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Thread: Fuck BAC the next Lehman?
08-08-2011, 12:32 PM #1
Fuck BAC the next Lehman?
Here Comes TARP 2: Bank Of America Implodes, At $6.87, BAC CDS Up 20% To 260 bps As Bankruptcy Contemplated
Submitted by Tyler Durden on 08/08/2011 - 11:30
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.
FAZ foe the win Bitchez
08-08-2011, 12:35 PM #2
I don't see it. The large banks have more reserves than required by the sum of their equity. Can they go much lower? Absolutely. But, are they in danger of receivership? Not this time.
08-10-2011, 03:19 PM #3
Bank Of America Scrambles To Shore Up Capital: In Negotiations To Sell $17 Billion China Construction Bank Stake
Bank of America is doing all it can to delay the inevitable equity issuance. Reuters has just broken the news that the bank is in active negotiations with Kuwait and Qatar sovereign wealth funds to sell its $17 billion China Construction Bank stake. There are several problems with this approach: first, the petrodollar sovereign wealth funds just lost over 20% of their AUM courtesy of the global equity rout and of the plunge in oil by more than 20% in less than 2 weeks; Second: everyone recalls what happened to Alwaleed when he bought his "Blue Light" citi stake; third: if BAC does indeed sell its CCB stake, it will leave it with zero disposable assets and will have no choice but to approach the equity market. Fourth, the fact that it needs this cash is validation of all the rumors that the bank's capitalization may be urgently strapped very soon, and that today's Berkowitz call was nothing but lies (in typical BAC style); last, since the final cash need when all is said and done, when all the litigation is over and when the NY AG is done with the bank, BAC will need far, far more cash than $17 billion. Which is why any BAC bounce in the AH session should be viewed very skeptically.
08-10-2011, 09:30 PM #4
Wish I could push those useless fuckers. DIE CHARLOTTE DIE!Lord King of the Beater-Kooks
08-11-2011, 02:08 PM #5"I knew in an instant that the three dollars I had spent on wine would not go to waste."