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Here Comes TARP 2: Bank Of America Implodes, At $6.87, BAC CDS Up 20% To 260 bps As Bankruptcy Contemplated

Tyler Durden's picture




 

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:

AIG versus BAC 8-8-2011

 

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Mon, 08/08/2011 - 11:33 | 1537334 anynonmous
anynonmous's picture

I thougt Dodd Frank fixed all of this

no more too big to fail,right?

Mon, 08/08/2011 - 11:36 | 1537357 Cleanclog
Cleanclog's picture

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!

Mon, 08/08/2011 - 11:42 | 1537405 hedgeless_horseman
hedgeless_horseman's picture

GOOG seems to have pulled the plug on its finance portal.  /transitory/

Mon, 08/08/2011 - 11:44 | 1537413 Cognitive Dissonance
Cognitive Dissonance's picture

Everyone is slowwwwwwww today. It seems the world is waking up to the real time financial fun house.

Mon, 08/08/2011 - 11:53 | 1537456 spiral_eyes
spiral_eyes's picture

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%.

 

Mon, 08/08/2011 - 12:01 | 1537493 walküre
walküre's picture

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.

Mon, 08/08/2011 - 12:37 | 1537729 Haywood Jablowme
Haywood Jablowme's picture

The more it burns, the more the world keeps running back into the Dollar and Dollar denominated paper.

 

You gotta link?  Please don't talk about things you clearly don't know shit about.....

 

 

 

Mon, 08/08/2011 - 12:51 | 1537804 Spitzer
Spitzer's picture

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.

Mon, 08/08/2011 - 13:13 | 1537932 Haywood Jablowme
Haywood Jablowme's picture

 

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....

Mon, 08/08/2011 - 12:01 | 1537494 Cleanclog
Cleanclog's picture

Whoa,  Goldman just traded at $119!  Getting ugly for all the financials!  Couldn't happen to a more deserving group.

Mon, 08/08/2011 - 12:13 | 1537542 gangland
gangland's picture

 

GS a buy at 110

 

Mon, 08/08/2011 - 12:18 | 1537575 slaughterer
slaughterer's picture

Wait for at least $80 on GS before buying. 

Mon, 08/08/2011 - 12:36 | 1537718 Yardfarmer
Yardfarmer's picture

Apple is waiting in the wings.

Mon, 08/08/2011 - 12:06 | 1537515 fuu
fuu's picture

This is the only thing working consistantly for me today: http://www.sgxniftydowfutureslive.com/index_files/WORLDINDEX.htm

Mon, 08/08/2011 - 11:49 | 1537442 Pladizow
Pladizow's picture

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.

Mon, 08/08/2011 - 12:23 | 1537620 Taint Boil
Taint Boil's picture

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

Mon, 08/08/2011 - 11:58 | 1537480 Life of Illusion
Life of Illusion's picture

 

 

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.

 

Mon, 08/08/2011 - 12:17 | 1537571 slaughterer
slaughterer's picture

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.   

Mon, 08/08/2011 - 12:18 | 1537573 mt paul
mt paul's picture

too big

to stop

from failing ...

Mon, 08/08/2011 - 12:42 | 1537765 Stochdoc
Stochdoc's picture

You are confused with Beans and Frank.

Mon, 08/08/2011 - 12:48 | 1537792 IQ 145
IQ 145's picture

Sold ZBU1@134-26/SHORT. at 11:47 NYDT today. That's the CME Long Bond Contract.

Mon, 08/08/2011 - 12:53 | 1537810 IQ 145
IQ 145's picture

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.

Mon, 08/08/2011 - 13:41 | 1538157 DosZap
DosZap's picture

IQ 145,@ 12:53

Bro, when it comes to this stuff,it's not a mistake,it's by design.

Mon, 08/08/2011 - 11:32 | 1537335 g
g's picture

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.

Mon, 08/08/2011 - 13:07 | 1537908 Escapeclaws
Escapeclaws's picture

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.

Mon, 08/08/2011 - 11:34 | 1537340 jus_lite_reading
jus_lite_reading's picture

THIS is it boyz and gurlz!!!

 

GAME OVER!!!!!!!!!!!!!

 

CAN anyone confirm that they have limited bank withdrawls at BAC????
HOLY!!!!!!!!!!! WTF!!

 

Mon, 08/08/2011 - 11:36 | 1537359 Stoploss
Stoploss's picture

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.

Mon, 08/08/2011 - 12:55 | 1537822 IQ 145
IQ 145's picture

Agree. As the Bikers used to say in Oakland; "Fuck'em if they take a joke".

