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VIC Issues Bank Of America As "Terminal Short" Thesis

Tyler Durden's picture





 

Valueinvestorclub.com: the Gotham Capital controlled pseudo-secret portal where hedge fund managers everywhere would sell both their kidneys  to be members of, as pitched ideas tend to move markets on a regular basis, and never to be confused with Whitney Tilson's pale immitation, has just released a new thesis on Bank of America, which is oddly comparable to ideas suggested by Zero Hedge over the years. The thesis summary is rather self-explanatory: "Bank Of America equity is worthless. CFC-related litigation is going from bad to worse, it can lead to violent erosion of shareholders' equity which. Combined with the run on the bank that has slowly begun, the $53 trillion in derivatives, the lack of sustainable competitive advantages and the depleting political influence, I believe this is a terminal short." The rest is rather self-explanatory as well. Now: how many hedge fund managers will use this herd aggregation signal and pile in on the short side?

 

 


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Thu, 10/20/2011 - 11:13 | Link to Comment BeachBummed
BeachBummed's picture

Fin.....and roll credits

Thu, 10/20/2011 - 11:17 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Fuck Bank of America.

Thu, 10/20/2011 - 11:42 | Link to Comment fonestar
fonestar's picture

Drag Brian Moynihan into the streets, let street justice sort it out!

Thu, 10/20/2011 - 11:52 | Link to Comment Henry Chinaski
Henry Chinaski's picture

In those instances where BOA hasn't been fraudulent or negligent, they were always incompetent. 

karma bitchez

Thu, 10/20/2011 - 12:20 | Link to Comment eureka
eureka's picture

And JPM and C and WFC and all TBTF banks and Wall Street and Pentagon and CIA

Ron Paul 2012

Thu, 10/20/2011 - 11:17 | Link to Comment quintago
quintago's picture

I can confirm the run on BAC has already started. My entire extended family has begun closing their accounts and moving to credit unions or other local commercial banks which rebate ATM access. In fact, when I was closing my account they had the insolence to ask me which credit union or bank I was moving my money to.

If you assume a 10x leverage, they just took a bath on 1 account holder....

Thu, 10/20/2011 - 11:33 | Link to Comment bill1102inf
bill1102inf's picture

We just moved our personal accounts and nonProfit business accounts to a local credit union.  The CU rep said she is busy all day, every day with people coming over from BOA.

Thu, 10/20/2011 - 12:57 | Link to Comment Missiondweller
Missiondweller's picture

Me too. Moved my account to a credit union.

 

I asked the guy if others were opening accts. He showed me a huge stack of paperwork and said, "yeah, this is just from this week". I asked if they were all from BAC and he said its from ALL the big banks

This is in San Francisco.

Thu, 10/20/2011 - 12:05 | Link to Comment D-Man
D-Man's picture

Same here. Started changing my direct deposit and bill pay after reading about their recent move yesterday on Zerohedge. I know others who are doing the same since their debit card charge decision.

Thu, 10/20/2011 - 12:06 | Link to Comment silverserfer
silverserfer's picture

Any money that is pulled out now wont have to be insured by FDIC( AKA taxpayer) later right?

Thu, 10/20/2011 - 12:44 | Link to Comment Falcon15
Falcon15's picture

With only 1 caveat. If, and I mean if, there is not a cascade failure of other banks triggered by a BaC failure, and the bank any current account holder moves their money to from BoA does not fail, then no.

 

If, and again, I mean if, there is a cascade failure of banks tied directly or indirectly into BaC, then it is every Federal Reserve Note and FDIC insured entity for itself. YMMV.

 

I am long phyzz, non-existent paper, extremely short fiat. I stepped out of the game years ago and I will be staying out. Have fun weathering the collapse boys & girls (with my apologies to William Goldman, et al.)!

Thu, 10/20/2011 - 12:46 | Link to Comment azusgm
azusgm's picture

Taxpayers should protect themselves and get their money out of BofA. It is the patriotic thing to do.

Why hurt yourselves by dealing with an enemy of the taxpayers?

