Bank of America to Buy Countrywide for $4billion

[Coronita]

The biggest question here is: Did BofA guess right, or wrong? The acquisition was at a considerable discount from the previous market cap, but the company is in disarray, with many thinking the worst is yet to come. It will be interesting to see how this plays out.

My guess is that they won't be doing the cleanup without assistance from the Gov. I'm sure they'll get some deal from the Fed. Fed will just use BofA as a proxy to do the toxic cleanup. I wasn't kidding in the previous post about all BofA doing "one time restructing charges" for the next couple of quarters or years….They'll just keep playing the game "we beat estimates before the one time charges", but here are the one time charges related to the CFC acquisition. You spread the loss over a couple of quarters over a few years, with the assistance of cash infusion from Fed or foreign companies ,possibly sell off some of this toxic waste at a huge discount to offshore investors, and in a few years, problem magically goes away. Lol….

 

They're already starting to play this game:

Bank of America expects a $1.2 billion restructuring charge from the transaction, and said it will need a couple of billion dollars of new capital to help preserve its capital ratios.

The next time, it will be another 1.2 billion. Do this across 8 quarters, you got a nice 10.6 billion in charges you just passed through over the course of 2 years, while still being able to look great to wall street ("it was only the one time restructuring charges".) This would be great for BofA to clean their own house too, everything bad is related to the restructuring. 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo's country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

4) Why are you buying one of America's most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide's assets deteriorate further over time.

JS

Why did Carly Fiorina get her severance for mucking up HP/Compaq for so long?? It's called a golden parachute. It might not appear fair, but it is what it is.

 

 

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

Hmmm, Indian call center workers teaching some Americans basic math skills for free…That wouldn't be a bad thing would it? Who else would these people learn from here in the States? 🙂

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo's country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

4) Why are you buying one of America's most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide's assets deteriorate further over time.

JS

Why did Carly Fiorina get her severance for mucking up HP/Compaq for so long?? It's called a golden parachute. It might not appear fair, but it is what it is.

 

 

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

Hmmm, Indian call center workers teaching some Americans basic math skills for free…That wouldn't be a bad thing would it? Who else would these people learn from here in the States? 🙂

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo's country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

4) Why are you buying one of America's most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide's assets deteriorate further over time.

JS

Why did Carly Fiorina get her severance for mucking up HP/Compaq for so long?? It's called a golden parachute. It might not appear fair, but it is what it is.

 

 

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

Hmmm, Indian call center workers teaching some Americans basic math skills for free…That wouldn't be a bad thing would it? Who else would these people learn from here in the States? 🙂

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo's country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

4) Why are you buying one of America's most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide's assets deteriorate further over time.

JS

Why did Carly Fiorina get her severance for mucking up HP/Compaq for so long?? It's called a golden parachute. It might not appear fair, but it is what it is.

 

 

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

Hmmm, Indian call center workers teaching some Americans basic math skills for free…That wouldn't be a bad thing would it? Who else would these people learn from here in the States? 🙂

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

I have some questions for Kenneth D. Lewis, the CEO of Bank of America:

1) Are you really going to pay Angelo Mozillo's country club membership fees through 2011?

2) Why are you giving Mr. Mozillo — a failed executive — $115 million in severance pay?

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

4) Why are you buying one of America's most evil companies?

Nothing good will come of this deal. B of A will be humbled as Countrywide's assets deteriorate further over time.

JS

Why did Carly Fiorina get her severance for mucking up HP/Compaq for so long?? It's called a golden parachute. It might not appear fair, but it is what it is.

 

 

3) Will Countrywide's India based customer service employees be taught the phrase "Bank of America/Countrywide regrets that you were not adequately informed of the terms of your mortgage."

Hmmm, Indian call center workers teaching some Americans basic math skills for free…That wouldn't be a bad thing would it? Who else would these people learn from here in the States? 🙂

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[XBoxBoy]

When I read about this story on various blogs, I often see suggestions that the Fed was behind this deal, twisting BofA’s arm to make it happen. Anyone have any idea how the fed twists a large banks arm? What leverage can they use other than to ask pretty please with cream and sugar and a cherry on top?

Inquiring minds want to know.

XBoxBoy

[XBoxBoy]

When I read about this story on various blogs, I often see suggestions that the Fed was behind this deal, twisting BofA’s arm to make it happen. Anyone have any idea how the fed twists a large banks arm? What leverage can they use other than to ask pretty please with cream and sugar and a cherry on top?

Inquiring minds want to know.

XBoxBoy

[XBoxBoy]

When I read about this story on various blogs, I often see suggestions that the Fed was behind this deal, twisting BofA’s arm to make it happen. Anyone have any idea how the fed twists a large banks arm? What leverage can they use other than to ask pretty please with cream and sugar and a cherry on top?

Inquiring minds want to know.

XBoxBoy

[XBoxBoy]

When I read about this story on various blogs, I often see suggestions that the Fed was behind this deal, twisting BofA’s arm to make it happen. Anyone have any idea how the fed twists a large banks arm? What leverage can they use other than to ask pretty please with cream and sugar and a cherry on top?

Inquiring minds want to know.

XBoxBoy

[XBoxBoy]

When I read about this story on various blogs, I often see suggestions that the Fed was behind this deal, twisting BofA’s arm to make it happen. Anyone have any idea how the fed twists a large banks arm? What leverage can they use other than to ask pretty please with cream and sugar and a cherry on top?

Inquiring minds want to know.

XBoxBoy

[Fearful]

Carrot: The Fed can offer to take questionable collateral for loans to BofA.

Stick: The Fed can say they will scrutinize BofA more closely before new loans.

The Fed has BofA’s nuts firmly in their grip. Not that they can actually twist hard, but they can squeeze, or they can relax. Either way is worth some serious cash to BofA.

[Fearful]

Carrot: The Fed can offer to take questionable collateral for loans to BofA.

Stick: The Fed can say they will scrutinize BofA more closely before new loans.

The Fed has BofA’s nuts firmly in their grip. Not that they can actually twist hard, but they can squeeze, or they can relax. Either way is worth some serious cash to BofA.

[Fearful]

Carrot: The Fed can offer to take questionable collateral for loans to BofA.

Stick: The Fed can say they will scrutinize BofA more closely before new loans.

The Fed has BofA’s nuts firmly in their grip. Not that they can actually twist hard, but they can squeeze, or they can relax. Either way is worth some serious cash to BofA.

[Fearful]

Carrot: The Fed can offer to take questionable collateral for loans to BofA.

Stick: The Fed can say they will scrutinize BofA more closely before new loans.

The Fed has BofA’s nuts firmly in their grip. Not that they can actually twist hard, but they can squeeze, or they can relax. Either way is worth some serious cash to BofA.

[Author]

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