Mon, 08/08/2011 - 11:43 | 1537409 pepperspray
pepperspray's picture

My brother in law told me a Times Square BAC ATM was out of service Saturday Night.

Mon, 08/08/2011 - 11:58 | 1537472 FischerBlack
FischerBlack's picture

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?

Mon, 08/08/2011 - 12:02 | 1537500 walküre
walküre's picture

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!

Mon, 08/08/2011 - 12:27 | 1537648 Haywood Jablowme
Haywood Jablowme's picture

+ a -3% $INDU....

Some people just don't get "it"....

Mon, 08/08/2011 - 12:58 | 1537843 IQ 145
IQ 145's picture

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.

Mon, 08/08/2011 - 13:41 | 1538153 FischerBlack
FischerBlack's picture

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.

Mon, 08/08/2011 - 11:33 | 1537341 bania
bania's picture

so sorry bank of cramerica

Mon, 08/08/2011 - 11:37 | 1537367 Caviar Emptor
Caviar Emptor's picture

Cramer had a raging, headline buy with a price target "I think it can top $20" 

Mon, 08/08/2011 - 11:48 | 1537439 astartes09
astartes09's picture

I remember a similar piece about Bear Stearns.

Mon, 08/08/2011 - 13:02 | 1537866 IQ 145
IQ 145's picture

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.

Mon, 08/08/2011 - 11:34 | 1537344 drswhaley
drswhaley's picture

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?

Mon, 08/08/2011 - 11:34 | 1537350 jus_lite_reading
jus_lite_reading's picture

HIS BALLZ got stapled to the walls so he left them there!!!

Mon, 08/08/2011 - 11:42 | 1537403 Freewheelin Franklin
Freewheelin Franklin's picture

He also dumped Wells and most of Citi, according to CNBC.

Mon, 08/08/2011 - 11:34 | 1537345 tmosley
tmosley's picture

Is AIG controlled by Waddell and Reed?

Must be.  They killed Kenny, those bastards!

Mon, 08/08/2011 - 11:34 | 1537347 papaswamp
papaswamp's picture

Bank run?

Mon, 08/08/2011 - 11:34 | 1537349 monkeyboy
monkeyboy's picture

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?

Mon, 08/08/2011 - 11:38 | 1537376 Cleanclog
Cleanclog's picture

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.

Mon, 08/08/2011 - 11:40 | 1537390 The Shootist
The Shootist's picture

Banken Runnen ! Sheep, GO!

Mon, 08/08/2011 - 11:42 | 1537399 Cthonic
Cthonic's picture

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.

Mon, 08/08/2011 - 11:46 | 1537423 LibertyIn2010
LibertyIn2010's picture

...ashes, ashes, we all fall down.

Mon, 08/08/2011 - 11:35 | 1537352 JW n FL
JW n FL's picture

we need 25% for QE-3 not 20%!

come on 25% drop!!!

o wait we are already there plus!!

oops!

to much cow bell!

Mon, 08/08/2011 - 11:38 | 1537377 JW n FL
JW n FL's picture

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?

 

Mon, 08/08/2011 - 11:53 | 1537459 cossack55
cossack55's picture

Not Jerry Lewis.

Mon, 08/08/2011 - 11:57 | 1537475 Spastica Rex
Spastica Rex's picture

lol

Mon, 08/08/2011 - 12:42 | 1537761 Bananamerican
Bananamerican's picture

why not?

He needs a new set of "special" kids anyway....

Mon, 08/08/2011 - 11:36 | 1537356 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

That's it wall street...

 

Stare *deep* into the abyss you fucking parasites.

Mon, 08/08/2011 - 11:42 | 1537404 Uncle Remus
Uncle Remus's picture

Voice talent by James Earl Jones.

Mon, 08/08/2011 - 11:44 | 1537418 Kayman
Kayman's picture

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

 

 

Mon, 08/08/2011 - 11:36 | 1537358 LoneStarHog
LoneStarHog's picture

BREAKING NEWS:  The Messiah to address the Nation at 13:00 EDT.  Subject:  My Birthday BBQ

Mon, 08/08/2011 - 11:40 | 1537389 glenlloyd
glenlloyd's picture

please...no more national addresses, I can't take much more and it always sounds the same.

Mon, 08/08/2011 - 11:42 | 1537406 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Subject:  My Birthday BBQ

Maybe he got the Peace Pony he always wanted?