Thu, 10/20/2011 - 12:20 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

I closed my BAC accounts shortly after I opened them 3 years ago before the crash. The charged me an ATM fee on the back end of the transaction. I had never heard of that before. The ATM I used was fee free, but BAC cahrged me. What exactly did they charge me for? The electricity needed to run the computers to make the changes to my account balance? I can cerrtainly understand charging a fee to operate and maintain the actual ATM machine, but BAC didn't have to do anything.

 

I live in rural South Jersey, and there are at least 10, if not more, local community commercial banks, mutual savings banks, mutual holding companies and credit unions in a 10 mile radius.

 

Unfortuantely, credit unions do not handle business accounts or business loans, so I use a mutual holding company. Best of both worlds.

Thu, 10/20/2011 - 11:13 | Link to Comment Deadpool
Deadpool's picture

buh bye Rank of Amerrillca....

Thu, 10/20/2011 - 11:18 | Link to Comment wombats
wombats's picture

Does this mean that Linda Green might lose her job?

That would be a shame.

She is a VP.

Thu, 10/20/2011 - 12:59 | Link to Comment Missiondweller
Missiondweller's picture

Wish I could give you a +10 for that!!!

Thu, 10/20/2011 - 11:13 | Link to Comment PaperBear
PaperBear's picture

"Bank Of America equity is worthless."

Priceless.

Thu, 10/20/2011 - 11:17 | Link to Comment equity_momo
equity_momo's picture

Show me a European , US or UK bank that isnt worthless for shareholders. They are all terminal shorts.

Thu, 10/20/2011 - 11:18 | Link to Comment Nascent_Variable
Nascent_Variable's picture

Obviously, a blogger infiltrated VIC and planted this report.  I'm sure Moynihan will clear it up shortly.

Thu, 10/20/2011 - 11:15 | Link to Comment Capitalist10
Capitalist10's picture

Few banks more richly deserve this fate.

Thu, 10/20/2011 - 11:15 | Link to Comment TooBearish
TooBearish's picture

Wrong TBTF and Obama contribution conduit BUY EM!

Thu, 10/20/2011 - 11:16 | Link to Comment reader2010
reader2010's picture

Shorts on Financials will soon be banned.

Thu, 10/20/2011 - 11:18 | Link to Comment SilverIsKing
SilverIsKing's picture

Put Options

Thu, 10/20/2011 - 11:19 | Link to Comment reader2010
reader2010's picture

Futures and options will be banned too.

Thu, 10/20/2011 - 11:44 | Link to Comment SilverIsKing
SilverIsKing's picture

Breathing in air will soon be banned as well.

Thu, 10/20/2011 - 11:48 | Link to Comment Common_Cents22
Common_Cents22's picture

They'll have to ban BAC account closures.  The ultimate "short".

Thu, 10/20/2011 - 11:57 | Link to Comment Pladizow
Pladizow's picture

If you dont want to deal with BAC personel, simply write a check made payable to yourself and deposit it in an account elsewhere - EZPZ.

Thu, 10/20/2011 - 11:16 | Link to Comment Dr. Engali
Dr. Engali's picture

But Warren said it's a good company. I'm gad I'm short already. Shorting BAC and squiddy.

Thu, 10/20/2011 - 11:16 | Link to Comment tekhneek
tekhneek's picture

Hurry up and explode already. I'm freaking tired of waiting and my puts expire in 3 weeks.

Guess I'll roll over but damn, I honestly didn't think it would last this long. Oh well. Live and learn.

Short this bitch into mid-2012 just to be safe IMO.

Thu, 10/20/2011 - 11:33 | Link to Comment nonclaim
nonclaim's picture

Be careful with front month... if halted the "last know price" is used for settlement even if the stock is in reality worthless.

Thu, 10/20/2011 - 12:47 | Link to Comment JPM Hater001
JPM Hater001's picture

I shorted JPM and GS in May and laddered it out August through December.  Made a killing when I got out in August.  Now I am going to short the S&P but how far out do I need to ladder?  That is the question.

