Gone in 60 Days: Citi and Bank of America Won’t Live to See May

[Danascot]

Citigroup (C) and Bank of America (BAC) won’t live to see May. The government will take them over within the next 60 days. The announcement may come as soon as tomorrow evening.

<snip>

We’re going to make another bold prediction. Bank of America and Citigroup won’t live to see May. The two banks will be nationalized in the coming weeks, and we think that the announcement can come as soon as tomorrow evening (Friday evenings are when major bank announcements and failures occur).

The US government has already committed half a trillion dollars to these two firms which is more than 10 times the amount it would cost to buy and control both companies. The market doesn’t believe that $500 billion is enough to save these companies.

All the kings horses and all the kings men can’t put humpty dumpty back together again.

Today both banks made fresh new lows with Citi closing at $2.51 and Bank of America closing at $3.93.

http://www.chartingstocks.net/2009/02/gone-in-60-days-citi-and-bank-of-america-wont-live-to-see-may/

[physioex]

It's kinda ironic....

That "Free Market" Pukes ended up brining Socialism. Never would have thought this in my wildest dreams. Michael Moore said it best capitalism as we know is finished.

[begin_within]

1. So what does it mean for B of A depositors like me?

[physioex]

2. Hopefully not much....

If you have less than the FDIC insured limit.

[begin_within]

4. I have less than the limit. But will it affect their interest rates, service charges, etc.?

[Idealism]

3. You are insured, up to $250k per SSN

[regnaD kciN]

15. But what about people with Merrill Lynch mutual funds...?

Lots of people (including me) have senior parents whose retirement funds are invested in such funds. If those banks fail, do our parents lose everything over $250K? Or, since those funds are theoretically tied to other investments (stocks, bonds, etc.), are they still safe?

[Idealism]

21. Merril Lynch is completely safe according to the terms of the BoA acquisition

The value of the stocks held in Merril were "bought" by investors for less than what they were worth, so you may have lost money there, but the investments should be guaranteed because it wasn't a liquidation- just a standard buy-out (albeit rushed).

[A HERETIC I AM]

24. Merrill does not directly offer Mutual Funds.....

They are managed by Black Rock (A Merrill subsidiary) and they are merely a manager of those funds. Their own solvency has no bearing on the NAV of the Mutual Funds they manage. Every single one of the companies that Black Rock has purchased shares in would have to go broke for the Mutual Funds to go to zero.

As far as their safety is concerned, they are not guaranteed by any Federal agency, are not obligations of any bank, are not Federally insured and can lose value.

All that is clearly spelled out in the prospectus.
An all too important and informative document too few investors bother to read.

[regnaD kciN]

28. Thanks!

[FightingIrish]

5. That explains why my Smith Barney broker asked me today

what it would cost to rent a suite in my office building. He said that he has had to convert twenty five percent of all his earnings to Citigroup stock.

[aquart]

9. Had to? Why?

[FightingIrish]

30. Some kind of company policy

[Hawkeye-X]

6. Soon we'll see

JPMorganChaseCitiBankofAmerica.com

I'm sure.

Hawkeye-X

[Trajan]

33. Didnt you mean ...

.... JPMorganChaseCitiBankofAmerica.gov ?

[aquart]

7. What's the track record for this site?

And Citi isn't just the bank, it's the CitiGroup, too, isn't it? Or is that a separate, unaffected entity?

[BlueJazz]

8. Damn...I hope my $17.63 is safe.

:)

[dana_b]

12. LOL

I know what you mean BlueJazz!!

[liberal N proud]

10. What about consumer credit debt being held by these two.?

[marketcrazy1]

23. you would continue to pay

on your cards and loans, lines of credit could be frozen for a time and credit limits might be cut for card holders. or not, depends on how they structure it and what the total loss projections are. ( may take time to figure that out to the penny )

[truebrit71]

11. Hmmm...not so sure about this prediction....

The govt has thrown BILLIONS at these firms already..and whether you believe that the corporate media has been softening the general populace up for "nationalized" banks, I think it would be as a last resort...and not by tomorrow night...