 

 

Mon, 08/08/2011 - 11:48 | 1537437 Kayman
Kayman's picture

So will we get:

  1. The sincere Statesman
  2. The whining Finger Pointer
  3. The Clueless Teleprompter Reader

The sincere Statesman would require telling the truth, so cancel that option.

Mon, 08/08/2011 - 11:54 | 1537467 krispkritter
krispkritter's picture

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...

Mon, 08/08/2011 - 12:09 | 1537529 infinity8
infinity8's picture

I sincerely want you to believe what I'm saying. . .

Mon, 08/08/2011 - 11:55 | 1537463 Silver Dreamer
Silver Dreamer's picture

Maybe he'll perform a barefooted dance for us! Someone hack that teleprompter and make it happen.

Mon, 08/08/2011 - 12:00 | 1537490 Pladizow
Pladizow's picture

This guys on TV more then Chavez!?!

Mon, 08/08/2011 - 11:36 | 1537360 DormRoom
DormRoom's picture

Does Paulson need to liquidate his gold holdings to save his Advantage fund?

Mon, 08/08/2011 - 11:45 | 1537422 Spitzer
Spitzer's picture

No, he needs to add to his gold holdings to save is "advantage" fund.

Mon, 08/08/2011 - 11:36 | 1537361 Fazzie
Fazzie's picture

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!!

Mon, 08/08/2011 - 11:36 | 1537362 Greater Fool
Greater Fool's picture

If BAC really does file, then TS will undoubtedly HTF, and this fall could make fall / winter 2008 look pretty mild by comparison.

Mon, 08/08/2011 - 11:41 | 1537392 Cyan Lite
Cyan Lite's picture

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.

Mon, 08/08/2011 - 11:48 | 1537434 Greater Fool
Greater Fool's picture

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.

Mon, 08/08/2011 - 11:36 | 1537364 oogs66
oogs66's picture

Aig, owned by America, sues bank of America and brings down America.  Classic. Thank god for lawyers

Mon, 08/08/2011 - 11:37 | 1537365 kito
kito's picture

one down, and many more that need to go!!!!!!!!!!!!!!!!!!!!!!!!

Mon, 08/08/2011 - 11:37 | 1537366 treemagnet
treemagnet's picture

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?

Mon, 08/08/2011 - 11:37 | 1537368 I am Jobe
I am Jobe's picture

When is Obam going to fucking speak?

Mon, 08/08/2011 - 11:41 | 1537397 ReallySparky
ReallySparky's picture

He is playing golf, the telepromter writer has the day off.

Mon, 08/08/2011 - 11:44 | 1537414 Dr. Engali
Dr. Engali's picture

Who cares? He needs to shut his fucking pie hole and go away.

Mon, 08/08/2011 - 12:18 | 1537572 Doyle Hargraves
Doyle Hargraves's picture

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.

Mon, 08/08/2011 - 13:12 | 1537950 IQ 145
IQ 145's picture

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.

Mon, 08/08/2011 - 12:27 | 1537647 DosZap
DosZap's picture

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!!!

Mon, 08/08/2011 - 11:38 | 1537372 oogs66
oogs66's picture

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

Mon, 08/08/2011 - 11:38 | 1537373 Gmpx
Gmpx's picture

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...

Mon, 08/08/2011 - 12:57 | 1537840 Bananamerican
Bananamerican's picture

can i say A-Fucking-men? inserting a "fucking" into the middle to emphasize my violent agreement with you?

The First shall be Last....

Mon, 08/08/2011 - 11:38 | 1537374 Aductor
Aductor's picture

In other news: Many gold producers in Europe have run out of stock. I could only find buy quotes at my regular dealer.

Mon, 08/08/2011 - 11:55 | 1537469 hedgeless_horseman
hedgeless_horseman's picture

How do you say sell Euros in German?

German foreign minister says the Eurozone will not break up

 

 

Mon, 08/08/2011 - 12:09 | 1537531 Bam_Man
Bam_Man's picture

Verkaufen Sie ihre Euros! Sofort! 

Mon, 08/08/2011 - 12:29 | 1537659 Aductor
Aductor's picture

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).

Mon, 08/08/2011 - 11:38 | 1537375 Caviar Emptor
Caviar Emptor's picture

PLease, can I exchange my BAC shares for some Gold....Please!!!

Mon, 08/08/2011 - 11:38 | 1537378 H. Perowne
H. Perowne's picture

There's nothing quite so beautiful as a black swan. Nothing. Goodbye, Brian. Don't write.

