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Jp Morgan May Take Over Bank Of America

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JP Morgan May Take Over Bank Of America

http://247wallst.com/2011/08/23/jp-morgan-may-take-over-bank-of-america/#ixzz1VslFgWsT

There is a rumor circulated on Wall St. that JP Morgan (NYSE: JPM) will take over Bank of America (NYSE: BAC) within the week. The government will support the deal with a $100 billion investment in preferred shares issued by the combined entity. Alternatively, the government may guarantee the value of a large pool of Bank of America assets. The word is that Treasury Secretary Geithner has discussed the transaction with JP Morgan CEO Jamie Dimon.The “merger” would completely destroy the value of BAC’s common shares.

The government feels that the deal may be necessary as Bank of America struggles unsuccessfully to close several transactions to bolster its balance sheet. The Wall Street Journal reported that Business Insider speculated that the financial firm will need to raise $200 billion which would be another possible event that would wipe out common shareholders.

http://blogs.wsj.com/marketbeat/2011/08/23/bank-of-america-could-it-need-200-billion-in-capital/?mod=wsj_share_twitter

Bank of America shares are bouncing back this morning from a ghastly fall yesterday, but worries about the bank haven’t gone away.

Shira Ovide over at Deal Journal points out there’s at least one relative optimist out there, who thinks the market is too worried about the bank’s need to raise capital.

This is in contrast with Jefferies analysts, who said yesterday that the bank needed $40 to $50 billion in fresh capital.

And this view really, really clashes with that of Henry Blodget, who this morning writes that the bank might need $100 to $200 billion in fresh capital.

Building on groundwork laid by Zero Hedge and Yves Smith, Mr. Blodget runs through all of the chunks that should be bitten out of BofA’s $222 billion book value

..more at link.

Of course, rumours, speculation, beware the source and so on.

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Amazing what can change in 3 years - the then boss of BAC thinking he was picking up Morgan Stanley for a song. Roll on 3 years and BAC is fecked.

Amazing these brilliant CEOs.

Certainly a lot has changed. 3 years ago it was Merrill Lynch they were buying.

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JPM’s derivative exposure is even worse than Bear Stearns and Lehman‘s derivative portfolio just prior to their fall. Total net derivative exposure rated below BBB and below for JP Morgan currently stands at 35.4% while the same stood at 17.0% for Bear Stearns (February 2008) and 9.2% for Lehman (May 2008).

http://boombustblog.com/BoomBustBlog/An-Independent-Look-into-JP-Morgan.html

At what point does this farce end?

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MBNA = BoA so would explain the interest in selling off Europes largest credit card, or closing it. They must be really hurting.

Good. I am not paying them back and nor should anyone else.

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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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