17 votes

Is Bank of America preparing for a Chapter 11 Bankruptcy?

By Christopher Whalen | Wed Oct 19, 2011
Reuters

Bank of America has managed to step into the kimchee several times over the past couple of months, an achievement that only warms the hearts of crisis communications professionals. First came the abortive settlement of $10 billion or so in put-back claims by some large investors. The State of New York and anyone else paying attention intervened. Settlement is now mostly muerto in political terms, although the big investors are still paying the big lawyers to soldier on in hope of forcing a settlement on all parties. Only in New York are such things possible.

Then came the decision by Bank America CEO Brian Moynihan to impose a $5 per month fee on ATM transactions, this in response to the Dodd-Frank law which cuts about half of the profits for big banks in the electronic payments market. Consumers reacted in rage to the announcement, which arguably helped to catalyze the Occupy Wall Street movement. Truth is that the big bank’s cartel control in payments is under assault by more than Congress. Think technology, Apple and Google, and stay tuned for a future post on the payments revolution. Steve Jobs does get the last laugh on the big banks.

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ha!

i thought that the "bank of america" was ALWAYS broke....which is why they are constantly printing paper!

no? no? anybody? anybody?

You may start a Credit Union w/ nothing. Banks require a deposit

Banks must be funded by start up funding or deposits. Albeit, a line of credit from another bank would be hard to distinguish from actual deposits.

Credit Unions seem to have a special exemption to this rule. From the Encyclopedia of Finance (paraphrased from a paragraph, circa 1980s) credit unions may grant $2 million in loans before deposit requirements apply. Roughly, seems you can start a credit union with a line of credit or front-money.

Disclaimer: This information is dated. I received a riverboat pilot, 1859.

    STEAMBOAT PILOT LICENSE
    I wish I was back there piloting up & down the river again. Verily, all is vanity and little worth--save piloting. - Letter to Jane Clemens, 10/1865

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

I wouldn't doubt it

I work in real estate here in NC, and I have already heard word of some employees being let go, and the BOA manager in my area who happens to own some homes I manage has the word out he's fixing to try and open his own mortgage company very very soon. And this has all transpired in the matter of a month. I wouldn't doubt he's probably preparing for this.

The reason they did this

is because the primary dealers have seen increasing pressure on funding and collageral obligations. The Fed was more concerned about MLynch being torpedoed than the derivatives portfolio dragging down the bank (which has better access to funds as well.)

gedankenexperiment.dk views on finance, politics and science

Another Bank Has Worse Problems

Anyone deal with Fifth Third?...I talked to a lady here that use to work for them...Soon after they came here she said..about 10 yrs ago..problems started at the main office..thats how the lady put it.
She said they 'shuffle funds around' to make the books look good for investors. Hmmm
The Banksters Shuffle..that would make a good mod flash dance wouldnt it?

I believe in Hope & Change..I Hope the government will Change
Spindale-Rutherford County-North Carolina

Fifth Third Bancorp – $3.6B. Only bad - Bank Implode-o-Meter

"Shiver me timbers! Batten down ye hatches!"

Shutter if your bank be on this list, mate. Ya best be praying ta yer favorite. "Fifth Third" listed mate... Bly me. Thar be worse, ta be sure.

      General Bank Implodes

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

They Fail, I Fail

As bad as things are with these large banks, BofA is my client; I've gotten to know their management employees and they too have bills to pay, families to support etc, just like the rest of us.

I don't want to lose my job because things come crashing down and I don't want to see the everyday middle-managers out on the street either. These things get messy when you pit principle against what's practical for your own life. Sigh.

So what do you want?

a bailout? c'mon! I'm sorry about the situation, but you're kind of sounding like the people we're against...it's unfortunate that these banks and corporations have done what they've done...they got the best of the people in many ways and the people will suffer from it. Unfortunately the top tier people will get away unscathed with millions stashed away somewhere.

Unfortunately as devastating as this could be, maybe it will finally wake people up to the dangers of central banking and the fractional reserve system. If they went bankrupt, it means in all reality, they don't have enough of people's money on hand and could never pay it back. If they had the money people actually deposited, chances are it wouldn't go bankrupt, and two, they people would be able to safely withdrawl their money in that process with a gaurantee that it would be there for them.

Hang in there...unfortunately it's bound to happen under this sytem, but fear not! under this system, I'm sure they will get a bailout, so you're probably safe for now.

They failed. Please decide what you will do next.

Search: "Bank of America" Bailout

They failed long ago. In history, most basket case banks fail into receivership. Sometimes, other names are used, such as conservatorship.

Please investigate rapidly unfolding fraud: http://bankimplode.com/ Bank Implode-o-Meter

    Writedown-Rundown & General Distress, Bailout, etc.

      Morgan Stanley – $121.0B
      Bank of America - way, way more

Reckless Endangerment: Totally Corrupt America [2011-10-25] - "The financial crisis, which is very much still with us, did not result from accident or miscalculation; neither did it result b...

Morgan Stanley to rid itself of mortgage servicer [2011-10-25] - "Morgan Stanley plans to sell its mortgage-servicing business to Ocwen Financial Corp for $59.3 million, closing out a money-los...

The Home Affordable Refinance Program (HARP): What you need to know [2011-10-25] - "The HARP program, which was rolled out in 2009, is designed to help. Those who are "underwater" on their homes and owe more tha... U.K. Home Prices to Plunge Most Since 2008 Slump, Knight Frank Predicts [2011-10-25] - "Next year's drop in residential property prices will be the most since 2008 amid economic weakness, low salary growth and gover...

