Here Comes TARP 2: Bank Of America Implodes, At $6.87, BAC CDS Up 20% To 260 bps As Bankruptcy Contemplated
With Bank of America investors finally realizing it is game over for the company as a going concern, at this point there are just two options for Brian Moynihan: the spin off of CFC as a bad bank, backstopped by the Fed, or, well, Chapter 11, which for a bank is essentially liquidation (and with CDS trading up 50 bps to 260 a bankruptcy seems increasingly inevitable). It also means that another TARP is on the way. And once America realizes that another several trillion have to be put into its insolvent banking sector, it will get quite violent. The biggest irony: it is AIG which takes down the financial system for the second time after its lawsuit against BAC filed last night kills Bank of America.
And the full AIG filing which just put the final stake through the heart of America's most insolvent bank:
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- On the BAC deal
I thougt Dodd Frank fixed all of this
no more too big to fail,right?
Anyone hearing of clearing clogs yet? Counterparty freezes? Are banks avoiding trades with BAC, C, etc yet? And Europe? Already had interbank risk problems last week. What you hearing today? Thx!
GOOG seems to have pulled the plug on its finance portal. /transitory/
Everyone is slowwwwwwww today. It seems the world is waking up to the real time financial fun house.
BLUE MONDAY BITCHEZ :D :D :D
America stagflating, Britain burning, Europe degenerating, here comes Benny to save the day with fuckloads of TARP cash. Back in the real world, another TARP would surely put the American credit rating at BBB at best, increasing likelihood of the death of the dollar as the global reserve currency to at least 9000%.
You're quite mistaken.
The more it burns, the more the world keeps running back into the Dollar and Dollar denominated paper.
Look, the masters who setup the system and officiated the syndicate in 1913 are completely in charge. They own over 50% of all the world's wealth, maybe more.
This is their game, they're in charge. Their favorite gimmick is the US fiat and the US treasury paper.
Printing more of it actually increases the value. That's fucked but that's how smart these vermin have established the trade and the deck.
You gotta link? Please don't talk about things you clearly don't know shit about.....
He is wrong.
The only reason treasuries are going up is because that is how all bubbles pop. They must got up beyond belief.
If the asset that got downgraded is going up, that is beyond belief enough for me.
He's correct in saying that this is their game but that's it. The banking cartel positioned themselves out of USD a looooooong time ago. On top of that, countries don't flock to USD then immediately strike trade deals in their own currencies and/or soon-to-be reserve currencies. For someone that's been around for 1 year and 51 weeks, walkure hasn't been paying much attention....
Whoa, Goldman just traded at $119! Getting ugly for all the financials! Couldn't happen to a more deserving group.
GS a buy at 110
Wait for at least $80 on GS before buying.
Apple is waiting in the wings.
This is the only thing working consistantly for me today: http://www.sgxniftydowfutureslive.com/index_files/WORLDINDEX.htm
BOA has been held on death row for years and each passing day brings us closer to the day of execution.
I grin as if BOA is a criminal that murdered a friend.
One of my all time favorite stories I know BAC was one of them. Couldn't of happen to a better company.
How I stuck it to the credit card companies
Nothing is too big for FED when Dodd-Frank granted super liquidation powers to the FED.
A controlled liquidation is a political connected investor’s dream come true.
Today is the first day institutional holders of BAC-L Series L Preferred shares are frightened of BAC not maintaining the dividend on their senior preferred. BAC-L is very good short, till about $350.00 cover, since BAC-L has only recently, in distinction to the common, started its plunge.
too big
to stop
from failing ...
You are confused with Beans and Frank.
Sold ZBU1@134-26/SHORT. at 11:47 NYDT today. That's the CME Long Bond Contract.
LOL! Yeah, right. AIG; too big to fail, too big to run properly, terminally fucked up; needed a bullet in the brain, instead it got bailed out; big mistake.
IQ 145,@ 12:53
Bro, when it comes to this stuff,it's not a mistake,it's by design.
