Home › Forums › Financial Markets/Economics › Lehman Said to Prepare Bankruptcy as Buyers Withdraw (BofA to pick up Merril Lynch)
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September 14, 2008 at 9:51 PM #270629September 14, 2008 at 9:51 PM #270321
TheBreeze
Participant[quote=equalizer]$18 Billion dollar premium for MER. CEO Thain will warrant a nice little bonus. What financial problem? BofA, WFC, JPM will just buy out all the other banks, Wall Street problems solved. BofA wouldn’t pay massive premium if MER had any problems (unless they secretly transfer all debt to Uncle Sam).
In election year, feds will do whatever it takes to stem the tide. [/quote]
BofA claims that they only bought the mortgage servicing business from Countrywide (instead of buying the whole outhouse, they are just claiming the valuable unused TP). It’s likely that they are going to try to do the same thing here with MER. Actually, I think this deal is a sham and it will never go through.
September 14, 2008 at 9:51 PM #270555Participant[quote=equalizer]$18 Billion dollar premium for MER. CEO Thain will warrant a nice little bonus. What financial problem? BofA, WFC, JPM will just buy out all the other banks, Wall Street problems solved. BofA wouldn’t pay massive premium if MER had any problems (unless they secretly transfer all debt to Uncle Sam).
In election year, feds will do whatever it takes to stem the tide. [/quote]
BofA claims that they only bought the mortgage servicing business from Countrywide (instead of buying the whole outhouse, they are just claiming the valuable unused TP). It’s likely that they are going to try to do the same thing here with MER. Actually, I think this deal is a sham and it will never go through.
September 14, 2008 at 9:51 PM #270559Participant[quote=equalizer]$18 Billion dollar premium for MER. CEO Thain will warrant a nice little bonus. What financial problem? BofA, WFC, JPM will just buy out all the other banks, Wall Street problems solved. BofA wouldn’t pay massive premium if MER had any problems (unless they secretly transfer all debt to Uncle Sam).
In election year, feds will do whatever it takes to stem the tide. [/quote]
BofA claims that they only bought the mortgage servicing business from Countrywide (instead of buying the whole outhouse, they are just claiming the valuable unused TP). It’s likely that they are going to try to do the same thing here with MER. Actually, I think this deal is a sham and it will never go through.
September 14, 2008 at 9:51 PM #270607Participant[quote=equalizer]$18 Billion dollar premium for MER. CEO Thain will warrant a nice little bonus. What financial problem? BofA, WFC, JPM will just buy out all the other banks, Wall Street problems solved. BofA wouldn’t pay massive premium if MER had any problems (unless they secretly transfer all debt to Uncle Sam).
In election year, feds will do whatever it takes to stem the tide. [/quote]
BofA claims that they only bought the mortgage servicing business from Countrywide (instead of buying the whole outhouse, they are just claiming the valuable unused TP). It’s likely that they are going to try to do the same thing here with MER. Actually, I think this deal is a sham and it will never go through.
September 14, 2008 at 9:51 PM #270634Participant[quote=equalizer]$18 Billion dollar premium for MER. CEO Thain will warrant a nice little bonus. What financial problem? BofA, WFC, JPM will just buy out all the other banks, Wall Street problems solved. BofA wouldn’t pay massive premium if MER had any problems (unless they secretly transfer all debt to Uncle Sam).
In election year, feds will do whatever it takes to stem the tide. [/quote]
BofA claims that they only bought the mortgage servicing business from Countrywide (instead of buying the whole outhouse, they are just claiming the valuable unused TP). It’s likely that they are going to try to do the same thing here with MER. Actually, I think this deal is a sham and it will never go through.
September 14, 2008 at 9:52 PM #270331capeman
Participant[quote]Actually, I think this deal is a sham and it will never go through.[/quote]
That’s what we thought about the Countrywide deal.
September 14, 2008 at 9:52 PM #270565Participant[quote]Actually, I think this deal is a sham and it will never go through.[/quote]
That’s what we thought about the Countrywide deal.
September 14, 2008 at 9:52 PM #270569Participant[quote]Actually, I think this deal is a sham and it will never go through.[/quote]
That’s what we thought about the Countrywide deal.
September 14, 2008 at 9:52 PM #270617Participant[quote]Actually, I think this deal is a sham and it will never go through.[/quote]
That’s what we thought about the Countrywide deal.
