Even Buffett can't stop B of A bleeding
Bank of America is raising capital through new deals, but its mortgage nightmares won't go away.
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Makes you wonder, was it REALLY 5bil from WB that got infused into BofA or was it some fudging of balance sheets to make it look that way to help fend off all of these so called "sharks". Why would WB pump 5bil into shark chum? He didnt get to be rich by having things like this blow up in his face.
Either way I guess 5bil and a "Unky Sam should be taxing the rich" comment looks good should BofA start asking for another handout.
Sounds fishy... er sharky.
Oh please please please let bank of america go under. That would be such a pleasant headline to read in the paper/online. Bailouts are no longer an option...the public outcry and political cost would be far too great for any politician with half a brain to support.
If bank of america goes the way of the dinosaurs, as I pray it will, others will move in to fill the vacuum. Smaller regional banks and credit unions will grow and absorb the customers and employees...but hopefully not the CEOs...
Might I suggest the public facilitate the demise by withdrawing their money or transferring it to other institutions? Nothing like a good old fashion run on the bank!
I hate to be this way but I hope BOA goes under. This serves them right after all the folks who's money they took wrongfully so in overdrafts. What goes around comes around!
tbh, the amount of ill will their customers feel towards them doesn't help their case any. Sometime back I remember seeing a survey on customer satisfaction, and Bank of America rated as the top 10 WORST in the survey. On the upside, they couldn't rank below AOL which still took the top spot, but they were still quite close to the top of the list, along with Comcast, and a few others.
The biggest complaint, and what earned them such high customer ill will, was chief among the list of complaints, all them fees. And they've certainly been giving themselves a heaping hand of these. I will admit that I do have them as a bank; but I'll also say that I liked the credit union I used to have in New Mexico a whole lot better. Only reason for this change is I now live in Jersey, and with the local branch 2,500 miles away, it's a little prohibitive. This said, I'm definitely not a happy BoA customer, and share the same sentiment as so many others polled.
So now, they merge with companies that made bad decisions which got them in the sub-prime loan mess, got public bail out dollars, and continue to keep much of their customer base disgruntled and disatisfied; any wonder Buffet can't just bail them out now? It's a maneagement problem there, and it's a customer service/relations nightmare.... Well on the upside AOL is still in business and they had the sort of corporate reputation that reeked, for a long time comming. So that in itself won't be the death of them; but and this said, making comparisons to AOL isn't giving all that much credit. Well their customer satisfaction rating in the survey did rank a wee bit better then AOL, and about on par with Comcast's....
Moynihan to Buffett – “Psych, who’s got who trapped by the short hairs now sucka? Welcome to my world.”
Maybe Warren pulled a Goldman and secretly shorted Bank of America on the sly. That's a win win. If B of A sold all of their desks and pencils, that would be enough money for Warren to get his money back. And he is the number one creditor at the head of the line, even ahead of bond holders or holders of preferred stock. Let's start a pool. You buy a square for one dollar, picking the day B of A files for bankruptcy. Can you say "General Motors?"
Well Buffett loaned Kemper Insurance one hundred million about 10 years ago, and that deal did not make him any money. And he lost money betting gas would stay above $4.00 a gallon a couple of years back.
Anyway I have already lost money in BOA. I bought the stock when it was $45.00 a share before all this mess started. So what do I know.
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Hedge funds' capital raising is causing all kinds of cascading destruction in the go-go names.
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