| User Info
| More Back-Door Bailouts (BAC This Time) in forum [Market-Ticker]
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Corn1945
Posts: 4167
Incept: 2009-04-30
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No one cares as long as the stock market goes up. When it finally ****s the bed everyone will stare at each other slackjawed and demand vengeance.
But it will be too late. They already got the money.
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Eaglewwit
Posts: 6054
Incept: 2007-11-30
SoCal
Banned
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Exactly, and once again we will hear. "NO ONE COULD HAVE SEEN IT COMING"
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Dilinger
Posts: 25
Incept: 2010-01-18
Seattle
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"Before today’s announcement, Bank of America faced $12.9 billion in unresolved putback demands, with about half related to government-sponsored entities, according to an Oct. 19 presentation. The company said in October it had reserved $4.4 billion for costs related to the problem."
Gee, another slap on the wrist.
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Wageslave
Posts: 1158
Incept: 2008-12-04
San Diego
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Since the gov't guarantee of GSE debt is de facto, rather than explicit, investors ought to be fleeing Fannie/Freddie like the plague. That is unless the new, ostensibly conservative Republican congress turns out to be a farce.
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Humblepie23
Posts: 12
Incept: 2010-12-11
Texas
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Timing is everything.
Why settle now?
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Mattytrader
Posts: 40
Incept: 2010-08-18
NY/NJ
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I dont know whether to be surprised or not.. its just unbelievable that nobody speaks of this..i was at a NYE party... all the guys were hootin and hollerin about how great everything is and how all the companies are makin money again.. all is right in the world" etc... then i started talking about margin compression and cost of goods and rising commodity prices and they looked at me as if i was from Mars...not a word was said.. and i swear that the conversation just turned to college football.. its like people dont want to believe it..dont understand it.. or just dont care... i just throw my hands up anymore... but thanks to you Karl.. i am the informed one..
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Corn1945
Posts: 4167
Incept: 2009-04-30
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Quote:I dont know whether to be surprised or not.. its just unbelievable that nobody speaks of this..i was at a NYE party... all the guys were hootin and hollerin about how great everything is and how all the companies are makin money again.. all is right in the world" etc... then i started talking about margin compression and cost of goods and rising commodity prices and they looked at me as if i was from Mars...not a word was said.. and i swear that the conversation just turned to college football.. its like people dont want to believe it..dont understand it.. or just dont care... i just throw my hands up anymore... but thanks to you Karl.. i am the informed one..
The key is to use your knowledge to profit from your buddies. It's frustrating because I just got out of school and didn't have any money to buy in March 2009. I'll be ready the next time though. |
Randy123
Posts: 5785
Incept: 2008-09-24
Earth
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Tarp for Tarp
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China is the Enemy. Wake Up.
New Normal. Same As The Old Awful.
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Sangell
Posts: 379
Incept: 2009-08-16
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Not only is the deal suspect the timing is beyond suspicious. Congress is not in session, Senator Shelby blocked Obama's nominee for director of FHFA so what we have here is the mice playing while the cats away. Wonder when we will here the announcement that some GSE bigwigs are resigning and have been hired by GMAC and BAC? What's the 'decent interval' in Washington these days. 24 hours?
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Altate
Posts: 7
Incept: 2010-12-27
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Your comment Mattytrader reminds me of this
Ismay: [Andrews enters room with crew behind him; he lays out architectural drawings on table, with Ismay behind him]
Most unfortunate, captain!
Thomas Andrews: [perspiring and trembling] Water... fourteen feet above the keel in ten minutes. In the forepeak, in all three holds and in the boiler room six.
Ismay: When can we get underway, damnit!
Thomas Andrews: That's five compartments! She can stay afloat with the first four compartments breached, but not five!
[tersely to Smith]
Thomas Andrews: Not five. As she goes down by the head, the water will spill over the tops of the bulkheads at E deck from one to the next. Back and back. There's no stopping it.
Smith: The pumps... if we opened the doors...
Thomas Andrews: [interrupting] The pumps buy you time, but minutes only. From this moment, no matter what we do, Titanic will founder.
Ismay: [incredulously] But this ship can't sink!
Thomas Andrews: She's made of iron, sir! I assure you, she can... and she will. It is a mathematical certainty.
Smith: How much time?
Thomas Andrews: An hour... two at most.
Smith: And how many aboard, Mr. Murdoch?
1st Officer William Murdoch: 2,200 souls on board, sir.
Smith: [turning to Ismay] Well, I believe you may get your headlines, Mr. Ismay.
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Ct1977
Posts: 231
Incept: 2009-08-13
East Hartford, CT
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Welcome to the planet Mars boys, this wonderful headline is good 7% pop on BAC. I remember a time, when bad news for a company meant your stock would decline.
The markets have been sorely damaged by government intervention they may never recovery. Price discovery is a thing of the past, a relic from a previous time.
