I remember those days so well. They are burned into my memory. I remember Bank of America taking over Countrywide just as anyone who was paying attention could see that the country and the world was in for a calamitous downturn in housing. A downturn from which much of the world still has not recovered. I remember wondering why B of A would expose itself to all the nastiness which was embedded in Countrywide. Why would such a large and powerful bank,
All I know is that the B of A economist was seen driving around in this before he wrote the report.
Mark this post. No recession until 2027. Whoopee! Take that to the bank! Bank of America that is! Happy days are here again. Good thing the always reliable economists can see 12 years into the future. I, seriously, feel so much better about things. Just wonderful.
Sure, now they say it.
The government waited until after the 2012 election to get maximum presidential campaign money out of these companies. Now however these trials 1) allow the government to get billions from the same companies, always useful for the government and 2) remind the same companies that their survival depends on their keeping up the campaign cash. Otherwise the statute of limitations would take effect and companies might stop giving
He was looking at 13 years in prison for writing “No thanks, banks” in washable chalk on the sidewalk. Thankfully sanity prevailed yesterday.
B of A allegedly abused the HAMP program which was created to help homeowners approaching foreclosure. Charges include that the bank threw out the paperwork of applicants who had fulfilled their end of the loan modification bargain, making the homeowner restart the modification process. Many people it is alleged fell into foreclosure who didn’t need to be there simply because the bank couldn’t get it’s act together. In many cases, as the attached article reports, it was worse than just incompetence.
My bet is that whatever is in the bill won’t prevent a bailout from the taxpayer if things (in the eyes of a particular bank and their friends in Washington) get bad enough. Saying that, raising capital requirements makes sense.
The trillion dollar soap opera which is high finance twists and turns and spins and morphs. Allies today are enemies tomorrow, and then allies again the next day.
As the attached article explains, the banks deemed “too big to fail” get to borrow money at artificially low rates. Creditors know that if a TBTF bank gets into trouble that bank will always be bailed out by the government (taxpayer). The TBTF designation, now codified in Dodd-Frank, is an implicit subsidy paid for by We the People.
The New York Fed just absolved Bank of America of potentially billions in claims stemming from mortgage fraud during the housing bubble for the paltry amount (for B of A) of $43 million. Scott free for pennies on the dollar.
One is either in the club or one is not. Most of us are not.
He’s done chasing Chick-fil-a out of town. Now he’s sticking his nose into the gun business, warning Bank of America and TD Bank that they would be wise to end any relationships with companies which “support gun violence.”
Has Buffett completely lost it? Not likely. But to be clear he is not the friend of the “everyman” he portrays himself to be.