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Old 12-02-2009, 09:48 PM
 
Location: San Diego
415 posts, read 1,058,813 times
Reputation: 135

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I just saw some news about the CEO "runner-ups" both of which talking about splitting up Bank Of America due to the money it owes to the Gov. But the current CEO says they plan to pay them back. So why the split up can anyone explain as to why such a bizarre plan? Do you think this would be bad for Charlotte? What could it do to do to our economy, job cuts etc.?


I'm not sure if any of these two "runner-up" CEO's plan to have any crazy idea of moving HQ's, do ya'll think it is possible?

The current CEO showed a little emotion as he was speaking at the Charlotte Chamber of Commerce luncheon although he say's it is a crazy idea himself he was also willing to talk to cameramen and other press surprisingly he said that he is CEO until a new one arrives. Plenty of people thanked him for his great part in the Charlotte growth and all that he has given this area.

How do you guys feel about the situation?

Link for story and video--> Lewis says breaking up BofA 'makes no sense' | Charlotte News, Weather, Traffic, Sports WCNC.com | Business News
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Old 12-03-2009, 03:56 AM
 
4,010 posts, read 8,708,534 times
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Let's see, Lewis's accomplishments of the last few years in growing BofA include investing in and then buying Countrywide Finance (king of the subprime mortgage) and a collapsing Merrill Lynch after just a weekend of due diligence. He takes money given to him by the tax payers and invests it further in China instead of this country which I consider a morally reprehensible action. I won't even get into the 1000s being laid off due to these action. He did all this all while paying himself 10s of millions of dollars. If that wasn't enough the bank is being sued on multiple fronts for harm it has brought to it's customers, shareholders, and municipalities.

So instead of the local media continuing to toss roses at his feet why are they not asking the question on how someone could do all of this and not land in jail? Oh I forgot, the local media is nothing but a bunch of parrots. It they are not reading the sleezy stuff from the local police reports, they are busy acting as a televised chamber of commerce.

The point of all of this is that Lewis's opinion, based on this performance, is worth about as much as Dick Cheney's these days.

----------------

BofA got a big big big get out of jail card courtesy of the Federal Government because aside from TARP, they have been getting 10s of billions of dollars funneled to them via AIG where the goverment is paying for their bad and risky gambles at 100%. They should be broken up, but my guess is this probably won't happen unless they end up needing even more money from the government.

BTW, these banks are trying to pay off TARP essentially by borrowing the money at 0% from the Fed, writing it down, then using that to pay the Govt. back. it will be interesting to see if they get away with this crap.


(Oh and while we are on this subject, why hasn't the local media made a case of Congressman Mel Watt's attempt, just before Thanksgiving, to amend the bill in Congress to not only stop the audit of the Federal Reserve, but pass new laws that would make their actions even more secret? )

Last edited by lumbollo; 12-03-2009 at 04:12 AM..
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Old 12-03-2009, 05:55 AM
 
99 posts, read 151,273 times
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First of all I am not a fan of what has transpired, but you a fool if you can't realize that BofA was forced to take countrywide and Merril. The TARP was the backdoor guarantee to shore up the healthier institutions. Why people continue to focus on BofA is beyond me. The Feds forced Wamu and Bear Sterns into the hands of JP Morgan, Wachovia into Wells, plus countless other smaller deals. Why people are mad at BofA instead of then treasury secretary Henry "goldman sachs" paulson and now Geitner is indicative of how little people care or want to know about the crony capitalism that has been occurring. In BofA's case the then treasury secretary went to the well one too many times and heaped too many loses on the bank. I am not saying they were angels. What I am saying is that more transpired then Ken Lewis deciding to make bad deals.
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Old 12-03-2009, 07:04 AM
 
Location: San Diego
415 posts, read 1,058,813 times
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Well I am focusing on this because this is something that has GREAT potential to cause mayhem nation wide and world wide. Being responsible for Billions upon Billions of dollars is something I am sure no one wants to lose, the bank essitially works by letting you put money in your account then having the ablility to withdrawl that money at a later time with the interest growing its like an incentive. But just like before the gret depression there was a "Run on the banks" think about it if all the sudden BofA crashed or was not able to pay them back, don't you think that everyone would want to make sure their money is safe and hurry and withdrawl that. I know I would along with many others. Plus IF BofA does split up what will they do, I understand its a monster all its own but when you do that it does nothing but make what ever the two banks spit into is need yet another CEO who may come across the idea of moving along with the other one then worring about having to advertise themselves and get out there, I am sure the media will make a big enouh deal out of it IF BofA does split but. . .

