00:31 | 1525713 Jim in MN
Jim in MN's picture

Waiter, there's a zombie in my soup.

Oh, and a turd in the punchbowl.

Fri, 08/05/2011 - 00:39 | 1525725 GoinFawr
GoinFawr's picture

Is your server's name 'Tyler'?

Fri, 08/05/2011 - 00:53 | 1525751 hedgeless_horseman
hedgeless_horseman's picture

'Cream' of zombie soup?

Fri, 08/05/2011 - 02:22 | 1525841 MsCreant
MsCreant's picture

Tyler's not a zombie...

Fri, 08/05/2011 - 00:36 | 1525716 scratch_and_sniff
scratch_and_sniff's picture

ZH was on the news WTF? Things could even be worse than they look. So what now, no longer underground, the big money comes in and takes over, next year we will be drinking out of plastic tyler durden cups in mcdonalds while our kids play with plastic tyler dolls?

Fri, 08/05/2011 - 00:41 | 1525724 lolmao500
lolmao500's picture

And if BAC goes down, what happens? Isn't BAC bigger than Lehman? If BAC goes down, the whole world goes down if there's no bailout or what?

Fri, 08/05/2011 - 00:46 | 1525737 scratch_and_sniff
scratch_and_sniff's picture

...my screens are alreadly lighting up like a christmas tree and its not even 6am, this is going to be an interesting day, you guys either get a hell of an upside shock from the jobs numbers or its goodnight Vienna.

Fri, 08/05/2011 - 01:46 | 1525810 Liquid Courage
Liquid Courage's picture

Wow! A Ringo Starr reference. Got any hen's teeth?

Fri, 08/05/2011 - 01:50 | 1525816 scratch_and_sniff
scratch_and_sniff's picture

I thought i told you the score already...

http://www.youtube.com/watch?v=gpd24yVy5C4

Fri, 08/05/2011 - 00:51 | 1525749 monkeyboy
monkeyboy's picture
BAC Equity Offering Imminent

Talk about exqusite timing!

Fri, 08/05/2011 - 01:07 | 1525766 sub Z
sub Z's picture

I don't listen to them.

Fri, 08/05/2011 - 01:17 | 1525777 Doyle Hargraves
Doyle Hargraves's picture

No equity offering the corpse will be delivered to the taxpayers and the stuff worth anything picked over by TPTB (jp morgue/gs/et al.)

Fri, 08/05/2011 - 01:29 | 1525794 narnia
narnia's picture

i'm not sure how you are going to get a good bank out of this mess, even if you set up a very large bad bank.  you can't run a strainer through toxic waste.

Fri, 08/05/2011 - 01:55 | 1525823 GoldmanSux
GoldmanSux's picture

BAC bought Countrywide for $3billion. $25billion in liabilities? It's amazing Mozillo has stayed out of jail. Jeffrey Skilling hasn't been treated fairly.

Fri, 08/05/2011 - 02:04 | 1525832 Lester
Lester's picture

Look for a false-flag event and associated scorched earth to serve them that did all the dirt, and pocketed the $$$.  Only way they (TPTB) will be able to retain their ill-gotten gain is to destroy the forensic audit evidence and trails to it.

Of course, the new supernumerary Congress could just issue a blanket amnesty for ethical and fraudulent misconduct.  They was only following orders mein herr...  All depends on what the definition of "is" is; and who is writing the new rules...

Fri, 08/05/2011 - 02:33 | 1525844 Doyle Hargraves
Doyle Hargraves's picture

The takedown of BAC is the FALSE FLAG event that was planned out back when they had a cunt tree wide forced on them. All the TBTF were sitting in a room. If cunt tree wide was worth anything the house of morgue/gs/wells or citi would have jumped on it. The fact is cunt tree wide was started as and always was a subprime outfit. TPTB fed BAC that shit sandwich because they already knew what was in it. BAC was a contingency plan for the boys in the club in case the ponzi ever got to a point where it was unsustainable. As a kind gesture they let them have merrill lynch, but the shit sandwich that was cunt tree wide assured BAC would go out like Mama Cass. This was all prepositioned. The boys in the club even made sure to put a few of their insiders on the payroll at BAC to set the explosives when the time came. The excuse will go something like this, "BAC has failed the fed and CONgress stand ready to pick up the pieces and keep the financial system intact through stimulus and borrowing". That will come from timmay and the bernank's mouth, all hell will break loose CONgress's masters will remind them who they work for. The boys in the club will make off with all the good stuff and the corpse will have it's funeral paid for by the taxpayer under the guise of "preventing a depression" (which is already here, it just isn't inflationary yet but after the BAC takedown it will be). As go the spoils of war the good ole boys club will be able to hide all the forensic evidence documenting the scams, frauds, lies, and destruction that they handed over to BAC in 2007-2008. It totally makes sense for TPTB to consolidate their power, destroy all the forensic evidence and still have all of us on the hook for the losses.

Fri, 08/05/2011 - 02:08 | 1525835 iNull
iNull's picture

They will be judged. The sanctification.

Fri, 08/05/2011 - 02:32 | 1525852 chump666
chump666's picture

c'mon China bust that BS white knight crap 'you gonna buy EZ again'.  In less than 3mths China is going to collpase in a heap.  BOOM!

Fri, 08/05/2011 - 02:40 | 1525868 chump666
chump666's picture

and a nicey juicy writedown of your reserves once a rating agency sends a warhead at ya. 

Fri, 08/05/2011 - 03:02 | 1525880 Alex2245
Alex2245's picture

http://theintelhub.com/2011/08/04/low-flying-helicopters-over-boston-for...

 

Low flying helicopters spotted buzzing buildings in washington! The reason why i post this here is because they military is PLANNING to take on the American people after the economic collapse!

Fri, 08/05/2011 - 07:28 | 1526120 Coldfire
Coldfire's picture

Delicious.

Fri, 08/05/2011 - 07:49 | 1526145 dellbalboa
dellbalboa's picture

" Its a celebration bitches!" Dave chappelle as Rick James.

 

 

Schneiderman between you and me,  if you have a blackbook somewhere, make sure you shredded it!

Wed, 09/14/2011 - 04:47 | 1667388 chinawholesaler
chinawholesaler's picture

Wholesale Massager
Wholesale Furniture

Wholesale Tableware
Wholesale Speakers
Wholesale Bag

Wholesale Frisbee
Wholesale Bookmark
Wholesale Flag

Money Clip
Wholesale Fan
Wholesale Tableware

Personal Safety Products
Wholesale Watch
Wholesale Frisbee

Wholesale Clap Hands
Wholesale Puzzle
Wholesale Fan

Wholesale Scissors
Wholesale Cards
Wholesale Scale

Wholesale Belt
Wholesale Banner
Flash Gift

World Cup Products
Giveaway Material
Promotional Products

Wholesale Clothes Rack
Money Bank
Wholesale Album

Christmas Gifts
Cleaner Products
Sport Support Products

Wholesale Bag
Personal Safety Products
Industrial Supplies

Wholesale Compressed Products
Vocal Concert Products
Wholesale Bangle

Lighting Products
Wholesale Stress Ball
Water Bottle

Wholesale Cap
Wholesale Scissors
Wholesale Knife

Wholesale Lanyard

Do NOT follow this link or you will be banned from the site!