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 Bank of America, LiterallyPosted on Jan 16, 2009
The taxpayers’ bank opened a new branch on Thursday: Uncle Sam just threw $20 billion Bank of America’s way. The government is also on the hook for $118 billion more in crap assets. Bank of America chief Ken Lewis calls it the “deal of a lifetime.” No kidding.
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By hippy pam, January 17 at 12:05 pm #
Let’s see…It was Stand Fed….Then La Salle….Then ??Something??......Now B of A…..
By the way…A C.C.card is considered UNSECURED DEBT…You might want to check out [legally] what that means????
My friend filed bankruptcy and those were forgiven…And this person received new card offers within 6 months….
Report thisBy SunflowerPipes.com, January 16 at 7:23 pm #
(Unregistered commenter)
Over the past couple of months I missed a couple of payments on my Bank of America card. I was out of town for some of the time and just forgot to make a payment. They put my interest rate at 10 times what it had been before. I pointed out that I had sent them 600.00 all of my fees and penalties but informed them that i would not be able to pay the higher interest rate which is now 30%. They refused and closed my credit card hurting my credit but keeping the new 30% interest fee intact. Bank of America has little mercy or patience for their customers and they are burying people like me and at the same time getting massive government welfare. Obviously Bank of America is a dark enterprise whose ambition for money and power has created a significant negative influence on the lives hundreds of thousands of people. I do not know what can be done about them But I do wish that something is done change this company into something much worthy of its name.
SunflowerPipes
Report thisBy tops, January 16 at 6:11 pm #
When BofA bought first Country Wide and then Merrill Lynch, both companies were basically insolvent; I always thought that there must have been some quid pro quo with the government. BofA isn"t in the business of doing anyone favors. Why would BofA, in essence bailout two insolvent institutions, by purchasing/ taking them over? They were dead weight with no real value. I always felt that the government probably agreed to compensate BofA with some sort of compensation/ sweetheart deal at a later date to avoid the appearance of a tax payer funded bail out. Remember this was early on, in this crisis, the government officials were still trying to say there was no financial crisis.
When BofA acquired these two companies the government made it seem like BofA was just stepping in and picking up companies with potential future value. The government didn’t want to make appear to be a bailout, which it essentially was, so they just agreed to pay back BofA at a later date. They just dribble out the information over time to obfuscate what they are actually doing.
Looks like this is indeed the case, and BofA is being compensated. What a deal BofA acquires two institutions and the US tax payer picks up the tab.
Report thisBy JPinGA, January 16 at 10:59 am #
(Unregistered commenter)
This story just angers me. Yesterday there was a report that stated that BofA and Paulsen made a “more money” arrangement based on these terms. “If we [BofA] don’t get more money, we’ll back out of the Merryl Lynch deal and cripple the economy.”
They got 20 Billion more
They also have 25 Billion in TARP funds
The new agreement also protects them against another 118 Billion in losses.
This is all taxpayer money.
Here is my thought. If you’re a taxpayer and have a BofA account, stop paying it. They have already gotten your money via the government and you no longer owe them a penny.
IMHO
Report thisBy Shift, January 16 at 8:30 am #
This doesn’t look or smell like a wedding cake to me.
Report thisBy Susanne, January 16 at 8:11 am #
(Unregistered commenter)
It seems that everything done to help the economy benefits the banks. Loan guarantees, Bailout money, buying toxic assest from the banks, increasing government debt to banks.
The banks caused this mess by excessive leveraging, and lending, and then selling these crap pieces of debt paper around the market for more money - inflating the whole economy ready for a massive burst.
Yet the taxpayers are just bailing them out.
Allowing banks going bankrupt would not destroy the economy if people’s savings were protected and new institutions were put in place. Let them rot. Stop the bailouts.
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