When do the wheels on the bus go from round and round to rolling down a hill?

Of course it's an inevitability but only a fool or a liar would tell you they know when it will happen.

My initial gains went into PM's but I'm greedy.  I have a bonus next friday and want to double down.  Those gains will go into a giant fence around my 2 acres.

Problem is, can my money get trapped at E-Trade if there are liquidity issued?

Thu, 10/20/2011 - 11:17 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

....aaaaaaaand it's gone.

Thu, 10/20/2011 - 11:16 | Link to Comment fuu
fuu's picture

The BAC, the BAC, the BAC is on fire.

Thu, 10/20/2011 - 11:17 | Link to Comment machineh
machineh's picture

We can't let BAC go down; the Democratic convention is being held in Charlotte ... and the riot police are already trained.

Guard the branches and seize any cash withdrawals!

Thu, 10/20/2011 - 12:12 | Link to Comment BlackingOut
BlackingOut's picture

The sad thing is that Charlotte isn't even prepared for the Democratic convention, especially rioters.

Thu, 10/20/2011 - 11:19 | Link to Comment wombats
wombats's picture

NA NA, NA,NA,

NA NA, NA,NA,

HEY HEY HEY,

GOODBYE!

Thu, 10/20/2011 - 11:18 | Link to Comment Pretorian
Pretorian's picture

You taking any shorts before publishing on ZH, hope you do.

Thu, 10/20/2011 - 11:21 | Link to Comment tekhneek
tekhneek's picture

Trust me my friend, Tyler's been short for awhile.

Thu, 10/20/2011 - 11:21 | Link to Comment Nom de Guerre
Nom de Guerre's picture

Bullish

Thu, 10/20/2011 - 11:23 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

I would only buy cheap puts.

 

Chances the gvt will let the largest bank go belly up...I would say close to zero.

 

They will pump it with as much funny money as needed to keep it alive.

Thu, 10/20/2011 - 12:54 | Link to Comment JPM Hater001
JPM Hater001's picture

Yes, that was my -1.  You can't expect a Super Committee looking for a feeble $1.4 Trillion in savings over the next 10 years to actually spend $53 Trillion to bail out the banks derivatives.  That's what we call Too Big Too Bail.  TBTB Baby. 

The key will be to not let the boat tie off on a dock or the rats might get out before they burn and drown.

Thu, 10/20/2011 - 14:02 | Link to Comment azusgm
azusgm's picture

BAC may go under. The trick for the taxpayers is to get people to pull their FDIC-insured deposits so that .gov can't try to save the BAC counterparties by an equivalent amount. If you liked TARP in 2008 when the US was in a much more credible economic position (although not a great one), you'll love wading deeper into the mire with the (broke) FDIC taking up the slack on probably 100% of FDIC deposits. If the depositors won't do what needs to be done, the FDIC needs to step in.

Hint to FDIC: 5:01pm Hawaii time this Friday, if not sooner. Do it.

Thu, 10/20/2011 - 11:24 | Link to Comment Dr. Engali
Dr. Engali's picture

I wonder why nobody is talking about Wells Fargo. They bought that peice of crap Wachovia who bought Golden west at the top of the sub prime market. Not to mention Wachovia ran those stupid ass pick a payment loan. Surely Wells is a big short.

Thu, 10/20/2011 - 11:32 | Link to Comment Careless Whisper
Careless Whisper's picture

I think you're underestimating the income Wachovia made from their drug cartel money laundering operation; they laundered about $375 Billion over three years. Financed some jets, stuff like that. I'm thinking the cartels will show some loyalty and stay with Wells.

 

Thu, 10/20/2011 - 11:37 | Link to Comment Dr. Engali
Dr. Engali's picture

You may have a point there. I forgot about all of that. I mostly remember all their financial screw ups.

Thu, 10/20/2011 - 11:41 | Link to Comment CrimsonAvenger
CrimsonAvenger's picture

Wells will blow up soon enough, and when it does, given BAC's imminent demise, Charlotte (where I live) is going to be an economic crater.

