Members of the SPG I have been fortunate to get very good treatment from Bank of America. I had a large credit card debt with B of A. They settled it for a small fraction of the actual amount owed. Our home has B of A as its loan servicer. They gave us a decent loan modification. I have only got courteous and nice treatment from B of A. When Gonzalo predicted that the bank could collapse as did Lehman Brothers I was sad. But I also agree with Gonzalo.
Let us look at some of the clues that I have detected. Despite all of the negotiations with the Obama administration and the 50 attorney generals, the state of Nevada just filed a huge new lawsuit against B of A. Here is the link:
http://www.centralvalleybusinesstimes.com/stories/001/?ID=19244
(copy and paste to your browser if necessary)
B of A also got the bad news this morning that another big lawsuit has been filed against it by the Federal Housing finance Agency over fraud in packaging of mortgage-backed securities. The link is as follows:
http://www.nytimes.com/2011/09/02/business/us-is-set-to-sue-dozen-big-banks-over-mortgages.html?_r=1&pagewanted=all
(Copy and paste to your browser)
B of A president Brian Mahoney recently called the Secretary of the Treasury and literally begged him to finish the big settlement with the attorney generals so that he can get the lawsuits "off his back."
If B of A was an airline or a car manufacturer, they could declare bankruptcy and clean up their problems. Sadly if a bank declares bankruptcy there is a panic among depositors and "a run on the bank." As was the case with Washington Mutual Bank, the FDIC will have to step in and sell parts of the bank to other banks,both foreign and domestic. No bail out will be forth coming. The bank share holders and bond holders will suffer large losses. The US Treasury will suffer large losses. Unemployment will increase. The US budget deficit wil increase.
Let us look at some of the clues that I have detected. Despite all of the negotiations with the Obama administration and the 50 attorney generals, the state of Nevada just filed a huge new lawsuit against B of A. Here is the link:
http://www.centralvalleybusinesstimes.com/stories/001/?ID=19244
(copy and paste to your browser if necessary)
B of A also got the bad news this morning that another big lawsuit has been filed against it by the Federal Housing finance Agency over fraud in packaging of mortgage-backed securities. The link is as follows:
http://www.nytimes.com/2011/09/02/business/us-is-set-to-sue-dozen-big-banks-over-mortgages.html?_r=1&pagewanted=all
(Copy and paste to your browser)
B of A president Brian Mahoney recently called the Secretary of the Treasury and literally begged him to finish the big settlement with the attorney generals so that he can get the lawsuits "off his back."
If B of A was an airline or a car manufacturer, they could declare bankruptcy and clean up their problems. Sadly if a bank declares bankruptcy there is a panic among depositors and "a run on the bank." As was the case with Washington Mutual Bank, the FDIC will have to step in and sell parts of the bank to other banks,both foreign and domestic. No bail out will be forth coming. The bank share holders and bond holders will suffer large losses. The US Treasury will suffer large losses. Unemployment will increase. The US budget deficit wil increase.
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