Home › Forums › Financial Markets/Economics › Major event – BofA says no legal or moral obligation to contracts
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bsrsharma.
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July 27, 2008 at 9:19 PM #13440July 27, 2008 at 9:29 PM #248005
bsrsharma
ParticipantHard to find fault if these were the terms of the buyout. BTW, I suspect this was a shotgun marriage to prevent an Indymac times ten catastrophe.
As an approximate precedent, when BS collapsed, JPM agreed to takeover only when Fed agreed to swallow losses. I guess Countrywide doesn’t pose systemic failure risk so Fed/Treasury is not backstopping.
July 27, 2008 at 9:29 PM #248234ParticipantHard to find fault if these were the terms of the buyout. BTW, I suspect this was a shotgun marriage to prevent an Indymac times ten catastrophe.
As an approximate precedent, when BS collapsed, JPM agreed to takeover only when Fed agreed to swallow losses. I guess Countrywide doesn’t pose systemic failure risk so Fed/Treasury is not backstopping.
July 27, 2008 at 9:29 PM #248228ParticipantHard to find fault if these were the terms of the buyout. BTW, I suspect this was a shotgun marriage to prevent an Indymac times ten catastrophe.
As an approximate precedent, when BS collapsed, JPM agreed to takeover only when Fed agreed to swallow losses. I guess Countrywide doesn’t pose systemic failure risk so Fed/Treasury is not backstopping.
July 27, 2008 at 9:29 PM #248165ParticipantHard to find fault if these were the terms of the buyout. BTW, I suspect this was a shotgun marriage to prevent an Indymac times ten catastrophe.
As an approximate precedent, when BS collapsed, JPM agreed to takeover only when Fed agreed to swallow losses. I guess Countrywide doesn’t pose systemic failure risk so Fed/Treasury is not backstopping.
July 27, 2008 at 9:29 PM #248161ParticipantHard to find fault if these were the terms of the buyout. BTW, I suspect this was a shotgun marriage to prevent an Indymac times ten catastrophe.
As an approximate precedent, when BS collapsed, JPM agreed to takeover only when Fed agreed to swallow losses. I guess Countrywide doesn’t pose systemic failure risk so Fed/Treasury is not backstopping.
July 27, 2008 at 10:10 PM #248243SD Realtor
ParticipantI agree with BSR…This is something we did all discuss when it was announced… that BofA would take the assets and in the end chuck all of the debt…Did anyone ever think for a minute BofA would have gone through with this deal assuming any of that debt?
If anything, the taxpayers will somehow be put on the hook to throw the bondholders a small bone.
July 27, 2008 at 10:10 PM #248020ParticipantI agree with BSR…This is something we did all discuss when it was announced… that BofA would take the assets and in the end chuck all of the debt…Did anyone ever think for a minute BofA would have gone through with this deal assuming any of that debt?
If anything, the taxpayers will somehow be put on the hook to throw the bondholders a small bone.
July 27, 2008 at 10:10 PM #248176ParticipantI agree with BSR…This is something we did all discuss when it was announced… that BofA would take the assets and in the end chuck all of the debt…Did anyone ever think for a minute BofA would have gone through with this deal assuming any of that debt?
If anything, the taxpayers will somehow be put on the hook to throw the bondholders a small bone.
July 27, 2008 at 10:10 PM #248180ParticipantI agree with BSR…This is something we did all discuss when it was announced… that BofA would take the assets and in the end chuck all of the debt…Did anyone ever think for a minute BofA would have gone through with this deal assuming any of that debt?
If anything, the taxpayers will somehow be put on the hook to throw the bondholders a small bone.
July 27, 2008 at 10:10 PM #248249ParticipantI agree with BSR…This is something we did all discuss when it was announced… that BofA would take the assets and in the end chuck all of the debt…Did anyone ever think for a minute BofA would have gone through with this deal assuming any of that debt?
If anything, the taxpayers will somehow be put on the hook to throw the bondholders a small bone.
July 27, 2008 at 11:13 PM #248254equalizer
ParticipantSDR,
But why pay for common stock? Why not let stock fall to $1 and scoop in before FDIC takeover for bankside. Banks are not permitted to go into BK.
I think is a seminal event for bond managers. How can a bond manager trust bonds???
July 27, 2008 at 11:13 PM #248248ParticipantSDR,
But why pay for common stock? Why not let stock fall to $1 and scoop in before FDIC takeover for bankside. Banks are not permitted to go into BK.
I think is a seminal event for bond managers. How can a bond manager trust bonds???
July 27, 2008 at 11:13 PM #248025ParticipantSDR,
But why pay for common stock? Why not let stock fall to $1 and scoop in before FDIC takeover for bankside. Banks are not permitted to go into BK.
I think is a seminal event for bond managers. How can a bond manager trust bonds???
July 27, 2008 at 11:13 PM #248185ParticipantSDR,
But why pay for common stock? Why not let stock fall to $1 and scoop in before FDIC takeover for bankside. Banks are not permitted to go into BK.
I think is a seminal event for bond managers. How can a bond manager trust bonds???
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