Too Big to Fail Too Big to exist

www.marketwatch.com...

There is a rumor circulated on Wall St. that JP Morgan (NYSE: JPM) will takeover Bank of America (NYSE: BAC) within the week. The government will support the deal with a $100 billion investment in preferred shares issued by the combined entity. Alternatively, the government may guarantee the value of a large pool of Bank of America assets. The word is that Treasury Secretary Geithner has discussed the transaction with JP Morgan CEO Jamie Dimon.The "merger" would completely destroy the value of BAC's common shares.

Amazing !
Just simply amazing that the ignorance and arrogance of a bloated and drunken government/corporate state is allowed to continue to rush head first into this planned and predesigned financial fiasco, and nothing will be done to stop or remedy it until a complete collapse occurs.

How wonderful.

"Section 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine....

Section 2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine...."

en.wikipedia.org...

This is troubling.

I thought BofA was going to be one of those last banks standing... Last bank that i thought would hold together was JP Morgan. This is interesting if true.

I wonder how bad the economy would tank if this deal goes through?

It's called monopoly,

Monopolies can be established by a government, form naturally, or form by merges. A monopoly is said to be coercive when the monopoly actively prohibits competitors by using practices (such as underselling) which derive from its market or political influence (see Chainstore paradox). There is often debate of whether market restrictions are in the best long-term interest of present and future consumers.

en.wikipedia.org...

And I firmly believe that this is all being done by permitted infiltration by outside and internal individuals armed with powerful resources, elected into positions or appointed and protected by the laws put in place to control and weaken us.
This is NOT good......... at all

reply to post by ugie1028


Extremely troubling to say the least,
the organizational attributes of BOA are spastic and disconnected at best , the levels of divisions and inter division information sharing are horrid, it is a bloated and dizzy bank , and how could it be anything else due to it's ingesting of so many accounts and lost paper trails in tow.
This forces even more stress onto an already confused delicate system of balances and I see chaos riding right out front waving the banner of surrender.

reply to post by HappilyEverAfter

Amazing ! Just simply amazing that the ignorance and arrogance of a bloated and drunken government/corporate state is allowed to continue to rush head first into this planned and predesigned financial fiasco, and nothing will be done to stop or remedy it until a complete collapse occurs.

It tends to support the theory that failure must and will occur in order to support the creation of a new, global economic system. I mean, you can't just proclaim that the current, multi-national free market system wasn't working because, it was and doing quite well. That is, until some really rather obvious (and destructive) errors were injected into the machinery that resulted in the collapse of several critical sectors.

You can't justify fixing something until it is broken. The globalists therefore did just that.

Does this mean that BofA stock would sykrocket if they were bought up, do you think its something to buy and get some quick and easy short gains?

Originally posted by redoubt
reply to post by HappilyEverAfter

 

Amazing ! Just simply amazing that the ignorance and arrogance of a bloated and drunken government/corporate state is allowed to continue to rush head first into this planned and predesigned financial fiasco, and nothing will be done to stop or remedy it until a complete collapse occurs.

It tends to support the theory that failure must and will occur in order to support the creation of a new, global economic system. I mean, you can't just proclaim that the current, multi-national free market system wasn't working because, it was and doing quite well. That is, until some really rather obvious (and destructive) errors were injected into the machinery that resulted in the collapse of several critical sectors.

You can't justify fixing something until it is broken. The globalists therefore did just that.

Yes, death by design.
Problem-reaction-solution, and in this case as I've been saying for years, the EU has been waiting for its planned partners to arrive, (through creation by collapse) and the regional currency groups will be formed.
It will be much easier to unite 4 or 5 at best rather than hundreds, and THAT will be the steps taken when the current 'youth' reach middle age.
We (the older) will be dead or dying and provide little or no resistance to the global collar and control that will follow.
I dont advocate selective elimination much, but in some instances it seems the best choice on the menu.

Originally posted by thegoods724
Does this mean that BofA stock would sykrocket if they were bought up, do you think its something to buy and get some quick and easy short gains?

I'd rather buy donuts or pie, at least the memory of the sweetness could provide something real, like a smile.
I would believe the opposite to be true of BOA value .

Well, somebody knows something . . . Bank of America BAC is up about 9 percent today and most of that jump was right off the get go.

Originally posted by GoalPoster
Well, somebody knows something . . . Bank of America BAC is up about 9 percent today and most of that jump was right off the get go.

Oh no doubt someone knows what's going to happen, and they no doubt stand to make a good buck off a short hit. It's so obviously telegraphed anymore that it's stomach turning.

reply to post by HappilyEverAfter


Dude, I'm foaming at the mouth, too. Hope you don't mind my linking to your thread. I'm beside myself trying to stay all Buddha-like calm.....
What a load of crap.
I've been on the fence about Bloomberg lately -- on the one hand they seem all about transparency, and on the other, they seem all about exploitation of laws to get richer.

