Bank of America's CEO is subpoenaed (tax, make money, financial, banks)
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Well, their stock is showing their failures as a bank. Though, I'm thinking of making a risky decision to invest a bit at such low per share.....
As for the Merrill Lynch bonuses, that's pretty dirty. However, if this happened before the acquisition, then BoA really cannot be held responsible. While I do not particularly like BoA, I will reserve my ideals until all of the court hearings have concluded.
Well, their stock is showing their failures as a bank. Though, I'm thinking of making a risky decision to invest a bit at such low per share.....
As for the Merrill Lynch bonuses, that's pretty dirty. However, if this happened before the acquisition, then BoA really cannot be held responsible. While I do not particularly like BoA, I will reserve my ideals until all of the court hearings have concluded.
The quarterly statement will show their sucess or failure as an enterprise... they still made money in the last year. The stock price shows a complete lack of confidence in their ability to make money for shareholders in the future... that is to be seen.
did Ken Lewis arrive to the courthouse in his private jet?
haha!
I'm all for free enterprise and for anyone who makes gobs of money within the process. However, once someone has come to tax payers to ask for a bail out with our money....they should have to fall under our scrutiny and play within the boundaries of what we think is fair. Private jets and lavish lifestyles just don't come with that package.
The quarterly statement will show their sucess or failure as an enterprise... they still made money in the last year. The stock price shows a complete lack of confidence in their ability to make money for shareholders in the future... that is to be seen.
Close. I think its fear of Chris Dodd and Nationalization (aka shares = 0).
BofA actually has some amazing long term growth potential, but as long as the government is looming overhead, it isn't a good investment. BofA took a massive amount of the toxic assets on the street when it bought Merril Lynch (which the government prodded them to do), and until that gets under control, the government will probably watch over BofA.
BofA was one of the stronger banks before it bought Merril Lynch, remember that. If it goes down, there really is NO other bank that can take that toxic asset load, and you WILL see mass nationalization of our financial system. As scary as it sounds, BofA is almost like a firewall before a domino effect. Chase has B. Sterns and WAMU (who the government also guarenteed) to deal with. Wells Fargo has Wachovia (not guarenteed but maxed them out). Citi is in worse shape. Goldman and Morgan are strange because they still don't have a large deposit base, so they may or may not be able to handle BofA. Morgan especially since it is already involved in taking assets from Citi slowly via a joint venture. However if commercial asset CDO's come under pressure, I have a feeling those two won't be looking to take on any more. Most likely not, even though BofA has the largest deposit amount of all US banks (about 10% of all US deposits).
Aside, Citigroup was in trouble before all this hit the fan anyways so I wouldn't be surprised if they do get split up.
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