Bank of America's Equity Is Likely Worthess and It Will Rape FDIC Insured Accounts Going Bust

stockholmer

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Sun Oct-23-11 10:34 AM
Original message

Bank of America's Equity Is Likely Worthess and It Will Rape FDIC Insured Accounts Going Bust

http://www.zerohedge.com/contributed/bank-america-lynching-countrywides-equity-likely-worthess-and-it-will-rape-fdic-insured-

Warning! This is going to be a highly, highly controversial post. It is long, it is thick with information, and it hits HARD! Thus if you are easily offended by pretty women, intellectually aggressive brothers in cognitive war garb, your government regulators selling you out to the highest European bidder, or the cold hard facts borne from world class research that you can't find from the sell side or the mainstream media, I strongly suggest you stop reading here and move on. There is nothing further for you to see. As for all others, please keep in mind that I warned of Bank of America Lynch CountryWide's swap exposure through a subscriber document on Thursday, 01 October 2009, then went public with it shortly thereafter.

There has been a lot of feedback and emails emanating from the last RT/Capital Accounts interview that I did earlier this week, as well as it should be. The dilemma is that I don't think the viewership is taking the topic seriously enough. I explicitly said, on air, that the Federal Reserve endorsed this country's most dangerous bank in shifting its most toxic assets directly onto the back of the US taxpayer through their most sacrosanct liquid assets, their bank accounts. In addition, when the shit hits the fan, those very same assets will be second in line for recovery, for the derivative counterparties will get first grabs.

Now, maybe its due to the fact that the interviewer was a cutie, or my voice was too deep, or because I didn't appear in my superhero garb, but I really don' think the message was driven home by the interview that I gave on Russian TV's Capital Account introductory show last week. So, let's try this again, but this time instead of
donning that suit and tie, I go as that most unlikely of financial superheroes...

http://www.youtube.com/watch?v=lOuOz2mec3Y&feature=player_embedded#!

Next, we need to see just how pertinent being 2nd in line is in the liquidation of an insolvent investment bank. I do mean insolvent. Yes, I know the big name brand investors who don't look like that rather unconventional superhero standing in front of the Squid headquarters above may believe that BAC has value, but I have told you since 2008, and I'll tell you now - the equity of Bank of America Lynch CountryWide is effectively worth less than zero! Yeah, I know, many of those name
brand analysts espoused in the mainstream media disagree, and to each their own, but several of Bank of America Lynch CountryWide's latest acquisitions, ex. Countrywide, Merrill Lynch, etc. were enough to make it insolvent. Add several negative numbers together and do you think a little financial engineering is going to give you a positive number??? A little common damn sense is all that is needed to fill the bill here.

snip

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roguevalley

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Sun Oct-23-11 12:25 PM
Response to Original message

1. If they are allowed to put their crimes over into FDIC there will

be revolution when this hits the news cycle.

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banned from Kos

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Sun Oct-23-11 12:31 PM
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2. Ha! ZeroHedge vs Warren Buffett? Who to believe?

Buffett or some perma-Bears who have been wrong for 2 1/2 years?

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stockholmer

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Sun Oct-23-11 01:46 PM
Response to Reply #2

3. $1 million invested 9-15-08 in BoA, & $1 million in gold, today-BoA worth $175K, gold $2.2 million

Edited on Sun Oct-23-11 01:48 PM by stockholmer

Just call me a bear, I can live with it.

Besides all this, you are missing the point of the post, ie. there are trillions being ripped off right in front of our faces.

As for the hypocrite Buffett, he got a special deal that guarantees he will profit billions from his $5 billion investment in BoA. He is covered ahead of all other creditors, on terms that no one else could get. http://www.slate.com/articles/business/moneybox/2011/08/no_you_cant_invest_like_warren_buffett.html Now, his special warrants and options are indirectly back-stopped by the FDIC, all at taxpayer's expense.

BoA price:

Sep 15, 2008 28.23 39.50 25.00 37.48 203,958,900 Close 36.26

Oct 21, 2011 6.59 6.65 6.38 6.46 252,293,600 Close 6.46

Gold

9-15-2008

10-21-2011

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sarcasmo

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Sun Oct-23-11 01:47 PM
Response to Original message

4. They can't go bankrupt fast enough.

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