Thu, 10/20/2011 - 12:28 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Charlotte IS GOING TO BE an economic crater?

I have a cousin who moved there in 2006. Nice job in banking, bought a house, fot laid off job in 2009, got another, laid off again, out of work 1 1/2 years, house refi'ed via govt. program, a real mess.

With unemployment in the area officially at 12% and rising, I'd say Charlotte ALREADY IS an economic crater, my cousin's bad timing notwithstanding.

Talk about stuck. This gal doesn't have enough money to pay her mortgage, nor sell and move. She could sell at a huge loss, but I think she's leaning toward double default and walking away. 51 years old and royally screwed.

Thu, 10/20/2011 - 13:06 | Link to Comment CrimsonAvenger
CrimsonAvenger's picture

Sorry for your cousin, but really, you ain't seen nothing yet.

Thu, 10/20/2011 - 11:24 | Link to Comment Quinvarius
Quinvarius's picture

The only problem with all this terminal short stuff is that they can get as much money as they want from the Fed.  I am not arguing they are worthless.  I just don't see how they are going to go out of business.

Thu, 10/20/2011 - 11:24 | Link to Comment prains
prains's picture

B of A soon to be renamed Bank of Oligarkistan

 

Thu, 10/20/2011 - 11:27 | Link to Comment economists_do_i...
economists_do_it_with_models's picture

Bank of America is well on the way to becoming just THAT -- nationalized.  However, they will always backstop Scrooge McBuffett as long as there are peasants to screw over.  He won't lose a dime.  Can't have their white knight of investing look like a moron.

Thu, 10/20/2011 - 11:44 | Link to Comment pelican
pelican's picture

I am so sick of hearing of that old smuck.  I wish he would doe us all a favor and eat a bullet.

Thu, 10/20/2011 - 11:29 | Link to Comment wombats
wombats's picture

Death in 2012?

Death in 2013?

 

I wonder what the over/under date is.

Thu, 10/20/2011 - 12:16 | Link to Comment Biosci
Biosci's picture

The Monday after my puts expire.

Thu, 10/20/2011 - 11:29 | Link to Comment Everybodys All ...
Everybodys All American's picture

We are going to find out what a worthless piece of legislation Dodd-Frank brought us. Remember the unwind of the tbtf banks that can cause systemic failure nonsense. Stay tuned.

Thu, 10/20/2011 - 11:30 | Link to Comment machineh
machineh's picture

Two more short candidates:


  1. 11:22 Intesa Sanpaolo shares fall 10% in Milan trade MarketWatch
  2. 11:21 UniCredit shares drop 11.3% in Milan trading MarketWatch

 

Thu, 10/20/2011 - 11:33 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

Interesting...wonder if they're connected to BAC via CDS or other swaps and "hedges?"

Thu, 10/20/2011 - 12:09 | Link to Comment snowball777
snowball777's picture

Because Greece was too close?

Thu, 10/20/2011 - 11:32 | Link to Comment treemagnet
treemagnet's picture

I would consider buying a "women of BOA" calendar for my shop though...

Thu, 10/20/2011 - 12:23 | Link to Comment wombats
wombats's picture

Wow.  Linda Green for Miss January, February, March, April, May, June, July...

Thu, 10/20/2011 - 12:54 | Link to Comment azusgm
azusgm's picture

Autographed.

Thu, 10/20/2011 - 11:33 | Link to Comment Sour Grapes
Sour Grapes's picture

Interestingly, the idea received a VERY low rating from the other members of the ValueInvestorsClub.  I support the conclusion, but there wasn't much analysis in the write-up.

Thu, 10/20/2011 - 11:44 | Link to Comment surrational
surrational's picture

Seriously, took them this long to figure out alot of the major banks are actually insolvent?

Thu, 10/20/2011 - 11:44 | Link to Comment surrational
surrational's picture

Seriously, took them this long to figure out alot of the major banks are actually insolvent?

Thu, 10/20/2011 - 11:44 | Link to Comment surrational
surrational's picture

Seriously, took them this long to figure out alot of the major banks are actually insolvent?