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Karen1p
Posts: 156
Incept: 2010-10-26
Reformed Liberal - turned gun owner, Ticker Gal
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Just wait until the Wikileaks dump. May it provide information on collusion with government officials.
Everyone knows this collusion is the real reason for no prosecutions.
Dump the info, Julian!!!
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Corn1945
Posts: 4167
Incept: 2009-04-30
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Again, no one cares as long as the stock market goes up.
Even people who have a material interest in closing BAC (you know...everyday Americans) won't care because they are convinced that hurting BAC will hit their 401Ks or damage "the recovery."
Wall Street is composed of vile geniuses. Imagine if their intelligence was used to solve real problems??????
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Mattytrader
Posts: 40
Incept: 2010-08-18
NY/NJ
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well..how about this... during another conversation.. with 2 guys from same planet as the others...
me: what we really should be worried about are the putbacks on the banks when the pension funds find out how bad they were lied to.. as much as 50% default rates on some of these loans..
them: whats a put back..
me: (i explain it as this point)
them: ALMOST IN UNISON!!! " no way the government will allow that.. they'll bail them out.. as they should"
i walked away at this point.. shaking my head..
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Mschemeng
Posts: 180
Incept: 2010-10-03
Toronto ON
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Didn’t BAC have only $872million of loan loss reserves?
I guess they keep putback money is another pile…LOL…seriously, where is the money coming from?
I know Karl is pointing this out, so is Whalen (loss stays in Washington)…but seriously, are they going to make Wikileaks false flag event to trash BAC and the market, because this madness defies gravity (for now)!
Madness!
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Azusgm
Posts: 2423
Incept: 2010-12-02
East Texas
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Turbo Timmy has got to be behind this one. Last year he gave FRE/FNM their Christmas Eve unlimited gift. The GSE's probably can't sneeze without his okay. That man really needs to be tried on treason.
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Blurtman
Posts: 563
Incept: 2009-01-24
Banned
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BAC is a primary dealer, a made man. The lttle guy gets shaken down, that's the way it works, see.
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I have a reading comprehension problem and the owner banned me for repeatedly displaying it after being warned.
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Patentleathershoes
Posts: 9997
Incept: 2007-09-13
On the Daisy Chain
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This reminds me of the desperation before Bear Stearns went under.
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"An unborn child's property rights are protected by law. His right to life is not." Ronald Reagan
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Blurtman
Posts: 563
Incept: 2009-01-24
Banned
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Shouldn't the headline read:
Criminal returns stolen billions, faces no jail time.
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I have a reading comprehension problem and the owner banned me for repeatedly displaying it after being warned.
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Moonoverseattle
Posts: 3702
Incept: 2008-02-02
MOTEL 6
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A democracy can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on,the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy
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Mannfm11
Posts: 3551
Incept: 2009-02-28
DFW, Tx
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I had to look, as I figure you had written something. I wonder what CFC's percentage of the FNM porfolio was, 15% to 20%? This looks like a discount to me, but the again it is hard for us on the outside to measure what was poor underwriting and what was just screwy financing. FNM was buying inflated mortgages from everyone. Robert Rubin supposedly convinced Greenspan that the stock market was never too high or if it was, you couldn't tell it was. Evidently, the entire world can't see when housing prices are too high. 2% buyback of loans due to underwriting would be a high figure and you figure a 50% loss on that 2%, we could be talking as much as $10 billion on $1 Trillion. I wouldn't know for certain how diligent the buyback provisions are. Putting a loan file together for FNM is a pretty cut and dried process, as I have done it without much training. Either the docs in there are legitimate or they aren't. Originators aren't liable to repurchase just because the loan goes bad. We have to remember the whole house of cards was built on the idea that house prices never go down.
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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
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Sangell
Posts: 379
Incept: 2009-08-16
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BAC could be paying proper compensation for their poor loans but that isn't the entire issue is it? Why is the deal being struck at this time if not to 'close the book' and not let the new director of FHFA or Congress have a look?
Agreeing to put the money you stole back in the till does not wipe the slate clean. If BAC/CFC attempted to defraud the GSE's we need to know that and they need to be held accountable not return government money they, in effect, have been given back to another government owned operation and claim everythings square now.
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Rktbrkr
Posts: 239
Incept: 2010-10-31
US
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$13B BAC putbackables, about half F&F and BAC is settling for about half the F&F with some possible additional settlements.
BUT this isn't the ****rywide stuff according to the WSJ. If BAC settles all the CW junk at 50% it will be a horse of a different color - and hopefully BAC standards weren't as bad as CWs
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Widgeon
Posts: 13481
Incept: 2007-08-30
Region formerly known as the United States
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Quote:Since the gov't guarantee of GSE debt is de facto, rather than explicit Wasn't it made explicit in December 2009? xmas eve ... |
