What they do know as they split citi is preparing for bankruptcy of the remaining part after the good parts are sold off so the taxpayer wıll sit on huge never refundable losses. They will stretch this process as long as possible as the counterparts of the toxic stuff will have an impact on others as Lehman did - but in the meantime the good assets are transferred, which is basically bankruptcy fraud but since the government is involved no prosecutor will stand up as the put it into a 'legal' framework - but defacto it is not .
Geithner and Paulson arranged for the takeover off Merrill by Bank of America which comes very expensive for the taxpayer as almost 200 bil are thrown to those 2 all together now. That again is insane and not necessary but most amazing are the constant lies by Thain who even snapped big money for this charade and was close to get another one. He actually should be prosecuted as I see in almost every case no difference to ENRON or Worldcom by the actions of various wall street CEO's. They need to be jailed and all their money taken away. The big shame is that with all the taxpayers money they have thrown at the situation so far (around 3 tril now) they have not solved anything, but still some people make big money out of this like Thain (ex Goldman). Something is big time rotten in this world even that Madoff who admitted his fraud is not in Prison but spends his time in a luxury penthouse in Manhattan which does not belong to him is a huge charade. Bush is the biggest disgrace for America as a President still insisting he did things right under his office the world has dropped into depression - no one dares to say so but as a matter of fact we are. Part of trading losses has brought the global financial system down and will keep doing so with up to 800 tril in derivatives but no also the real economy would have killed the financial system as the balance sheets wil implode completely. Only the global zero financing and money printing keeps an artificial system afloat but that's just a matter of time to completely crash.
Therefor the only thing left to do is to start a war on global scale to distract the public from the economic reality and secretively change the underlying situation to the benefit of the small groups which try to run this world into the new world order as Mr Bush and some others already claimed.
Bank of America Receives $138 Billion of Rescue Funds (Update1)
By Scott Lanman and Craig Torres
Jan. 16 (Bloomberg) -- Bank of America Corp., the largest U.S. bank by assets, received a $138 billion emergency lifeline from the government to support its acquisition of Merrill Lynch & Co. and prevent the global financial crisis from deepening.
The U.S. will invest $20 billion in Bank of America and guarantee $118 billion of assets “as part of its commitment to support financial-market stability,” the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said in a joint statement shortly after midnight in Washington.
The bailout raises doubts about the future of Chief Executive Officer Kenneth D. Lewis, who engineered the takeovers of New York-based brokerage Merrill Lynch and mortgage lender Countrywide Financial Corp. during the worst market slump since the Great Depression. Bank of America has plummeted 75 percent in New York trading since the Merrill acquisition was announced in September, falling to the lowest level in almost two decades.
“This thing is unraveling so fast Lewis may know his job is lost,” said Paul Miller, an analyst at Friedman Billings Ramsey Group Inc. in Arlington, Virginia, who has an “underperform” rating on Bank of America. The management team has “lost credibility” after spending more than $20 billion in the past year to buy unprofitable Merrill and ailing mortgage lender Countrywide Financial Corp. of Calabasas, California, he said.
Robert Stickler, a spokesman at Charlotte, North Carolina- based Bank of America, said the company doesn’t comment on “uninformed gossip.”
No comments:
Post a Comment