Thursday, October 20, 2011
BOFA, Mutha Fuckkas..............
“During the Savings & Loan crisis,” blogger Yves Smith recalls, “the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corp. wind-down vehicle. It had to get more funding from Congress.”
The Bank of America’s move, she says, “paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. No congressman would dare vote against that.
“This move is Machiavellian, and just plain evil.”
“I’ve taken a look at recommending a BAC short several times over the past year,” our forensic short strategist Dan Amoss said when Warren Buffett bought a boatload of preferred stock in Bank of America.
“But I kept coming back to the thesis” that Bank of America has enough friends in high places to survive whatever scandals might beset it. Under normal circumstances — like 2008, when Dan booked 468% when Lehman took a dive — BAC would be a good bet to dive, too. No longer.
BAC stock is up this morning.