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Will BAC's Moynihan Pull The CFC Bankruptcy Bazooka?

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Fri, 09/16/2011 - 02:03 | 1676242 EscapeKey
EscapeKey's picture

Well what the bloody hell did they expect? If they give the banks a magic joker in their deck, did they expect them not to use it? There's no honour amongst thieves.

TBTF means too big to exist. But as long as the politicians are easily bribed, they will happily look the other way as the banks keep raping and pillaging.

Fri, 09/16/2011 - 02:07 | 1676251 phyuckyiu
phyuckyiu's picture

If everyone uses the Samson Option at the same time, what happens?

Fri, 09/16/2011 - 06:57 | 1676420 spiral_eyes
spiral_eyes's picture

They won't. The only language the establishment understand is print print borrow print print. 

It will all end when this bullshit leads to a real breakdown in global trade/ supply chains.


Fri, 09/16/2011 - 10:09 | 1676858 unununium
unununium's picture

From what dark place does this drivel issue forth?

Suddenly, we are supposed to believe that Countrywide is bankruptcy-remote?

If that were the case, it would have been jettisoned LONG AGO.


Fri, 09/16/2011 - 02:25 | 1676271 oobrien
oobrien's picture

Wasn't WikiLeaks supposed to expose BOA back in February?

What happened to that?


Fri, 09/16/2011 - 03:01 | 1676302 Michael
Michael's picture

And what about all the Mid-prime and Prime mortgages recasting and resetting that's going to go on, at least till mid 2012?

Why aren't we hearing about those loses?  They're almost as big as the subprime loses.

Don't make me go McMansion on you guys.

Countrywide just brings out the worst in me since my housing bubble blog days.


Fri, 09/16/2011 - 03:21 | 1676311 Michael
Michael's picture


Car registrations in Ireland down 36%. Down 35% the month before.

That's the whimpering Irish for you.

Fri, 09/16/2011 - 03:34 | 1676318 Raymond Reason
Raymond Reason's picture

No shit, where's all the fighting?

Fri, 09/16/2011 - 03:47 | 1676328 Michael
Michael's picture

I wonder if we could start an Amish Lite sect where we accept modern technology to a certain extent?

Absolutely no MSM TV though.

Fri, 09/16/2011 - 05:22 | 1676373 Michael
Michael's picture

I believe the problem started when we transfered ownership of Wascington D.C. from the people, to ownershitp of DC unto themselves on the inside in 1871.

UNITED STATES is a Corporation - There are Two Constitutions - Sovereignty


Fri, 09/16/2011 - 05:46 | 1676384 Careless Whisper
Careless Whisper's picture

B of A is smarter than we think.

<------ Junk me. I don't care. Bankstas gonna get the last laugh. Admit it.

Fri, 09/16/2011 - 08:26 | 1676523 iinthesky
iinthesky's picture

You're right. People just don't understand what this means and how sinister this is. The significance of a corporation masquerading as government is lost on 99% of everyone I speak to.

But it does't stop there woth the federal corporation. Every STATE OF, COUNTY OF, CITY OF, TOWN OF, VILLAGE OF, and PARISH OF is cotporate and since corporations are legal fiction juristic persons, the only way they can deal with you is in a corporate capacity and therefore YOU must be turned into a legal fiction as well. The creature cannot govern, regulate, tax, or imprison its creator. YOU in the eyes of government are a corporate franchise and everything they do for you binds you to that subject status like the rings of Sauron.

Fri, 09/16/2011 - 11:05 | 1677081 Tijuana Donkey Show
Tijuana Donkey Show's picture

They are called Mennonites, and they have a nice angle. (Bad outfits though) The amish are a bit goofy, they do business with corporate America, and use GMO crops. Just no modern gadgets.


Fri, 09/16/2011 - 04:19 | 1676343 blunderdog
blunderdog's picture

Holy fuck, oob.  You posted something that wasn't just complete and total shit-spam for your site.

(Do you understand how that "nofollow" thing works?)

Fri, 09/16/2011 - 07:04 | 1676421 OOONONO
OOONONO's picture

Speaking of "bloody hell", I mean ...  we are talking about Cunt Tree Wide - the name says it all.   This way be dragons! 

Fri, 09/16/2011 - 07:29 | 1676435 Tater Salad
Tater Salad's picture

I love it!  Every Tom, Dick and Harry walking away from mortgages with zero recourse against them, If I were Moynihan I'd kick CFC to the curb too.

Fri, 09/16/2011 - 02:03 | 1676243 Id fight Gandhi
Id fight Gandhi's picture

Another late night? Thanks for all the work u do

Fri, 09/16/2011 - 03:21 | 1676312 oobrien
oobrien's picture

In all fucking seriousness...

ZH is the best website in the history of humanity.

No shit.


Fri, 09/16/2011 - 02:26 | 1676274 Moon Pie
Moon Pie's picture

BONK of America has already greased the wheels.  It has moved servicing on almost all CFC loans over to BAC proper (from BAC Home Loans, Inc.).  Meaning, that when the whip comes down, CFC/BACHL will be on the hook for the paper, but not for the servicing.  BAC keeps the servicing biz and the investors (and borrowers with claims and damages awards) are left fighting over pennies on the bitch-dollar.