I dunno.
This will be interesting.

Yeah, here's what it is:
JPMorgan Chase is going to BUY Bank of America....and then those stocks will be worthless...

Meredith Whitney told Bloomberg Radio Wednesday that there's no urgency for Bank of America to raise capital.

Uh, because Jamie Dimon (ugghh, if I have to type his name more often I might just melt and fade away)....and company are going to BUY it.

reply to post by HappilyEverAfter


If BoA is having this much trouble, I am certain that CITI is having it even worse. CITI is larger and was having far more issues than any other bank, untilt he Federal Backstop Loan was put in place.. CITI accepted more bailout funds than any other bank besides AIG, and was forced to liquidate more than any other bank besides AIG. If BoA fails, CITI fails.. if CHASE buys BoA they will be absolutley massive ..

Massive they will be, then quickly thereafter they will consume through defaults the few remaining banks and holding banks around them. Seems like this orchestrated delay is only slowing the monster that has to eat itself to survive in its present state, it's a step on the sidewalk to predestined financial flatline,

and then the monster will rise anew,
I'll go on the record as saying 8 to 11 months max from now.
April-July 2012________________________flatline______________________

www.cnbc.com...

www.cnbc.com...

www.rollingstone.com...

They will all soon be jockeying for position on the slippery slope,
The altered forecasts of an unrealistic growth are just an admission , although late and weak, of a dream or rather perfect storm of created financial lunacy.

What's really amazing is the fact that 'educated' individuals with power of procurement truly lied to themselves when investing in these vehicles and thinking they would actually be 'doing something worthy',
Simple math, 8th grade math, reveals the insanity.

NOW just as when these duh-rivitives were lumped and clumped into 'the greatest return since jesus'
We are going to have a lumped and clumped together "escape pod, emergency slide" and all bad bankers go to heaven.

"""It is of concern to the industry that instead of trying to facilitate resolving these issues, you seem to be throwing a wrench into it. Wall Street is our Main Street — love ’em or hate ’em. They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.""

This, again, is coming not from a Bank of America attorney, but from the person on the Fed board who is supposedly representing the public!

This is exactly what JP Morgan did in previus recessions (that they caused ), they buy up cheap companies and land.

Go on keep panic selling... That is what they want.

www.bloomberg.com...

The leaders of euro zone nations have done everything politically feasible to counter the crisis, while the European Central Bank and the U.S. Federal Reserve are close to the limit of their capabilities, Witteveen said. A new fund could tap the currency reserves of China, Japan, the Middle East and European nations such as Germany, he said.

It “would allow the fund to borrow large amounts from all surplus countries and so provide temporary financing even for a big country such as Italy,” the former official said.

Very nice, very subtle and deemed a 'creative' new way, to possibly deal with problems.
Sounds like a very large GLOBAL FUND doesnt it?
Like sending the firetrucks you built and own, to the fire you lit.......... correct.
We're on our way to being saved by them from them.

reply to post by JennaDarling


Yup . . . most of the gerbils on the wheel are too busy trying to make the wheel go faster and in so doing they miss the fact that their efforts are just for the amusement of whoever allows for their survival.

As long as we keep the wheel spinning, they'll let us survive.

When we stop . . . that's when it's gonna get ugly.

reply to post by HappilyEverAfter


And the Dodd/Frank bill was supposed to address the "too big to fail" scenario, yet these banks have done nothing but get larger since 2008.

BofA is a large example, but around the country it is happening to small community banks all of the time, with the feds coming in, shutting down the banks and letting larger banks buy up the deposits for pennys on the dollar, as well as get breaks on the balance sheet side to enable them to accelerate foreclosures.

A far better solution, should BofA be in an unstable position would be to break it up into hundreds of components and disperse the deposits and other assets to small community banks, banks where people who actually know about, live in and care about the communities they serve would become stronger.

This will be no different that JPMorgan's purchase of Washington Mutual. They will buy the bank for pennys on the dollar and lay waste to the entire corporate structure laying off thousands of well paid people. Happened in Seattle and the city is still hurting from the job loss.

All Dodd/Frank did was facilitate the consolidation of the banking sector. Obama should have vetoed that legislation.

blogs.voanews.com...

Noted U.S. businessman Warren Buffett is investing $5 billion in the nation's largest financial institution, Bank of America, which is facing potentially huge losses over its home mortgage business.

hhmmmm thank you warren,
I wonder what the game plan is now?