Thu, 10/20/2011 - 11:46 | Link to Comment twotraps
twotraps's picture

there was just an article on SeekingAlpha about how BAC will double in the near future!  Just like the rest of the news and related price action....all over the place.  No one knows.  The smartest guy in the room??????????????  John Thain.  Didn't he get paid $200M to 'broker' the ML deal.  That guy is Genius.  Know some people that have worked at ML since the stock was at 90, they attended a Stan Oneal meeting where they were assured that everything was just fine.  Pathetic.  

Thu, 10/20/2011 - 11:49 | Link to Comment srsly-wtf
srsly-wtf's picture

Probably a buy signal...

Thu, 10/20/2011 - 11:54 | Link to Comment wang (not verified)
Thu, 10/20/2011 - 12:01 | Link to Comment Grand Supercycle
Grand Supercycle's picture

NASDAQ megaphone pattern on daily chart indicates big move ahead.

USD weekly chart remains bullish and as predicted for some time further dollar upside expected.

http://stockmarket618.wordpress.com

Thu, 10/20/2011 - 12:03 | Link to Comment maw53704
maw53704's picture

no one mentions the biggest reason to short these babies.   Overbuilding expansion etc. of the financial sector.  Build a Walgreens at a busy intersection- kitty corner put up a new bank.  Build a new tiny shopping strip- put in an Edward Jones.  New grocery store -new bank branch.  Open a new nail salon - new bank branch....sorry my hallucination.

Thu, 10/20/2011 - 12:03 | Link to Comment oceanview76
oceanview76's picture

Just closed our BAC accounts despite the rigorous challenges from the Branch Manager telling us why we were making a huge mistake in going to a credit union about a mile further down the road.  She reluctantly closed them, told us if anything tried to process against the $0 balance, even though we closed them, we'd get hit with overcharge fees mailed to our homes and then told us to go get our bank checks from the teller.  We went to the teller and she told us there'd be a $5 charge per bank check.  We told her no thanks, give it to us in cash and then she said she couldn't give us that amount in cash, that it would take a few days to get it.  I started getting loud in the lobby in frustration, the manager came over, overrode the $5 bank fee for the bank checks and we finally got out of BAC.  Total cocksmokers. 

 

Thu, 10/20/2011 - 12:03 | Link to Comment oceanview76
oceanview76's picture

Just closed our BAC accounts despite the rigorous challenges from the Branch Manager telling us why we were making a huge mistake in going to a credit union about a mile further down the road.  She reluctantly closed them, told us if anything tried to process against the $0 balance, even though we closed them, we'd get hit with overcharge fees mailed to our homes and then told us to go get our bank checks from the teller.  We went to the teller and she told us there'd be a $5 charge per bank check.  We told her no thanks, give it to us in cash and then she said she couldn't give us that amount in cash, that it would take a few days to get it.  I started getting loud in the lobby in frustration, the manager came over, overrode the $5 bank fee for the bank checks and we finally got out of BAC.  Total cocksmokers. 

 

Thu, 10/20/2011 - 12:19 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

Dam you have a lot of bank accounts, must be a 1%er.

Thu, 10/20/2011 - 21:58 | Link to Comment Nobody special
Nobody special's picture

I've had the same response on a $3000 withdrawl.  Banks with money?  Don't kid yourselves.  Foolish peasants.

Thu, 10/20/2011 - 12:07 | Link to Comment snowball777
snowball777's picture

Bank of America: They Can Help Rick Perry! 2012 or not

 

Thu, 10/20/2011 - 12:50 | Link to Comment Falcon15
Falcon15's picture

The only thing that can help Rick Perry is withdrawing from the running. He is a snake, a RINO, and a liar. Take it from me, I've lived under that weasel's "governance" for 11 years. RON PAUL 2012!

Thu, 10/20/2011 - 12:11 | Link to Comment Christoph830
Christoph830's picture

Look, if BAC collapses there are two scenarios:

1.  The world will come to an end.  Anarchy and chaos will spread like a virus.

2.  U.S. govt pulls out all stops to bail them out.

If scenario 1 occurs, you will make money on the terminal short (assuming the markets are still open).  But if Scenario 2 occurs, you will get obliterated.