What a country.  Meanwhile Angelo dines on kobe beef and cognac, secretly buying/backing every pawn shop on the east coast and using gold bars as doorstops.

He should be sent to Afghanistan and made to wear a t-shirt that is emblazoned with "NAVY SEAL" across his chest and set loose in the NW territories.  He'd maintain his orange tint at least until the crimson took over.

Fri, 09/16/2011 - 02:33 | 1676282 Moon Pie
Moon Pie's picture

Forgive the unintended and inadvertent dishonor, fellow shipmates. 

This miscreant and those that blessed him, profited with him and enabled him and are actively deconstructing our land and all its goodness and are treasonous bastards that need to come to account.

Fri, 09/16/2011 - 04:38 | 1676357 Miles Kendig
Miles Kendig's picture

We are fighting a global war on terror and these folks are the very definition of financial terrorist.  This is why we have law covering enemy combatants.  Send the fuckers to Gitmo and give 'em a trial by military tribunal

Fri, 09/16/2011 - 11:07 | 1677088 Tijuana Donkey Show
Tijuana Donkey Show's picture

It's a global war on people who OPPOSE our terror, I think your copy is missing some words.......

Fri, 09/16/2011 - 05:51 | 1676390 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Angelo would lose the shirt, be discovered prostrate on a rug facing Mecca, become worshipped by the Tollybahn as the Orange God, and within five years control the halal mortgage biz throughout the Crescent...with the assistance of the Squid, of course...

Fri, 09/16/2011 - 08:27 | 1676531 MFL8240
MFL8240's picture

Can't get China to buy Countrywide??  Seems like a good fit, they seem to like buying junk paper.

Fri, 09/16/2011 - 09:41 | 1676756 FreeNewEnergy
FreeNewEnergy's picture

I think you have that right, but here's the kicker. Because of MERS, multiple assignments, Fannie and Freddie, BAC Home Loans is nothing more than a debt collector. They cannot foreclose on anybody because they are only a servicer, not the note holder, so I'd love to see Moynihan kick CFC into bankruptcy, then, when the news hits that any BACHL/CFC mortgage is technically worthless paper, homeowners would be well advised to simply stop paying, though, as a debt collector, BACHL could still go after MONEY, but not REAL PROPERTY, and could garnish wages, bank accounts, etc.

Obviously, BAC doesn't want the houses, they want the money. I'm in such a great situation because my home is an inheritance, so they've been chasing (as my deceased father, bless his soul, used to say) a ghost, and now have a bankrupt estate with which to deal. Best move I ever made was moving into my father's house after his death and stopping the mortgage payments. My sister wanted to deed in lieu back to the bank. I no longer discuss money matters with her.

Free house? Yes. For two years and two months now. Looking at filing for quiet title, but waiting for the most opportune time, like when BAC drops to 5 and Cuntrywide is shuffled off to bankruptcy court.

Looks good. Please keep Moynihan in place. He's my bud.

Fri, 09/16/2011 - 02:33 | 1676277 xtop23
xtop23's picture

Bring it on Moynihan. In point of fact, I have one of those Countrywide mortgages myself . Upside down 75K in my home and I thought Id bought at the bottom . Pulled the trigger because of a sweetheart deal 30 year fixed rate at 5% with 0 down Nehemiah ( which was due to expire in 3 months ) and 20k in my pocket . 

I can walk no problem . Come and get it bitches .

I was always the " you always pay your debts " kinda guy until these fuckers changed the game . Now I'm playing by their rules .

Fri, 09/16/2011 - 02:31 | 1676278 PhattyBuoy
PhattyBuoy's picture

Welcome to the decade of the living dead ... are there any banks left on the planet that are not a suppurating zombie ?

Fri, 09/16/2011 - 02:46 | 1676290 carbonmutant
carbonmutant's picture

How 'bout a Fed-free bank?

Bank of North Dakota

Fri, 09/16/2011 - 02:51 | 1676297 BlackholeDivestment
BlackholeDivestment's picture

...not zombie? Nope, it's Wild Zero B movie time http://www.youtube.com/watch?v=2QMYbP7bOls lol

Fri, 09/16/2011 - 02:41 | 1676285 scrappykoala
scrappykoala's picture

Well I have $480 riding on oct $6 puts so I hope to get paid but in all honesty I have written this off about 6 hours after I purchased them when Warren Buffet put in several billion. Talk about bad timing lol.

Bottom line is these jokers are good at buying time and making it all look good for another few weeks or months. And I would say the same for the market as a whole. Today I saw foreclosures up 33% in a month, manufacturing down to zero and jobless claims soaring all in one day and walstreet partyed like it was 1999 was hilarious.

Thank god I give myself outs and dont go in too heavy. I give myself some time (in my larger positions) because these freaks know how to rebalance the books.

The force is strong with these ones but the markets shall prevail.