Mon, 08/08/2011 - 11:38 | 1537379 GIANTKILR
GIANTKILR's picture

"And once America realizes that another several trillion have to be put into its insolvent banking sector, it will get quite violent."

Funniest line all day! I don't see them getting off the couch to change the channel when they lose the remote, yet alone get violent!

Mon, 08/08/2011 - 12:23 | 1537613 DosZap
DosZap's picture

GIANTKILR,

Amen, hate to say it, until they turn off the POWER, and UTILITIES, no one will get off their dead asses,except the Tea Party people, and they,yet again will be villified................IF we could just get Amerikuhns off those damn Tranquilizers,maybe the ZOMIE herds would go outside.

On a side note: SCREW PUTIN..................KGB Bstd.

Mon, 08/08/2011 - 11:39 | 1537381 Caviar Emptor
Caviar Emptor's picture

BAC was the last big question mark at the bottom in March, 2009.

It's now the first big question mark as we put in a top. 

Mon, 08/08/2011 - 11:39 | 1537382 camaro68ss
camaro68ss's picture

This reminds me of the saving privet Ryan movie when they flamethrower the german bunker. "HOLD YOUR FIRE! LET THEM BURN!"

Mon, 08/08/2011 - 12:08 | 1537525 MachoMan
MachoMan's picture

I was thinking more like on Splash, where the boss is diving and the two peons are standing on the ship looking over the side, discussing how they do not like the boss and are contemplating what to do and this gem rings out, "let's pee down his air hose."

Mon, 08/08/2011 - 11:39 | 1537383 ViewfromUnderth...
ViewfromUndertheBridge's picture

So, Euroland need EU3.5Trillion for the EFSF to be "credible"...FrAAnce 'n all.

How much does USSAA+ need to be credible? I mean it, how much and from where?

SJGR...

Mon, 08/08/2011 - 11:39 | 1537384 ReallySparky
ReallySparky's picture

This just might be the ticket to scare the congress critters into another tarp.  I will enjoy watching this b@#ch drop, Lord knows I have lost enough in my gambling account on puts on this piece of crap.  Thanks PPT, looking forward to making back my money and more.

Mon, 08/08/2011 - 11:40 | 1537388 Caviar Emptor
Caviar Emptor's picture

Credit Anstalt 1931 Bitchez!!

Mon, 08/08/2011 - 12:13 | 1537551 snowball777
snowball777's picture

That's why some of us got our orders in during Asian trading last night...

Mon, 08/08/2011 - 11:41 | 1537394 the not so migh...
the not so mighty maximiza's picture

anouther 13 trillion should fix it!!!.. yeah right

Mon, 08/08/2011 - 11:41 | 1537395 Caviar Emptor
Caviar Emptor's picture

Obama proposing a name change to Bank of Bush's America

Mon, 08/08/2011 - 11:41 | 1537396 baby_BLYTHE
baby_BLYTHE's picture

Tanks in da Streets!

Mon, 08/08/2011 - 11:43 | 1537398 pelican
pelican's picture

Jim Kramer says buy Bank America!  Where is my check book?  Oh, I forgot I spent it on metals, boats and hoes.

Mon, 08/08/2011 - 11:42 | 1537400 mendigo
mendigo's picture

it is as timmy fortold - he has out backs for sure

Mon, 08/08/2011 - 13:02 | 1537869 Bananamerican
Bananamerican's picture

he should be working at Outback's

Mon, 08/08/2011 - 11:42 | 1537401 onlooker
onlooker's picture

I left Bof A last year. Barry needs to step up and calm the Fears of the World. Take Charge. Yes we can.

This is the time that trys mens souls. A leader must come forth to save us. NOW is the time.

Mon, 08/08/2011 - 11:45 | 1537420 pelican
pelican's picture

Barry is recovering from his birthday party.

Mon, 08/08/2011 - 11:53 | 1537458 Kayman
Kayman's picture

 A leader must come forth to save us

A Leader ?    So you are saying all is lost....

Mon, 08/08/2011 - 11:42 | 1537402 j0nx
j0nx's picture

I know I won't stand for another TARP. Every American must decide for him/herself if they will.

Mon, 08/08/2011 - 11:43 | 1537407 papaswamp
papaswamp's picture

Someone just stepped in to defend BAC...wonder who it could be....where is nanex

Mon, 08/08/2011 - 11:43 | 1537408 Debt Rolling
Debt Rolling's picture

A new TARP, Tyler?

Have you started smoking weed? 