There's only one "terminal" trade that profits under both scenarios....LONG PHYSICAL GOLD

Thu, 10/20/2011 - 12:26 | Link to Comment wombats
wombats's picture

Long beer and booze too

Thu, 10/20/2011 - 12:33 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Long vodka, tonic, smokes (from Indian reservation) and pipe filler. Breakfast of ex-champions.

Thu, 10/20/2011 - 15:02 | Link to Comment Peter_Griffin
Peter_Griffin's picture

If there is demand for the USD that cannot be filled, equities will crash and the dollar will race to the moon.  Don't apply all your semen to one egg.

Thu, 10/20/2011 - 12:18 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

It is a sinister irony that we mock BAC and hope for its spectacular blowup, knowing full well such a scenario guarantees that each of us here in the US will implicity own a micro slice of this pig fucker.

Thu, 10/20/2011 - 13:22 | Link to Comment Smiddywesson
Smiddywesson's picture

What was that line in Dante's inferno about gnawing on your enemies skull for all eternity?  I can live with the guilt. 

Thu, 10/20/2011 - 12:22 | Link to Comment twotraps
twotraps's picture

They carry on that way at the bank with those closing accounts because they are trained to treat us like sheep....scared little sheep that will do anything the Bank Manager says.....its very serious complicated work and only they understand it.  

Thu, 10/20/2011 - 12:31 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

I am going to reserve my opinion for right now that Brian Moynihan was the dumbest guy in the room, Me thinks they will be TARP ed. Save the banks and fuck Main Street, we make more money at war than we do collecting tax reciepts. It's the new Free Market Capitalism. 

 

My opinion, the Gooberment will snatch up all that used toilet paer at.40 on the dollar and make those default and underwater mortgage holders renters as a rouge to "help" keep American's in their homes.

An election is comming up folks, so take a lemon and make lemonaide, Obama looks like the Hero, BAC bounces off the bottom, Warren Bufett get's paid.. all is fixed? Till it all comes unraveled again. Rinse and Repeat.

Thu, 10/20/2011 - 12:33 | Link to Comment wombats
wombats's picture

Its not Free Market at all.

It is CRONY Capitalism...at its worst.

Not saying the FED and gov't won't bail them out.  They probably will, but it has nothing to do with capitalism.  It is just oligarchs saving oligarchs at your expense.

Thu, 10/20/2011 - 12:42 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

Agreed, I was being sarcastic.

Thu, 10/20/2011 - 12:48 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Tell ya what, Money 4 Nothing, I'll take that action, based on personal experience.

In July 2009, I inherited a nasty CW/BofA mortgage on my dad's home. Stopped paying the mortgage after reading all the fraudulent clauses involved, moved in, rented out my shack, started putting dough into the war chest. BofA foreclosed in March, 2010, but, after my answer, denying everything, NOTHING, NADA, not a peep (I'm in NY, and the judges here are mostly honest and have been tough on the banks). So, that's a forgotten lawsuit, for now.

In July of this year, I get a letter from BofA addressed to my father, saying they were attempting to collect a DEBT, big difference from foreclosure, and the letter included all the necessary boilerplate that debt collectors have to include, plus, they stated - in direct opposition to their position in the foreclosure - that none other than Fannie Mae holds the note.

I sent them all the requisite language to get them to prove the debt in 30 days. No response. They are officially out of the picture, but my question is: what are the chances, since they've already been paid by Fannie, that they've even bothered to tell Fannie that they can't collect the loot? How about even money or less on that.

Fannie is under the assumption that my father is still alive and owes the mortgage, but, but, but, there's MERS language, false statements and more fraud than a pair of fake tits in those documents. They bought, from BofA, a pile of worthless paper and have no recourse to foreclose, actually have no standing to foreclose, so I await their first salvo, which, if I'm guessing correctly, won't come until sometime in the next decade.

