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With the stock market tumbling I thought this would be good news to those who think the banks pay us back.
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Taxpayers may not realize it, but they just bailed out Bank of America again, this time to the tune of more than a half billion dollars.
But apparently the federal government is determined to resurrect BofA: the Wall Street Journalreports the feds have just used Fannie Mae, which is controlled by the U.S. government, to infuse BofA with $500 million and ease one of the bank's biggest headaches.
Of course the big head ache is all those mortgages they have gone bad so what is a bankster to do? of course they stick it to the tax payers to cover their shorts :
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Fannie Mae is purchasing "the servicing rights in order to transfer the day-to-day management of those loans to a different company." That's another huge sign that Fannie Mae is overpaying. If the rights were really worth $500 million, wouldn't a private company pay that for them?
The last sentence sums it up if they were worth anything B O A could have sold them to other banksters such as Goldman or J P Morgan. You have to love this kind of payback.
Last edited by Swingblade; 08-10-2011 at 05:55 PM..
Reason: left out word
B of A started out as a noble cause by an Italian immigrant who wanted to help the little guy. Now they're an agglomeration of ultra-douchebags who will see us all in peril.
With the stock market tumbling I thought this would be good news to those who think the banks pay us back.
Of course the big head ache is all those mortgages they have gone bad so what is a bankster to do? of course they stick it to the tax payers to cover their shorts :
The last sentence sums it up if they were worth anything B O A could have sold them to other banksters such as Goldman or J P Morgan. You have to love this kind of payback.
Actually indications are that the federal government will buy up those assets and make Uncle Sam a foreclosure slumlord in a government controlled rental market.
The result is still the same...another taxpayer funded "loss" and privatized profits.
Fannie Mae is purchasing "the servicing rights in order to transfer the day-to-day management of those loans to a different company." That's another huge sign that Fannie Mae is overpaying. If the rights were really worth $500 million, wouldn't a private company pay that for them?
Since Fannie is the guarantor on the mortgages, they might have first rights of refusal on any servicing rights. I'm of course speculating but its a real possibility.
Bank of America (BAC) Gets Sued for $10 Billion by AIG (AIG)
By: Leo Sun, dated August 10th, 2011 After Monday’s stunning rout, in which the Dow crashed 634 points, financial bellwether Bank of America hit a new 52-week low of $6.31, a chilling price which reminded many investors of the horrifying plunge of 2009. To make matters worse, American International Group has sued the beleaguered bank for a whopping $10 billion in losses incurred on $28 billion in mortgage-backed securities. AIG claims that Bank of America and its subsidiaries, Merrill Lynch and Countrywide Financial, “misrepresented the quality of the mortgages placed in securities and sold to investors.” AIG is also suing Goldman SachsJPMorgan Chase ) and Deutsche Bank for similar reasons as a litigation strategy aimed at recouping billions in losses sustained during the global financial crises of 2008-2009. These lawsuits are sweeping through the industry at an alarming rate, with no less than 90 active lawsuits over mortgage bond losses asking for approximately $197 billion – which could cripple some major financial players quickly and consolidate the industry in unpredictable ways.
Prior to the market crash, Bank of America, which is ranked as the largest bank in America by both assets and deposits, posted its third loss in four quarters, as mortgage-related issues offset any gains in other business segments. In July, the bank made a shocking announcement that it had agreed to pay $8.5 billion to a group of institutional investors over losses incurred on mortgage-backed securities. It then announced that other mortgage-related losses increased quarterly losses to $20.7 billion. These ghosts of the 2008 market meltdown would foreshadow its current conflict with AIG, its costliest mortgage-related battle yet. In other segments, Bank of America didn’t fare too badly. Credit-loss provisions decreased by $8.11 billion to $3.3 billion, while the net charge-off rate decreased from 3.98% to 2.44%. These numbers are in line with most other recovering banks, as consumers are slowly becoming more credit worthy once again. This can also be seen in its credit card operations, where profit nearly tripled to $2.04 billion, while its provision decreased to $481 million from $3.8 billion. However, CFO Bruce Thompson noted that new debit card reforms, which cap swipe fees, will reduce the card unit’s revenue by $475 million in the fourth quarter.
Fannie mae is a blip on the radar for corrupt B of A. this is beyond the pale
Last edited by dreamofmonterey; 08-10-2011 at 07:27 PM..
Reason: add
Bank of America (BAC) Gets Sued for $10 Billion by AIG (AIG)
These lawsuits are sweeping through the industry at an alarming rate, with no less than 90 active lawsuits over mortgage bond losses asking for approximately $197 billion – which could cripple some major financial players quickly and consolidate the industry in unpredictable ways.
That is bad news to the tax payers since the TBTF banksters are able to shift their losses to us. Both parties are so great!!!!!! Wonder how the shift will take place? Lets see, Barnanke will start another QE the banksters will buy lots of bonds and sell them back to Barnanke. Then the banksters will take that money to pay back the law suits and the apologist will claim the banksters paid us back.
It's coming to an end very soon. BoA and/or Citi will not survive much longer. No more gov't money left for them. Just kicking the can down the road for a little while longer.
That is bad news to the tax payers since the TBTF banksters are able to shift their losses to us. Both parties are so great!!!!!! Wonder how the shift will take place? Lets see, Barnanke will start another QE the banksters will buy lots of bonds and sell them back to Barnanke. Then the banksters will take that money to pay back the law suits and the apologist will claim the banksters paid us back.
agree 100%. and while idiots in Congress create more "committees" for reform...they let the banksters run amok bcs w. elections coming up they are all afraid to go against Wall St-
newsflash for incumbents: americans are enraged and against both parties, we see the corruption
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TBTF felons
