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Bank Of America Bailed Out

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http://business.timesonline.co.uk/tol/busi...icle5526678.ece

Last night Bank of America was reported to be on the brink of an agreement with US officials that would give it an injection of $15 billion to $20 billion of fresh capital while underwriting $115 billion to $120 billion of its assets.

Well it's only money itsn't it.

And to think Merrill Lynch was worth $50bn to secure unlimited debts to be bailout by the taxpayer. What a fantastic buy.

Can anyone here who works in the City please explain why you would pay $50bn for a piece of shit?

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Guest sillybear2
Can anyone here who works in the City please explain why you would pay $50bn for a piece of shit?

Because Paulson told them to.

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Can anyone here who works in the City please explain why you would pay $50bn for a piece of shit?

Perhaps BoA was an installation by Damian Hirst? Then again, this whole thing reeks of too much absurdism to be British art.

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Is the argument on this thread that the Merril Lynch buyout caused BoA's problems? The view on CNBC yesterday was that au contraire, the BoA must have been in difficulties from other items on its books.

Whatever the answer, it's becoming clearer than ever that Bailout 1 has failed.

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Is the argument on this thread that the Merril Lynch buyout caused BoA's problems? The view on CNBC yesterday was that au contraire, the BoA must have been in difficulties from other items on its books.

Whatever the answer, it's becoming clearer than ever that Bailout 1 has failed.

If the BoA was in trouble before buying Merrill Lynch how the fook did it find $50bn to pay for it? Down the back of the sofa? It should have kept the money for capital or did it borrow it?

Either way paying $50bn was reckless and shouldn't have happened. It does appear to have been a bailout for shareholders in Merrill Lynch.

Edit spelling

Edited by interestrateripoff

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Guest theboltonfury
Is the argument on this thread that the Merril Lynch buyout caused BoA's problems? The view on CNBC yesterday was that au contraire, the BoA must have been in difficulties from other items on its books.

Whatever the answer, it's becoming clearer than ever that Bailout 1 has failed.

now we can look forward to Bail Outs 3,4,5,6 etc

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If the BoA was in trouble before buying Merrill Lynch who the fook did it find $50bn to pay for it? Down the back of the sofa? It should have kept the money for capital or did it borrow it?

Either way paying $50bn was reckless and shouldn't have happened. It does appear to have been a bailout for shareholders in Merrill Lynch.

I can't answer the first paragraph but your second paragraph is spot-on.

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If the BoA was in trouble before buying Merrill Lynch who the fook did it find $50bn to pay for it? Down the back of the sofa? It should have kept the money for capital or did it borrow it?

I think the answer is they didn't pay anything. Not a bean. It was a share swap. The bank of america created new shares and swapped them for Merrill's old shares, the accounting treatment just moves the reserves from one company to the other. It's the same as is happening with Lloyds HBOS. 50bn is the just the value of the company at the rate of shares swapped.

http://newsroom.bankofamerica.com/index.ph...s&item=8255

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BoA buy Merrill and become 'too big to fail'

When will the bailouts end........ZIMBABWEISATION

Not if the money is used to shore them up while they offload the assets they can offload, and reduce to a much smaller leaner company.

I'll get my coat.

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Guest sillybear2
Is the argument on this thread that the Merril Lynch buyout caused BoA's problems? The view on CNBC yesterday was that au contraire, the BoA must have been in difficulties from other items on its books.

Rule #1 in the bailout textbook - you cannot use two drunks to prop each other up.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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