September 14, 2008 at 9:52 PM #270643Participant[quote]Actually, I think this deal is a sham and it will never go through.[/quote]
That’s what we thought about the Countrywide deal.
September 14, 2008 at 9:53 PM #270336Participant[quote=davelj]
In this whole bizarre mess, the price BofA is paying for Merrill is the most bizarre. Normally I can come up with some oddball potential explanation. But this one? Can’t do it. I’m mystified.
But I’m assuming it has some tie into saving BofA’s ass in the end. For example, if allowing Merrill to fail after Lehman failed then caused BofA to go down the tubes as a result (due to a lack of confidence in the system) then MAYBE BofA figured: “We’re the only party that can buy these clowns and we have to make it look like all of the clowns are worth something. Because if the clowns aren’t worth anything, then we’re not worth anything (even though we’re a money center bank – a higher caliber of clown than the investment banks). The illusion must be maintained that clowns are valuable. Therefore, we will use our stock (re: funny money) as a currency and buy Merrill at a premium to keep the illusion of value in tact… hopefully long enough to get us all out of the woods.”
That’s the best I can do. Totally weird.[/quote]
Your explanation sounds perfectly plausible in this environment.
September 14, 2008 at 9:53 PM #270570Participant[quote=davelj]
In this whole bizarre mess, the price BofA is paying for Merrill is the most bizarre. Normally I can come up with some oddball potential explanation. But this one? Can’t do it. I’m mystified.
But I’m assuming it has some tie into saving BofA’s ass in the end. For example, if allowing Merrill to fail after Lehman failed then caused BofA to go down the tubes as a result (due to a lack of confidence in the system) then MAYBE BofA figured: “We’re the only party that can buy these clowns and we have to make it look like all of the clowns are worth something. Because if the clowns aren’t worth anything, then we’re not worth anything (even though we’re a money center bank – a higher caliber of clown than the investment banks). The illusion must be maintained that clowns are valuable. Therefore, we will use our stock (re: funny money) as a currency and buy Merrill at a premium to keep the illusion of value in tact… hopefully long enough to get us all out of the woods.”
That’s the best I can do. Totally weird.[/quote]
Your explanation sounds perfectly plausible in this environment.
September 14, 2008 at 9:53 PM #270574Participant[quote=davelj]
In this whole bizarre mess, the price BofA is paying for Merrill is the most bizarre. Normally I can come up with some oddball potential explanation. But this one? Can’t do it. I’m mystified.
But I’m assuming it has some tie into saving BofA’s ass in the end. For example, if allowing Merrill to fail after Lehman failed then caused BofA to go down the tubes as a result (due to a lack of confidence in the system) then MAYBE BofA figured: “We’re the only party that can buy these clowns and we have to make it look like all of the clowns are worth something. Because if the clowns aren’t worth anything, then we’re not worth anything (even though we’re a money center bank – a higher caliber of clown than the investment banks). The illusion must be maintained that clowns are valuable. Therefore, we will use our stock (re: funny money) as a currency and buy Merrill at a premium to keep the illusion of value in tact… hopefully long enough to get us all out of the woods.”
That’s the best I can do. Totally weird.[/quote]
Your explanation sounds perfectly plausible in this environment.
September 14, 2008 at 9:53 PM #270622Participant[quote=davelj]
In this whole bizarre mess, the price BofA is paying for Merrill is the most bizarre. Normally I can come up with some oddball potential explanation. But this one? Can’t do it. I’m mystified.
But I’m assuming it has some tie into saving BofA’s ass in the end. For example, if allowing Merrill to fail after Lehman failed then caused BofA to go down the tubes as a result (due to a lack of confidence in the system) then MAYBE BofA figured: “We’re the only party that can buy these clowns and we have to make it look like all of the clowns are worth something. Because if the clowns aren’t worth anything, then we’re not worth anything (even though we’re a money center bank – a higher caliber of clown than the investment banks). The illusion must be maintained that clowns are valuable. Therefore, we will use our stock (re: funny money) as a currency and buy Merrill at a premium to keep the illusion of value in tact… hopefully long enough to get us all out of the woods.”
That’s the best I can do. Totally weird.[/quote]
Your explanation sounds perfectly plausible in this environment.
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