I don't know there is so much that could happen it's crazy!
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Old 12-03-2009, 07:10 AM
 
4,010 posts, read 8,708,534 times
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Quote:
Originally Posted by nckeith View Post
...you a fool .... if you can't realize that BofA was forced to take countrywide and Merril. ....
This is simply incorrect. BofA invested $2B or so in countrywide years before any of this happened and then ended up buying them to protect that bad investment. In regards to Merrill, Lewis was sitting on a podium with Thain, talking about how great this merger was going to be. Nobody forced him to get up there and say this.


I don't like to call people names, but I'm not the fool here.
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Old 12-03-2009, 08:58 AM
 
Location: Huntersville
1,852 posts, read 4,578,552 times
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I don't see it splitting.. period.

Lumbollo, you rant the same incorrect items. oh well..
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Old 12-03-2009, 09:26 AM
 
4,222 posts, read 6,529,594 times
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Quote:
Originally Posted by Whytewulf View Post
I don't see it splitting.. period.

Lumbollo, you rant the same incorrect items. oh well..

Amen!
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Old 12-03-2009, 12:06 PM
 
99 posts, read 151,273 times
Reputation: 137
To clarify I was not referring members here as fools. I was referring to the fact that we as tax payers were fooled. Much of the discussions were done in hurried back door meetings and it is all coming to light now that these were shotgun marriages to prevent the collapse. Remember when the BofA deal with Merrill was announced Bear folded a few months earlier, but in a period of weeks, Lehman exploded, indy mac died, national city, wachovia, wamu etc. To boot we we nationalized fannie and freddie and propped up AIG. I don't know for sure, but Thain and Lewis were probably smiling because they each though they got the prettiest bride. Thain preserved share value(look at what the bear share price was), and Lewis got a crown jewel of NY investment banking. Treasury already knew the loses which is why the addional 20 Billion was waiting in the wings. The only people who didn't know was us(the taxpayers and shareholders) Also to clarify, BofA bought countrywide and received primarily a loan servicing company. By the time they were bought most of the nasty stuff was securitized by the above mentioned investment banks and foisted upon unwilling investors. Relative to the income of servicing the loan, BofA has very little direct exposure to loans originated by countrywide.
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Old 12-03-2009, 01:13 PM
 
4,010 posts, read 8,708,534 times
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Quote:
Originally Posted by Whytewulf View Post
...

Lumbollo, you rant the same incorrect items. oh well..
Since you didn't care to give one detail on why you think I am incorrect, I am going to assume you just didn't like that it was said but you can't think of any reasonable arguments to support this statement.
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Old 12-03-2009, 01:27 PM
 
4,010 posts, read 8,708,534 times
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Quote:
Originally Posted by nckeith View Post
.... Also to clarify, BofA bought countrywide and received primarily a loan servicing company. By the time they were bought most of the nasty stuff was securitized by the above mentioned investment banks and foisted upon unwilling investors. Relative to the income of servicing the loan, BofA has very little direct exposure to loans originated by countrywide.
Countrywide was sued in multiple state courts for its underhanded loan orgination procedures and BofA is now defending those suits. The bank is exposed to the millions of bad loans that Countrywide made during that time. And while all of this was going on, BofA invested in Countrywide by the billions.

BofA's ownly saving grace is that part of the TARP deal lets them pass on 10s of billions of dollars more losses to the taxpayer. So in essence they are getting all their losses socialized and are now the biggest recipients of social welfare in this country. (well maybe Citi is close depending upon how it's counted) It's something that is infuriating the public, especially the public that is losing jobs. While I don't expect them to be broken up soon, the pressure is on the politicians to do something more drastic, and if they don't they are going to be voted out and this includes Obama.
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