The international press is whipped into a frenzy reporting on the continued decline of BofA shares as the entire world recognizes the epic liabilities faced by this one untouchable giant. For anyone who has dealt with BofA throughout this crisis, the thought of their collapse is not hard to imagine. How many failed loan modifications? How many refused short sales? How much arrogance and ignoring basic business and banking principles occurs before their are real consequences, even in the land of perverse government incentives? Just think of what will happen when the world realizes the Emperor has no clothes…
From the Guardian, UK:
Bank of America continued its tailspin on Tuesday as shares in the largest US bank tumbled by another 6.4% to their lowest level since March 2009, fuelling fears of a second banking crisis.
As concerns mounted that BoA will need to take huge additional write-offs on bad mortgages, the cost of insuring the group’s debt jumped to record levels and investors became increasingly concerned that the financial system could be facing a fresh credit crunch.
BoA’s share-price fall followed a 7.9% drop on Monday, which took the stock to less than half its value at the start of the year ““ a decline that wiped about $65bn from its market capitalisation. Guardian UK Story
But Please Take A Moment to Visit Attorney Eric Schneiderman’s Comment Page He is apparently the only person in a position of power that cares about everyday Americans. Make no mistake, we are heading for epic tough times, but it ain’t cause Schneiderman is standing up for you or I…It’s because of the epic failures of all levels of trust shown by everyone else in power and the failure of everyone to stand up…..the darkness comes.