Bank Of America May Open Down 10% Tomorrow

[marmar]

from 24/7WallStreet:



Bank Of America May Open Down 10% Tomorrow
Posted: September 5, 2011 at 3:23 pm


It is Bank of America’s turn to sell off 10%. Deutsche Bank dropped 8.9% in trading today. Royal Bank of Scotland fell 12.3%, and Societe Generale 8.6%. The reasons for the panic selling in Europe are not unlike the reasons Bank of America dropped to $6.01 three weeks ago, from a 52-week high of $15.31. The economy is weak and financial firms may take huge hits to their balance sheets

Joseph Ackermann, who is about to retire as CEO of Deutsche Bank said a number of EU banks would not survive if they had to recognize the value of Greek debt on their balance sheets. The problem in the US is different, of course. American banks face a lawsuit which claims that 17 of them sold mortgage backed securities to Fannie Mae and Freddie Mac. The loss on the securities was $200 billion. It is too early to know what the government will try to get back from the banks.

Bank of America continues to the weakest of the large US money center banks as far as Wall St. is concerned. This has been supported by rumors and fact. There have been reports that B of A will spin off its Merrill Lynch to raise money. There has also been a news report that the financial firm will fire 30,000 people. Wall St. is particularly concerned about the balance sheet of mortgage bank Countrywide, which B of A took over at the beginning of the credit crisis. ...........(more)

The complete piece is at: http://247wallst.com/2011/09/05/bank-of-america-may-open-down-10-tomorrow/#ixzz1X6tgrCfN

[aquart]

1. Bet everyone still gets a big fat bonus.

[Broderick]

Big fat huge bonuses

Paid for by the little people that are bilked by corporations at every turn. Insurance, banking, etc etc etc.

[Rex]

2. Paymasters making a transaction.

[sad sally]

3. Seems like Buffet's 5 billion could have been put to better use for

the People of America instead of the Bank of America.

[FarCenter]

4. Does anyone have any idea why Wells Fargo is not being sued?

Even if they were squeaky clean (which I doubt), the took over Wachovia which had previously taken over Golden West, one of the sleaziest west coast thrifts. Did the government give them absolution as part of the inducements to take over Wachovia?

Or is there another list of suits coming to cover Wells and a number of regional banks and thrifts?

[xchrom]

5. BoA should go the way of the dinosaurs. Nt

[elleng]

6. Good. Lets its stock.holders take an interest

in the way it does business, and start complaining + participating. Thats how the system is supposed to work.

[CanonRay]

7. if they had to recognize the value of Greek debt on their balance sheets

I love that. In other words, we're broke, but we don't want to admit it. How about if I don't recognize my mortgage on my balance sheet? What colossal bullshit.

[Demeter]

8. If there were two brain cells in DC

They would nationalize and shut down BofA tonight, wind it down, and claw back the bonuses.

[aquart]

9. And use that to terrify the others into sane regulation and enforcement.

[Safetykitten]

10. It will be taken over by JP Morgan, who will in turn ask for "help".