August 8, 2011 Finance Obama Politics 0

 

 

Bank of America is going bye bye…and guess who is the executioner?  AIG.  This time AIG isn’t the purveyor of bad assets they are trying to recover bad assets from Bank of America.  Combine this with one of BAC biggest pumpers has dumped them and with BAC’s stock now directly tied to it’s cash reserves BAC is toast.  Remember the disaster TARP 1 was?  The US Gov’t is going to try to do a TARP 2. This WILL IMO lead to a further downgrade by S&P and Moody’s and Fitch may not be able to stand with the US Gov’t against S&P due to the enormous amount of additional debt this will INSTANTLY put the gov’t under.   Despite this Obama and CONgress will try to thumb its nose at the credit agencies and try to keep this huge zombie bank lumbering around mindlessly under the lie of too big to fail.

 

 

Here Comes TARP 2: Bank Of America Implodes, At $6.87, BAC CDS Up 20% To 260 bps As Bankruptcy Contemplated | ZeroHedge.