blog roll
|
2011...,
2011-01-03 03:21:07
| Main |
my entire construction of reality has been sent into a tailspin...,
2011-01-10 16:33:58
the never ending bailout:
Bank of America’s shares surged 6.7 percent yesterday, the most since May, to $14.19 in composite trading on the New York Stock Exchange. Citigroup Inc. jumped 3.6 percent to $4.90, JPMorgan Chase & Co. climbed 2.7 percent to $43.58 and Wells Fargo & Co. rose 1.9 percent.
Bank of America paid a premium, $1.28 billion, to Freddie Mac to resolve $1 billion in claims currently outstanding because the deal also covers potential future claims on $127 billion in loans sold by Countrywide through 2008, the Charlotte, North Carolina-based lender said in a presentation on its website.
It's really funny how the business press seems to be (almost) universally spinning this as a "loss" for BofA even as they report BofA's stock value going through the roof. The very important detail that this single deal gets BofA out of liability for that $127 billion is missing in a lot of the press, but the markets can apparently handle the rudimentary math it takes to understand that, if true, this is another massive backdoor bailout of Bank of America: only if you think the GSEs - which is to say Americans writ large - couldn't recover more than a few percent of the total potential losses on that $127 billion in Countrywide shitpile, or that the total losses are only going to amount to 0.76% on those holdings, is this not another transfer of wealth to BofA.
If the total losses due to fraudulent sales of Countrywide securities to Fannie Mae were a mere, say, 15%, then that's an $18 billion gift from you and yours to wall street.
:: posted by buermann @ 2011-01-08 12:54:05 CST |
link
|
|
|
|