The US fired all their bullets in 2008. It was "the only chance", the "all-in" bet. The recovery or the grave. 

If there is going to be a new TARP, it will be straight monetization.

Mon, 08/08/2011 - 11:52 | 1537450 InconvenientCou...
InconvenientCounterParty's picture

Don't underestimate the CB's of the G7. There is more debt out there just waiting to be created and virtually nothing to couterbalance it.

 

Mon, 08/08/2011 - 11:59 | 1537485 buzzsaw99
buzzsaw99's picture

nothing is over until bennie says it is.

Mon, 08/08/2011 - 11:44 | 1537412 tahoebumsmith
tahoebumsmith's picture

Even the best ponzicrook of them all, Bernie Madoff couldn't keep this thing from coming unravaled. Sucks when you shoot all your bullets in target practice and then get ambushed by the enemy...

Mon, 08/08/2011 - 11:45 | 1537417 tempo
tempo's picture

Most of the trouble (losses) came from Countrywide which BOA was forced to buy.  IMO, the FED should buy the countrywide loans.

Mon, 08/08/2011 - 11:44 | 1537419 monopoly
monopoly's picture

And does any of this come as a surprise to us here on Zero Hedge. Agree, I think America will finally revolt if they try TARP again. We are at the breaking point. Should have done this over 2 years ago.

Mon, 08/08/2011 - 11:58 | 1537476 Kali
Kali's picture

Anyone who revolts will be declared a domestic terrorist and immediately renditioned.  America is stupid.  I was begging my Sis to at least hit the ATM last night and pull out some cash.  "Why, what's going on?"  Told her, then that phone silence of  "my big sis is talking crazy again". 

Mon, 08/08/2011 - 12:10 | 1537535 Abitdodgie
Abitdodgie's picture

OMG that was funny ,America revolt, sometimes you crack me up. 

Mon, 08/08/2011 - 11:45 | 1537421 Jumbotron
Jumbotron's picture

Cramer sez:

BUY BUY BUY !!!!!

Mon, 08/08/2011 - 11:49 | 1537440 Jumbotron
Jumbotron's picture

N' Sync sez

BYE BYE BYE !!!!

Mon, 08/08/2011 - 11:46 | 1537424 Uncle Remus
Uncle Remus's picture

Burn BoA, burn.

Mon, 08/08/2011 - 11:46 | 1537426 Atomizer
Mon, 08/08/2011 - 11:46 | 1537427 oobrien
oobrien's picture

Fuck all those banking cocksuckers.

We still have Journey and Jimi Hendrix!

Screw it all in the ass.

Tune in, turn on, and drop out.

http://geraldcelente.proboards.com

Mon, 08/08/2011 - 11:58 | 1537484 fuu
fuu's picture

Aaaaaand oobrien jumps the shark.

Mon, 08/08/2011 - 11:46 | 1537428 Version 7
Version 7's picture

What other banks is AIG gonna file a lawsuit against?

Mon, 08/08/2011 - 11:47 | 1537431 Freewheelin Franklin
Freewheelin Franklin's picture

But, but, but, Bank of Americacountrywidemerrill is too biggerer to fail.

Mon, 08/08/2011 - 11:48 | 1537436 John McCloy
John McCloy's picture

  So when can we expect them to pay a dividend again?

Mon, 08/08/2011 - 11:54 | 1537464 firefighter302
firefighter302's picture

Very good, John McCloy.

It's all about yield these days, according to media experts.

Mon, 08/08/2011 - 12:04 | 1537509 hedgeless_horseman
hedgeless_horseman's picture

Yield Rally!!!!!!!!!!!!!!!!

Mon, 08/08/2011 - 11:49 | 1537443 Doyle Hargraves
Doyle Hargraves's picture

Damn my predicted collapse off by 24 hrs., oh well burn you motherfuckers, burn! Mama Cass via the cunt tree wide sandwich!

Mon, 08/08/2011 - 11:50 | 1537444 Downtoolong
Downtoolong's picture

The big problem with the TBTF concept is that, in fact, it is a myth. Nothing is too big to fail. To the contrary, some failures (e.g. Countrywide) are too big to absorb. 

Meanwhile, in a corner office at BofA headquarters, someone is sitting alone in a quiet rage sticking pins in a voodoo doll that looks eerily like Angelo Mozilo, complete with skin made of old orange peels.