Mark my words though...if they ARE nationalized tomorrow...the markets will DETONATE on Monday...absolutely DETONATE...

[marketcrazy1]

13. I absolutely agree!! truebrit71

IF this were to happen we would be lock limit down on the Dow within minutes of the open!! nationalization will not happen tomorrow. they need a plan to defuse a counter party collapse first. and that wont be easy!!

[sandnsea]

14. Glad I'm not the only one

Nationalizing the banks would guarantee a complete collapse. I think they'll have to figure out how to nibble around the edges if they decide to go that route.

[Cassandra]

16. If my bonds go...

that's going to be a whole new level of interesting.

[Generic Brad]

17. What does it mean to the employees of those companies?

Besides wiping out the portion of their 401k's that were paid in company stock - how else could this affect their employees?

[marketcrazy1]

19. there would be lots of job losses

maybe pay cuts down the road for those who remain... fun stuff like that.....

[Danascot]

18. In Related News - Greenspan Advocates Nationalization!

The US government may have to nationalise some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman, has told the Financial Times.

In an interview, Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.

”It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”

Mr Greenspan’s comments capped a frenetic day in which policymakers across the political spectrum appeared to be moving towards accepting some form of bank nationalisation.

http://www.ft.com/cms/s/0/e310cbf6-fd4e-11dd-a103-000077b07658.html

[CountAllVotes]

20. ooohhh

more greedspeak! :mad: :argh:

:dem: :kick:

[girl gone mad]

26. Greenspan is right this time.

As for his past failures, at least he has been contrite. How many other free-marketeers have apologized and admitted that their long-held ideological beliefs were dead wrong?

[MannyGoldstein]

22. I Noticed Today That Citi Moving Towards Penny-Stockdom

It's been traumatic on the executives. They need vacations and bonuses, pronto!

[BluePatriot21]

25. I have Citi-mortgage and tried to renegotiate...

my loan today. It was a disaster trying to get help from them, but twilight zone kinda funny too.
1st call - Using phone #1 i got a guy that said I had to call phone #2 to get a remortgage
2nd call to phone #2 - oh you need to call phone #1, why did he tell you that? Call phone #1
3rd call back to phone #1 - Hi we have high call volume you got sent to me by mistake, this is the new loan dept, who do you need to speak to? Oh wait you did need to speak to phone #2, let me transfer you. transferred and then told I need to call phone #3 a new number
4th call using phone #3 - Hi you need to remortgage? Ok we are having lots of calls, here's two numbers of other banks in your area that can give you a mortgage, and they will then give it to us (somehow?)

Now at this point i'm laughing and going crazy, so I ask her "look I got laid off and I'm paid up to date on my mortgage, but I know I will be late this coming month and maybe later. What are my options? She says you can get hardship assistance but you will need to be behind in payments by 3 months. So I say "you want me to call you in 3 months and you wont take my house? I am trying to be proactive here so that does not happen". Basically they say yes it could be worked out, my wife was in the other room ready to have a stroke at not having details.

So if they go under do I have a free home? It's the new Boston Tea Party eh?

[dixiegrrrrl]

34. Find out who holds the actual mortgage paper.

There has been lots of talk about foreclosures being held up because the original lender passed the mortgage onto someone else, when all those securities were bundled and no one knows who has the mortgage.
Only the mortgage lender can sue for non-payment.

Search it out...

[Bryn]

27. I posted about Bank of America's practice of robbing people here

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=5052589

Good Karma for them!

[CountAllVotes]

31. they are disgusting

I've had past dealings with them too.

Greedy.

PIGS.

:kick:

[peacetalksforall]

29. Nationalizing is at least better for credit card holders - right? Eventually? Less predatory?

[ixion]

32. heh heh heh... apparently you think the government is your friend

it is not. I'm sure they'll be more than happy to continue the fees and hidden charges.