Considering they don't even know that my father died nearly 2 1/2 years ago, and BofA is so screwed up that they won't even tell them what they know, and the note? Ha, find it? So, I own a large piece of the American Dream for essentially paying the property taxes. Is this a great country or what? Makes me want to mix up a pitcher of Bloody Mary's. It is after noon here in NY.

Thu, 10/20/2011 - 15:18 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

Wow! what a story! So, I guess your really not going to get to the bottom of it untill you decide, or do sell said property? Gotta come up with the Deed and title for the sale.. No?

Good luck in either case.

 

 

Thu, 10/20/2011 - 12:27 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

The FDIC should have liquidated this POS when they had the chance.

Thu, 10/20/2011 - 12:36 | Link to Comment Smiddywesson
Smiddywesson's picture

Well now, it looks like there's a Big Ole Alligator on the end or Reggie's spear with that Giant Squid.

Thu, 10/20/2011 - 12:45 | Link to Comment FearedDevil
FearedDevil's picture

Too dangerous to short here imo unless Greece defaults - then of course, short everything BUT until then, the risk is to the upside.  Love them or hate them, it is not our job as traders to get run over for an op-ed.

Thu, 10/20/2011 - 12:46 | Link to Comment Falcon15
Falcon15's picture

EPIC BANKING FAIL!

Thu, 10/20/2011 - 12:48 | Link to Comment Ajivani
Ajivani's picture

Jesus, I could have told you this shit.

Thu, 10/20/2011 - 12:52 | Link to Comment Missiondweller
Missiondweller's picture

We should begin lobbying now to let BAC fail. Save depositors and break up the bank into regional pieces that can be sold to investors.

This will be the test as to whether we've learned anything in the past three years.

Are they too big to fail? Or will they be put out of their misery?

Thu, 10/20/2011 - 13:02 | Link to Comment Seasmoke
Seasmoke's picture

i already closed my account with BAC over 5 years ago and it had a negative $500 balance....still brings a smile to my face

Thu, 10/20/2011 - 13:10 | Link to Comment entropos
entropos's picture

Yeah, had about -$400 in mine when I walked away from it. They're still trying to collect. LOL.

 

Thu, 10/20/2011 - 13:28 | Link to Comment Hephasteus
Hephasteus's picture

Becky Bottom Caller Quick drinking game on this. Chug every time she says the bottom is in.

Winner gets to rename her Becky Bottoms and make extranormal porn from it.

Thu, 10/20/2011 - 13:59 | Link to Comment snakeboat
snakeboat's picture

BAC is fucked up and bullshit.

Thu, 10/20/2011 - 19:31 | Link to Comment Bunga Bunga
Bunga Bunga's picture

But but but Cramer said BAC was bottoming on Sep 13.

 

http://seekingalpha.com/article/293521-cramer-s-lightning-round-bank-of-...

Fri, 10/21/2011 - 08:29 | Link to Comment BenGrahamMan
BenGrahamMan's picture

Very good work by the author.  Yet, with price to book value being so low, I think all will be fine with BAC.  If I am not mistaken BAC is trading around 50% of BV. I don't think Warren would have invested in a near bankrupt entity.  I also don't see a "run on the bank."  Yet, we are in trying times.  Yet, I have been wrong many times before, and my analysis here has not been extensive. The 2018 BAC bonds are trading near 7%.  The 2018 JPM bonds are trading at 5.9%.  I don't see this as distressed.

Fri, 10/21/2011 - 08:29 | Link to Comment BenGrahamMan
BenGrahamMan's picture

Very good work by the author.  Yet, with price to book value being so low, I think all will be fine with BAC.  If I am not mistaken BAC is trading around 50% of BV. I don't think Warren would have invested in a near bankrupt entity.  I also don't see a "run on the bank."  Yet, we are in trying times.  Yet, I have been wrong many times before, and my analysis here has not been extensive. The 2018 BAC bonds are trading near 7%.  The 2018 JPM bonds are trading at 5.9%.  I don't see this as distressed.

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