Interesting that I happen to be watching http://topdocumentaryfilms.com/argentinas-economic-collapse/ today.
History repeats itself and that sucks, come on people wake the fuck up.
Thanks g. This film is a real eye-opener. I was amazed at the parallels with the US. Menem could be a model for Obama. He literally stood up before his people when he was a candidate and shouted 5 times, "I will never betray you." Then when elected, he did a complete about face in every respect. Watch this film, you will be amazed and it will enable you to see what the program is for the US and what to expect from this crisis, which also had its Argentinian counterpart. There is nothing new under the sun. You can see clearly that there is a script for what happened there when you look at what is happening here.
THIS is it boyz and gurlz!!!
GAME OVER!!!!!!!!!!!!!
CAN anyone confirm that they have limited bank withdrawls at BAC????
HOLY!!!!!!!!!!! WTF!!
Closed my accounts 2 weeks ago, let the bitch burn.. I wanna see the pics of the lines around the buildings when the run starts.
Agree. As the Bikers used to say in Oakland; "Fuck'em if they take a joke".
My brother in law told me a Times Square BAC ATM was out of service Saturday Night.
Did an online bill pay for $12K to my mortgage and what would normally be a next day thing is delayed until the 11th. Don't know if this is evidence of a problem. I've never sent that much money out before using the online system, so it may just be normal for the size of the transaction. Can anyone else confirm?
You paid 12k towards your mortgage? Today?
Why would you not take that money out and buy gold instead????
Paying a mortgage.. now that's rich!
+ a -3% $INDU....
Some people just don't get "it"....
I bet this dude knows the name of every finalist on American Idol, and can quote last nite's MSN propaganda release, word for word; too bad he has no idea what's going on in the real world.
Is it safe to assume you don't have 12K lying around right now? That makes you either stupid or poor. In either case, I'm almost certainly better off not taking your advice.
so sorry bank of cramerica
Cramer had a raging, headline buy with a price target "I think it can top $20"
I remember a similar piece about Bear Stearns.
I see people talking about this person Cramer; I don't do TV personally; that's a remarkable quote. Of course, it's possible it could go to $20; but I'm convinced that one should be interested in what's more probable, and if possible, in what's most probable. He must be a very strange person.
Where are Tepper's balls right now. Looks like he got out according to Faber - when did he do that? Did he lose like Paulson?
HIS BALLZ got stapled to the walls so he left them there!!!
He also dumped Wells and most of Citi, according to CNBC.
Is AIG controlled by Waddell and Reed?
Must be. They killed Kenny, those bastards!
Bank run?
Soooooo, if you had your funds in BOA would you be withdrawing them, or is way past that time to be worrying about taking your cash out?
BOA bankrun?
I'm gonna go withdraw some there at BofA now . . . and some more at my community bank. Just in case. Not really saying ya should. But cash does look pretty next to my gold and gems.
Banken Runnen ! Sheep, GO!
Took vast majority out in 2008. I only keep a small checking account open there for online bill pay... may be time to prepay some things today, lol. Oh if you think BAC will fall alone, don't forget about all of the money market fund and now account redemption suspension authority put in place in the past few years.
...ashes, ashes, we all fall down.
we need 25% for QE-3 not 20%!
come on 25% drop!!!
o wait we are already there plus!!
oops!
to much cow bell!
I wonder who will be a Jackson Hole this year calling QE 1 and 2 a failure? and walking away looking like a hero! all the while the Banks charge more interest on our National debt to off set the losses in real estate.
who will be the person that entertains the sheep while the bankers rob "We the People" blind thru national debt payments?
Not Jerry Lewis.
lol
why not?
He needs a new set of "special" kids anyway....
http://www.youtube.com/watch?v=q4royOLtvmQ
That's it wall street...
Stare *deep* into the abyss you fucking parasites.
Voice talent by James Earl Jones.
