Rumor regarding Bank of America

:puke: from horrendous to horrendous 2.0


from 24/7WallStreet:



JP Morgan May Take Over Bank Of America
Posted: August 23, 2011 at 12:14 pm


There is a rumor circulated on Wall St. that JP Morgan (NYSE: JPM) will take over Bank of America (NYSE: BAC) within the week. The government will support the deal with a $100 billion investment in preferred shares issued by the combined entity. Alternatively, the government may guarantee the value of a large pool of Bank of America assets. The word is that Treasury Secretary Geithner has discussed the transaction with JP Morgan CEO Jamie Dimon.The “merger” would completely destroy the value of BAC’s common shares.

The government feels that the deal may be necessary as Bank of America struggles unsuccessfully to close several transactions to bolster its balance sheet. The Wall Street Journal reported that Business Insider speculated that the financial firm will need to raise $200 billion which would be another possible event that would wipe out common shareholders.

Bank of America’s fortunes have been hurt by events in just the last few days. A New York State judge agreed to allow institutional investors to intervene in an $8.5 billion settlement between the bank and groups that lost money on mortgage-backed securities. China Construction Bank Corp said Bank of American will continue to hold 50% of its share in the foreign financial firm. Many investors hoped Bank of America would sell its entire stake to raise money. Several analysts believe that the costs of owning mortgage firm Countrywide Credit have grown unexpectedly large. .............(more)

The complete piece is at: http://247wallst.com/2011/08/23/jp-morgan-may-take-over-bank-of-america/#ixzz1Vwmi0Odk

Old Whore in a new Dress.

Let it Die.

Of course they will. :puke:

I thought we had to live within our means? No money for important programs so they can flush $100 billion down the toilet.

Wonder if this explains the sudden, massive delay in foreclosures. Suits by investors who lost big on mortgage-backed securities? Until the foreclosure goes through (and the property sells for a fraction of the mortgage balance) the "loss" has not occurred?

However, ever since they were NCNB (No Cash for No Blacks), I have personally and known too many people with drama brought on by their policies and people. I.E. They suck canal water, even worse than what is now Wells Fargo. Some people are already losing their jobs here with little end in sight. Unfortunately, a black man, Mayor Anthony Foxx, will be blamed for all maladies here, even though he and his Republican predecessor, Pat McCrory, had nothing to do with the general fortunes of the area. The local uptown elite dumped on Harvey Gantt back then, and they really don't want black folks running things here. Oh well.