 

Mon, 08/08/2011 - 12:54 | 1537818 citta vritti
citta vritti's picture

excellent visual there with the dried orange peels. did he get immunity or something, why hasn’t he been prosecuted for something, at least tax evasion like Capone.

btw, what happened to the up down arrows? useful for registering approval and opposite, but I bet it was part of what was slowing things down at ZH. 

Mon, 08/08/2011 - 11:50 | 1537445 Freewheelin Franklin
Freewheelin Franklin's picture

Wait a minute. What's the governemnt's share in AIG currently?

Mon, 08/08/2011 - 11:51 | 1537446 karzai_luver
karzai_luver's picture

This is what comes when you bail out two corrupt clowns that should have been put down last time.

Mon, 08/08/2011 - 11:52 | 1537449 Helmholtz Watson
Helmholtz Watson's picture

"How did you go bankrupt?"
Two ways. Gradually, then suddenly."

Mon, 08/08/2011 - 11:58 | 1537481 H. Perowne
H. Perowne's picture

Hemingway. The Sun Also Rises.

Mon, 08/08/2011 - 11:53 | 1537457 sudzee
sudzee's picture

I beleive BoA is funding more than a few condo builders here in Canada. Could this be a watershed moment for the Canadian housing bubble.

Mon, 08/08/2011 - 11:54 | 1537460 737Controller
737Controller's picture

Serious question...If BOA was to go CH11 would your funds be protected by FDIC or not? Why make a bank run if they are protected?  Thanks

Mon, 08/08/2011 - 11:59 | 1537479 Doyle Hargraves
Doyle Hargraves's picture

Serious answer: CH 11 law has been so rewritten by this administration, (think GM bondholders), do you really wanna take a chance? Also, why not double tap that zombie just to make sure it doesn't get back up?!

Mon, 08/08/2011 - 12:03 | 1537501 geminiRX
geminiRX's picture

The FDIC has limited cash left and would likely not have sufficient funds to guarantee all BAC customers. If it were me, I would exit any BAC account and find a better capitalized institution

Mon, 08/08/2011 - 12:08 | 1537522 hedgeless_horseman
hedgeless_horseman's picture

“Behind it [FDIC] all is the explicit full faith and credit of the government, which of course is exactly what backs Treasury securities. So what backs treasury securities is what backs the FDIC.”

Feel better now?  No?  Oh.

Mon, 08/08/2011 - 12:22 | 1537608 Abitdodgie
Abitdodgie's picture

I think the FDIC only garantee 2 cents on the dollar now

Mon, 08/08/2011 - 12:06 | 1537517 karzai_luver
karzai_luver's picture

They will pay you as long as you are under the per bank limits or the world WOULD end for Obama.

 

Congress or whomever will make you whole no matter the bailout costs.

 

If you WANT to trigger a bank run the best way would be to stiff J6P out of his fantasy football account.

Mon, 08/08/2011 - 11:54 | 1537461 Kenton17
Kenton17's picture

Can somebody help me understand? It seems like AIG is only seeking $10B, a lot of money but relatively insignificant given BAC's size.

I'm not denying it's a very unprofitable company with a lot of problems, but how will this bankrupt it?

Mon, 08/08/2011 - 12:05 | 1537512 buzzsaw99
buzzsaw99's picture

BAC was bankrupt well before the lawsuits started piling up. it has survived by drinking unicorn blood and keeping two sets of books up until now.

Mon, 08/08/2011 - 12:09 | 1537528 karzai_luver
karzai_luver's picture

think blood in the water.

 

Or like a pack of wolves hunting a calf.

 

More and more nips here and there and soon the calf is down and then well .............

 

Mon, 08/08/2011 - 11:54 | 1537462 -Michelle-
-Michelle-'s picture

That's my mortgage holder.  I'm looking forward to some interesting letters soon.

Mon, 08/08/2011 - 12:02 | 1537499 the grateful un...
the grateful unemployed's picture

so how much MBS is BAC holding, and is the Fed going to take that onto its balance sheet?  for the record M - the way it is supposed to work, assuming BAC has to liquidate (something). - the bank would sell their mortgage paper to another bank. the new bank would have complete freedom to renegotiate new rates, or even call the loan - have you tried a Credit Union? they were making loans right through the (socalled) dark days of 2008, and they can secure a loan through one of the GSEs. 

 

Mon, 08/08/2011 - 11:54 | 1537465 JohnFrodo
JohnFrodo's picture

Is is reasonable to say that TARP 1 was the wrong move, it would have been better to force a haircut and let the chips fall where they may, the housing market needs a reboot, nothing else is going to work. 

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