http://www.nytimes.com/2010/10/15/business/15bank.html?partner=yahoofinance
I love it, this is just beautiful.
I love it, this is just beautiful.
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BAC on the hook for 70 billion?
- Thread starter joe4422
- Start date
Quote from joe4422:
http://www.nytimes.com/2010/10/15/business/15bank.html?partner=yahoofinance
I love it, this is just beautiful.
the fact that the water is so murky tells me this will drag on and takes banks down further over coming days. 6bil - 70bil that's a WIDE range of possible outcomes. The market will want clarity soon.
The monolines MBI ABK etc are probably the biggest beneficiaries.
The 70 billion has nothing to do with the freeze. This is what BAC may have to spend to buy back mortgages from Fannie mae. The other banks are all on the hook too. The original figure was possible 40 billion for all the major banks combined, but now this article says 70 billion just for BAC alone.
Can BAC return to the 2.50 level? Or lower?
Can BAC return to the 2.50 level? Or lower?
I think this new bank news has been hyped up a bit too much perhaps. I of course do not know this for sure.
Once the banks start to participate in this rally it should easily push us 1250+ you would think. Usually you get this knee-jerk type reaction to news, and as far as I know currently no one really knows anything for sure.
It could be a catalyst to push us significantly higher IMO if it doesn't end up being the worst possible outcome for the banking industry.
Once the banks start to participate in this rally it should easily push us 1250+ you would think. Usually you get this knee-jerk type reaction to news, and as far as I know currently no one really knows anything for sure.
It could be a catalyst to push us significantly higher IMO if it doesn't end up being the worst possible outcome for the banking industry.
Quote from Algo_Design_Kid:
I think this new bank news has been hyped up a bit too much perhaps. I of course do not know this for sure.
Once the banks start to participate in this rally it should easily push us 1250+ you would think. Usually you get this knee-jerk type reaction to news, and as far as I know currently no one really knows anything for sure.
It could be a catalyst to push us significantly higher IMO if it doesn't end up being the worst possible outcome for the banking industry.
the market seems perfectly happy to go up without the financials as it is.
I can tell you these Billions mean nothing to the financials. Banks were bailed out of the biggest credit crisis in history, $144 Billion worth of bonuses are being paid out on wallstreet this year, no one cares because bubble ben bernanke and friends will do anything they can do to relieve any pressure off the financials and the rest of this problem moving forward. All Bubble ben bernanke has to do is start creating new programs and start handing out more monopoly money to fix this problem, if these banks were bailed out before they will be bailed out again, this problem will come and go and be forgotten about in due time. I am bearish on this entire market and still think this will be a not be a problem.
The Mortgage Fraud Scandal Is The Biggest In Human History
Read more: http://www.businessinsider.com/clusterstock#ixzz12OOFG0gk
Read more: http://www.businessinsider.com/clusterstock#ixzz12OOFG0gk
But these rumors of banks being forced to buy back mortgages from Fannie Mae began a couple of months ago. Since then the banks have been steadily selling off. Even WFC has been getting punished.
The financial sector itself should do much better than the big banks. Stay away from XLF and look at something KRE.
The financial sector itself should do much better than the big banks. Stay away from XLF and look at something KRE.
Banks will get another TARP II bailout.