It'll be interesting to see how it plays out. I haven't seen any suggestions in any of the reports that BAC broke the law, unless someone else has. Stupid maybe, but illegal? Structured investments to avoid taxes are common.
Not necessarily. If you noted from recent news, a big source of funds banks use for commercial paper is drying up as new government regulations force the big money market funds to move away from commercial paper to holding nothing but government paper. That will bring up the cost of funding, although how much is yet to be seen. And don't forget that when the Feds start raising rates, the rates they raise will be an increased cost to the banks as well. The real question is, what will rise faster, the rates banks can charge borrowers or the rates charged to banks for the funds to loan.
It'll be interesting to watch. Banks can't afford to see their borrowing costs go up as long as the rates they charge remain so low. I would expect to see some additional activity around competition for deposits, particular for those higher wealth customers who keep large balances. At the other end, I would also expect to see continued shrinkage in the volume of loans being originated, not only due to this issue, but because of all the additional regulatory and capital requirements on the big banks. In the end I think the only real means for banks to increase income is to increase fees particularly on those who carry small balances and don't do a lot of business with the bank.
What Obama wants, and what he gets are two different things. Republicans control both houses of Congress, so the blame for any tax increases that make it through Congress will be solely on the shoulders of the Republicans.
It's not a suggestion. Countrywide has no value. As for bankruptcy, that has been discussed and discussed. There is no guarantee that they would win in court, and could actually become liable for more losses since they did strip the company of all valuable assets. When's the last time you heard of any bank putting any division through bankruptcy? It would be a public relations disaster and could drag on in the courts for years.
All valuable assets were stripped out of Countrywide shortly after the merger. All that is left are the remaining bad loans.
BAC's massive exposure to Greek debt? What planet do you live on? BAC got most of it's money out of Greek assets and debt a long time ago. Nice try but I don't believe you'll find many takers for your attempted scare tactics here.
If past history is any guide, it won't be until March or that time frame. Remember, the Feds have to complete their stress test analysis of the data the banks only recently completed. Based on that the Feds will approve or disapprove whatever capital plans the banks submitted. We won't know anything until that process is completed.
So you'd rather the bank just sit back and let the hackers have the run of their systems? Do you have any idea of the constant attacks the banks have to defend against? Welcome to ignore.
Well, the only way he can do that is if the Republican controlled Congress agrees. Then, if it does pass Congress, who's really to blame, Obama or the Republican led Congress?
I don't think we'll see a major move upward for some time. Right now I'd just settle for a floor to be set.
It's going to be interesting to see what side of the bet BAC has been on with all the currency turmoil as they are a major player in currency trades. I think most of the big banks, BAC, JPM, C, maybe WFC, will see losses from the Swiss Franc actions. How big remains to be seen. Also looks like the oil and commodities collapse is working it's way through producer and consumer price indexes, as well as the impact of the stronger dollar. Good for consumers, not particularly good for US and world economy. Interest rates still on the downslope meaning net interest margins at banks will continue to be squeezed. All in all, if this continues, I wouldn't make any bets on stellar earnings from any of the big banks this quarter.
What exactly would you have them do about Countrywide other than what they are already doing, and that is slowly unwinding their positions. Bankruptcy is not a serious option. As for Merrill Lynch, they have been a great add to the bottom line.
While anything is possible, I tend to doubt it will go that low. I think this particular drop is about played out. I don't see any huge or rapid increases, but I do think we'll see this walk back up a bit.
Considering what it has been through the past few years, the results are actually in line with the experience of the other big banks which I see as a positive. In addition, while revenue was down, like everyone else, they are still making progress on expenses and have more room to improve there as they slowly unwind all those legacy Countrywide bad loans. Right now the environment is tough for everyone, but BAC seems to be doing the right things so far.
If you really think BAC would have been up the past few days while everything else was down, then I've got a bridge I'm willing to sell you. Good luck and welcome to ignore.