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

hope not

They will get a massive bailout then.

donvino

W the Buffett rounding up bailouts... Rawhide!

A piggy-bank in a poke! W the Buffett rides to the rescue. High-Ho Monopoly-Money! "Ride 'em, cut 'em out... Rawhide!"

Breaking News: "Golden Spike" reported in the DailyPaul metal forum. This just in... "$45 Golden Spike found."
http://www.dailypaul.com/144648/saudi-markets-fall-over-6-go...

    Golden Spike found. Will the rightful owner please line up at the bar."

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

retwitted

bump.

Thanks Bobby.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

tasmlab's picture

Did Buffet buy a bailout?

Why does "The Oracle" put billions into a bank that is on the ropes?

Currently consuming: Gatto: "Underground history of education..", FDR; Wii U; NEP Football

"Title Fight" ... Buffett seeks another title.

Buffett knows of bailouts, tax credits, and banks w/ privileges.

Buffett is a major shareholder in: Well Fargo, Goldman Sachs, GE (GE capital makes "legal tender" like a bank), etc. Buffett is perhaps the #1 receiver of favors lavished on Too-Big-Banks made in America. How many hundreds of billion have been bequeathed... stuffed... Tarped upon Too-Big-Banks? All the while, they get bigger.

Bank of America - [Featured in Bank Implode-o-Meter]
http://bankimplode.com/ Always on the front page 4 years running. Goldman Sachs too!

http://bankimplode.com/blog/2009/05/07/bank-of-america/ Their own special pages enchanting their "art of deception"

24 Italian Banks wonder what got into S&P Ratings.
http://www.dailypaul.com/144648/saudi-markets-fall-over-6-go...
Submitted by Mark Twain, 10/19/2011

    How did Bank of America (formerly Bank of Italy) pay 10¢ on the dollar to disappear billions while under TARP? How did they find favor of a Judge

    From under the TARP: "Thus, taxpayers were owed $4.427 billion for the guarantee. They got $425 million. That is less than 10 cents on the dollar. ..."

    From under pressure to fess up to the SEC: Just a day after Judge Rakoff rejected the settlement deal between the SEC and Bank of America, Andrew Cuomo wants to have a little yikittie yack session with the Bank of America board over the disclosure related to Merrill bonuses" [for monumental losses foist on taxpayers; taxpayers got the shaft (as consolation)]

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

That

Is who I have a mortgage through, With all the bail outs and secret loans I think I should own my house now especially if they go bankrupt why should I owe money to someone else?

having a mortgage through them was not a choice they bought the damn thing.

Why is Bank of America being singled out?

Cuz the media tells us to.

Sure they deserve it, but so too does all big banks.

Only BoA isn't in the government's pocket, so the government's media pressures BoA in many ways, including getting us to hate it with a passion.

I sure as heck am not defending BoA. I left their punk butts a decade ago. I'm just questioning why we single BoA out.

When a hundred banks are on

When a hundred banks are on the road to bankruptcy, one of them is bound to reach their destination first.

Since early 2007, 498 banks have "imploded!" - Implode-o-Meter

It a long road to Tipperary. 498 buried so far. The following banks mentioned are still pretending, but how? Bailout? Ward of the Court (see Bank of America)? Custodial care? Conservatorship? Receivership? Zombie worship (see what you believe)?

Also shown: Bailouts, Writedown-Rundown & General Distress.

What other can do with your wealth is unbelievable.

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

It's the occasional

"sacrificial cow", that serves as a temporary catharsis for the people's wrath, and lets the rest of the banking cartel carry-on as usual.

The banks defaulted on most mortgages they hold

They had MERS on the original paperwork on most loans for many years. They did not negotiate in good faith, they sat down at closing with INTENT TO DEFRAUD the counter-party on the contract AND their own investors, by securitizing the document and then playing the derivatives market on BOTH SIDES with these legal instruments.
In their greed, they noticed a nasty paper trail behind them: Original documents. I suspect many original contracts, promissory notes, titles, deeds, whatever, are long gone.
People are faithfully paying their mortgages thinking one day they will be handed a clear title, but I don't think clear titles exist any more. The number I heard was 50% to 80% of all mortgages have the MERS "kiss of death" on them.
Sherry at "sherryquestioningall" has a very good website explaining this serpentine path. I have done everything I could think of, literally everything, to try to make people understand. Paying your home no longer means you own it, and it is in your own best interest to ask to see the ORIGINAL documents pertaining to the property you THINK you are buying. If you hold clear title already, please disregard this warning.
They gambled with our homes. "Russian roulette" with the gun always pointed at the homeowners and taxpayers. But things are changing, things are definitely changing.

Love or fear? Chose again with every breath.

Fishy

Long time no see. I have been busy readying my NH compound. My aquaponics worked great this year. I think I will be able to make this work.

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Thanks, Fishy

Do you have a link to a website where we can learn more about this?

And if the article is true then good riddance to another bankster. Couldn't happen to a nicer bunch.

“Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.” William Pitt

Related to the mess about MERS & mortgage fraud see DailyPaul

Search: DailyPaul MERS "by BobbyW24"

Extra credit: DailyPaul MERS "by Mark Twain"

Full credit: MERS

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

Bump

To get people out of this zombie

Patriot News
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Stand up For your Civil Rights
http://SueBadCops.com