Either way I want a damn sail boat out of this market and I will get one ... the force be damned Im getting my sailboat I swear it ... I even pinky swear it.

Fri, 09/16/2011 - 02:44 | 1676289 xtop23
xtop23's picture

You could go long Greek debt and get that sailboat in no time :)


Fri, 09/16/2011 - 03:58 | 1676331 scrappykoala
scrappykoala's picture

And then sail in to greece like a real champoin. I like your ideas.

mabye buy a greek relic on the way like a church or something ... this could be done .... bar-b-que some greek food on the stern mmmmm

Fri, 09/16/2011 - 07:39 | 1676457 Tater Salad
Tater Salad's picture

Congrats scrappy for jumping on the most crowded traded in the history of the planet. 

Good luck with that one, especially considering you're already getting the proverbial shit kicked out of your trade.  BAC won't go under, I'm not sure what the general public doesn't understand about this.  TBTF is an understatement.

Problem is, they'll stay solvent for much, much, much longer than anyone on here can wait out a trade.  Like if or hate it, that's the nature of the markets, and that's why it's not an easy game.



Fri, 09/16/2011 - 02:43 | 1676287 yipcarl
yipcarl's picture

6.5 billion?  LOL.  freaking LIES.  6.5 billion X 20 try that. Ever heard of derivatives?  

Fri, 09/16/2011 - 02:51 | 1676296 John Ford Kennedy
John Ford Kennedy's picture

After CFC go bankrupted, will my mortgage with CFC become zero? If so, that's a gd way to save the Uncle Sam's economy.

Fri, 09/16/2011 - 02:55 | 1676301 xtop23
xtop23's picture

It'll just get rolled over into whatever entity is backed up with Benny bucks and willing to take the no risk loan onto their books . No jubilee as of yet my friend .

Fri, 09/16/2011 - 02:55 | 1676300 lolmao500
lolmao500's picture

Isn't it illegal to put all your bad stuff in some place, let it bankrupt and keep all the good stuff?

Fri, 09/16/2011 - 02:59 | 1676305 Hephasteus
Hephasteus's picture

Only if you're not a bank. And you really should be a bank. All you gotta do is make it past the terroist label and the highly armed idiots who are 'called" by god to destroy your evilness.

Fri, 09/16/2011 - 04:20 | 1676344 Arkadaba
Arkadaba's picture

Already have my defence: I am doing God's work!

Unfortunately, the nuns don't like it: http://www.guardian.co.uk/business/2011/apr/04/nuns-challenge-goldman-sachs-over-pay


Fri, 09/16/2011 - 02:57 | 1676303 bob_dabolina
bob_dabolina's picture

Someone here is being malicious http://tradeonfire.blogspot.com/

Fri, 09/16/2011 - 03:08 | 1676308 chump666
chump666's picture

Just watched HFT's take the AUD to 1.30 option knockout, even with USD selling.  Anyone alive, watch FX markets now...some crazy sh*t

Fri, 09/16/2011 - 03:36 | 1676321 Master Chef
Master Chef's picture

What's cooking?

The way PMs are being taken down in the run-up to the weekend suggests something is about to go down.

The idea is to take them down far enough so when bad news hits the rebound is not too high.

Lets see what the friday drop is...

Fri, 09/16/2011 - 03:46 | 1676326 Hephasteus
Hephasteus's picture

PM's are going down hard and shit is going to get really ugly around september 23rd. You're an idiot if you sell pm's though.

Fri, 09/16/2011 - 04:09 | 1676332 BayAreaAlan
BayAreaAlan's picture

Significance of 23-9?

Fri, 09/16/2011 - 06:42 | 1676405 mvsjcl
mvsjcl's picture

The two-day Fed meeting.

Sat, 09/17/2011 - 23:42 | 1681234 Hephasteus
Hephasteus's picture

The fall solstice. It's extremely important during tightening depressions.

Fri, 09/16/2011 - 04:12 | 1676337 Arkadaba
Arkadaba's picture

It almost is too obvious though. 

Fri, 09/16/2011 - 07:46 | 1676471 scatterbrains
scatterbrains's picture

I'm thinking hedgies are dumping their winning trades as they unwind and die.. I want to add to my pm's but I keep thinking the collapse will be breathtaking.. for a few hours anyway before it ramps to new highs.

Fri, 09/16/2011 - 09:50 | 1676793 FreeNewEnergy
FreeNewEnergy's picture

They're dumping the losers too. Combined NYSE & NASDAQ new highs - new lows have negative seven of the last eight sessions.


Fri, 09/16/2011 - 03:43 | 1676324 Chinese_Trader
Chinese_Trader's picture

This option is the same argument as the "good-Bank-bad-Bank" argument in 2008. Its all the same. There is no way out of this. Imagine taking out the bad loans and package it, what are the repercussions, it is merely transferring the liability across, benefiting one and making another liable. Who is willing to be an open patsy? Imagine people who has been dealing with CFC on the basis of good faith that Bank Of America is backstopping it will then have a total collapse of confidence on entity like ML and other lesser and poorer performing units, and let us see whether from then they will have access to funding!





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