Dear Alan, Ben, Hank, Timmy, Dubya and Obie:
When reading the Goldman handbook, you overlooked Rule #1. YOUR FIRST LOSS IS YOUR BEST LOSS. Take the loss, don't hide it in your desk drawer.
Now the unbooked losses of these thieving, lying Wallstreet banksters are taking the country down.
All the best.
Kayman
BREAKING NEWS: The Messiah to address the Nation at 13:00 EDT. Subject: My Birthday BBQ
please...no more national addresses, I can't take much more and it always sounds the same.
Maybe he got the Peace Pony he always wanted?
So will we get:
The sincere Statesman would require telling the truth, so cancel that option.
They are sincere lies! Just look at all the CongressCritters and SenateWhores who lie with straight faces and their sincere expression of being on the side of the citizens...
I sincerely want you to believe what I'm saying. . .
Maybe he'll perform a barefooted dance for us! Someone hack that teleprompter and make it happen.
http://www.youtube.com/watch?v=ACpNVD5GMUw
This guys on TV more then Chavez!?!
Does Paulson need to liquidate his gold holdings to save his Advantage fund?
No, he needs to add to his gold holdings to save is "advantage" fund.
All units....all units.....zombie bank down!!!!....zombie bank down!!!!!
Let me guess, since the Merrill takeover BAC is now even too bigger to fail! Thwanks FwankenDodd!!
If BAC really does file, then TS will undoubtedly HTF, and this fall could make fall / winter 2008 look pretty mild by comparison.
Doubtful, we'll see TARP 2.0 before the lawyers get involved. I'm sure TARP 2.0 legislation is being written up right now. They can pass this thing very easily while Congress is in recess. Only need two senators, just like they did for passing the FAA legislation last week.
After the downgrade fiasco, I see zero possibility of a Treasury credit backstop for BAC, and nobody else is big enough to buy them. They are on their own. Best-case is an orderly breakup stage-managed by the NY Fed if they can't muddle through.
Aig, owned by America, sues bank of America and brings down America. Classic. Thank god for lawyers
one down, and many more that need to go!!!!!!!!!!!!!!!!!!!!!!!!
Watch the label as to "why" get changed daily. How the fuck do we backstop an already backstopped entitiy? Well, I guess as long as nobody goes to jail - cause that'd be a shame, huh?
When is Obam going to fucking speak?
He is playing golf, the telepromter writer has the day off.
Who cares? He needs to shut his fucking pie hole and go away.
Let him speak GOLD needs to break on through $1800 today, and BAC is in limbo, by the time he is finished BAC dies and GOLD=$1800. Really want gold to take off, put the bernank on live GOLD=$2000 instantly.
BAC is in Limbo. BAC is doing the Limbo; it was a dance craze that involved slithering under a pole, Limbo, Limbo, how low can you go"; etc.
Jobe,
Does it matter?...........he's as big (or bigger) problem for the Republic than any items we face.
He will put on a telepromter show, telling all It's ok, do not worry.............WE will be fine(on Wall St), and YES,we are going to contiue to screw you till your nose bleeds.
ThankYou......................
YES WE CAN!!!
if they take over bac, can they take over all the shares, and then hire zh to run the portfolio. bet zh could run it via a web chat room more efficiently and much cheaper
No tragedy. All US banks should be stopped for a holiday and nationalized. Normal life will continue. Never again finance business should be more than an utility along with electricity, water, gas, etc...
can i say A-Fucking-men? inserting a "fucking" into the middle to emphasize my violent agreement with you?
The First shall be Last....
In other news: Many gold producers in Europe have run out of stock. I could only find buy quotes at my regular dealer.
How do you say sell Euros in German?
Verkaufen Sie ihre Euros! Sofort!
What a moron, it SHOULD have been broken up long ago. The Euro was a disaster waiting to happen. Luckily, I am sitting in a relatively safe corner of Europe (stressing relatively).
PLease, can I exchange my BAC shares for some Gold....Please!!!
There's nothing quite so beautiful as a black swan. Nothing. Goodbye, Brian. Don't write.