0 votes

Bank of America In Deep Trouble: Financial Disaster on Horizon?

By Joshua Holland, AlterNet
Posted on November 11, 2010, Printed on November 16, 2010

Will Bank of America be the first Wall Street giant to once again point a gun to its own head, telling us it'll crash and burn and take down the financial system if we don’t pony up for another massive bailout?

When former Treasury Secretary Hank Paulson was handing out trillions to Wall Street, BofA collected $45 billion from the Troubled Asset Relief Program (TARP) to stabilize its balance sheet. It was spun as a success story -- a rebuke of those who urged the banks be put into receivership -- when the behemoth “paid back” the cash last December. But the bank’s stock price has fallen by more than 40 percent since mid-April, and the value of its outstanding stock is currently at around half of what it should be based on its “book value” -- what the company says its holdings are worth.

“The problem for anyone trying to analyze Bank of America’s $2.3 trillion balance sheet,” wrote Bloomberg columnist Jonathan Weil, “is that it’s largely impenetrable.” Nobody really knows the true values of the assets these companies are holding, which has been the case ever since the collapse. But according to Weil, some of BofA’s financial statements “are so delusional that they invite laughter.”


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Close down your Bank of America accounts!!

No more bailouts!

Let Bank of America crash into an iceberg...

. bump

for others.

Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.

DP Bobbyw24 on NPR Radio, Florida w/ Matt Tabbai, Rolling Stone!

Broadcast available to all struggling with home foreclosure.

Accept no credit.

Hope BobbyW24 & those probing to the depths of foreclosure quagmire & saving our homes, be paid in Gold & Silver.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

meekandmild's picture

Let BoA go belly up

One less bank to steal from people.


i'm not really sure what to make of all this, but if i use BOA for all my banking needs as well as have my mortgage through them should this be a large concern for me? if so what would be a proactive step i could take? move my money to a smaller local bank, or is that even worth it? thanks!

I left Bank of America 2 years ago

when this stuff started getting bad.

Moved to a regional bank and have been happier.

When I told BoA I was moving, its rep was frank, saying, "We are not really that concerned; your average daily balance was so low we lost money on your account."

Now they charge $8.95/monthly fee here if no D.D.

Follow me on Twitter for breaking news from a libertarian perspective


Bobbyw24 "Moved to a regional

Bobbyw24 "Moved to a regional bank and have been happier."

"...as happy as a dog with two tails."
- Mark Twin, quoted in The Adventures of Thomas Jefferson Snodgrass

Credit Union

"Happiness for a bee or a dolphin is simply to exist; for a man it is to know and to wonder."
-- Jaques-Yves Cousteau

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Boa constrictor for all your .... Boa... needs?

Your needs are obviously different than mine.

Credit Union.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Here come the nationalized

Here come the nationalized banks. Well...even more nationalized.

Columbus, Ohio

I think they are hoping to be nationalized

and free of the restrictions of the Federal Reserve Acts.

Federal Reserve Act gives them 6% profit per year. Perhaps it is not enough.

Free includes debt-free!

I never knew that banks were

I never knew that banks were limited by the Federal Reserve Act to only 6% profit per year.

That seems to explain why so many employees of the big banks receive astronomical amounts in bonuses each year. Seems that the bonuses may even be necessary in order to keep overall company profits down at the 6% level.


Hard to fathom... They are gifted cash @ cost of printing....

... then those rapscillions loan it to us @ interest.

Our US Treasury gift to them is immaculately conceived @ full face value (cash to go). This cash immediately buys US Treasury Bonds or whatever suits their fancy.

Recycling commences when poor folks perceive these dollar notes... cash debt receipts...

This note is legal tender for all debts, public or private.

The 6% cut you reference is calculated by them w/o audit. Their deemed profit per annum is used to pay a 6% dividend to member bank owners (Banks that own dividend producing shares). All this is written into the Federal Reserve Act, 1913. Trivial pursuit. Mounting to but a tinker's dam.

A tiny, tiny fraction of 1% is printed with green ink on cotton & paper (grown on bushes & trees). Value is mystically created as stated above.

Further details:

  • Grimm's Fairy Tales
  • Aesop's Fables
  • Stories by Hans Christian Anderson
  • Lewis Carroll
  • Mother Goose nursery rhymes
  • Bank of England Charter

Warning! Caution advised. Currency slippery when liquidity present.


Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

"Ever heard of Rocket Docket?"

Willis Report, Fox Business News.
Submitted by Mark Twain on Tue, 11/16/2010 - 12:29.

"Rocket Docket"

(1 minute film)

"It's the calendar of a busy court in ... County, Florida where foreclosures are processed at the rate of one every few seconds."

"Rocket Docket," since 2009.
Reported by Wall Street Journal

Feb 18, 2009. Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases ... Charlie Green, Lee County's clerk of the circuit courts, says ...


Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Gee, is it already time

for another big bonus check for the gangster banksters.

Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.

seems that many signs point

seems that many signs point to the dreaded double dip. any takers on the timeframe? If another depression is on the horizon we could see DJIA as low as 3000 using similar stats of the early 30 s


good posts deserve bumps.


LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Boats are beginning to sink?

Can you make this a clickable link, Bobby?

"Bloomberg columnist Jonathan Weil writes that mortgage-bond investors are demanding untold billions of dollars in refunds, the foreclosure fiasco is metastasizing and a member of the TARP oversight panel is openly worried that BoA may need another bailout.

In other words, the bank is on the brink of another collapse. And it may not be alone.

At 1 a.m. on Nov. 8, ATMs across the country shut down. The problems affected the larger financial institutions like BoA, BBVA Compass, Wells Fargo, US Bank, SunTrust, American Express, BB&T and others. While the excuse given blamed the change from Daylight Savings Time, many in the blogosphere wondered if it wasn’t a prelude to a rumored coming banking holiday to allow for a devaluation of the dollar."

Boats Financed... Sinking.

Please contact insurance agent. He will make arrangements to "settle quickly" with the bank.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul